Caseware UK (AP4) 2024.0.164 2024.0.164 2025-05-31 2025-05-31 2025-05-31 false No description of principal activity false 2024-06-01 0 0 false false 01944164 2024-06-01 2025-05-31 01944164 2023-06-01 2024-05-31 01944164 2025-05-31 01944164 2024-05-31 01944164 2023-06-01 01944164 1 2024-06-01 2025-05-31 01944164 d:CompanySecretary1 2024-06-01 2025-05-31 01944164 d:Director1 2024-06-01 2025-05-31 01944164 d:Director2 2024-06-01 2025-05-31 01944164 d:Director3 2024-06-01 2025-05-31 01944164 d:Director4 2024-06-01 2025-05-31 01944164 d:Director5 2024-06-01 2025-05-31 01944164 d:Director6 2024-06-01 2025-05-31 01944164 d:RegisteredOffice 2024-06-01 2025-05-31 01944164 c:Buildings 2024-06-01 2025-05-31 01944164 c:Buildings c:LongLeaseholdAssets 2024-06-01 2025-05-31 01944164 c:PlantMachinery 2024-06-01 2025-05-31 01944164 c:MotorVehicles 2024-06-01 2025-05-31 01944164 c:FurnitureFittings 2024-06-01 2025-05-31 01944164 c:CurrentFinancialInstruments 2025-05-31 01944164 c:CurrentFinancialInstruments 2024-05-31 01944164 c:CurrentFinancialInstruments c:WithinOneYear 2025-05-31 01944164 c:CurrentFinancialInstruments c:WithinOneYear 2024-05-31 01944164 c:ShareCapital 2024-06-01 2025-05-31 01944164 c:ShareCapital 2025-05-31 01944164 c:ShareCapital 2023-06-01 2024-05-31 01944164 c:ShareCapital 2024-05-31 01944164 c:ShareCapital 2023-06-01 01944164 c:RetainedEarningsAccumulatedLosses 2024-06-01 2025-05-31 01944164 c:RetainedEarningsAccumulatedLosses 2025-05-31 01944164 c:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 01944164 c:RetainedEarningsAccumulatedLosses 2024-05-31 01944164 c:RetainedEarningsAccumulatedLosses 2023-06-01 01944164 d:OrdinaryShareClass1 2024-06-01 2025-05-31 01944164 d:OrdinaryShareClass1 2025-05-31 01944164 d:OrdinaryShareClass1 2024-05-31 01944164 d:FRS102 2024-06-01 2025-05-31 01944164 d:Audited 2024-06-01 2025-05-31 01944164 d:FullAccounts 2024-06-01 2025-05-31 01944164 d:PrivateLimitedCompanyLtd 2024-06-01 2025-05-31 01944164 c:Subsidiary1 2024-06-01 2025-05-31 01944164 c:Subsidiary1 1 2024-06-01 2025-05-31 01944164 c:Subsidiary2 2024-06-01 2025-05-31 01944164 c:Subsidiary2 1 2024-06-01 2025-05-31 01944164 c:Subsidiary3 2024-06-01 2025-05-31 01944164 c:Subsidiary3 1 2024-06-01 2025-05-31 01944164 c:Subsidiary4 2024-06-01 2025-05-31 01944164 c:Subsidiary4 1 2024-06-01 2025-05-31 01944164 d:Consolidated 2025-05-31 01944164 d:ConsolidatedGroupCompanyAccounts 2024-06-01 2025-05-31 01944164 6 2024-06-01 2025-05-31 01944164 c:Associate1 2024-06-01 2025-05-31 01944164 c:Associate1 1 2024-06-01 2025-05-31 01944164 c:Associate2 2024-06-01 2025-05-31 01944164 c:Associate2 1 2024-06-01 2025-05-31 01944164 c:Associate3 2024-06-01 2025-05-31 01944164 c:Associate3 1 2024-06-01 2025-05-31 01944164 e:PoundSterling 2024-06-01 2025-05-31 xbrli:shares iso4217:GBP xbrli:pure

Company registration number: 01944164
| ANNUAL REPORT AND FINANCIAL STATEMENTS
| FOR THE YEAR ENDED 31 MAY 2025
| ESPRIT BUSINESS SERVICES LIMITED
ESPRIT BUSINESS SERVICES LIMITED |  |
COMPANY INFORMATION
Directors | I McInnes
| J McInnes
| L L Sigournay
| G Page
| L Holloway
| D Maloney
Company secretary | A Ward
Registered number | 01944164
Registered office | Units 33/34/35 Mitchell Point
| Ensign Business Park
| Hamble Lane
| Hamble
| Southampton
| SO31 4RF
Independent auditor | Menzies LLP
| Chartered Accountants & Statutory Auditor
| 3000a Parkway
| Whiteley
| Hampshire
| PO15 7FX
ESPRIT BUSINESS SERVICES LIMITED |  |
CONTENTS
| Page
Group strategic report | 1 - 2
Directors' report | 3 - 4
Independent auditor's report | 5 - 8
Consolidated statement of comprehensive income | 9
Consolidated statement of financial position | 10
Company statement of financial position | 11
Consolidated statement of changes in equity | 12 - 13
Company statement of changes in equity | 14 - 15
Consolidated statement of cash flows | 16 - 17
Consolidated analysis of net debt | 18
Notes to the financial statements | 19 - 41
ESPRIT BUSINESS SERVICES LIMITED |  |
GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 MAY 2025
Business review
The principal activity of the Group continued to be that of manufacturing electronic components and assemblies. The Company continued to be the Group’s ultimate parent holding company. The group reported a net profit before tax for the year of £1,449,203 (2024 - £947,111). Customer & supplier relationships continue to grow with the addition of new product ranges for new customers in addition to a wider spread of manufactured electronic components & assemblies for established customers. Following the success of expanding the product and customer range the Group is now actively engaged in developing it’s manufacturing base. The Group maintains a strong working capital position and spreads risk for longer term investments by way of external finance. The risk of any individual customer dependence to the Company is contained by the growth of the customer base. Component availability and stability of pricing, which includes $ exchange rates, and the lead time for that supply is considered to be the biggest risk to the Company as that impacts on the service to its customers on which the Company has built its reputation. Improved productivity will be required to finance continued increases in direct wage costs due to the statutory increases in Minimum Wage. The Company, therefore, continually reviews its capital expenditure program to maintain the technological advantage of our manufacturing processes, and to mitigate wage cost inflation as far as practicably possible. The conclusion of the last major review of capital equipment led to purchases of £1,100,000 (2024 - £500,000). This expenditure being primarily funded by asset finance to maintain working capital. The Group is pleased to announce the purchase (within the Group) of a third building since the financial year end that will continue to increase and expand the capacity of operations and securing the ongoing success of Esprit Electronics Limited. At the year end, the directors consider the Group remains in a strong financial position with shareholders’ funds totalling £6,772,492 (2023 - £5,775,312).
Principal risks and uncertainties
The principal threats to the Group, in addition to material availability and the lead time for that supply, as with most other companies, will always be the loss of major customers and the cost of supply impacted by wages, sourcing of components and stability of material prices which are affected by world supply and the values of the GBP. Page 1
ESPRIT BUSINESS SERVICES LIMITED |  |
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025
Financial key performance indicators
The directors consider the Group’s key performance indicators to be its Profit Before Tax and margins together with stock turn which then has an impact on working capital. These key performance indicators of the business have all been within planned ranges and at a level to ensure customer development and retention and the long-term success of the Group. The reduction in stock turn was consistent with increased stock needs for new products. The main key financial performance indicators for the Group are as follows:
| 2025 | 2024
Operating profit | 1,511,945 | 1,001,157
Profit before tax margin | 8.23% | 6.08%
Stock turnover | 4.08 | 3.46
Current ratio | 1.94 | 1.76
This report was approved by the board and signed on its behalf.
A Ward Secretary
Date: 16 January 2026
Page 2
ESPRIT BUSINESS SERVICES LIMITED |  |
DIRECTORS' REPORT FOR THE YEAR ENDED 31 MAY 2025 The directors present their report and the financial statements for the year ended 31 May 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £1,075,280 (2024 - £702,065). The directors' recommend the payment of a dividend of £75,000 (2024 - £75,000).
Directors
The directors who served during the year were:
I McInnes
J McInnes
L L Sigournay
G Page
L Holloway
D Maloney
Future developments
The main trading company will continue to focus its efforts on core customers and service lines in order to maintain profit levels, whilst actively seeking to develop relationships with new customers to increase profit levels.
Financial instruments
The Company uses basic financial instruments such as cash and fixed term deposits. Page 3
ESPRIT BUSINESS SERVICES LIMITED |  |
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025
Matters covered in the Group strategic report
The Group has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the group's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 it must be stated in the Directors' Report that it has done so. This includes information that would have been included in the business review and the principal risks and uncertainties.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
Post balance sheet events
Please refer to Note 32 for details of post balance sheet events.
Auditor
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. This report was approved by the board and signed on its behalf.
A Ward Secretary
Date: 16 January 2026
Page 4
ESPRIT BUSINESS SERVICES LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESPRIT BUSINESS SERVICES LIMITED
Opinion
We have audited the financial statements of Esprit Business Services Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, 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 Group's and of the parent Company's affairs as at 31 May 2025 and of the Group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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. Page 5
ESPRIT BUSINESS SERVICES LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESPRIT BUSINESS SERVICES LIMITED (CONTINUED)
Opinion 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 Group 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 Group strategic report and the Directors' report 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company 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 Directors' responsibilities statement set out on page 3, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 6
ESPRIT BUSINESS SERVICES LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESPRIT BUSINESS SERVICES LIMITED (CONTINUED)
Auditor's 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 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 these Group 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 of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items. ∙We understood how the Company is complying with the legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. We corroborated our inquiries through our review of board minutes. ∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area. ∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: °Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; °Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; °Challenging assumptions and judgments made by management in its significant accounting estimates; and °Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. ∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: °Posting of unusual journals and complex transactions. °Misappropriation of funds through fraudulent purchase ledger and payroll activity. °Manipulation of amounts subject to significant judgment or estimate. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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. Page 7
ESPRIT BUSINESS SERVICES LIMITED |  |
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESPRIT BUSINESS SERVICES LIMITED (CONTINUED)
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. Andrew Galliers FCA (Senior statutory auditor) for and on behalf of Menzies LLP Chartered Accountants Statutory Auditor 3000a Parkway Whiteley Hampshire PO15 7FX Date: 19 January 2026 Page 8
ESPRIT BUSINESS SERVICES LIMITED |  |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MAY 2025
| 2025 | 2024
| £ | £
Turnover | 4 | 17,474,948 | 15,449,650
Cost of sales |  | (11,022,573) | (10,209,385)
Gross profit |  | 6,452,375 | 5,240,265
Administrative expenses |  | (4,960,498) | (4,269,211)
Other operating income | 5 | 20,068 | 30,103
Operating profit | 6 | 1,511,945 | 1,001,157
Share of profit of associates |  | (1,272) | (1,295)
Total operating profit |  | 1,510,673 | 999,862
Interest receivable and similar income | 10 | 23,788 | 21,205
Interest payable and similar expenses | 11 | (85,258) | (73,656)
Profit before taxation |  | 1,449,203 | 947,411
Tax on profit | 12 | (373,923) | (245,346)
Profit for the financial year |  | 1,075,280 | 702,065
Total comprehensive income for the year |  | 1,075,280 | 702,065
Profit for the year attributable to: |  |  |
Owners of the parent Company |  | 1,075,280 | 702,065
|  | 1,075,280 | 702,065
Total comprehensive income for the year attributable to: |  |  |
Owners of the parent Company |  | 1,075,280 | 702,065
|  | 1,075,280 | 702,065
The notes on pages 19 to 41 form part of these financial statements.
Page 9
ESPRIT BUSINESS SERVICES LIMITED REGISTERED NUMBER:01944164 |  |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 16 |  | 2,616,877 |  | 2,066,425
Investments | 17 |  | 255,672 |  | 256,944
|  |  | 2,872,549 |  | 2,323,369
Current assets |  |  |  |  |
Stocks | 18 | 2,319,477 |  | 2,518,674 |
Debtors: amounts falling due within one year | 19 | 5,623,768 |  | 4,349,088 |
Cash at bank and in hand | 20 | 2,410,372 |  | 1,328,809 |
|  | 10,353,617 |  | 8,196,571 |
Creditors: amounts falling due within one year | 21 | (5,323,226) |  | (4,169,402) |
Net current assets |  |  | 5,030,391 |  | 4,027,169
Total assets less current liabilities |  |  | 7,902,940 |  | 6,350,538
Creditors: amounts falling due after more than one year | 22 |  | (715,382) |  | (299,734)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 24 | (415,066) |  | (278,592) |
|  |  | (415,066) |  | (278,592)
Net assets |  |  | 6,772,492 |  | 5,772,212
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 6,060 |  | 6,060
Profit and loss account | 26 |  | 6,766,432 |  | 5,766,152
Equity attributable to owners of the parent Company |  |  | 6,772,492 |  | 5,772,212
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
L L Sigournay
Director
Date: 16 January 2026
The notes on pages 19 to 41 form part of these financial statements. Page 10
ESPRIT BUSINESS SERVICES LIMITED REGISTERED NUMBER:01944164 |  |
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Investments | 17 |  | 340,562 |  | 340,562
|  |  | 340,562 |  | 340,562
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 19 | 613,564 |  | 613,564 |
|  | 613,564 |  | 613,564 |
Creditors: amounts falling due within one year | 21 | (896,662) |  | (896,662) |
Net current liabilities |  |  | (283,098) |  | (283,098)
Total assets less current liabilities |  |  | 57,464 |  | 57,464
Net assets excluding pension asset |  |  | 57,464 |  | 57,464
Net assets |  |  | 57,464 |  | 57,464
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 6,060 |  | 6,060
Profit and loss account brought forward |  | 51,404 |  | 51,404 |
Profit for the year |  | 75,000 |  | 75,000 |
Other changes in the profit and loss account |  | (75,000) |  | (75,000) |
Profit and loss account carried forward |  |  | 51,404 |  | 51,404
|  |  | 57,464 |  | 57,464
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
L L Sigournay
Director
Date: 16 January 2026
The notes on pages 19 to 41 form part of these financial statements. Page 11
ESPRIT BUSINESS SERVICES LIMITED |  |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 2025
| Called up share capital | Profit and loss account | Equity attributable to owners of parent Company | Total equity
| £ | £ | £ | £
At 1 June 2024 | 6,060 | 5,766,152 | 5,772,212 | 5,772,212
Comprehensive income for the year |  |  |  |
Profit for the year | - | 1,075,280 | 1,075,280 | 1,075,280
Total comprehensive income for the year | - | 1,075,280 | 1,075,280 | 1,075,280
Contributions by and distributions to owners |  |  |  |
Dividends: Equity capital | - | (75,000) | (75,000) | (75,000)
Total transactions with owners | - | (75,000) | (75,000) | (75,000)
At 31 May 2025 | 6,060 | 6,766,432 | 6,772,492 | 6,772,492
| The notes on pages 19 to 41 form part of these financial statements.
Page 12
ESPRIT BUSINESS SERVICES LIMITED |  |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 2024
| Called up share capital | Profit and loss account | Equity attributable to owners of parent Company | Total equity
| £ | £ | £ | £
At 1 June 2023 | 6,060 | 5,139,087 | 5,145,147 | 5,145,147
Comprehensive income for the year |  |  |  |
Profit for the year | - | 702,065 | 702,065 | 702,065
Total comprehensive income for the year | - | 702,065 | 702,065 | 702,065
Contributions by and distributions to owners |  |  |  |
Dividends: Equity capital | - | (75,000) | (75,000) | (75,000)
Total transactions with owners | - | (75,000) | (75,000) | (75,000)
At 31 May 2024 | 6,060 | 5,766,152 | 5,772,212 | 5,772,212
| The notes on pages 19 to 41 form part of these financial statements.
Page 13
ESPRIT BUSINESS SERVICES LIMITED |  |
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 June 2024 | 6,060 | 51,404 | 57,464
Comprehensive income for the year |  |  |
Profit for the year | - | 75,000 | 75,000
Total comprehensive income for the year | - | 75,000 | 75,000
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (75,000) | (75,000)
Total transactions with owners | - | (75,000) | (75,000)
At 31 May 2025 | 6,060 | 51,404 | 57,464
| The notes on pages 19 to 41 form part of these financial statements.
Page 14
ESPRIT BUSINESS SERVICES LIMITED |  |
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 June 2023 | 6,060 | 51,404 | 57,464
Comprehensive income for the year |  |  |
Profit for the year | - | 75,000 | 75,000
Total comprehensive income for the year | - | 75,000 | 75,000
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (75,000) | (75,000)
Total transactions with owners | - | (75,000) | (75,000)
At 31 May 2024 | 6,060 | 51,404 | 57,464
| The notes on pages 19 to 41 form part of these financial statements.
Page 15
ESPRIT BUSINESS SERVICES LIMITED |  |
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 1,075,280 | 702,065
Adjustments for: |  |
Depreciation of tangible assets | 553,507 | 432,129
Loss on disposal of tangible assets | (9,773) | (4,000)
Government grants | (20,068) | (30,103)
Interest paid | 85,258 | 73,656
Interest received | (23,788) | (21,205)
Taxation charge | 373,923 | 245,346
Decrease in stocks | 199,197 | 862,484
(Increase)/decrease in debtors | (1,274,680) | 388,295
Increase in creditors | 431,930 | 91,902
Share of operating profit in associates | 1,272 | 1,295
Corporation tax (paid) | (301,711) | (137,105)
Net cash generated from operating activities | 1,090,347 | 2,604,759
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (1,114,799) | (320,614)
Sale of tangible fixed assets | 20,613 | 4,000
Government grants received | 20,068 | 30,103
Interest received | 23,788 | 21,205
HP interest paid | (44,313) | (32,346)
Net cash from investing activities | (1,094,643) | (297,652)
Page 16
ESPRIT BUSINESS SERVICES LIMITED |  |
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2025
|  | 2025 | 2024
|  | £ | £
Cash flows from financing activities |  |
Repayment of loans | (10,000) | (10,000)
Repayment of/new finance leases | 488,574 | (294,622)
Dividends paid | (75,000) | (75,000)
Interest paid | (40,945) | (41,310)
Net cash used in financing activities | 362,629 | (420,932)
Net increase in cash and cash equivalents | 358,333 | 1,886,175
Cash and cash equivalents at beginning of year | 1,068,020 | (818,155)
Cash and cash equivalents at the end of year | 1,426,353 | 1,068,020
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 2,410,372 | 1,328,809
Bank overdrafts | (984,019) | (260,789)
| 1,426,353 | 1,068,020
The notes on pages 19 to 41 form part of these financial statements.
Page 17
ESPRIT BUSINESS SERVICES LIMITED |  |
CONSOLIDATED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 MAY 2025
| At 1 June 2024 | Cash flows | At 31 May 2025
| £ | £ | £
Cash at bank and in hand | 1,328,809 | 1,081,563 | 2,410,372
Bank overdrafts | (260,789) | (723,230) | (984,019)
Debt due within 1 year | (23,182) | 10,000 | (13,182)
Finance leases | (536,468) | (488,574) | (1,025,042)
| 508,370 | (120,241) | 388,129
The notes on pages 19 to 41 form part of these financial statements.
Page 18
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
1. | General information
These financial statements have been prepared in compliance with FRS102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'. Esprit Business Services Limited is a private company limited by shares incorporated and domiciled in the United Kingdom. The address of its registered office, which is also the same as its principal place of business, is disclosed within the Company Information page. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 June 2015. Page 19
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 2.Accounting policies (continued)
| 2.3 | Associates and joint ventures
An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control. An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions. In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
| 2.4 | Going concern
The directors consider the Group and Company's finances remain strong and having taken that into consideration the expected performance over the foreseeable future, the directors consider that the Group and Company will have sufficient resources to continue operational existence for a period of at least 12 months from the date that these accounts are authorised for approval. For this reason, the Group and Company continue to adopt the going concern basis of accounting in preparing these annual financial statements.
| 2.5 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances 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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 20
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 2.Accounting policies (continued)
| 2.6 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
| 2.7 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.8 | Leased assets: the Group as lessee
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
| 2.9 | Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.
| 2.10 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.11 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred. Page 21
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 2.Accounting policies (continued)
| 2.12 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
| 2.13 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 reporting date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. 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 reporting date.
| 2.14 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Page 22
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 2.Accounting policies (continued)
| 2.15 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated 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, On both a reducing balance and straight line basis. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2% | straight line
|  |  |  | Long-term leasehold property | - | 25% | - 50% reducing balance
|  |  |  | Plant and machinery | - | 20% | - 25% reducing balance
|  |  |  | Motor vehicles | - | 35% | reducing balance
|  |  |  | Fixtures and fittings | - | 25% | - 50% reducing balance
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 profit or loss.
| 2.16 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.17 | 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 out basis. Work in progress and finished goods include labour and attributable overheads. At each reporting 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. Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
| 2.18 | Work in progress
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
| 2.19 | 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. Page 23
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 2.Accounting policies (continued)
| 2.20 | 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. In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.21 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.22 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.23 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Page 24
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 2.Accounting policies (continued)
| 2.23 | Financial instruments (continued)
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
| 2.24 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
| 2.25 | Bank factored debts
Factored debt in which recourse lies with the lender is recognised as a liability and is included in creditors falling due within one year. The related receivables continue to be reported separately in trade debtors until the balances are collected.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Fixed asset residual values: The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate. Slow moving stock provision: Slow moving stock is defined as stock that cannot be directly allocated to a customer order for a period of between 3 and 18 months. The directors believe this is a reasonable measure based on their experience of the business. Page 25
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Sale of goods | 17,474,948 | 15,449,650
|  | 17,474,948 | 15,449,650
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 15,193,803 | 14,773,864
| Rest of World | 2,281,145 | 675,786
|  | 17,474,948 | 15,449,650
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Government grants receivable | 20,068 | 30,103
|  | 20,068 | 30,103
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exchange differences | 5,958 | 5,865
| Other operating lease rentals | 103,092 | 107,384
7. | Auditor's remuneration
| During the year, the Group obtained the following services from the Company's auditor:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements | 22,800 | 21,550
Page 26
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Wages and salaries | 3,419,796 | 2,954,960
| Social security costs | 341,169 | 271,264
| Cost of defined contribution scheme | 87,170 | 102,264
|  | 3,848,135 | 3,328,488
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Management and production | 90 | 89
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 470,577 | 366,448
| Group contributions to defined contribution pension schemes | 31,876 | 29,252
|  | 502,453 | 395,700
| During the year retirement benefits were accruing to 7 directors (2024 - 7) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £188,690 (2024 - £154,197).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £15,664 (2024 - £14,664).
10. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 23,788 | 21,205
|  | 23,788 | 21,205
Page 27
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
11. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 1,336 | 1,732
| Finance leases and hire purchase contracts | 44,313 | 32,346
| Other interest payable | 39,609 | 39,578
|  | 85,258 | 73,656
12. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 237,449 | 259,984
|  | 237,449 | 259,984
| Total current tax | 237,449 | 259,984
| Deferred tax |  |
| Origination and reversal of timing differences | 136,474 | (14,638)
| Total deferred tax | 136,474 | (14,638)
|  | 373,923 | 245,346
Page 28
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,449,203 | 947,411
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 362,374 | 237,177
| Effects of: |  |
| Non-tax deductible expenses | 5,473 | 5,556
| Permanent timing differences | 6,104 | -
| Factors affecting associates leading to a decrease in the tax charge | (28) | 2,613
| Total tax charge for the year | 373,923 | 245,346
13. | Dividends
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Dividends | 75,000 | 75,000
|  | 75,000 | 75,000
14. | Parent company profit for the year
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £75,000 (2024 - £75,000). Page 29
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
15. | Intangible assets
| Group and Company
|  | Goodwill
|  | £
| Cost |
| At 1 June 2024 | 156,821
| At 31 May 2025 | 156,821
| Amortisation |
| At 1 June 2024 | 156,821
| At 31 May 2025 | 156,821
| Net book value |
| At 31 May 2025 | -
| At 31 May 2024 | -
Page 30
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
16. | Tangible fixed assets
| Group
|  | Freehold property | Long-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 June 2024 | 821,576 | 257,080 | 3,772,288 | 516,779 | 538,279 | 5,906,002
| Additions | - | - | 967,613 | 98,010 | 49,176 | 1,114,799
| Disposals | - | - | - | (67,910) | (4,861) | (72,771)
| At 31 May 2025 | 821,576 | 257,080 | 4,739,901 | 546,879 | 582,594 | 6,948,030
| Depreciation |  |  |  |  |  |
| At 1 June 2024 | 187,321 | 198,863 | 2,717,983 | 243,616 | 491,794 | 3,839,577
| Charge for the year on owned assets | 9,859 | 14,554 | 407,054 | 102,788 | 19,252 | 553,507
| Disposals | - | - | - | (57,366) | (4,565) | (61,931)
| At 31 May 2025 | 197,180 | 213,417 | 3,125,037 | 289,038 | 506,481 | 4,331,153
| Net book value |  |  |  |  |  |
| At 31 May 2025 | 624,396 | 43,663 | 1,614,864 | 257,841 | 76,113 | 2,616,877
| At 31 May 2024 | 634,255 | 58,217 | 1,054,305 | 273,163 | 46,485 | 2,066,425
Page 31
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025 16.Tangible fixed assets (continued)
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Plant and machinery | 1,325,885 | 732,230
| Motor vehicles | 66,735 | 106,150
|  | 1,392,620 | 838,380
The depreciation charge in respect of assets held under finance leases or hire purchase contracts amounted to £364,208 (2024 - £317,531).
17. | Fixed asset investments
| Group
|  | Investments in associates
|  | £
| Cost or valuation |
| At 1 June 2024 | 256,944
| Share of profit/(loss) | (1,272)
| At 31 May 2025 | 255,672
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 June 2024 | 340,562
| At 31 May 2025 | 340,562
Page 32
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Class of shares | Holding
| Esprit Electronics Limited | Ordinary | 100%
| Wavelegnth Properties Limited | Ordinary | 100%
| AEF Solutions Limited | Ordinary | 100%
| Stablemast Limited | Ordinary | 100%
| All subsidiaries are registered at the address shown on the Company information page.
| Associates
| The following were associates of the Company:
| Name | Class of shares | Holding
| Niche Holdings Limited | Ordinary | 100%
| Niche Holdings Limited | Preference | 45%
| NGL Limited | Ordinary | 90%
| All associates are registered at the address shown on the Company information page.
|  | Aggregate of share capital and reserves | Profit/(loss)
|  | £ | £
| Niche Holdings Limited | 420,994 | (2,859)
| NGL Limited | 107,386 | -
18. | Stocks
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Raw materials and consumables | 1,164,593 | 1,709,827
| Work in progress (goods to be sold) | 1,154,884 | 808,847
|  | 2,319,477 | 2,518,674
| The difference between purchase price or production cost of stocks and their replacement cost is not material.
Page 33
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
19. | Debtors
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Trade debtors | 4,198,850 | 2,901,618 | - | -
| Amounts owed by group undertakings | - | - | 283,658 | 283,658
| Amounts owed by joint ventures and associated undertakings | - | - | 140,904 | 140,904
| Other debtors | 1,067,678 | 913,009 | 157,676 | 157,676
| Prepayments and accrued income | 325,815 | 503,036 | - | -
| Tax recoverable | 31,425 | 31,425 | 31,326 | 31,326
|  | 5,623,768 | 4,349,088 | 613,564 | 613,564
| Included within Trade debtors are debts of £4,198,850 (2024 - £2,901,618) which are under a factoring agreement where recourse lies with the lender.
20. | Cash and cash equivalents
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Cash at bank and in hand | 2,410,372 | 1,328,809
| Less: bank overdrafts | (984,019) | (260,789)
|  | 1,426,353 | 1,068,020
Page 34
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
21. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Proceeds of factored debts | 984,019 | 260,789 | - | -
| Bank loans | 12,500 | 22,500 | - | -
| Trade creditors | 2,511,493 | 2,260,247 | - | -
| Amounts owed to group undertakings | - | - | 895,980 | 895,980
| Amounts owed to other participating interests | 118,596 | 118,596 | - | -
| Corporation tax | 77,451 | 141,713 | - | -
| Other taxation and social security | 462,717 | 433,541 | - | -
| Obligations under finance lease and hire purchase contracts | 309,660 | 236,734 | - | -
| Other creditors | 280,444 | 234,876 | 682 | 682
| Accruals and deferred income | 566,346 | 460,406 | - | -
|  | 5,323,226 | 4,169,402 | 896,662 | 896,662
| The following liabilities were secured:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Proceeds of factored debts | 984,019 | 260,789
| HP liabilities and finance leases | 309,660 | 236,734
|  | 1,293,679 | 497,523
| Details of security provided:
Bank borrowing is secured by charges over assets held by the Group's trading subsidiaries. In addition to this security, there are two third party guarantees in place dated 25 May 2005 and 19 June 2009 limited to £100,000 and £165,000 respectively in relation of the available overdraft facility for two of the Group's trading subsidiaries. Hire purchase creditors are secured by a charge over the related asset. Page 35
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
22. | Creditors: Amounts falling due after more than one year
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Net obligations under finance leases and hire purchase contracts | 715,382 | 299,734
|  | 715,382 | 299,734
| The following liabilities were secured:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| HP liabilities and finance leases | 715,382 | 299,734
|  | 715,382 | 299,734
| Details of security provided:
Hire purchase creditors are secured by a charge over the related asset.
23. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Within one year | 309,660 | 236,734
| Between 1-5 years | 715,382 | 299,734
|  | 1,025,042 | 536,468
| Hire purchase creditors are secured by a charge over the related asset.
Page 36
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
24. | Deferred taxation
| Group
|  | 2025
|  | £
| At beginning of year | (278,592)
| Charged to profit or loss | (136,474)
| At end of year | (415,066)
| Company
|  | 2025
| At end of year | -
| The deferred tax balance is made up as follows:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Accelerated capital allowances | (417,650) | (278,592)
| Short term timing differences | 2,584 | -
|  | (415,066) | (278,592)
25. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 6,060 (2024 - 6,060) Ordinary shares of £1.00 each | 6,060 | 6,060
| Each Ordinary share has equal voting and dividend rights.
26. | Reserves
Profit and loss account This reserve includes all current and prior period retained profit and losses. Page 37
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
27. | Capital commitments
| At 31 May 2025 the Group and Company had capital commitments as follows:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Contracted for but not provided in these financial statements | 51,834 | 333,293
|  | 51,834 | 333,293
28. | Pension commitments
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £110,166 (2024 - £102,264) . Contributions totalling £21,115 (2024 - £18,314) were payable to the fund at the reporting date and are included in creditors.
29. | Commitments under operating leases
| At 31 May 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Not later than 1 year | 37,425 | 37,425
|  | 37,425 | 37,425
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Not later than 1 year | 19,893 | 24,794
| Later than 1 year and not later than 5 years | 16,905 | 36,797
|  | 36,798 | 61,591
Page 38
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
30. | Transactions with directors
The following is a summary of the directors' transactions with the Group during the year:
|  | I McInnes
|  | £
| Balance due to the Group at 1 June 2024 | 5,805
| Payments made on behalf of the director | -
| Repayments made on behalf of the director | -
| Balance due to the Group at 31 May 2025 | 5,805
Page 39
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
31. | Related party transactions
| The following transactions occurred with companies related to the Group by virtue of directors controlling interest. Group During the year, the Group sold goods and recharged expenses to:
|  | 2025 | 2024
|  | £ | £
| Open System Solutions Limited | 465,935 | 744,848
| Icon Electronics Limited | 695 | 1,234
| Wavelength Holdings Limited | 58,834 | 58,818
| The Group made purchases from:
|  | 2025 | 2024
|  | £ | £
| Open System Solutions Limited | - | 28,904
| Wavelength Holdings Limited | 624,260 | 513,166
| The Group also paid management charges to Wavelength Holdings Limited of £591,000 (2024 - £501,000). At the balance sheet date, the Group was owed the following amounts included within other debtors:
|  | 2025 | 2024
|  | £ | £
| Revival Powerboats LLP | 769,600 | 769,600
| Revival Yachts LLP | 164,000 | 164,000
| Wavelength Holdings Limited | 984,616 | 829,943
| Included in creditors falling due within one year are the following amounts provided against the above balances in case of non-recovery:
|  | 2025 | 2024
|  | £ | £
| Revival Powerboats LLP | 769,600 | 769,600
| Revival Yachts LLP | 164,000 | 164,000
Page 40
ESPRIT BUSINESS SERVICES LIMITED |  |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
31. | Related parties (continued)
| At the balance sheet date, the Group owed the following amounts to other participating interests:
|  | 2025 | 2024
|  | £ | £
| Niche Holdings Limited | 9,924 | 9,924
| NGL Limited | 108,672 | 108,672
| Included within the trade debtors were the following amounts:
|  | 2025 | 2024
|  | £ | £
| Open System Solutions Limited | 1 | 221,688
| Included within the trade creditors were the following amounts:
|  | 2025 | 2024
|  | £ | £
| Wavelength Holdings Limited | 1 | 28,486
| Company The Company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 from the requirement to disclose transactions with Group companies on the grounds that they are wholly owned within the Group.
32. | Post balance sheet events
On 7th November 2025, the Group completed the purchase of a new property in Southampton for a total consideration of £900,000. This event is classified as a non-adjusting event under Section 31 of FRS 102 Events After the End of the Reporting Period, as it relates to conditions that arose after the end of the reporting period. Consequently, no adjustments have been made to the financial statements for the year ended 31 May 2025.
33. | Controlling party
The Company was under the control of Mr I McInnes throughout the current and previous year.
Page 41