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Registration number: 01553406

Leo Textiles Limited
Annual Report and Financial Statements
for the Year Ended 30 June 2025

Leo Textiles Limited

Contents

Company Information | 1
Strategic Report | 2
Directors' Report | 3
Statement of Directors' Responsibilities | 4
Independent Auditor's Report | 5 to 7
Profit and Loss Account | 8
Statement of Comprehensive Income | 9
Balance Sheet | 10
Statement of Changes in Equity | 11
Statement of Cash Flows | 12
Notes to the Financial Statements | 13 to 24

Leo Textiles Limited

Company Information

Directors | Mr P Turner Mrs L Turner

Company secretary | Mr P Turner

Registered office | Leo Workwear 1 Whiddon Drive Barnstaple Devon EX32 8RY

Auditors | BK Plus Audit Limited Chartered Certified AccountantsAzzuri House Walsall Road Aldridge Walsall WS9 0RB

Leo Textiles Limited

Strategic Report for the Year Ended 30 June 2025

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

Principal activity

The principal activity of the company is manufacture and sale of clothing

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written within the context of risks and uncertainties we face.
The company enjoyed another successful year with continued improvement in turnover, which increased by 7.3% compared with the previous period. The gross profit margin has also improved through greater purchasing commitments made possible by our increased range and turnover. We continue to focus heavily on product sustainability and have built up very strong supply partnerships. These positive results are reflected in the profit and loss account.

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

Financial KPIs | Unit | 2025 | 2024
Turnover | £ | 26,561,066 | 24,759,122
Gross profit | £ | 7,220,073 | 6,401,059
Gross profit margin | % | 27.18 | 25.85

Principal risks and uncertainties

The main risks arising from the company's financial instruments are interest rate fluctuations and liquidity risk. It is the company's policy to finance its operations through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cash flow requirements of the company and to maintain an acceptable level of risk exposure.
The company assesses its opportunities and risks in the market place, including areas such as competition, market trends and health and safety policies in order to extend its business activities.

Approved and authorised by the Board on 4 February 2026 and signed on its behalf by:

......................................... Mr P Turner Company secretary and director

Leo Textiles Limited

Directors' Report for the Year Ended 30 June 2025

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

Directors of the company

The directors who held office during the year were as follows:

Mr P Turner - Company secretary and director

Mrs L Turner

Financial instruments

Objectives and policies

The company's financial instruments comprise cash at bank, bank loan (fully repaid in year) and overdraft and various items such as trade debtors, trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise adequate funds for the company's operations.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 4 February 2026 and signed on its behalf by:

......................................... Mr P Turner Company secretary and director

Leo Textiles Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

• | select suitable accounting policies and apply them consistently;

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

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | 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.

Leo Textiles Limited

Independent Auditor's Report to the Members of Leo Textiles Limited

Opinion

We have audited the financial statements of Leo Textiles Limited (the 'company') for the year ended 30 June 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 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 auditor 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 director's 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 original financial statements were 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there 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.

Leo Textiles Limited

Independent Auditor's Report to the Members of Leo Textiles Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 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 ourr procedures are capable of detecting irregularities, including fraud, is detailed below.
From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of auditt procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opintin.

Leo Textiles Limited

Independent Auditor's Report to the Members of Leo Textiles Limited

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
Chartered Certified Accountants
Statutory Auditor
Azzuri House Walsall Road Aldridge
Walsall
England
WS9 0RB

4 February 2026

Leo Textiles Limited

Profit and Loss Account for the Year Ended 30 June 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 26,561,066 | 24,759,122
Cost of sales |  | (19,340,993) | (18,358,063)
Gross profit |  | 7,220,073 | 6,401,059
Administrative expenses |  | (2,732,512) | (2,468,317)
Operating profit | 4 | 4,487,561 | 3,932,742
Other interest receivable and similar income | 5 | 22,936 | 20,566
Interest payable and similar expenses | 6 | (108,828) | (86,428)
|  | (85,892) | (65,862)
Profit before tax |  | 4,401,669 | 3,866,880
Tax on profit | 10 | (1,043,885) | (962,562)
Profit for the financial year |  | 3,357,784 | 2,904,318

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Leo Textiles Limited

Statement of Comprehensive Income for the Year Ended 30 June 2025

| 2025 £ | 2024 £
Profit for the year | 3,357,784 | 2,904,318
Total comprehensive income for the year | 3,357,784 | 2,904,318

Leo Textiles Limited

(Registration number: 01553406)
Balance Sheet as at 30 June 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 12 | 983,243 | 966,681
Investments | 13 | 1 | 1
|  | 983,244 | 966,682
Current assets |  |  |
Stock | 14 | 8,806,312 | 7,784,375
Debtors | 15 | 7,797,540 | 7,208,912
Cash at bank and in hand |  | 3,068,795 | 1,849,730
|  | 19,672,647 | 16,843,017
Creditors: Amounts falling due within one year | 17 | (4,618,486) | (4,334,952)
Net current assets |  | 15,054,161 | 12,508,065
Total assets less current liabilities |  | 16,037,405 | 13,474,747
Provisions for liabilities | 18 | (27,187) | (22,313)
Net assets |  | 16,010,218 | 13,452,434
Capital and reserves |  |  |
Called up share capital |  | 4,000 | 4,000
Retained earnings |  | 16,006,218 | 13,448,434
Shareholders' funds |  | 16,010,218 | 13,452,434

Approved and authorised by the Board on 4 February 2026 and signed on its behalf by:

......................................... Mr P Turner Company secretary and director

Leo Textiles Limited

Statement of Changes in Equity for the Year Ended 30 June 2025

| Share capital £ | Retained earnings £ | Total £
At 1 July 2024 | 4,000 | 13,448,434 | 13,452,434
Profit for the year | - | 3,357,784 | 3,357,784
Dividends | - | (800,000) | (800,000)
At 30 June 2025 | 4,000 | 16,006,218 | 16,010,218

| Share capital £ | Retained earnings £ | Total £
At 1 July 2023 | 4,000 | 11,144,116 | 11,148,116
Profit for the year | - | 2,904,318 | 2,904,318
Dividends | - | (600,000) | (600,000)
At 30 June 2024 | 4,000 | 13,448,434 | 13,452,434

Leo Textiles Limited

Statement of Cash Flows for the Year Ended 30 June 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 3,357,784 | 2,904,318
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 4 | 50,569 | 46,417
Finance income | 5 | (22,936) | (20,566)
Finance costs | 6 | 93,615 | 60,977
Income tax expense | 10 | 1,043,885 | 962,562
|  | 4,522,917 | 3,953,708
Working capital adjustments |  |  |
Increase in stock | 14 | (1,021,937) | (340,479)
Increase in trade debtors | 15 | (588,628) | (1,487,359)
Increase in trade creditors | 17 | 519,886 | 1,235,957
Cash generated from operations |  | 3,432,238 | 3,361,827
Income taxes paid | 10 | (1,149,315) | (732,981)
Net cash flow from operating activities |  | 2,282,923 | 2,628,846
Cash flows from investing activities |  |  |
Interest received | 5 | 22,936 | 20,566
Acquisitions of tangible assets |  | (67,131) | (19,455)
Net cash flows from investing activities |  | (44,195) | 1,111
Cash flows from financing activities |  |  |
Interest paid | 6 | (93,615) | (60,977)
Proceeds from bank borrowing draw downs |  | - | (178,912)
Dividends paid | 23 | (800,000) | (600,000)
Net cash flows from financing activities |  | (893,615) | (839,889)
Net increase in cash and cash equivalents |  | 1,345,113 | 1,790,068
Cash and cash equivalents at 1 July |  | 1,723,682 | (66,386)
Cash and cash equivalents at 30 June |  | 3,068,795 | 1,723,682

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Leo Workwear
1 Whiddon Drive
Barnstaple
Devon
EX32 8RY

These financial statements were authorised for issue by the Board on 4 February 2026.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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

Going concern

The financial statements have been prepared on a going concern basis.

Judgements and key areas of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, etimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are consdered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimtates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both the current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

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 operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Land and buildings | Not depreciated - buildings maintained such that depreciation is immaterial
Plant and machinery | Over 4 years or 8 years, straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Goodwill | 10 years straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stock are assessed for impairment. If stock are 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.

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 | Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 2025 £ | 2024 £
Sale of goods | 26,550,361 | 24,752,633
Other revenue | 10,705 | 6,489
| 26,561,066 | 24,759,122

The analysis of the company's turnover for the year by market is as follows:

| 2025 £ | 2024 £
UK | 25,422,506 | 23,708,631
Europe | 984,893 | 870,168
Rest of world | 153,667 | 180,323
| 26,561,066 | 24,759,122

4 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 50,569 | 46,417
Research and development cost | 34,048 | 31,397
Operating lease expense - plant and machinery | 56,916 | 44,381

5 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 22,936 | 20,566

6 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 1,049 | 3,360
Interest expense on other finance liabilities | 92,566 | 57,617
Foreign exchange gains/losses | 15,213 | 25,451
| 108,828 | 86,428

7 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 2025 £ | 2024 £
Wages and salaries | 2,382,366 | 2,021,085
Social security costs | 181,514 | 150,956
Pension costs, defined contribution scheme | 41,381 | 34,756
Other employee expense | - | 3,375
| 2,605,261 | 2,210,172

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Production | 26 | 19
Administration and support | 36 | 37
| 62 | 56

8 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 120,695 | 115,307
Total directors' benefits in kind | 21,408 | 21,261
| 142,103 | 136,568

9 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 8,500 | 8,500

10 | Taxation

Tax charged/(credited) in the income statement

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 1,098,763 | 973,143
UK corporation tax adjustment to prior periods | (59,752) | (5,543)
| 1,039,011 | 967,600
Deferred taxation |  |
Arising from origination and reversal of timing differences | 4,874 | (5,038)
Tax expense in the income statement | 1,043,885 | 962,562

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 0% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 4,401,669 | 3,866,880
Corporation tax at standard rate | 1,100,598 | 966,720
Effect of expense not deductible in determining taxable profit (tax loss) | 2,211 | 512
Tax increase (decrease) from effect of capital allowances and depreciation | (4,873) | 5,911
Tax increase (decrease) from other short-term timing differences | 4,874 | (5,038)
Adjustment relating to prior period charge | (58,925) | (5,543)
Total tax charge | 1,043,885 | 962,562

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

11 | Intangible assets

| Goodwill £ | Total £
Cost or valuation
At 1 July 2024 | 33,400 | 33,400
At 30 June 2025 | 33,400 | 33,400
Amortisation
At 1 July 2024 | 33,400 | 33,400
At 30 June 2025 | 33,400 | 33,400
Carrying amount
At 30 June 2025 | - | -

12 | Tangible assets

| Land and buildings £ | Furniture, fittings and equipment £ | Total £
Cost or valuation
At 1 July 2024 | 842,728 | 820,742 | 1,663,470
Additions | - | 67,131 | 67,131
Disposals | - | (6,394) | (6,394)
At 30 June 2025 | 842,728 | 881,479 | 1,724,207
Depreciation
At 1 July 2024 | - | 696,789 | 696,789
Charge for the year | - | 50,569 | 50,569
Eliminated on disposal | - | (6,394) | (6,394)
At 30 June 2025 | - | 740,964 | 740,964
Carrying amount
At 30 June 2025 | 842,728 | 140,515 | 983,243
At 30 June 2024 | 842,728 | 123,953 | 966,681

Included within the net book value of land and buildings above is £842,728 (2024 - £842,728) in respect of freehold land and buildings.

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

13 | Investments

| 2025 £ | 2024 £
Investments in subsidiaries | 1 | 1

Subsidiaries | £
Cost or valuation
At 1 July 2024 | 1
Provision
Carrying amount
At 30 June 2025 | 1
At 30 June 2024 | 1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
Leo Workwear Limited | 1 Whiddon Drive, Barnstaple, Devon EX32 8RY England and Wales | Ordinary shares | 100% | 100%

Subsidiary undertakings
Leo Workwear Limited The principal activity of Leo Workwear Limited is Dormant.

14 | Stock

| 2025 £ | 2024 £
Finished goods and goods for resale | 8,806,312 | 7,784,375

15 | Debtors

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Current | 2025 £ | 2024 £
Trade debtors | 5,588,627 | 5,690,052
Other debtors | 4,556 | 21,485
Prepayments | 2,204,357 | 1,497,375
| 7,797,540 | 7,208,912

16 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 149 | 179
Cash at bank | 3,068,646 | 829,485
Short-term deposits | - | 1,020,066
| 3,068,795 | 1,849,730
Bank overdrafts | - | (126,048)
Cash and cash equivalents in statement of cash flows | 3,068,795 | 1,723,682

17 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 21 | - | 126,048
Trade creditors |  | 183,247 | 327,439
Amounts due to related parties |  | 1,534,862 | 956,395
Social security and other taxes |  | 895,584 | 979,091
Accrued expenses |  | 1,465,906 | 1,296,788
Income tax liability | 10 | 538,887 | 649,191
|  | 4,618,486 | 4,334,952

18 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 July 2024 | 22,313 | 22,313
Additional provisions | 4,874 | 4,874
At 30 June 2025 | 27,187 | 27,187

Deferred tax movement has arisen as a result of the effect of accelerated capital allowances.

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

19 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £41,381 (2024 - £34,756).

20 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 4,000 | 4,000 | 4,000 | 4,000

21 | Loans and borrowings

| 2025 £ | 2024 £
Current loans and borrowings
Bank overdrafts | - | 126,048

The bank loans are secured by fixed and floating charges over the assets of the company and a first legal charge over the company's property.

22 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 51,633 | 30,025
Later than one year and not later than five years | 57,200 | 3,867
| 108,833 | 33,892

The amount of non-cancellable operating lease payments recognised as an expense during the year was £61,154 (2024 - £44,381).

Leo Textiles Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

23 | Dividends

|  | 2025 |  | 2024
|  | £ |  | £
Interim dividend of £200.00 (2024 - £150.00) per ordinary share |  | 800,000 |  | 600,000