REGISTERED NUMBER: 01038990 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

FOR

KINNARPS (UK) LIMITED

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

to

15

Notes to the Financial Statements

16

to

25

DIRECTORS:

Mr P A R Petersson

Mr U F Bergsten

REGISTERED OFFICE:

The Stock House

17-18 Britton Street

London

EC1M 5NZ

REGISTERED NUMBER:

01038990 (England and Wales)

AUDITORS:

Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

The directors present their strategic report for the year ended 31 August 2025.

REVIEW OF BUSINESS

The company's key financial and performance indicators during the year were as follows:

2025

2024

Variance

%

Turnover

£8,521,201

£9,366,840

(9.03

)

Gross profit

£2,536,748

£2,606,930

(2.69

)

Gross profit percentage

29.77%

27.83%

6.97

Profit before taxation

£473,625

£545,461

(13.17

)

Shareholders' funds

£3,819,339

£4,308,945

(11.36

)

Kinnarps (U.K.) Limited is a wholly owned subsidiary of Kinnarps AB, Europe's largest office furniture manufacturer and supplier of workplace solutions across Europe, the Middle East, Asia, and America. The Group's strategy is to maintain a comprehensive international presence to deliver complete workplace solutions tailored to market demand. The UK remains a market in which the Group is confident that a sustainable and profitable business can be developed through strategic initiatives, targeted marketing, and continued investment

The UK business generated a turnover of £8,521,201 for the financial year ended 31 August 2025 (2024: 9,366,840). The reduction in revenue reflects a more challenging trading environment and a general softening of demand within the commercial interiors sector. Despite the decline in turnover, the company maintained a stable gross margin through effective supply chain management.

Distribution and administrative expenses were tightly controlled, resulting in total operating expenses reducing to £2,194,500 (2024: £2,268,903). As a result, the company recorded an operating profit of £344,087, marginally above the prior year's result of £338,027.

Future Development

Management remains focused on sustaining profitability and improving operational performance. Key initiatives include enhancing customer service, strengthening supply chain efficiency, and optimising delivery and installation. The company will continue to pursue opportunities for revenue growth while adapting to evolving market conditions. The business is well positioned to meet stakeholder expectations, supported by the experience and insight of management and the resources of the parent company.

Sustainability

The company recognises its responsibility to contribute to a more sustainable and resilient future and continues to respond to the increasing importance our clients place on making sustainable choices. The directors view the movement toward more sustainable business practices, as integral to the long-term success of the business.

Sustainability objectives remain embedded in the company's strategy and operations and will continue to guide activity in the year ahead. The company's products and services are evolving to reflect changing market expectations, supported by input from clients and stakeholders.

The company also benefits from the guidance and resources of its parent, whose sustainability strategy further support the business in delivering on its own sustainability commitments. Further information on Kinnarps' environmental responsibilities is available on https://www.kinnarps.co.uk/about-kinnarps/sustainability

PRINCIPAL RISKS AND UNCERTAINTIES

The UK economy and market conditions remain challenging. While the company continues to trade profitably, the principal risk to maintaining this performance lies in the need to develop new routes to market, supported by flexible business models that complement existing business from well-established national and international key accounts.

The office furniture market is highly competitive and subject to cyclical fluctuations in business investment. It is therefore essential to maintain a strong capital structure and adopt an asset-light operational approach to mitigate the impact of any potential downturns.

As part of Kinnarps AB, the leading European provider of office furniture, Kinnarps (UK) Limited is better positioned than most competitors to navigate these challenges and sustain long-term performance

Price risk

The company is exposed to price risk due to normal inflationary increase in the purchase of goods from UK and abroad. The company's purchases are largely sterling denominated and price exposure due to currency exchange is low.

Credit risk

Credit risks are primarily attributed to trade receivables. The company's policies require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual customer is subject to an agreed limit, which is reassessed regularly..

Liquidity risk

The company has a very positive liquidity position, and its liquidity risk is regularly monitored for both short-term and long-term cash flow needs.

Interest rate risk

The company is part of a group pooling arrangement with other group companies. Excess funds are lent to, or deficits are borrowed from other group companies. At 31 August 2025 the company has a healthy deposits balance and no internal or external loans. The company has a small balance on a hire purchase agreement and therefore exposure to interest rate risk is low.

Legislative and Environmental risks

The directors have policies and procedures in place to minimise the impact of legislative and environmental risks.

Financial Risk

As described above, the company has exposure to price, credit, interest rate and liquidity risks arising from trading activities which are suitably managed through the financial risk management objectives and policies laid down by the parent company, Kinnarps AB. The company does not use derivative financial instruments for speculative purpose.

ON BEHALF OF THE BOARD:

Mr U F Bergsten - Director

19 December 2025

The directors present their report with the financial statements of the company for the year ended 31 August 2025.

DIVIDENDS

Dividends paid during the year amounted to £1,000,000 (2024: £1,000,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 September 2024 to the date of this report.

Mr P A R Petersson

Mr U F Bergsten

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors report. It has done so in respect of financial instruments and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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 directors are 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 each director 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, Seymour Taylor Audit Limited, will be re-appointed in accordance with section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr U F Bergsten - Director

19 December 2025

Opinion

We have audited the financial statements of Kinnarps (UK) Limited (the 'company') for the year ended 31 August 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, 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 31 August 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors 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 Directors.

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 directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have 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:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the key drivers for directors' remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having made enquiries of management about their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or

alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs ( UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate.

Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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.

Timothy Fulker BSc FCA (Senior Statutory Auditor)

for and on behalf of Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

19 December 2025

TURNOVER

3

8,521,201

9,366,840

Cost of sales

5,984,453

6,759,910

GROSS PROFIT

2,536,748

2,606,930

Distribution costs

459,018

505,677

Administrative expenses

1,735,482

1,763,226

2,194,500

2,268,903

342,248

338,027

Other operating income

4

1,839

-

OPERATING PROFIT

7

344,087

338,027

Interest receivable and similar income

130,582

209,865

474,669

547,892

Interest payable and similar expenses

8

1,044

2,431

PROFIT BEFORE TAXATION

473,625

545,461

Tax on profit

9

(36,769

)

36,769

PROFIT FOR THE FINANCIAL YEAR

510,394

508,692

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

510,394

508,692

FIXED ASSETS

Tangible assets

10

407,774

499,739

CURRENT ASSETS

Stocks

11

118,651

128,165

Debtors

12

2,924,310

2,911,832

Cash at bank

2,138,265

2,753,145

5,181,226

5,793,142

CREDITORS

Amounts falling due within one year

13

1,542,348

1,756,623

NET CURRENT ASSETS

3,638,878

4,036,519

TOTAL ASSETS LESS CURRENT LIABILITIES

4,046,652

4,536,258

PROVISIONS FOR LIABILITIES

17

227,313

227,313

NET ASSETS

3,819,339

4,308,945

CAPITAL AND RESERVES

Called up share capital

18

2,500,000

2,500,000

Capital redemption reserve

19

12,139

12,139

Capital contribution reserve

19

2,385,614

3,385,614

Retained earnings

19

(1,078,414

)

(1,588,808

)

SHAREHOLDERS' FUNDS

3,819,339

4,308,945

The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2025 and were signed on its behalf by:

Mr U F Bergsten - Director

Called up

Capital

Capital

share

Retained

redemption

contribution

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 September 2023

2,500,000

(2,097,500

)

12,139

4,385,614

4,800,253

Changes in equity

Dividends

-

-

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

508,692

-

-

508,692

Balance at 31 August 2024

2,500,000

(1,588,808

)

12,139

3,385,614

4,308,945

Changes in equity

Dividends

-

-

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

510,394

-

-

510,394

Balance at 31 August 2025

2,500,000

(1,078,414

)

12,139

2,385,614

3,819,339

Cash flows from operating activities

Cash generated from operations

1

292,328

1,018,569

Interest element of hire purchase payments paid

(1,044

)

(2,431

)

Net cash from operating activities

291,284

1,016,138

Cash flows from investing activities

Purchase of tangible fixed assets

(6,700

)

(86,106

)

Sale of tangible fixed assets

2,375

2,649

Interest received

130,582

209,865

Net cash from investing activities

126,257

126,408

Cash flows from financing activities

Capital repayments in year

(3,043

)

(17,580

)

Dividends paid

(1,000,000

)

(1,000,000

)

Net cash from financing activities

(1,003,043

)

(1,017,580

)

(Decrease)/increase in cash and cash equivalents

(585,502

)

124,966

Cash and cash equivalents at beginning of year

2

2,723,767

2,598,801

Cash and cash equivalents at end of year

2

2,138,265

2,723,767

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

2025

2024

£

£

Profit before taxation

473,625

545,461

Depreciation charges

98,665

95,165

(Profit)/loss on disposal of fixed assets

(2,375

)

19,912

Increase/(Decrease) in provisions

-

2,390

Finance costs

1,044

2,431

Finance income

(130,582

)

(209,865

)

440,377

455,494

Decrease/(increase) in stocks

9,514

(54,326

)

(Increase)/decrease in trade and other debtors

(12,478

)

436,076

(Decrease)/increase in trade and other creditors

(145,085

)

181,325

Cash generated from operations

292,328

1,018,569

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 31 August 2025

31.8.25

1.9.24

£

£

Cash and cash equivalents

2,138,265

2,753,145

Bank overdrafts

-

(29,378

)

2,138,265

2,723,767

Year ended 31 August 2024

31.8.24

1.9.23

£

£

Cash and cash equivalents

2,753,145

2,598,801

Bank overdrafts

(29,378

)

-

2,723,767

2,598,801

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank

2,753,145

(614,880

)

2,138,265

Bank overdrafts

(29,378

)

29,378

-

2,723,767

(585,502

)

2,138,265

Debt

Finance leases

(3,043

)

3,043

-

(3,043

)

3,043

-

Total

2,720,724

(582,459

)

2,138,265

1.	STATUTORY INFORMATION

Kinnarps (UK) Ltd is a private company limited by shares and incorporated in England. The address of the registered office is The Stock House, 17-18 Britton Street, London, EC1M 5NZ.

The principal activity of the company during the year was the sale of office furniture and related services including the importation and distribution thereof.

The presentation currency of these financial statements is Sterling (£), being the currency of the primary economic market in which the entity operates (its functional currency). All amounts in these financial statements have been rounded to the nearest pound unless stated otherwise.

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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The directors have assessed expected future cashflows, giving due consideration to all relevant factors affecting the company. The directors have considered the potential impact on the company as well as its capital resources and believe that the company has adequate resources in place to continue in operation for at least twelve months from the date of approval of the financial statements.

Based on the above, information available at the date of approval and the immediate parent company's confirmation of its continued support, the company continues to adopt the going concern basis in preparing these financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The areas for which estimation has been applied are considered to be in calculating depreciation, impairments and provisions. Although these areas are subject to judgement, they are not considered to be subject to significant estimation.

Turnover

Turnover is stated net of VAT and trade discounts. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Where payments are received from customers in advance of goods provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

The company assesses at each reporting date whether tangible fixed assets are impaired.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimate useful life or, if held under a finance lease, over the lease term, whichever is shorter:

Long leasehold

- straight line - 10% to 33%

Plant and machinery

- straight line - 20% to 40%

Fixtures and fittings

- straight line - 20% to 40%

Motor vehicles

- straight line - 10% to 25%

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks

Stocks are valued 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 principle.

Provision is made for damaged, obsolete and slow-moving stock where appropriate.

For stocks bought from third party suppliers the obligation is accounted for on receipt of the goods, once quality is checked. For group company suppliers the obligation is accounted for on transit.

Taxation

Tax on the profit or loss 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 directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset, if and when all conditions for retaining the tax allowances have been met, are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the statement of financial position date. Deferred tax balances are not discounted.

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

Foreign currencies

Transactions denominated in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities at the period end denominated in a foreign currency are translated into Sterling at the rate of exchange ruling at the statement of financial position date. Exchange differences are taken into account when arriving at the operating profit.

Hire purchase and leasing commitments

Assets acquired and held under finance lease or hire purchase contracts are capitalised in the statement of financial position. Those held under finance leases are depreciated over the shorter of the lease term and the estimated useful life of the asset. Those held under hire purchase contracts are depreciated over the estimated useful life of the asset.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligation, exclusive of finances charges allocated to future periods, is recognised as a liability with the finance element charged to the income statement over the relevant period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits 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 the statement of comprehensive income in the period to which they relate.

Financial instruments

The company has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the statement of financial position. Finance costs and gains or losses relating to financial liabilities are included in the statement of comprehensive income. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the statement of financial position date as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are recognised as a liability in the statement of financial position and the relevant amount included as an expense in the statement of comprehensive income.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision or contingency is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the statement of comprehensive income in the period it arises.

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

7,934,991

8,942,753

Europe

586,210

424,087

8,521,201

9,366,840

4.	OTHER OPERATING INCOME

2025

2024

£

£

Discounts received

1,839

-

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,557,399

1,588,864

Social security costs

180,881

205,798

Other pension costs

135,661

135,959

1,873,941

1,930,621

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

2025

2024

Sales

16

15

Administration

9

4

Operations

4

11

29

30