Company registration number 06596249 (England and Wales)
SEJ DISTRIBUTION LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
SEJ DISTRIBUTION LTD
COMPANY INFORMATION
Directors
Anish Kumar Aggarwal
Sejal Mahesh Aggarwal
Secretary
Sejal Mahesh Aggarwal
Company number
06596249
Registered office
Unit 5a Caxton Trading Estate
Printing House Lane
Hayes
Middlesex
UB3 1BE
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Bankers
Barclays Bank Plc
1 Churchill Place
London
E14 5HP
SEJ DISTRIBUTION LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 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 - 24
SEJ DISTRIBUTION LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 1 -

The directors present their strategic report for the year ended 31 May 202 5. The principal activity of the company is the sale and distribution of industry standard packaging materials, specialising in postal and industrial packaging, with most of its custom base being from an e-commerce trading background.

Review of the business

The directors are broadly satisfied with the company’s results in the year ended 31 May 2025, the results demonstrate an increase in revenue of approximately 13% during the financial year, compared to the prior financial year, although overall net profit margins have reduced. This was expected as the growth was driven as a result of the company redeveloping and repricing its product range, further significant investment into platforms and marketing, as well as expanding on budgets and resource in order to drive revenue and market share. Other factors such as increases in labour costs, electricity costs, and employers’ national insurance also contributed towards this.

For the financial year ahead, we would expect revenue to continue growing organically, and feel that the company is on the right trajectory. For the financial year ahead, we are targeting growth of 10% on revenue, the challenge being to deliver net margins broadly equivalent to year ended 31 May 2025 in terms of their percentage levels.

As shown in the company's profit and loss account set out on page 8, the company made a profit after tax of £3.7m (2024: £3.4m).

The company's balance sheet on page 10 shows that its financial position remained strong with net assets valued at £8.7m (2024: £8.7m).

For the financial year ahead, we would expect revenue to grow by a minimum of 10%. This is largely as a result of a drive undertaken to increase and improve internal marketing, design, systems and data analysis, as well as gaining more presence in the ecommerce marketplace.

Principal risks and uncertainties

During this challenging climate and exceptionally competitive environment, the principal risk continues to be the maintenance of revenue and margin levels, given the increased operational costs the business is facing. The key challenge remains with continually changing prices of supplies in the UK market, as well as courier supplies which represents a major factor in the companies supply chain.

The following could potentially materially affect the results of the company:

- Bad debts as a result of the current economic climate

- Further increases in courier/distribution costs

- Increase in minimum wage costs and employer national insurance costs

To mitigate the above, the company has implemented the following measures:

- Continued tightening of credit control procedures, including improvements to the operating system.

- Entered into negotiations with regard to the renewal of contractual agreements with the company’s main courier partners, to maintain rate and supply stability.

- Continued to invest further into sales, marketing, data analysis and design.

Key performance indicators

The company closely monitors revenue levels, gross margin levels and overhead/operational costs, to ensure the business is operating effectively and efficiently.

The gross profit of the company for the period under review was £9.8m (2024: £8.4m) and turnover of £25.73m (2024: £22.76m).

SEJ DISTRIBUTION LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 2 -

On behalf of the board

Anish Kumar Aggarwal
Director
20 February 2026
SEJ DISTRIBUTION LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2025.

Principal activities

The principal activity of the company is the sale and distribution of industry standard packaging materials, speciali s ing in postal and industrial packaging, with most of its custom base being from an e-commerce trading background.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £3,650,000. The directors do not recommend payment of a further dividend.

Directors

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

Anish Kumar Aggarwal
Sejal Mahesh Aggarwal
Auditor

The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Anish Kumar Aggarwal
Director
20 February 2026
SEJ DISTRIBUTION LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2025
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

SEJ DISTRIBUTION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEJ DISTRIBUTION LTD
- 5 -
Opinion

We have audited the financial statements of SEJ Distribution Ltd (the 'company') for the year ended 31 May 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 May 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

SEJ DISTRIBUTION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEJ DISTRIBUTION LTD (CONTINUED)
- 6 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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'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 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; and

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation.

We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

SEJ DISTRIBUTION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEJ DISTRIBUTION LTD (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims.

We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.

Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures and reviewing other correspondence.

We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Harsheel Dodhia (Senior Statutory Auditor)
For and on behalf of KLSA LLP, Statutory Auditor
Chartered Accountants
Kalamu House
11 Coldbath Square
London
EC1R 5HL
20 February 2026
SEJ DISTRIBUTION LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
25,727,923
22,764,369
Cost of sales
(15,916,676)
(14,406,955)
Gross profit
9,811,247
8,357,414
Distribution costs
(2,938,033)
(2,094,520)
Administrative expenses
(1,973,116)
(1,755,092)
Other operating income
43
1,987
Operating profit
4
4,900,141
4,509,789
Interest receivable and similar income
7
63,790
57,297
Interest payable and similar expenses
8
(32,756)
(43,715)
Profit before taxation
4,931,175
4,523,371
Tax on profit
9
(1,232,812)
(1,136,309)
Profit for the financial year
3,698,363
3,387,062

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

SEJ DISTRIBUTION LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2025
- 9 -
2025
2024
£
£
Profit for the year
3,698,363
3,387,062
Other comprehensive income
-
-
Total comprehensive income for the year
3,698,363
3,387,062
SEJ DISTRIBUTION LTD
BALANCE SHEET
AS AT
31 MAY 2025
31 May 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
206,990
134,730
Current assets
Stocks
12
1,231,336
1,390,884
Debtors
13
6,671,859
6,730,548
Cash at bank and in hand
4,068,904
3,297,262
11,972,099
11,418,694
Creditors: amounts falling due within one year
14
(3,413,292)
(2,831,784)
Net current assets
8,558,807
8,586,910
Total assets less current liabilities
8,765,797
8,721,640
Provisions for liabilities
Deferred tax liability
15
29,328
33,534
(29,328)
(33,534)
Net assets
8,736,469
8,688,106
Capital and reserves
Called up share capital
17
2
2
Profit and loss reserves
8,736,467
8,688,104
Total equity
8,736,469
8,688,106

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 20 February 2026 and are signed on its behalf by:
Anish Kumar Aggarwal
Director
Company registration number 06596249 (England and Wales)
SEJ DISTRIBUTION LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2023
2
7,326,477
7,326,479
Year ended 31 May 2024:
Profit and total comprehensive income
-
3,387,062
3,387,062
Dividends
10
-
(2,025,435)
(2,025,435)
Balance at 31 May 2024
2
8,688,104
8,688,106
Year ended 31 May 2025:
Profit and total comprehensive income
-
3,698,363
3,698,363
Dividends
10
-
(3,650,000)
(3,650,000)
Balance at 31 May 2025
2
8,736,467
8,736,469
SEJ DISTRIBUTION LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
5,082,093
2,936,235
Interest paid
(32,756)
(43,715)
Income taxes paid
(547,683)
(1,798,954)
Net cash inflow from operating activities
4,501,654
1,093,566
Investing activities
Purchase of tangible fixed assets
(147,802)
(11,616)
Proceeds from disposal of tangible fixed assets
4,000
-
0
Repayment of loans
-
0
825,000
Interest received
63,790
57,297
Net cash (used in)/generated from investing activities
(80,012)
870,681
Financing activities
Dividends paid
(3,650,000)
(2,025,435)
Net cash used in financing activities
(3,650,000)
(2,025,435)
Net increase/(decrease) in cash and cash equivalents
771,642
(61,188)
Cash and cash equivalents at beginning of year
3,297,262
3,358,450
Cash and cash equivalents at end of year
4,068,904
3,297,262
SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
- 13 -
1
Accounting policies
Company information

SEJ Distribution Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5a Caxton Trading Estate, Printing House Lane, Hayes, Middlesex, UB3 1BE.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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

1.4
Tangible fixed assets

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

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

Plant and equipment
25% on a reducing balance basis
Motor vehicles
25% on a reducing balance basis

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

SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

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

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

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

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

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

Deferred tax

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

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 17 -
1.11
Employee benefits

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

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

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

1.12
Retirement benefits

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

1.13
Leases
As lessee

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

2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Packaging goods
25,727,923
22,764,369
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
25,680,059
22,744,859
Rest of the world
47,864
19,510
25,727,923
22,764,369
2025
2024
£
£
Other revenue
Interest income
63,790
57,297
SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 18 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Exchange losses
4,999
6,853
Fees payable to the company's auditor for the audit of the company's financial statements
11,090
11,000
Depreciation of owned tangible fixed assets
68,997
44,909
Loss on disposal of tangible fixed assets
2,545
-
Operating lease charges
515,000
424,500
5
Employees

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

2025
2024
Number
Number
Director/Management administration
2
2
Key Management
6
6
Sales & customer support
11
11
Packing, distribution & logistic
32
29
Total
51
48

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,496,554
1,335,412
Social security costs
155,052
124,758
Pension costs
137,609
140,271
1,789,215
1,600,441
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
48,000
24,400
Company pension contributions to defined contribution schemes
120,000
127,000
168,000
151,400
SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 19 -
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
47,380
41,407
Other interest income
16,410
15,890
Total income
63,790
57,297
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
47,380
41,407
8
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Other interest
32,756
43,715
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
1,238,528
1,140,311
Adjustments in respect of prior periods
(1,510)
4,316
Total current tax
1,237,018
1,144,627
Deferred tax
Origination and reversal of timing differences
(4,206)
(8,318)
Total tax charge
1,232,812
1,136,309
SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
9
Taxation
(Continued)
- 20 -

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

2025
2024
£
£
Profit before taxation
4,931,175
4,523,371
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
1,232,794
1,130,843
Tax effect of expenses that are not deductible in determining taxable profit
1,961
1,150
Adjustments in respect of prior years
(1,510)
4,316
Permanent capital allowances in excess of depreciation
3,570
8,318
Deferred tax adjustment
(4,206)
(8,318)
Pension adjustment
203
-
0
Taxation charge for the year
1,232,812
1,136,309
10
Dividends
2025
2024
£
£
Final paid
3,650,000
2,025,435
11
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 June 2024
377,724
128,986
506,710
Additions
35,139
112,663
147,802
Disposals
(44,201)
(9,500)
(53,701)
At 31 May 2025
368,662
232,149
600,811
Depreciation and impairment
At 1 June 2024
290,943
81,037
371,980
Depreciation charged in the year
29,267
39,730
68,997
Eliminated in respect of disposals
(39,347)
(7,809)
(47,156)
At 31 May 2025
280,863
112,958
393,821
Carrying amount
At 31 May 2025
87,799
119,191
206,990
At 31 May 2024
86,781
47,949
134,730
SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 21 -
12
Stocks
2025
2024
£
£
Finished goods and goods for resale
1,231,336
1,390,884
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
854,344
879,584
Corporation tax recoverable
-
0
268,125
Amounts owed by group undertakings
5,117,632
5,126,076
Other debtors
509,680
257,378
Prepayments and accrued income
190,203
199,385
6,671,859
6,730,548
14
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
1,652,782
1,645,890
Amounts owed to group undertakings
41,898
22,919
Corporation tax
737,773
316,563
Other taxation and social security
496,857
438,044
Other creditors
362,682
356,949
Accruals and deferred income
121,300
51,419
3,413,292
2,831,784
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
29,328
33,534
SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
15
Deferred taxation
(Continued)
- 22 -
2025
Movements in the year:
£
Liability at 1 June 2024
33,534
Credit to profit or loss
(4,206)
Liability at 31 May 2025
29,328
16
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
137,609
140,271

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

17
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Class A Ordinary shares of £0.0001 each
19,999
19,999
2
2
Class B Ordinary shares of £0.0001 each
1
1
-
0
-
0
18
Operating lease commitments
As lessee

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

2025
2024
£
£
Within 1 year
572,000
472,083
Years 2-5
52,000
42,917
624,000
515,000
SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 23 -
19
Related party transactions

At the balance sheet date, SEJ Assets Limited owed £5,104,645 (2024: £4,964,717) to the company. This is interest-free loan and repayable on demand. SEJ Assets Limited owed the company £Nil (202 4: £780) in trading transactions. During the year, SEJ Distribution Ltd sold goods and services of £8,700 (202 4: £5,850) to SEJ Assets Limited and purchased goods and services of £532,576 (2024: £437,257) from SEJ Assets Limited. SEJ Assets Limited is the parent company of SEJ Distribution Limited.

At the balance sheet date, the company owed SEJ Holdings Limited £40,000 (2024: receivable £150,000). SEJ Holdings Limited is the ultimate parent company of SEJ Distribution Limited.

At the balance sheet date, SEJ Pharmaceutical Limited, owed £3,269 (202 4: £2,242) to the company in trading transactions. One of the directors, Anish Aggarwal of SEJ Pharmaceutical Limited is also a director of SEJ Distribution Limited. During the year SEJ Distribution Limited sold goods and services of £11,854 (2024: £Nil) to SEJ Pharmaceutical Limited

At the balance sheet date, SEJ Midlands Limited owed the company £9,719 (202 4: £8,337) and the company also owed £1,898 (2024: £1,339) to SEJ Midlands Limited in trading transactions. During the year SEJ Distribution Limited sold goods and services of £97,567 (2024: £127,815) to SEJ Midlands Limited and purchased goods of £16,324 (2024: £14,379) from SEJ Distribution Limited. One of the directors, Anish Aggarwal of SEJ Midlands Limited is also a director of SEJ Distribution Limited.

At the balance sheet date, Triplast Limited owed £23,038 (202 4: £540) to the company and c ompany also owed £96,574 (202 4: £45,323) to Triplast Limited in trading transactions. During the year, SEJ Distribution Ltd sold goods and services of £140,453 (202 4: £125,549) to Triplast Limited and purchased goods of £660,848 (202 4: £528,481) from Triplast Limited. At the balance sheet date, t he amount due to Triplast Limited was totalled £177 (202 4: £21,580) and this was an interest free loan. One of the directors, Anish Aggarwal of SEJ Distribution Limited is also a director of Triplast Limited.

At the balance sheet date, SEJ Estates Limited owed £195,120 (2024: £Nil) to the company. This is an interest-free loan and repayable on demand. The related party relationship arises from the common directorship.

At the balance sheet date, the amount due to Anish and Sejal Aggarwal, the directors was £28,918 (202 4: £132,396). This is an interest-free loan repayable on demand.

Key management personnel compensation in the year totalled £313,438 (202 4: £2 68,904).

20
Ultimate controlling party

SEJ Assets Limited owns 99.9995% (2024: 99.9995%) share capital of the company. SEJ Holdings Limited is the ultimate parent company which prepares group financial statements. Both companies are incorporated in England and Wales. Copies of the group financial statements of SEJ Holdings Limited are available at the registered office located at 5 Caxton Trading Estate, Printing House Lane, Hayes, Middlesex, United Kingdom, UB3 1BE.

The ultimate controlling party is Mr A K Aggarwal and his wife, Mrs S M Aggarwal.

SEJ DISTRIBUTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 24 -
21
Cash generated from operations
2025
2024
£
£
Profit after taxation
3,698,363
3,387,062
Adjustments for:
Taxation charged
1,232,812
1,136,309
Finance costs
32,756
43,715
Investment income
(63,790)
(57,297)
Loss on disposal of tangible fixed assets
2,545
-
Depreciation and impairment of tangible fixed assets
68,997
44,909
Movements in working capital:
Decrease in stocks
159,548
387,360
Increase in debtors
(209,436)
(1,615,296)
Increase/(decrease) in creditors
160,298
(390,527)
Cash generated from operations
5,082,093
2,936,235
22
Analysis of changes in net funds
1 June 2024
Cash flows
31 May 2025
£
£
£
Cash at bank and in hand
3,297,262
771,642
4,068,904
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