The directors present the strategic report for the year ended 30 September 2025.

Principal activity

The principal activity of the business continued to be the sale, marketing and distribution of ironmongery products.

Ironmongerydirect Limited (“the Company”) sells door furniture and associated ironmongery products through the Company ‘s website, call centre and on-site trade counter.

The Directors are able to report a rise in profitable growth for the Company, despite revenue being down 2.5% from that achieved in 2024, albeit with a reduced decline to that noted in previous years. The Company completed a pricing review in the year to ensure competitiveness in its products which impacted the Gross Margin %, though this was offset by significant cost savings following a restructure of the business at the start of the year which helped drive overall profit increases.

The results for the period of 2025 show Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of £2.9m (2024: £1.6m), a pre tax profit of £2.3m (2024: £0.9m) and sales of £43.0m (2024: £44.1m).

The Company’s key financial and other performance indicators during the period were as follows:

            2025        2024

Sales £M’s        43.0        44.1

Decrease in sales        (2.5%)        (4.8%)

Gross Margin         40.1%        40.8%

Principal Risks and Uncertainties

The Company uses various financial instruments which include cash, debtors and creditors that arise from its operations. Risks are continually reviewed by the Directors and appropriate processes put in place to monitor and mitigate them. The existence of these financial instruments presents a number of financial risks, described below,

COVID-19

After the ending of the UK lockdowns in early 2022, the Company has continued with its hybrid working model for office teams offering them a flexible working environment. Warehouse and call centre teams have moved back to normal operations in the office. Whilst we have seen a return to more normalised trading and “Business as Usual” our sales fell from the high seen during COVID mainly as a result of home owners bringing forward home improvement projects during the lock down period. The slow down during the current financial year has more been driven by the global economic situation which in turn has been a knock on impact from COVID. The Company’s forecasts and projections have been prepared taking account of reasonably possible changes in trading performance due to Global economic issues but have now removed the potential impact of COVID-19.

Brexit

The UK’s decision to leave the European Union has many implications for UK businesses and the Directors continue to review its impact on our operations. Brexit will have no impact on our supply chain and whilst the Directors consider that Brexit will have an impact on some areas of sales for the business, they are confident that procedures have been put in place and plans adapted to overcome this with any financial impact already reflected within the company’s reported numbers.

Foreign exchange risk

The Company undertakes certain transactions in foreign currencies and is therefore exposed to translation foreign exchange risk, which is managed by the Group hedging strategy.

Competitor risk

Increased competition from major competitors and smaller specialists affects pricing with the company seeking to maintain a competitive pricing for its products. The Company has spent a lot of time during the year focusing on its pricing strategy along with investing in supplier relationships, digital operations and stock optimization to help offset the impacts of any price reductions. We believe that the launch of new initiatives such as click and collect from our on site Trade Counter and a trade loyalty scheme through TradeXtra put us in a good position to compete in the market.

Likely future developments

The Company’s overriding objective is to sustainable and profitable business growth through organic growth. The Company continues to trade in the same way and has been able to successfully mitigate the risks in the current trading climate with strong internal controls and strategic planning.

There are four key elements to the Company’s strategic growth:

1. Building strong and lasting supplier relationships to deliver a comprehensive product range, competitively priced and available immediately.

2. Communicating effectively with our customers in order to fulfil their requirements in order to maximise sales growth.

3. Developing technology and systems to enable customers to have a more effective business proposition.

4. Implementing effective training and development to retain our employees and deliver on our customer service promise.

S172(1) statement

As part of the Manutan Group, Ironmongerydirect intends to act responsibly with regard to all its stakeholders adopting a “With Love” approach to its customers, suppliers, employees and the World that we operate in. The Group applies a Corporate, Social and Environmental Responsibility approach through its everyday real-life actions. Maintaining the balance between humans and the environment is at the heart of our priorities in our professional activities in all of our operations.

Our Group pursues these ambitions by putting sincerity and responsibility at the heart of all of its actions, and works for everybody’s benefit. Our mission has 4 pillars:

• The personal approach of a local trader when guiding and serving our customers. Our helpful Contact Centre are trained in Architectural ironmongery and we are members of the Guildof Architectural Ironmongers.

• The strength of a European distributor in our parent, Manutan, combining reliable processes, in continuous improvement, with innovative and agile technology. In this manner the Group achieved turnover growth in the past financial year with multiple European contracts signed at Group level.

• The wealth of a dynamic offering of product and services, which is broad and high quality to power the operations of our customers

• The commitment of a team of employees that are always moving forward. This undertaking is measured by the “With Love Employee” indicator (the percentage of employees that would recommend the Company as a great place to work, In 2024-2025 Ironmongerydirect obtained a score of 82% up from 68% in the prior year and the Manutan Group achieved overall a score of 78%

The Directors strive to consider the long term effect of decisions on the business, our stakeholders and shareholders, to whom we are accountable. The awareness of section 172 is evident from our core values and initiatives which include, but are not limited to:

Development and engagement of our employees and promoting an inclusive environment

Engagement with our customers within our “WOW” culture

Nurturing our suppliers within the framework of our “with love” culture

Taking responsibility for our effect on the environment with our “with love planet” culture, which focuses on sustainability and ensuring an ethical supply chain.

We believe our stakeholders are at the heart of everything we do and this is embedded in our Company culture and within our key objectives which include “With Love Customer”, “With Love Supplier” and “With Love Planet”. Our key stakeholders are outlined below:

Customers

Our customers are at the heart of our company. Their continued support is fundamental to our success and growth. Our continued aim is to deliver great customer service and quality products in a timely manner to all of our customers.

We are dedicated to providing the best customer experience to our customers by going the extra mile to truly WOW our customers and deliver in every sense of the word. We do this through the investment in our people with development and training so they have unbeatable knowledge to assist and guide. We maintain a regular dialogue with our customers through thoughtful communication and surveys to enable us to understand and meet the needs of our customer.

Suppliers

We rely on the continued support of our suppliers to deliver us quality products at the quantity required in a timely manner and at a fair price. We strive to maintain good relationships with our suppliers, who are key to continuously improving our offering.

Employees

Our colleagues’ commitment and enthusiasm drive our Company’s success forward. Their dedication and hard work are essential to promote good relationships with our customers, suppliers and our community. Ensuring the continuous improvement of our employees is a key factor in supporting the development of IronmongeryDirect and achieving the targets of the Business Plan.

It is imperative that our employees feel valued, appreciated and are appropriately rewarded because without our people, we could not properly service our customers. We are passionate about inclusion within respectful and diverse culture. Developing talent to enhance employee engagement and experience is key to our success.

Shareholders

Our shareholders are our partners in every way. They provide strategic guidance and play an active role in the long-term culture of the Company. The Directors engage with our shareholders in regular Board meetings, providing them with all of the tools necessary to enable strategic insight into the business. This clear understanding of shareholder objectives is cascaded through the business by Directors and Managers alike.

Communities

Our local community are our neighbours and their concerns for the local environment, infrastructure and the impact that our Company has on jobs and prosperity on the local area are important to them and to us. We aim to minimise any adverse impact in our community and to pro-actively engage in our community. We have created our new commitment to Love Our Planet and this is fundamental in our plans to enter the circular economy in the coming year.

Environmental Impact

As part of the Manutan Group, IronmongeryDirect is committed to building on the work already undertaken to measure the carbon footprint and adapting its activity to the consequences of climate change.

Ensuring compliance with regulations by reducing the environmental impact through gas and electricity consumption. The challenge of improving the energy efficiency of the Company’s premises is a priority with the main items of consumption are essentially gas and electricity, used in lighting and heating the offices. Usage of both has considerably fallen

As well as moving our electricity purchasing to renewable sources our usage has dropped over the year following the closure of a warehouse unit and increased use of energy efficient lighting and climate control facilities. For gas consumption we have now turned off our gas boilers with the aim to completely de-gasify our premises in the coming year.

Stabilising energy consumption        2023/2024        2024/2025

Electricity consumption (kWh)        527,450            472,339

Gas consumption (kWh)            63,007            2,891

Waste Recovery. The challenge of reducing and optimising the recovery of waste is intended to reduce the environmental impact of our activities and to limit the financial risks.

Waste Recovery (tonnes)            2024/2025    2023/2024

Paper and cardboard            63        65

Mobility of employees.

The challenge of reducing CO2 emissions is a major aspect of the Group’s mobility policy. It is intended to reduce the environmental impact from carbon emissions by adopting a hybrid working policy, where working from home reduces emissions, installation of electric charging stations and cycle storage for those employees commuting to work, and the long-term rental of vehicles with lower emissions, the Company also encourages low emission transport for travel such as Eurostar trains rather than flights.

At our Ironmongerydirect offices:        2024/2025    2023/2024

% of electric vehicles            5%        6%

% of hybrid vehicles            3%        3%

% of petrol vehicles            63%        68%

% of diesel vehicles            20%        15%

% of employees who do not drive to work    9%        8%

The Directors have undertaken a thorough assessment of the Company’s financial forecasts and performance, considering the impact of the current global economic issues. After modelling a number of scenarios, the Directors have concluded that it is appropriate to adopt a going concern basis in the preparation of these financial statements.

The company is and has been well managed and has generated a bottom line profit for a number of years despite the challenges of Brexit, COVID, and the general economic conditions with high UK inflation.

The past year showed a number of positives such as some stabilisation in its sales number on a like for like basis There was also a substantial increase in profitability with operating profit more than doubling from just under £1m to over £2m – most of this was linked to cost saving actions which benefited this and future periods.

We expect this improved performance to continue over the next few years leading to increased sales, profit and cash generation.

The Company is funded by operating profits and working capital. There are no debt facilities in place and cashflow remains positive with a healthy cash balance maintained and reported for the period.

The Directors have reviewed the evolving situation relating to the current global economic issues and no longer feel that COVID-19 and or Brexit should be considered a factor when building forecasts / budget. The budget for next year reflects this with small organic sales growth being predicted driven by new customers. The Directors have taken actions to reduce costs and optimize cashflow in recent years which puts it in a good position to see growth this year:

• Reduced discretionary spend

• Stock optimization

• Closure of unutilized warehouse space and extension of office lease

• Removed headcount over the past two years

After reviewing all the information available to them, the Directors consider the Company to have a good cashflow for the next twelve months at the date of approval of this report and are satisfied that it is appropriate to adopt the going concern basis in the preparation of these financial statements.

This report was approved by the board and signed on its behalf.

The directors present their annual report and financial statements for the year ended 30 September 2025.

The principal activity of the company continued to be that of the sale of ironmongery products.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the period of 2025 show Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of £2.9m (2024: £1.6m), a pre-tax profit of £2.3m (2024: £0.9m) and sales of £43.0m (2024: £44.1m).

Ordinary dividends were paid amounting to £nil (2024: £2,085,186).

There have been no significant events affecting the Company since the year end.

The Company's overriding objective is to achieve attractive and sustainable rates of growth and returns through organic growth.

The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The mandatory disclosures in relation to the principal risks and uncertainties are considered by the Directors to be strategic importance. These have therefore been included in the Strategic Report.

The directors are responsible for preparing the annual report 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.

We have audited the financial statements of IronmongeryDirect Limited (the ‘company’) for the year ended 30 September 2025 which comprise the Statement of Comprehensive income, the Statement of Financial Position, the Statement of Changes in Equity and 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 FRS 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 th September 2025 and of its profit for the period 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 “Auditor’s 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.

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 course of 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 directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

In 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 directors’ report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors’ responsibilities statement set out on page 7, 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 is 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.

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 an auditor’s report 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 the 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.

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

• Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;

• Inspecting correspondence, if any, with relevant licensing or regulatory authorities;

• Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and

• Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the risk of manual journals to revenue), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

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 an auditor’s report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

There was no other comprehensive income for 2025 (2024: £nil).

The notes on pages 15 to 28 form part of these financial statements.

IronmongeryDirect Limited is a private company limited by shares incorporated in the United Kingdom, registered in England and Wales under register number 03121306. The registered office is Scimitar Park Industrial Estate, Courtauld Road, Basildon, Essex, SS13 1ND.

The principal activity of the Company continued to be to supply specialist ironmongery products across the UK.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

This information is included in the consolidated financial statements of Manutan International SA at 30 September 2025 and these financial statements may be obtained from ZAC du Parc des Tulipes, Avenue du 21eme Siecle, 95506 Gonesse, France.

The Directors have undertaken a thorough assessment of the Company’s financial forecasts and performance, considering the impact of the current global economic issues. After modelling a number of scenarios, the Directors have concluded that it is appropriate to adopt a going concern basis in the preparation of these financial statements.true

The company is and has been well managed and has generated a bottom line profit for a number of years despite the challenges of Brexit, COVID, and the general economic conditions with high UK inflation.

The past year showed a number of positives such as some stabilisation in its sales number on a like for like basis There was also a substantial increase in profitability with operating profit more than doubling from just under £1m to over £2m – most of this was linked to cost saving actions which benefited this and future periods.

We expect this improved performance to continue over the next few years leading to increased sales, profit and cash generation.

The Company is funded by operating profits and working capital. There are no debt facilities in place and cashflow remains positive with a healthy cash balance maintained and reported for the period.

The Directors have reviewed the evolving situation relating to the current global economic issues and no longer feel that COVID-19 and or Brexit should be considered a factor when building forecasts / budget. The budget for next year reflects this with small organic sales growth being predicted driven by new customers. The Directors have taken actions to reduce costs and optimize cashflow in recent years which puts it in a good position to see growth this year:

• •    Reduced discretionary spend

• •    Stock optimization

• •    Closure of unutilized warehouse space and extension of office lease

• •    Removed headcount over the past two years

After reviewing all the information available to them, the Directors consider the Company to have a good cashflow for the next twelve months at the date of approval of this report and are satisfied that it is appropriate to adopt the going concern basis in the preparation of these financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, credit card receipts, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 balance sheet 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, which include debtors, are initially measured at transaction 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.

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 what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

The company is entitled to claim or surrender group relief in respect of current corporation tax liabilities and assets with other group companies. Current tax is calculated on the basis of the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Amounts receivable or payable under group relief arrangements are recognised as adjustments to the current tax charge in the Statement of Comprehensive Income and as current tax assets or liabilities in the Balance Sheet. Payments for group relief are accounted for as if they were payments to, or from HMRC.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Pillar Two Income Taxes

The Company is within the scope of the OECD Pillar Two global minimum tax regime, which has been enacted or substantively enacted in certain jurisdictions in which the Company operates. In line with the amendments to FRS 102, the Company has applied the mandatory temporary exception from recognising or measuring deferred tax arising from Pillar Two top‑up tax rules.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

All turnover arose within the United Kingdom.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The payroll costs disclosed above include £426,233 (2024: £516,927) of remuneration paid to two employees which were recharged to fellow group companies for services provided.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

The key management personnel of the company are considered to be the directors, as they are the ones who have the ability to make the decisions.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.

The dilapidation provision is calculated based off the expected dilapidation costs as per a third party survey, spread over the remaining life of the lease.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

There were pension contributions of £28,750 (2024: £26,236) outstanding at the balance sheet date.

The profit and loss account is made up of distributable reserves less any dividends paid.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

As a wholly owned subsidiary undertaking, the Company has taken advantage of the exemption available under section 33 of FRS 102, and has not disclosed transactions with members of, or investees in the Manutan International Group.

Manutan Traders Group Limited is the Company's immediate parent company by virtue of its ownership of the entire share capital of IronmongeryDirect Limited.

The Directors consider the ultimate parent undertaking of the Company is Manutan Holdings SAS, a company incorporated in France.

The smallest and largest group in which the results of the Company are consolidated is that headed by Manutan International SA, incorporated in France. The consolidated financial statements of this group are available to the public and may be obtained from Manutan International SA, ZAC du Parc des Tulipes, Avenue du 21eme Siecle. 95500 Gonesse, France.