IRIS Accounts Production v25.4.0.155 06170813 Board of Directors 1.7.24 30.6.25 30.6.25 Medium entities true false true true false false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary shares 1.00000 iso4217:GBP iso4217:USD iso4217:EUR xbrli:shares xbrli:pure utr:tonnes utr:kWh 06170813 2024-06-30 06170813 2025-06-30 06170813 2024-07-01 2025-06-30 06170813 2023-06-30 06170813 2023-07-01 2024-06-30 06170813 2024-06-30 06170813 ns15:EnglandWales 2024-07-01 2025-06-30 06170813 ns14:PoundSterling 2024-07-01 2025-06-30 06170813 ns10:Director1 2024-07-01 2025-06-30 06170813 ns10:PrivateLimitedCompanyLtd 2024-07-01 2025-06-30 06170813 ns10:MediumEntities 2024-07-01 2025-06-30 06170813 ns10:Audited 2024-07-01 2025-06-30 06170813 ns10:Medium-sizedCompaniesRegimeForDirectorsReport 2024-07-01 2025-06-30 06170813 ns10:Medium-sizedCompaniesRegimeForAccounts 2024-07-01 2025-06-30 06170813 ns10:FullAccounts 2024-07-01 2025-06-30 06170813 1 2024-07-01 2025-06-30 06170813 ns10:OrdinaryShareClass1 2024-07-01 2025-06-30 06170813 ns10:Director2 2024-07-01 2025-06-30 06170813 ns10:CompanySecretary1 2024-07-01 2025-06-30 06170813 ns10:RegisteredOffice 2024-07-01 2025-06-30 06170813 ns5:CurrentFinancialInstruments 2025-06-30 06170813 ns5:CurrentFinancialInstruments 2024-06-30 06170813 ns5:Non-currentFinancialInstruments 2025-06-30 06170813 ns5:Non-currentFinancialInstruments 2024-06-30 06170813 ns5:ShareCapital 2025-06-30 06170813 ns5:ShareCapital 2024-06-30 06170813 ns5:RetainedEarningsAccumulatedLosses 2025-06-30 06170813 ns5:RetainedEarningsAccumulatedLosses 2024-06-30 06170813 ns5:ShareCapital 2023-06-30 06170813 ns5:RetainedEarningsAccumulatedLosses 2023-06-30 06170813 ns5:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 06170813 ns5:RetainedEarningsAccumulatedLosses 2024-07-01 2025-06-30 06170813 1 2024-07-01 2025-06-30 06170813 1 2023-07-01 2024-06-30 06170813 ns5:IntangibleAssetsOtherThanGoodwill 2024-07-01 2025-06-30 06170813 ns5:LandBuildings ns5:ShortLeaseholdAssets 2024-07-01 2025-06-30 06170813 ns5:PlantMachinery 2024-07-01 2025-06-30 06170813 ns5:MotorVehicles 2024-07-01 2025-06-30 06170813 ns5:OwnedAssets 2024-07-01 2025-06-30 06170813 ns5:OwnedAssets 2023-07-01 2024-06-30 06170813 ns5:LeasedAssets 2024-07-01 2025-06-30 06170813 ns5:LeasedAssets 2023-07-01 2024-06-30 06170813 ns5:NetGoodwill 2024-07-01 2025-06-30 06170813 ns5:NetGoodwill 2023-07-01 2024-06-30 06170813 ns5:PatentsTrademarksLicencesConcessionsSimilar 2024-07-01 2025-06-30 06170813 ns5:PatentsTrademarksLicencesConcessionsSimilar 2023-07-01 2024-06-30 06170813 ns5:HirePurchaseContracts 2024-07-01 2025-06-30 06170813 ns5:HirePurchaseContracts 2023-07-01 2024-06-30 06170813 ns10:OrdinaryShareClass1 2023-07-01 2024-06-30 06170813 ns5:NetGoodwill 2024-06-30 06170813 ns5:PatentsTrademarksLicencesConcessionsSimilar 2024-06-30 06170813 ns5:NetGoodwill 2025-06-30 06170813 ns5:PatentsTrademarksLicencesConcessionsSimilar 2025-06-30 06170813 ns5:NetGoodwill 2024-06-30 06170813 ns5:PatentsTrademarksLicencesConcessionsSimilar 2024-06-30 06170813 ns5:LandBuildings ns5:ShortLeaseholdAssets 2024-06-30 06170813 ns5:PlantMachinery 2024-06-30 06170813 ns5:MotorVehicles 2024-06-30 06170813 ns5:LandBuildings ns5:ShortLeaseholdAssets 2025-06-30 06170813 ns5:PlantMachinery 2025-06-30 06170813 ns5:MotorVehicles 2025-06-30 06170813 ns5:LandBuildings ns5:ShortLeaseholdAssets 2024-06-30 06170813 ns5:PlantMachinery 2024-06-30 06170813 ns5:MotorVehicles 2024-06-30 06170813 ns5:MotorVehicles ns5:LeasedAssetsHeldAsLessee 2024-07-01 2025-06-30 06170813 ns5:MotorVehicles ns5:LeasedAssetsHeldAsLessee 2025-06-30 06170813 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2025-06-30 06170813 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-06-30 06170813 ns5:WithinOneYear ns5:CurrentFinancialInstruments ns5:HirePurchaseContracts 2025-06-30 06170813 ns5:WithinOneYear ns5:CurrentFinancialInstruments ns5:HirePurchaseContracts 2024-06-30 06170813 ns5:BetweenOneFiveYears ns5:HirePurchaseContracts 2025-06-30 06170813 ns5:BetweenOneFiveYears ns5:HirePurchaseContracts 2024-06-30 06170813 ns5:HirePurchaseContracts 2025-06-30 06170813 ns5:HirePurchaseContracts 2024-06-30 06170813 ns5:DeferredTaxation 2024-06-30 06170813 ns5:DeferredTaxation 2024-07-01 2025-06-30 06170813 ns5:DeferredTaxation 2025-06-30 06170813 ns10:OrdinaryShareClass1 2025-06-30 06170813 ns5:RetainedEarningsAccumulatedLosses 2024-06-30 06170813 ns10:Director2 2 2024-06-30 06170813 ns10:Director2 2 2023-06-30 06170813 ns10:Director2 2 2024-07-01 2025-06-30 06170813 ns10:Director2 2 2023-07-01 2024-06-30 06170813 ns10:Director2 2 2025-06-30 06170813 ns10:Director2 2 2024-06-30 06170813 1 ns10:Director1 2024-06-30 06170813 1 ns10:Director1 2023-06-30 06170813 1 ns10:Director1 2024-07-01 2025-06-30 06170813 1 ns10:Director1 2023-07-01 2024-06-30 06170813 1 ns10:Director1 2025-06-30 06170813 1 ns10:Director1 2024-06-30

REGISTERED NUMBER: 06170813 (England and Wales)

| Strategic Report, Report of the Directors and |

| Financial Statements |

| for the Year Ended 30 June 2025 |

| for |

| Reality Enterprise Ltd |

| Reality Enterprise Ltd (Registered number: 06170813) |

Contents of the Financial Statements

for the Year Ended 30 June 2025

Page |

| Company Information | 1 |

| Strategic Report | 2 |

| Report of the Directors | 3 |

| Report of the Independent Auditors | 4 |

| Statement of Comprehensive Income | 7 |

| Balance Sheet | 8 |

| Statement of Changes in Equity | 9 |

| Cash Flow Statement | 10 |

| Notes to the Cash Flow Statement | 11 |

| Notes to the Financial Statements | 12 |

| Reality Enterprise Ltd |

Company Information

for the Year Ended 30 June 2025

| DIRECTORS: | Mrs S K Ali

| R Ali

| SECRETARY: | Mrs S K Ali

| REGISTERED OFFICE: | 45 Linthorpe Road

| Middlesborugh

| TS1 5BS

| REGISTERED NUMBER: | 06170813 (England and Wales)

| AUDITORS: | Anderson Barrowcliff Limited

| Statutory Auditors

| Chartered Accountants

| 3 Kingfisher Court

| Bowesfield Park

| Stockton on Tees

| TS18 3EX

| Reality Enterprise Ltd (Registered number: 06170813) |

Strategic Report

for the Year Ended 30 June 2025

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

REVIEW OF BUSINESS

Reality Enterprise Ltd delivered another strong year of growth, driven by robust demand for affordable, sustainable technology. The business continues to benefit from its reputation for quality second-hand electronics and excellent customer service. Seasonal peaks during Christmas and the summer holiday period remain key revenue drivers.

The turnover in the year amounted to £13,490,037 (2024: £12,776,181), gross profit margin is 32.9% (2024: 29.7%). Overall pre-tax profit is £581,778 in 2025 (a loss of £72,200 in 2024). The company continues to expand its operations in the north east of England and commenced trading from its new store in Durham during the year.

The financial position of the company, at the year end, is considered to be satisfactory.

Given the straight forward nature of the business the directors are of the opinion that there are no non-financial key performance indicators necessary for the understanding of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company relate to the general economic situation and its effect on consumer spending in addition to technological developments and changes. It operates in a highly competitive market.

Trading conditions continue to be challenging with inflationary year-on-year increases in the National Living Wage, a huge increase in Employer's NIC and reduction in NIC thresholds pushing up employment costs significantly. The company must pass on these increasing costs to its customers.

STRATEGY AND OBJECTIVES

Our strategic focus remains on:

- Expand presence on third-party platforms like Just Eat to increase convenience and reach.

- Use the 14 stores as fulfillment hubs for online orders (click-and-collect, local delivery).

- Improve in-store experience to drive loyalty and repeat purchases.

- Emphasise sustainability and affordability as core values (second-hand goods appeal to eco-conscious consumers).

ON BEHALF OF THE BOARD:

R Ali - Director

4 February 2026

| Reality Enterprise Ltd (Registered number: 06170813) |

Report of the Directors

for the Year Ended 30 June 2025

The directors present their report with the financial statements of the company for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of second hand games consoles, games, DVD's, laptops and smart phones.

DIVIDENDS

The total distribution of dividends for the year ended 30 June 2025 will be £ 29,600 .

DIRECTORS

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

Mrs S K Ali

R Ali

POLITICAL DONATIONS AND EXPENDITURE

No political donations were made by the company during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

- | select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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.

AUDITORS

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

ON BEHALF OF THE BOARD:

R Ali - Director

4 February 2026

Report of the Independent Auditors to the Members of

Reality Enterprise Ltd

Opinion

We have audited the financial statements of Reality Enterprise Ltd (the 'company') for the year ended 30 June 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 June 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

- | certain disclosures of directors' remuneration specified by law are not made; or

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

Report of the Independent Auditors to the Members of

Reality Enterprise Ltd

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Audit procedures performed by the engagement team included:

- |  | Enquiry of management and those charged with governance around actual and potential litigation and claims. |

- |  | Enquiry of entity staff to identify any instances of non-compliance with laws and regulations. |

- |  | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |

- |  | Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. |

- |  | Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period. |

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. The 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 Report of the Auditors.

Report of the Independent Auditors to the Members of

Reality Enterprise Ltd

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.

Helen Wilson FCA (Senior Statutory Auditor)

for and on behalf of Anderson Barrowcliff Limited

Statutory Auditors

Chartered Accountants

3 Kingfisher Court

Bowesfield Park

Stockton on Tees

TS18 3EX

6 February 2026

| Reality Enterprise Ltd (Registered number: 06170813) |

Statement of Comprehensive

Income

for the Year Ended 30 June 2025

| 2025 |  | 2024

| Notes | £ | £ |

TURNOVER | 13,490,037 |  | 12,776,181 |  |

Cost of sales | 9,049,725 |  | 8,976,819 |  |

GROSS PROFIT | 4,440,312 |  | 3,799,362 |  |

Administrative expenses | 3,881,485 |  | 3,871,260 |  |

OPERATING PROFIT/(LOSS) | 3 | 558,827 |  | (71,898 | ) |

Interest payable and similar expenses | 4 | 4,159 |  | 302 |  |

PROFIT/(LOSS) BEFORE TAXATION | 554,668 |  | (72,200 | ) |

Tax on profit/(loss) | 5 | 153,893 |  | (11,801 | ) |

PROFIT/(LOSS) FOR THE FINANCIAL YEAR | 400,775 |  | (60,399 | ) |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 400,775 |  | (60,399 | ) |

| Reality Enterprise Ltd (Registered number: 06170813) |

Balance Sheet

30 June 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Intangible assets | 7 | 62,948 |  | 86,816 |  |

Tangible assets | 8 | 751,357 |  | 727,142 |  |

814,305 |  | 813,958 |  |

CURRENT ASSETS

Stocks | 9 | 1,334,422 |  | 1,258,827 |  |

Debtors | 10 | 1,841,042 |  | 894,315 |  |

Cash at bank and in hand | 410,472 |  | 739,172 |  |

3,585,936 |  | 2,892,314 |  |

CREDITORS

Amounts falling due within one year | 11 | 1,131,888 |  | 925,211 |  |

NET CURRENT ASSETS | 2,454,048 |  | 1,967,103 |  |

TOTAL ASSETS LESS CURRENT LIABILITIES | 3,268,353 |  | 2,781,061 |  |

CREDITORS

Amounts falling due after more than one year | 12 | (81,117 | ) | - |  |

PROVISIONS FOR LIABILITIES | 14 | (133,000 | ) | (98,000 | ) |

NET ASSETS | 3,054,236 |  | 2,683,061 |  |

CAPITAL AND RESERVES

Called up share capital | 15 | 100 |  | 100 |  |

Retained earnings | 16 | 3,054,136 |  | 2,682,961 |  |

SHAREHOLDERS' FUNDS | 3,054,236 |  | 2,683,061 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 4 February 2026 and were signed on its behalf by:

R Ali - Director

| Reality Enterprise Ltd (Registered number: 06170813) |

Statement of Changes in Equity

for the Year Ended 30 June 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Balance at 1 July 2023 | 100 |  | 2,745,360 |  | 2,745,460 |  |

Changes in equity

Dividends | - |  | (2,000 | ) | (2,000 | ) |

Total comprehensive income | - |  | (60,399 | ) | (60,399 | ) |

Balance at 30 June 2024 | 100 |  | 2,682,961 |  | 2,683,061 |  |

Changes in equity

Dividends | - |  | (29,600 | ) | (29,600 | ) |

Total comprehensive income | - |  | 400,775 |  | 400,775 |  |

Balance at 30 June 2025 | 100 |  | 3,054,136 |  | 3,054,236 |  |

| Reality Enterprise Ltd (Registered number: 06170813) |

Cash Flow Statement

for the Year Ended 30 June 2025

| 2025 |  | 2024

| Notes | £ | £ |

Cash flows from operating activities

Cash generated from operations | 1 | 695,955 |  | 329,828 |  |

Interest paid | (102 | ) | (302 | ) |

Interest element of hire purchase payments paid | (4,057 | ) | - |  |

Tax paid | (54,018 | ) | (27,885 | ) |

Net cash from operating activities | 637,778 |  | 301,641 |  |

Cash flows from investing activities

Purchase of tangible fixed assets | (233,282 | ) | (419,377 | ) |

Sale of tangible fixed assets | 91,500 |  | 370,488 |  |

Net cash from investing activities | (141,782 | ) | (48,889 | ) |

Cash flows from financing activities

Capital repayments in year | 92,173 |  | (46,716 | ) |

Amount introduced by directors | 75,000 |  | - |  |

Amount withdrawn by directors | (2,640 | ) | (152,159 | ) |

Amount withdrawn by related parties | (959,629 | ) | (355,613 | ) |

Equity dividends paid | (29,600 | ) | (2,000 | ) |

Net cash from financing activities | (824,696 | ) | (556,488 | ) |

Decrease in cash and cash equivalents | (328,700 | ) | (303,736 | ) |

Cash and cash equivalents at beginning of year | 2 | 739,172 |  | 1,042,908 |  |

Cash and cash equivalents at end of year | 2 | 410,472 |  | 739,172 |  |

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Cash Flow Statement

for the Year Ended 30 June 2025

1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

| 2025 |  | 2024

£ | £ |

| Profit/(loss) before taxation | 554,668 |  | (72,200 | ) |

| Depreciation charges | 155,194 |  | 200,555 |  |

| (Profit)/loss on disposal of fixed assets | (13,759 | ) | 46,521 |  |

| Finance costs | 4,159 |  | 302 |  |

700,262 |  | 175,178 |  |

| Increase in stocks | (75,595 | ) | (27,089 | ) |

| (Increase)/decrease in trade and other debtors | (60,086 | ) | 176,316 |  |

| Increase in trade and other creditors | 131,374 |  | 5,423 |  |

| Cash generated from operations | 695,955 |  | 329,828 |  |

2. | CASH AND CASH EQUIVALENTS

| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

| Year ended 30 June 2025

| 30.6.25 |  | 1.7.24

£ | £ |

| Cash and cash equivalents | 410,472 |  | 739,172 |  |

| Year ended 30 June 2024

| 30.6.24 |  | 1.7.23

£ | £ |

| Cash and cash equivalents | 739,172 |  | 1,042,908 |  |

3. | ANALYSIS OF CHANGES IN NET FUNDS

| At 1.7.24 | Cash flow | At 30.6.25

£ | £ | £ |

| Net cash |

| Cash at bank and in hand | 739,172 |  | (328,700 | ) | 410,472 |  |

739,172 |  | (328,700 | ) | 410,472 |  |

| Debt

| Finance leases | - |  | (92,173 | ) | (92,173 | ) |

- |  | (92,173 | ) | (92,173 | ) |

| Total | 739,172 |  | (420,873 | ) | 318,299 |  |

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Financial Statements

for the Year Ended 30 June 2025

1. | ACCOUNTING POLICIES

| General information and basis of preparing the financial statements

| Reality Enterprise Ltd is a private limited company limited by shares incorporated in England, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are set out in the Report of the Directors on page 3.

| The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS102) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

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

| 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 includes revenue earned from the sale of goods, this is recognised when the significant risks of ownership have transferred to the buyer.

| Goodwill

| Goodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any accumulated amortisation and any accumulated impairment losses.

| Goodwill is written off over a period of 10 years which is an estimate of its useful economic life.

| Licences

| Licences are initially measured at cost. After initial recognition, licences are measured at cost less any accumulated amortisation and any accumulated impairment losses.

| Licences are written off over a period of 10 years which is an estimate of their useful economic life.

| Tangible fixed assets

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

| Short leasehold | - | over the period of the lease

| Plant and machinery | - | 15% on reducing balance

| Motor vehicles | - | 25% on reducing balance

| Stocks

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

| Taxation

| Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

| Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

| Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Financial Statements - continued

for the Year Ended 30 June 2025

1. | ACCOUNTING POLICIES - continued

| Hire purchase and leasing commitments

| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

| Pension

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

| Contributions to defined contribution plans are expensed in the period to which they relate.

| Debtors and creditors receivable/payable within one year

| Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss in other administrative expenses.

| Impairment

| Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

| Judgements and key sources of estimation uncertainty

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

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

| Loans and borrowings

| Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

2. | EMPLOYEES AND DIRECTORS

| 2025 |  | 2024

£ | £ |

| Wages and salaries | 2,382,796 |  | 2,302,910 |  |

| Social security costs | 204,934 |  | 170,749 |  |

| Other pension costs | 55,304 |  | 48,828 |  |

2,643,034 |  | 2,522,487 |  |

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

| 2025 |  | 2024

| Sales & administration | 122 |  | 132 |  |

| Directors | 2 |  | 2 |  |

124 |  | 134 |  |

| 2025 |  | 2024

£ | £ |

| Directors' remuneration | 123,792 |  | 159,763 |  |

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Financial Statements - continued

for the Year Ended 30 June 2025

2. | EMPLOYEES AND DIRECTORS - continued

| The number of directors to whom retirement benefits were accruing was as follows:

| Money purchase schemes | 2 |  | 2 |  |

3. | OPERATING PROFIT/(LOSS)

| The operating profit (2024 - operating loss) is stated after charging/(crediting):

| 2025 |  | 2024

£ | £ |

| Depreciation - owned assets | 129,302 |  | 174,877 |  |

| Depreciation - assets on hire purchase contracts | 2,024 |  | - |  |

| (Profit)/loss on disposal of fixed assets | (13,759 | ) | 46,521 |  |

| Goodwill amortisation | 16,093 |  | 16,093 |  |

| Licences amortisation | 7,775 |  | 9,585 |  |

| Auditors remuneration | 9,500 |  | 9,500 |  |

4. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| 2025 |  | 2024

£ | £ |

| Interest payable | 102 |  | 302 |  |

| Hire purchase | 4,057 |  | - |  |

4,159 |  | 302 |  |

5. | TAXATION

| Analysis of the tax charge/(credit)

| The tax charge/(credit) on the profit for the year was as follows:

| 2025 |  | 2024

£ | £ |

| Current tax:

| UK corporation tax | 126,000 |  | 10,928 |  |

| Over provision of tax in prior periods | (7,107 | ) | (1,729 | ) |

| Total current tax | 118,893 |  | 9,199 |  |

| Deferred taxation | 35,000 |  | (21,000 | ) |

| Tax on profit/(loss) | 153,893 |  | (11,801 | ) |

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Financial Statements - continued

for the Year Ended 30 June 2025

5. | TAXATION - continued

| Reconciliation of total tax charge/(credit) 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:

| 2025 |  | 2024

£ | £ |

| Profit/(loss) before tax | 554,668 |  | (72,200 | ) |

| Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 19.730%) | 138,667 |  | (14,245 | ) |

| Effects of:

| Expenses not deductible for tax purposes | 7,884 |  | 154 |  |

| Depreciation in excess of capital allowances | - |  | 8,246 |  |

| Adjustments to tax charge in respect of previous periods | (7,107 | ) | (1,729 | ) |

| Deferred tax movement at full rate | - |  | (4,227 | ) |

| Corporation tax rounding difference | 624 |  | - |  |

| Deferred tax rounding difference | 13,825 |  | - |  |

| Total tax charge/(credit) | 153,893 |  | (11,801 | ) |

6. | DIVIDENDS

| 2025 |  | 2024

£ | £ |

| Final | 29,600 |  | 2,000 |  |

7. | INTANGIBLE FIXED ASSETS

| Goodwill |  | Licences |  | Totals

£ | £ | £ |

| COST

| At 1 July 2024

| and 30 June 2025 | 160,925 |  | 177,750 |  | 338,675 |  |

| AMORTISATION

| At 1 July 2024 | 113,460 |  | 138,399 |  | 251,859 |  |

| Amortisation for year | 16,093 |  | 7,775 |  | 23,868 |  |

| At 30 June 2025 | 129,553 |  | 146,174 |  | 275,727 |  |

| NET BOOK VALUE

| At 30 June 2025 | 31,372 |  | 31,576 |  | 62,948 |  |

| At 30 June 2024 | 47,465 |  | 39,351 |  | 86,816 |  |

| Goodwill and licence fees are being written off in equal instalments over their estimated economic lives of 10 years.

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Financial Statements - continued

for the Year Ended 30 June 2025

8. | TANGIBLE FIXED ASSETS

| Short |  | Plant and |  | Motor |

| leasehold |  | machinery |  | vehicles |  | Totals

£ | £ | £ | £ |

| COST

| At 1 July 2024 | 274,091 |  | 1,457,022 |  | 136,344 |  | 1,867,457 |  |

| Additions | - |  | 54,342 |  | 178,940 |  | 233,282 |  |

| Disposals | - |  | - |  | (124,563 | ) | (124,563 | ) |

| At 30 June 2025 | 274,091 |  | 1,511,364 |  | 190,721 |  | 1,976,176 |  |

| DEPRECIATION

| At 1 July 2024 | 229,138 |  | 864,195 |  | 46,982 |  | 1,140,315 |  |

| Charge for year | 12,602 |  | 94,207 |  | 24,517 |  | 131,326 |  |

| Eliminated on disposal | - |  | - |  | (46,822 | ) | (46,822 | ) |

| At 30 June 2025 | 241,740 |  | 958,402 |  | 24,677 |  | 1,224,819 |  |

| NET BOOK VALUE

| At 30 June 2025 | 32,351 |  | 552,962 |  | 166,044 |  | 751,357 |  |

| At 30 June 2024 | 44,953 |  | 592,827 |  | 89,362 |  | 727,142 |  |

| Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

| Motor

| vehicles

£ |

| COST

| Additions | 97,174 |  |

| At 30 June 2025 | 97,174 |  |

| DEPRECIATION

| Charge for year | 2,024 |  |

| At 30 June 2025 | 2,024 |  |

| NET BOOK VALUE

| At 30 June 2025 | 95,150 |  |

9. | STOCKS

2025 | 2024 |

£ | £ |

| Stocks | 1,334,422 |  | 1,258,827 |  |

10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade debtors | 112,291 |  | 67,948 |  |

| Amounts owed by participating interests | 1,517,753 |  | 558,124 |  |

| Other debtors | 50,197 |  | 50,197 |  |

| Directors' current accounts | 75,745 |  | 148,733 |  |

| Prepayments | 85,056 |  | 69,313 |  |

1,841,042 |  | 894,315 |  |

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Financial Statements - continued

for the Year Ended 30 June 2025

11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Hire purchase contracts (see note 13) | 11,056 |  | - |  |

| Trade creditors | 38,673 |  | 12,097 |  |

| Outstanding vouchers | 650,076 |  | 591,399 |  |

| Taxation | 126,000 |  | 61,125 |  |

| Social security and other taxes | 45,545 |  | 36,186 |  |

| VAT | 151,114 |  | 124,128 |  |

| Other creditors | 2,247 |  | 327 |  |

| Directors' current accounts | - |  | 628 |  |

| Accrued expenses | 107,177 |  | 99,321 |  |

1,131,888 |  | 925,211 |  |

12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |

2025 | 2024 |

£ | £ |

| Hire purchase contracts (see note 13) | 81,117 |  | - |  |

13. | LEASING AGREEMENTS

| Minimum lease payments under hire purchase fall due as follows:

2025 | 2024 |

£ | £ |

| Net obligations repayable:

| Within one year | 11,056 |  | - |  |

| Between one and five years | 81,117 |  | - |  |

92,173 |  | - |  |

14. | PROVISIONS FOR LIABILITIES

2025 | 2024 |

£ | £ |

| Deferred taxation | 133,000 |  | 98,000 |  |

| Deferred |

| tax |

£ |

| Balance at 1 July 2024 | 98,000 |  |

| Provided during year | 35,000 |  |

| Balance at 30 June 2025 | 133,000 |  |

15. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2025 | 2024 |

| value: | £ | £ |

| 100 | Ordinary shares | £1 | 100 |  | 100 |  |

| Reality Enterprise Ltd (Registered number: 06170813) |

Notes to the Financial Statements - continued

for the Year Ended 30 June 2025

16. | RESERVES

| Retained

| earnings

£ |

| At 1 July 2024 | 2,682,961 |  |

| Profit for the year | 400,775 |  |

| Dividends | (29,600 | ) |

| At 30 June 2025 | 3,054,136 |  |

| Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

17. | PENSION COMMITMENTS

| The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss as they fall due. The charge for the year was £55,304(2024: £48,828). There were pension contributions totalling £Nil outstanding at the year end (2024: £Nil).

18. | OTHER FINANCIAL COMMITMENTS

| The total future minimum payments under non-cancellable operating leases as at 30 June 2025 was £1,269,337 (2024: £1,786,074).

19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

| The following advances and credits to directors subsisted during the years ended 30 June 2025 and 30 June 2024:

2025 | 2024 |

£ | £ |

| Mrs S K Ali

| Balance outstanding at start of year | (628 | ) | (1,708 | ) |

| Amounts advanced | 1,320 |  | 1,080 |  |

| Amounts repaid | - |  | - |  |

| Amounts written off | - |  | - |  |

| Amounts waived | - |  | - |  |

| Balance outstanding at end of year | 692 |  | (628 | ) |

| R Ali

| Balance outstanding at start of year | 148,733 |  | (2,346 | ) |

| Amounts advanced | 1,320 |  | 151,079 |  |

| Amounts repaid | (75,000 | ) | - |  |

| Amounts written off | - |  | - |  |

| Amounts waived | - |  | - |  |

| Balance outstanding at end of year | 75,053 |  | 148,733 |  |

20. | RELATED PARTY DISCLOSURES

| The total remuneration for key management personnel for the year totalled £135,969 (2024 : £179,873) being remuneration disclosed in note 2 plus related parties.

| At the year end the entity was owed £1,517,753 (2024:£558,124) from a company under common control. No interest has been charged on this balance.