BLOWPLAST LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST MARCH 2025

Page

Company Information

1

Strategic Report

2

Report of the Director

6

Report of the Independent Auditors

8

Statement of Income and Retained Earnings

11

Statement of Financial Position

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

16

DIRECTOR:

K Singh

SECRETARY:

Miss S K Virk

REGISTERED OFFICE:

Unit 1 Sands Industrial Estate

Hillbottom Road

High Wycombe

Buckinghamshire

HP12 4HJ

REGISTERED NUMBER:

02294547 (England and Wales)

AUDITORS:

HW Bedford Limited

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

The director presents his strategic report for the year ended 31st March 2025.

The company continued its principal activities of manufacturing plastic bottles and containers for dairy products.

The current economic environment continues to be challenging and, as a result, cost and margin control are of paramount importance to both the Company and its customers. With a focus around delivering and then measuring the return on investment within the business, we believe we are well placed to prosper in these challenging times.

We are cautiously optimistic about the future. We strive to achieve operational efficiencies introducing more digital reporting and analysing processes across the business. The management teams are bedded in and making positive contributions in each area of the business.

However as with all UK businesses, any uncertainty in the UK economy has the potential to impact any management plan. The company's performance is closely linked to the activity levels of its customers but with the existence of wide and varied customer base, the Director believes that this company is well placed to endure the current economic conditions.

Key Performance Indicators

The directors considered the most important KPI's to the gross profit margin and the net profit margin. Both of these indicators are in line with expectations.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have considered the principle risks and uncertainties affecting the company as at 31 March 2025 and up to the date of this report

Market Risks

The company continues to operate in a competitive market with constant pressures on margin. The risk is managed by continuing efforts to improve efficiency and reduce costs. The company is dependent on relationships and business dealing with key customers. There is a limited exposure to the potential loss of business if any of the top customers significantly reduced the amount of business order they place with the Company; the revenue and operating results could be adversely affected.

Competition

The company operates in a competitive market. If the Company does not continue to compete effectively by continuing to provide high-quality products and services the Company could lose customers and in consequence operating profits could be adversely affected. The Board has a number of initiatives to improve productivity. These initiatives focus on identifying more efficient ways of working either through process improvements of technological enhancements.

The business of the Company may be vulnerable to new and existing competitors and increased price competition. This factor could adversely affect the business and prospects of the Company. The Company monitors the performance of the business through its monthly operational and financial reporting, with comparisons to budgets.

Financial Risks

The company's financial instruments comprise cash and liquid resources, various items such as trade debtors, trade creditors etc that arise directly from operation. The main purpose of the financial instruments is to raise finance for the company's operations. It has been through out the period under review, the company's policy that no trading financial instruments shall be undertaken. The main risks arising from the company's financial instrument is credit risk.

Credit Risks

The company trades with only recognised, creditworthy third parties. It is company policy that all customers who wish to trade on credit terms are subject to credit vetting procedures.

Human resources

The company operation is dependent on existing key employees in order to sustain, develop and grow its businesses and there can be no assurances that these employees will remain with the company. The success of the company will reflect its ability to retain, attract and motivate highly qualified people equipped to deliver results. In order to manage the risk of personnel change, the company regularly review personal development and succession planning.

Environmental Risks

Laws and regulations with regard to the use of plastic related materials are likely to be under review in the future and possible changes to the regulations may impact upon the market for plastic related products.

SECTION 172(1) STATEMENT

The Directors, in line with their duties under s172 of the Companies Act 2006, act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to factors (a) to (e):

a. the likely consequences of any decision in the long term;

b. the interests of the Company's employees;

c. the need to foster the Company's business relationships with suppliers, customers and others;

d. the impact of the Company's operations on the community and the environment, and;

e. the desirability of the Company maintaining a reputation for high standards of business conduct.

Long term consequences of business decisions:

Consideration of long term consequences are an inherent part of the Company's decision making processes. As a privately-owned Company, the Directors consider that the interests of the Company and its ultimate owners are aligned in seeking sustainable value creation over the longer term through the Company's operations, promoting long term strategic decision

Interests of the Company's employees:

The Directors promote a culture of upholding the highest standards of business conduct and regulatory conduct. The Directors ensure these core values are communicated to the Company's employees and embedded in the

Company's policies and procedures, employee induction and training programmes and its risk control and oversight framework.

Identification of, and engagement with, stakeholder groups:

The Directors recognise the importance of maintaining strong relationships with its stakeholders in order to create sustainable long term value, and the Directors encourage active dialogue and transparency with all its stakeholder groups. The Company's key stakeholders are:

- Employees

- Shareholders

- Customers

- Suppliers

- Community and Environment

- Regulators

The views of and the impact of the Company's activities on those stakeholders are an important consideration for the Directors when making relevant decisions. The size and spread of the Company means that stakeholder engagement takes place at an operational and Group level.

Employees - the Directors encourage a culture that embraces difference and seeks to empower people so that they can thrive. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our team to ascertain which training and development opportunities should be made available to improve our team's productivity and our individual employees' potential within the business. The in-house Learning and Development team have developed an internal learning management system offering a variety of online courses available to all employees.

We continually invest in employee development and wellbeing to create and encourage an inclusive culture within the organisation. Our employee appraisal programme encourages employee feedback and facilities the opportunity for both employees and managers to set performance goals on an annual basis. The Directors are committed to the health and safety of all our employees and maintains systems and processes to ensure everyone is able to work safely.

Shareholders - we aim to provide clear information to our ultimate shareholders, being honest and transparent as to the performance of the business.

Customers - The Directors believe that the Company's long term sustainability is driven by understanding customer needs and acting in their best interests. We regularly monitor consumer trends, continue to promote the health benefits provided by our products and continue to focus on new product development.

Suppliers - Our suppliers are fundamental to the quality of our products and to ensuring that as a business we meet the high standards of conduct that we set ourselves. We work with a wide range of suppliers both in the UK and the European Union. We remain committed to being fair and transparent in our dealings with all of our suppliers.

Community and the Environment - the Company has a Group Environmental Policy committing us to reducing our environmental impacts, including climate change. There is an environmental management systems certified to BE EN ISO 14001 and the Company measures our carbon footprint and reports on these each period.

Regulators - We work with our regulators in an open and proactive manner to help develop regulations that meet the needs of all our stakeholders. The Directors intention is to behave responsibly and to ensure that the management team operates the business in a responsible manner, acting with the high standards and good governance expected of a regulated business like ours. In doing so, we believe we will achieve our long-term business strategy and further develop our reputation in our sector. We have an internal legal department to ensure that the Company complies with all legal and regulatory requirements.

Political Donations

No donations were made for political purposes (2024: NIL).

ON BEHALF OF THE BOARD:

K Singh - Director

29th December 2025

The director presents his report with the financial statements of the company for the year ended 31st March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of plastic bottles

DIVIDENDS

An interim dividend of £8,000,000 per share was paid on . The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31st March 2025 will be £ 8,000,000 .

DIRECTOR

K Singh held office during the whole of the period from 1st April 2024 to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

The SECR disclosure presents the company’s carbon footprint within the United Kingdom across scope 1 and 2 emissions, an appropriate intensity metric, the total energy use of electricity and gas and an energy efficiency actions summary taken during the relevant financial year.

Consumption

Consumption

Emission

Emissions

2025

2024

2025

2024

kwh

kwh

tco2e

tco2e

Scope 1 direct emissions from combustion of gas

18,276

13.528

3

3

Scope 2 indirect emissions from purchased electricity

18,563,570

16,331,380

3,844

3,382

Total energy consumption used to

18,581,847

16,344,638

3,847

3,384

calculate emissions

2025

2024

Intensity ratio: tco2e / Sales revenue in £M

96.20

86.56

Intensity ratio: tco2e / FTE :

37.71

36.79

Methodology

The SECR disclosure has been prepared for the financial year ended 31st March 2025 and reporting on all sources of environmental impact in the UK over which the company has financial and operational control. The reporting method used is in line with the HM Government Environmental Reporting Guidelines issued in March 2019 and the company has also used the Greenhouse Gas Reporting Protocol Corporate Standard. The emissions factor source is the 2024 UK Government's Conversion Factors for Company Reporting.

Results

Due to a decline in efficiency in 2025, there has been an increase in the consumption of gas and purchased electricity. This rise in consumption has consequently resulted in higher emissions for the year.

As a result of the increased consumption, the intensity ratios have also risen.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, HW Bedford Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

K Singh - Director

29th December 2025

Opinion

We have audited the financial statements of Blowplast Limited (the 'company') for the year ended 31st March 2025 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page seven, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Identifying and assessing the controls management has in place to prevent and detect fraud;

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- Challenging assumptions and judgments made by management in its significant accounting estimates and judgments.

- Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and

- Assessing the extent of compliance with the relevant laws and regulations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alberto Di Lorenzo FCA (Senior Statutory Auditor)

for and on behalf of HW Bedford Limited

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

29th December 2025

TURNOVER

3

39,992,633

39,197,690

Cost of sales

22,104,371

22,147,971

GROSS PROFIT

17,888,262

17,049,719

Distribution costs

2,418,345

2,263,020

Administrative expenses

12,798,820

11,474,565

15,217,165

13,737,585

2,671,097

3,312,134

Gain/loss on revaluation of investments

(210,172

)

-

OPERATING PROFIT

5

2,460,925

3,312,134

Interest receivable and similar income

7

396,857

502,891

2,857,782

3,815,025

Interest payable and similar expenses

8

19,939

46,492

PROFIT BEFORE TAXATION

2,837,843

3,768,533

Tax on profit

9

231,398

224,409

PROFIT FOR THE FINANCIAL YEAR

2,606,445

3,544,124

Retained earnings at beginning of year

17,042,547

15,498,423

Dividends

10

(8,000,000

)

(2,000,000

)

RETAINED EARNINGS AT END OF YEAR

11,648,992

17,042,547

FIXED ASSETS

Tangible assets

11

1,960,974

1,593,474

Investments

12

582,512

992,030

2,543,486

2,585,504

CURRENT ASSETS

Stocks

13

462,263

747,363

Debtors

14

17,510,296

18,861,723

Cash and cash equivalents

1,331,829

525,004

19,304,388

20,134,090

CREDITORS

Amounts falling due within one year

15

7,917,430

3,395,595

NET CURRENT ASSETS

11,386,958

16,738,495

TOTAL ASSETS LESS CURRENT LIABILITIES

13,930,444

19,323,999

PROVISIONS FOR LIABILITIES

19

2,156,451

2,156,451

NET ASSETS

11,773,993

17,167,548

CAPITAL AND RESERVES

Called up share capital

20

109,376

109,376

Capital redemption reserve

21

15,625

15,625

Retained earnings

21

11,648,992

17,042,547

SHAREHOLDERS' FUNDS

11,773,993

17,167,548

The financial statements were approved by the director and authorised for issue on 29th December 2025 and were signed by:

K Singh - Director

Cash flows from operating activities

Cash generated from operations

1

6,082,672

2,644,658

Interest paid

(19,939

)

(46,492

)

Dilapidation provision

-

56,451

Tax paid

(763,611

)

(672,118

)

Net cash from operating activities

5,299,122

1,982,499

Cash flows from investing activities

Purchase of tangible fixed assets

(907,899

)

(364,149

)

Purchase of fixed asset investments

(792,684

)

(992,030

)

Sale of fixed asset investments

992,030

-

Interest received

396,857

502,891

Net cash from investing activities

(311,696

)

(853,288

)

Cash flows from financing activities

Related party loan repayments

3,991,380

-

Equity dividends paid

(8,000,000

)

(2,000,000

)

Net cash from financing activities

(4,008,620

)

(2,000,000

)

Increase/(decrease) in cash and cash equivalents

978,806

(870,789

)

Cash and cash equivalents at beginning of year

2

272,428

1,143,217

Cash and cash equivalents at end of year

2

1,251,234

272,428

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

2,837,843

3,768,533

Depreciation charges

540,398

200,918

Loss on revaluation of fixed assets

210,172

-

-

(1,191,004

)

Finance costs

19,939

46,492

Finance income

(396,857

)

(502,891

)

3,211,495

2,322,048

Decrease in stocks

285,101

144,895

(Increase)/decrease in trade and other debtors

(2,184,929

)

5,932,326

Increase/(decrease) in trade and other creditors

4,771,005

(5,754,611

)

Cash generated from operations

6,082,672

2,644,658

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

1,331,829

525,004

Bank overdrafts

(80,595

)

(252,576

)

1,251,234

272,428

Year ended 31st March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

525,004

1,144,190

Bank overdrafts

(252,576

)

(973

)

272,428

1,143,217

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash and cash equivalents

525,004

806,825

1,331,829

Bank overdrafts

(252,576

)

171,981

(80,595

)

272,428

978,806

1,251,234

Total

272,428

978,806

1,251,234

1.	STATUTORY INFORMATION

Blowplast Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Significant judgements and estimates

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reported period.

Turnover

Revenue comprises the fair value of the sale of goods to external customers, net of value added tax and returns. Revenue is recognised on the sale of goods when the significant risks and rewards of ownership have passed to the buyer and the amount of revenue can be measured reliably. Revenue of goods delivered us recognised when the customer accepts delivery.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

straight line over lease term

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost, net of depreciation and any provision of impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

The Company has elected to apply the provisions of section 11 "Basic Financial Instruments" and section 12 " Other Financial Instruments Issues" of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade debtors, are initially measured at transactions price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.Such assets are subsequently carried at fair value nd the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed when the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit and loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis on the assumption that the company will continue to trade in the foreseeable future. The company directors having made appropriate enquiries consider that adequate resources exist for the company to continue in operational existences for the foreseeable future. The company will be able to meet its liabilities as they fall due for payment. Therefore, the directors are of the opinion that it is appropriate to adopt the going concern basis in preparing the financial statements.

Trade receivables

Trade receivables are stated net of provisions for bad and doubtful debts.

Trade payables

Trade payables are recognised at the transaction price and subsequently measured at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents are short term- highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Investments

Investments shall be initially recognized at fair value, plus transaction costs for investments not classified at FVTPL.Investments measured at amortized cost or FVOCI shall be assessed for impairment using the expected credit loss model.

Dividend

Dividend income shall be measured at the fair value of the consideration received or receivable. Dividend liabilities shall be measured at the amount approved for distribution.

Provisions and contingent liabilities

Provisions are measured at the best estimate (including risks and uncertainties) of the expenditure required to settle the contractual obligation relating to the property lease and charged in the profit and loss account.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

39,715,013

38,966,503

Europe

277,620

231,187

39,992,633

39,197,690

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,507,095

3,266,584

Social security costs

362,975

330,850

Other pension costs

65,234

60,988

3,935,304

3,658,422

The average number of employees during the year was as follows:

2025

2024

Production

95

85

Administration

7

7

102

92

2025

2024

£

£

Director's remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

44,689

28,033

Depreciation - owned assets

540,399

200,919

Foreign exchange differences

7,140

15,921

6.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements

14,000

14,000

Total audit fees

14,000

14,000

Auditors' remuneration for non audit work

10,000

10,000

Total non-audit fees

10,000

10,000

Total fees payable

24,000

24,000

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Deposit account interest

21,427

24,739

Other interest receivable

375,430

478,152

396,857

502,891