REGISTERED NUMBER: 00693036 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Goldenfry Foods Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

J P Herridge

P A Herridge

E Hall

P A Turrill

SECRETARY:

J P Herridge

REGISTERED OFFICE:

Sandbeck Way

Wetherby

LS22 7DW

REGISTERED NUMBER:

00693036 (England and Wales)

AUDITORS:

S&W Audit

Statutory Auditor

Chartered Accountants

3rd Floor

56 Wellington Street

Leeds

West Yorkshire

LS1 2EE

The directors present their strategic report for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

Goldenfry Foods Limited manufactures and markets a range of branded and private label products through UK supermarkets.

There have not been any significant changes in the Company's activites in the year under review.

BUSINESS REVIEW AND CHAIRMAN'S STATEMENT

The financial results for the year are in line with our long term strategic plans and driven by our combination of product sectors and market positions geared around providing high market quality at the lowest market price. The Company benefits considerably from this market position but its delivery depends on the remarkable contribution made by all our colleagues without who this would not be possible.

The Directors' long term focus on a low break- even point, minimum debt and low fixed cost structure has enabled the business significantly to create these results and in turn improve on our strong financial position while our focused investment on productivity gains will keep our future performance strong.

We continue to invest significantly in the core business to further raise quality and lower cost, to develop and reward our employees, whilst investing in a number of satellite operations, individuals, teams and companies to search, evaluate and select opportunities for future growth through new products, new markets and new businesses, within our very clearly defined strategic opportunity framework.

PRINCIPAL RISKS AND UNCERTAINTIES

The group trades with all the major supermarkets and food retailers in the UK with a good category/customer/product spread which helps to minimise risk. Principal risks revolve around disruption of normal trading relationships on the availability of commodities, as well as externally imposed costs, red tape and the effect of increased taxes on the motivation to invest and grow. These and other factors reflect an environment that appears increasingly hostile to business in 2024 and beyond.

WIDER RISKS WITH EFFECTS UNCERTAIN OR UNKNOWN

Macroeconomic factors fundamentally effect the environment in which we have to operate. Increased borrowing restricts government spending coupled with rising cost inflation, escalating employment costs and corporate taxes the consequent effect on investment and growth is a zero sum game through depressing demand and growth in the real economy. This will inevitably lead to less consumer spending and therefore less investment, the major drivers of future growth.

SECTION 172(1) STATEMENT

The Board of Directors of Goldenfry Foods Limited consider, both individually and collectively, that they have acted in a manner they consider to be most likely to promote the success of the company for the benefit of its members as a whole in relation to the decisions made during the period to 31st December 2024.

Our plan was designed to have a long term beneficial impact on the Company and to contribute to its success in delivering a high quality of service across all aspects of our business.

Our team members are fundamental to the delivery of our plan. We are a responsible employer in our approach to the pay and benefits our colleagues receive. The health, safety and well-being of our team members is our primary consideration in the way we operate our business.

Engagement with suppliers and customers is key to our success. We meet with our suppliers and customers regularly throughout the year and take appropriate action, when required, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.

Our plans took into account the impact of the company's operations on the community and environment and our wider social responsibilities, in particular how we adhere to environmental legislation and pursue waste-saving opportunities as well as acting upon local community concerns.

As the Board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating with the high standards of business conduct and good governance expected of a business such as ours and in doing so, will contribute to the delivery of our plans.

FINANCIAL AND OTHER KEY PERFORMANCE INDICATORS

The key financial metric is FCF (Free Cash Flow) and its drivers. This has been at a satisfactory level over recent history and continues to remain so. The company targets a minimum growth in FCF in the range of 8%-10% per annum but is reviewing this under the current highly inflationary environment that is likely to persist for the company.

STREAMLINED ENERGY AND CARBON REPORTING DISCLOSURE

As Goldenfry Foods Limited (the 'Company') now meets the criteria of a large unquoted company, it is required under the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 and the Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulation 2018 to disclose the annual energy consumption and associated Green House Gas (GHG) emissions.

As this is the first reporting period, the Company is required to provide this information in its Strategic Report, there is no data for the previous reporting period to compare.

The electricity and gas data has been recorded over a twelve-month period from 1 January 2024 to 31 December 2024.

The UK annual quantity of emissions in tonnes of carbon dioxide equivalent resulting from activities for which the company is responsible involving:

2024

tC02e

Purchased electricity for own use

425.99

Gas

205.67

Total

631.66

The UK annual quantity of energy consumed from activities for which the company is responsible involving:

2024

KWh

Purchased electricity for own use

1,909,952

Gas

922,133

Total

2,832,085

The above figures have been calculated using the 2024 emission factors.

Emissions relating to the consumption of fuel for the purposes of transport have not been disclosed as a third party transport provider is used and therefore the data was not available to report.

The Company's tCO2e to annual turnover (£M) for 2024 is 10.89.

To increase energy efficiency the Company has taken the following measures:

- Installed LED lighting to all areas

- Installed motion detectors so lights turn off when a building is unoccupied

- Are investigating options for installing solar panels

ON BEHALF OF THE BOARD:

J P Herridge - Director

8 January 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £10,000,000.

DIRECTORS

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

J P Herridge

P A Herridge

E Hall

P A Turrill

FINANCIAL RISK MANAGEMENT

The Company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects of these risks on the financial performance of the Company.

Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub committee of the board. The Company’s finance department implements the policies set by the board of directors.

PRICE RISK

The Company is exposed to commodity price risk as a result of its operations. However, given the size of the Company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The Company has no exposure to equity securities price risk as it holds no listed or other equity investments.

CREDIT RISK

The Company has implemented policies that require appropriate credit checks on potential customers before sales are made.

LIQUIDITY RISK

The Company currently has cash balances, which provide sufficient available funds for operations and planned expansions.

INTEREST RATE RISK

The Company currently has only interest bearing assets being cash balances which earn interest at variable rates.

DISCLOSURE IN THE STRATEGIC REPORT

Disclosure with regard to the review of the business, principal risks and uncertainties, key performance indicators, future outlook and streamlined energy and carbon reporting have been included in the strategic report.

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;

-	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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J P Herridge - Director

8 January 2026

Opinion

We have audited the financial statements of Goldenfry Foods Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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 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 December 2024 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 other information comprises the information included in the Strategic Report, Report of the Directors and Financial Statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Strategic Report, Report of the Directors and Financial Statements. Our opinion on the financial statements does not cover the other information and 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 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 six, 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.

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

We obtained a general understanding of the Company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the Company's industry and regulation.

We understand that the Company complies with the framework through:

- Outsourcing accounts preparation and tax compliance to external experts.

- Subscribing to relevant updates from external experts, and making changes to internal procedures and controls as necessary.

- The Directors' close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Company's ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the Company:

- The Companies Act 2006 and FRS 102 1A in respect of the preparation and presentation of the financial statements.

- UK Taxation Law

- Specific industry standards

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:

- Made enquiries of management regarding compliance with laws and regulations and any known non-compliance in the year

- Reviewed legal expense accounts

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

- Manipulation of the financial statements, especially revenue, via fraudulent manual journal entries.

- Incorrect recognition of revenue

The procedures we carried out to gain evidence in the above areas included:

- Testing of manual journal entries, selected based on specific risk assessments applied based on the client processes and controls surrounding manual journals; and

- Testing a sample of revenue transactions to underlying documentation, including ensuring revenue is recognised in the correct period and has occurred

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.

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.

Matthew Barton BA (Hons) FCA CTA (Senior Statutory Auditor)

for and on behalf of S&W Audit

Statutory Auditor

Chartered Accountants

3rd Floor

56 Wellington Street

Leeds

West Yorkshire

LS1 2EE

13 January 2026

TURNOVER

5

58,005,833

53,302,260

Cost of sales

45,556,936

43,197,115

GROSS PROFIT

12,448,897

10,105,145

Distribution costs

2,118,422

1,922,798

Administrative expenses

3,332,750

2,260,095

5,451,172

4,182,893

OPERATING PROFIT

8

6,997,725

5,922,252

Interest receivable and similar income

9

196,205

96,283

7,193,930

6,018,535

Interest payable and similar expenses

10

50,056

7,363

PROFIT BEFORE TAXATION

7,143,874

6,011,172

Tax on profit

11

1,881,601

1,389,165

PROFIT FOR THE FINANCIAL YEAR

5,262,273

4,622,007

PROFIT FOR THE YEAR

5,262,273

4,622,007

OTHER COMPREHENSIVE INCOME

Actuarial gains/losses

(47,285

)

(164,335

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(47,285

)

(164,335

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,214,988

4,457,672

FIXED ASSETS

Tangible assets

13

5,121,966

4,746,593

Investments

14

34,720

34,720

5,156,686

4,781,313

CURRENT ASSETS

Stocks

15

5,725,926

4,351,014

Debtors

16

7,655,418

7,672,786

Cash at bank

13,268,449

11,512,750

26,649,793

23,536,550

CREDITORS

Amounts falling due within one year

17

25,644,634

17,087,818

NET CURRENT ASSETS

1,005,159

6,448,732

TOTAL ASSETS LESS CURRENT LIABILITIES

6,161,845

11,230,045

PROVISIONS FOR LIABILITIES

19

(602,946

)

(885,617

)

PENSION ASSET

22

191,684

191,167

NET ASSETS

5,750,583

10,535,595

CAPITAL AND RESERVES

Called up share capital

20

1,000,000

1,000,000

Retained earnings

21

4,750,583

9,535,595

SHAREHOLDERS' FUNDS

5,750,583

10,535,595

The financial statements were approved by the Board of Directors and authorised for issue on 8 January 2026 and were signed on its behalf by:

J P Herridge - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000,000

8,077,923

9,077,923

Changes in equity

Profit for the year

-

4,622,007

4,622,007

Other comprehensive income

-

(164,335

)

(164,335

)

Total comprehensive income

-

4,457,672

4,457,672

Dividends

-

(3,000,000

)

(3,000,000

)

Balance at 31 December 2023

1,000,000

9,535,595

10,535,595

Changes in equity

Profit for the year

-

5,262,273

5,262,273

Other comprehensive income

-

(47,285

)

(47,285

)

Total comprehensive income

-

5,214,988

5,214,988

Dividends

-

(10,000,000

)

(10,000,000

)

Balance at 31 December 2024

1,000,000

4,750,583

5,750,583

1.	STATUTORY INFORMATION

Goldenfry Foods 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The Company is itself a subsidiary company and is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the Company as an individual undertaking and not about its group.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 4).

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Financial Reporting Standard 102 - reduced disclosure exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the Company’s members.

The Company has taken advantage of the following exemptions:

(i) from preparing a statement of cash flows, on the basis that it is a qualifying entity and the Company’s results will be included within the consolidated financial statements of Goldenfry Limited and so the Company’s cash flows will be included within the consolidated statement of cash flows which will be included in those financial statements.

(ii) from the financial instrument disclosures, required under FRS 102 paragraphs 11.39 to 11.48A and paragraphs 12.26 to 12.29, as the information is provided in the consolidated financial statement disclosures.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised within the profit and loss account at the point that goods are delivered to the

customer.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulate depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and equipment - 3 to 25 years

Office furniture and equipment - 15 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit and loss account.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies

The Company's functional and presentational currency is GBP (£).

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the lease term.

Operating leases: the Company as lessor

Rentals received under operating leases are recognised in profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The Company operated two defined benefit schemes, the Goldenfry Hourly Scheme (1987) and the Goldenfry Staff Scheme (1987), providing benefits based on final pensionable pay, until September 1999 when these were closed.

Pension scheme assets are measured using fair value. Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high quality bond of equivalent term and currency to the liability. As the schemes were closed in 1999 there are no increases in the present value of the liabilities of the Company's defined benefit pension schemes arising from employee service in the period.

Income representing the expected return on assets of the fund during the year is included within other finance costs. This is based on the fair value of the assets of the fund at the start of the financial year. A cost representing the interest on the liabilities of the fund during the year is also included within other finance costs. This arises from the liabilities of the fund being one year closer to payment.

Differences between actual and expected returns on assets during the year are recognised in the statement of other comprehensive income in the year, together with differences arising from changes in assumptions underlying the present value of scheme liabilities and experience gains and losses arising on scheme liabilities.

Product development

Product development and promotion costs are fully written off in the year in which they are incurred.

Interest income

Interest income is recognised in the profit and loss account in the period in which it is receivable.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short term creditors are measured at the transaction price.

Employee benefits

Short term employee benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which they are incurred.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make significant judgments and estimates. The items in the financial statements where these key judgments and estimates have been made include the provisions for costs included within accruals and deferred income.

5.

TURNOVER

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

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

7,671,110

4,343,106

Social security costs

568,771

489,804

Other pension costs

108,010

194,444

8,347,891

5,027,354

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

2024

2023

134

131

7.	DIRECTORS' EMOLUMENTS

2024

2023

£

£

Directors' remuneration

230,501

250,658

The highest paid director received remuneration of £135,253 (2024: £128,915).

During the year, retirement benefits were accruing to none of the directors (2023: 0) in respect of defined contribution pension schemes.

8.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

165,437

152,229

Royalties payable

2,542,707

2,639,775

Depreciation - owned assets

380,738

184,073

Depreciation - assets on hire purchase contracts

46,422

118,322

Profit on disposal of fixed assets

(711

)

-

Foreign exchange differences

27,102

53,672

Fees payable to the Company's auditor for the audit of the Company's annual financial statements

20,850

15,000

Fees payable to the Company's auditor for the preparation of the Company's annual financial statements

2,000

-

Fees payable to the Company's auditor for the preparation of the Company's annual corporation tax

2,000

-

9.

INTEREST RECEIVABLE AND SIMILAR INCOME

2024

2023

£

£

Bank interest receivable

196,205

96,283

10.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

-

358

Other interest - defined

benefit liability

(9,475

)

(8,261

)

Other interest

56,580

-

Interest - Hire purchase

liability

2,951

15,266

50,056

7,363

11.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

2,164,100

1,183,841

Deferred tax

(282,499

)

205,324

Tax on profit

1,881,601

1,389,165

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

7,143,874

6,011,172

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

1,785,969

1,502,793

Effects of:

Capital allowances in excess of depreciation

-

(669

)

Depreciation in excess of capital allowances

2,670

-

Pension scheme

-

(38,495

)

tax rates

Difference due to lower tax rate

-

(74,464

)

Other permanent differences

15,306

-

Timing differences not recognised in the computation

(128,924

)

-

Movement in deferred tax not recognised

206,580

-

Total tax charge

1,881,601

1,389,165

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

£

£

Actuarial gains/losses

(47,285

)

-

(47,285

)