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Registered number: 00251148 H. Marcel Guest, Limited Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
H. Marcel Guest, Limited Company Information
Directors | S B Falder
| J S Falder
| C J Falder
| J E Falder
Company secretary | K J West
Registered number | 00251148
Registered office | Riverside Works
| Collyhurst Road
| Manchester
| M40 7RU
Independent auditors | Hurst Accountants Limited
| Chartered Accountants & Statutory Auditors
| 3 Stockport Exchange
| Railway Road
| Stockport
| SK1 3GG
Bankers | Lloyds Bank Plc
| 42-46 Market Street
| Manchester
| M1 1PW
H. Marcel Guest, Limited Contents
| Page
Chairman's Statement | 1
Group Strategic Report | 2 - 3
Directors' Report | 4 - 5
Independent Auditors' Report | 6 - 9
Consolidated Statement of Comprehensive Income | 10
Consolidated Balance Sheet | 11
Company Balance Sheet | 12
Consolidated Statement of Changes in Equity | 13
Company Statement of Changes in Equity | 14
Consolidated Statement of Cash Flows | 15
Consolidated Analysis of Net Debt | 15 - 16
Notes to the Financial Statements | 17 - 39
H. Marcel Guest, Limited Chairman's Statement for the year ended 30 September 2025 The chairman presents his statement for the period. The past year has been a quite astonishing mixture of macro-economic and global political instability, coupled with a very solid and satisfactory performance by HMG Paints Limited (HMG) in particular, but also some of the small companies that form part of H. Marcel Guest, Limited’s shareholdings. Globally and nationally there appears to be a feeling of increasing insecurity coupled with a growing intolerance of debate about what can be done. Perhaps worst of all we seem to have acquired a cabal of leaders of the major countries that, for a variety of reasons, have polarised or dominated their citizens (or both). Economic stability and optimism for the future are the two most powerful engines of economic growth, and both of those engines seem to be running at “low power” just now, in both in the UK and many parts of the world. By contrast I am delighted to report that for H. Marcel Guest, Limited and HMG Paints Limited this has been a year that has represented success and progress across a wide range of fronts. The financial results of HMG are the best achieved by any of the usual measures, turnover has hit record numbers, and the result of that increased activity has produced record gross and net profitability. The energy and drive of the staff and management of all the enterprises that H. Marcel Guest, Limited has ownership or a significant stake in mean that, as well as HMG setting records for performance, I must also mention Vintro Paints Limited who achieved their best ever result, and W.H. Screeton Associates Limited who have been energised by the Nova Paint Club’s Cool roofs for a cooler planet initiative. Green initiatives have been a feature of H. Marcel Guest, Limited’s operations since my father Brian Falder planted the first new trees in 100 years to come to Collyhurst in the late 1960’s. I am delighted to report these practical steps continue with the company supporting restoration of fellside deciduous woodland in Cumbria, as well as upping the tempo of the restoration of the New Era site adjacent to the Riverside works. Family businesses are at their very best when they plan long term. This year as well as long term green initiatives within the businesses, we have completed a significant number of steps concerning succession within the family ownership of the company. The board are delighted that we have, in our next generation, a strong and varied group of family members who have already made their mark as full time or part time supporters and drivers of the Company’s future. As a recognition of this, transfers of ownership to that next generation have been planned during the year (and have been executed early in financial year 2025/26). Our next generation members now have significant shareholdings in H. Marcel Guest, Limited, and it goes without saying they have our complete confidence in them as the next generation of owners. As we move forwards into our next financial year, we are appropriately braced for continuing economic turbulence, but we are also fully energised by the opportunities that the current situation brings. In the uncertain conditions we are in I am certain that the people we have and the values we hold will bring about the best possible of results in the coming year. Finally, it is my pleasure to thank my colleagues on the board of H. Marcel Guest, Limited for their hard work and support during the year, and to press onwards and upwards during 2025 and 2026. Name: S Falder (Chairman) Date:3 March 2026 Page 1
H. Marcel Guest, Limited Group Strategic Report for the year ended 30 September 2025
Introduction
During a year of continued economic uncertainty, fuelled by increased labour costs via the rise in National Insurance contributions and the minimum wage, the Group once again demonstrated its agility and adaptability in further diversifying its product range and managing to secure several new contracts, which strengthened our customer base. By continuing to monitor costs and prices throughout this challenging year, the Group has navigated through the difficult macro-economic environment, and succeeded in increasing turnover and reporting an improvement in gross margin, which is reflected in these results. Considering the unstable economic conditions, turnover and profitability are deemed by the Board to be acceptable given the challenges faced by the Group through the year. The Group's principal subsidiary, HMG Paints Limited, maintains a strategy of long-term business, at the heart of which is the aim of building security for all the company stakeholders. During 2024/25 the Company has continued to maintain its performance in line with those objectives. We have continued to invest heavily in the health and safety, technical training, and development of our people, along with the continuous enhancement of our working environment. Indeed, in the year HMG Paints Limited invested £1.35 million in capital improvements throughout the business. Overall, we are satisfied with the performance of the Group throughout 2024/25 and we believe that, because of the continued investment, we are well positioned to embrace the challenges which the financial year 2025/26 will bring. Principal risks and uncertainties The Group’s activities expose it to several financial risks including credit risk and liquidity risk. The factors described below highlight risks and uncertainties which affect the company, but they are not intended to be an exhaustive analysis of all the potential risks which may arise in the ordinary course of business. The directors are of the opinion that sufficient internal controls have been implemented to monitor these factors and to enable timely management action to be taken to mitigate the risks. Political risk The war in Ukraine and the ongoing conflict in the Middle East, plus the departure of the UK from the European Union, continue to represent a period of uncertainty for the business as our supply chain relies heavily on materials from the EU. We are managing this risk by ensuring we have appropriate finance in place should it be needed, as well as increasing levels of stock so that any disruption does not leave us exposed. Financial risk Our financial risk management objectives are to ensure sufficient working capital for the company and plans remain absolutely to our expectations. Financial risks are managed through internal management controls, timely and accurate management information and through careful monitoring of sales activity and margins. The company does not feel it is necessary to hedge its currency or interest rate risk. Credit risk The Group’s principal financial assets comprise cash at bank and in hand, and trade and other receivables. Its credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The Group has a credit insurance policy in place to mitigate the credit risk from trade receivables. Page 2
H. Marcel Guest, Limited Group Strategic Report (continued) for the year ended 30 September 2025 Liquidity risk To maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments the Group has a mixture of long term and short-term finance. Financial key performance indicators The key performance indicators that are monitored on a weekly, monthly, and annual basis are revenue, profit, and cash balances, all of which are derived from the financial statements. The revenue and profit figures are stated below:
| 2025 | 2024
| £000 | £000
Revenue | 27,747 | 26,251
Gross profit | 12,615 | 11,330
Operating profit | 2,334 | 2,067
This report was approved by the board and signed on its behalf.
J S Falder Director
Date: 3 March 2026
Page 3
H. Marcel Guest, Limited Directors' Report for the year ended 30 September 2025 The directors present their report and the financial statements for the year ended 30 September 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make 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 Group will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £1,798,752 (2024: £1,732,445). The directors have declared dividends during the year of £598,286 (2024: £600,000).
Directors
The directors who served during the year were:
S B Falder
J S Falder
C J Falder
J E Falder
Future developments
The directors consider that the forthcoming financial year will be another year of solid performance, building further security for all our stakeholders.
Research and development activities
The Group will continue to invest heavily in research and development activities in the forthcoming year to ensure that it stays at the forefront of innovation in the coatings industry. The continued investment will enable the business to offer unique innovative products for its customers. Page 4
H. Marcel Guest, Limited Directors' Report (continued) for the year ended 30 September 2025
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the company and the Group's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditors
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
J S Falder Director
Date: 3 March 2026
Page 5
H. Marcel Guest, Limited Independent Auditors' Report to the Members of H. Marcel Guest, Limited
Opinion
We have audited the financial statements of H. Marcel Guest, Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 30 September 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Group's and of the parent company's affairs as at 30 September 2025 and of the Group's profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 6
H. Marcel Guest, Limited Independent Auditors' Report to the Members of H. Marcel Guest, Limited (continued)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 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 Group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so. Page 7
H. Marcel Guest, Limited Independent Auditors' Report to the Members of H. Marcel Guest, Limited (continued)
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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: ∙The nature of the industry and sector in which the Group operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. ∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge if any actual, suspected, or alleged fraud. ∙Supporting documentation relating to the Group's policies and procedures for: °Identifying, evaluating, and complying with laws and regulations. °Detecting and responding to the risks of fraud. ∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. ∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. ∙The legal and regulatory framework in which the Group operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group, including General Data Protection requirements and Anti-bribery and Corruption. Audit response to risks identified Our procedures to respond to the risks identified included the following: ∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. ∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. ∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities. ∙Enquiring of management about any actual and potential litigation and claims. ∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud. ∙Reading minutes of meetings of those charged with governance. Page 8
H. Marcel Guest, Limited Independent Auditors' Report to the Members of H. Marcel Guest, Limited (continued) We have also considered the risk of fraud through management override of controls by: ∙Testing the appropriateness of journal entries and other adjustments; we have used data analytics software to run tests designed to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error; ∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and ∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. 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 or intentional misrepresentations, or through collusion. 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 Auditors' 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 Auditors' 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. Ryan Tattler (Senior Statutory Auditor) for and on behalf of Hurst Accountants Limited Chartered Accountants & Statutory Auditors 3 Stockport Exchange Railway Road Stockport SK1 3GG 3 March 2026 Page 9
H. Marcel Guest, Limited Consolidated Statement of Comprehensive Income for the year ended 30 September 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 27,747,264 | 26,251,319
Cost of sales |  | (15,132,002) | (14,920,886)
Gross profit |  | 12,615,262 | 11,330,433
Distribution costs |  | (3,480,364) | (3,232,220)
Administrative expenses |  | (6,983,839) | (6,033,732)
Other operating income | 5 | 182,488 | 2,513
Operating profit | 6 | 2,333,547 | 2,066,994
Gain on financial assets at fair value through profit and loss |  | 72,331 | 25,362
Interest receivable and similar income | 10 | 51,768 | 51,380
Interest payable and similar expenses | 11 | (9,910) | (2,861)
Profit before taxation |  | 2,447,736 | 2,140,875
Tax on profit | 12 | (648,984) | (408,430)
Profit for the financial year |  | 1,798,752 | 1,732,445
Profit for the year attributable to: |  |  |
Owners of the parent company |  | 1,798,752 | 1,732,445
There was no other comprehensive income for 2025 (2024:£NIL).
The notes on pages 17 to 39 form part of these financial statements.
Page 10
H. Marcel Guest, Limited Registered number: 00251148 Consolidated Balance Sheet As at 30 September 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible fixed assets | 14 |  | 4,938,289 |  | 4,253,094
Fixed asset investments | 15 |  | 1,280,901 |  | 646,765
|  |  | 6,219,190 |  | 4,899,859
Current assets |  |  |  |  |
Stocks | 16 | 5,106,969 |  | 4,983,619 |
Debtors: amounts falling due after more than one year | 17 | 36,205 |  | 203,853 |
Debtors: amounts falling due within one year | 17 | 5,027,210 |  | 5,588,699 |
Cash at bank and in hand | 18 | 3,966,487 |  | 3,400,691 |
|  | 14,136,871 |  | 14,176,862 |
Creditors: amounts falling due within one year | 19 | (5,329,682) |  | (5,340,034) |
Net current assets |  |  | 8,807,189 |  | 8,836,828
Total assets less current liabilities |  |  | 15,026,379 |  | 13,736,687
Provisions for liabilities |  |  |  |  |
Deferred tax | 21 |  | (721,073) |  | (631,847)
Net assets |  |  | 14,305,306 |  | 13,104,840
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 1,000,000 |  | 1,000,000
Profit and loss account | 23 |  | 13,305,306 |  | 12,104,840
|  |  | 14,305,306 |  | 13,104,840
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
J S Falder
Director
Date: 3 March 2026
Page 11
H. Marcel Guest, Limited Registered number: 00251148 Company Balance Sheet As at 30 September 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 14 |  | 401,312 |  | 424,919
Fixed asset investments | 15 |  | 3,287,025 |  | 2,652,889
|  |  | 3,688,337 |  | 3,077,808
Current assets |  |  |  |  |
Debtors: amounts falling due after more than one year | 17 | - |  | 150,139 |
Debtors: amounts falling due within one year | 17 | 391,194 |  | 369,408 |
Cash at bank and in hand | 18 | 515,205 |  | 296,640 |
|  | 906,399 |  | 816,187 |
Creditors: amounts falling due within one year | 19 | (1,540,480) |  | (717,036) |
Net current (liabilities)/assets |  |  | (634,081) |  | 99,151
Total assets less current liabilities |  |  | 3,054,256 |  | 3,176,959
Provisions for liabilities |  |  |  |  |
Deferred taxation | 21 | (16,385) |  | - |
|  |  | (16,385) |  | -
Net assets |  |  | 3,037,871 |  | 3,176,959
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 1,000,000 |  | 1,000,000
Profit and loss account brought forward |  | 2,176,959 |  | 2,256,855 |
Profit for the year |  | 459,198 |  | 520,104 |
Dividends | 13 | (598,286) |  | (600,000) |
Profit and loss account carried forward | 23 |  | 2,037,871 |  | 2,176,959
|  |  | 3,037,871 |  | 3,176,959
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
J S Falder
Director
Date: 3 March 2026
The notes on pages 17 to 39 form part of these financial statements. Page 12
H. Marcel Guest, Limited Consolidated Statement of Changes in Equity for the year ended 30 September 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 October 2024 | 1,000,000 | 12,104,840 | 13,104,840
Comprehensive income for the year |  |  |
Profit for the year | - | 1,798,752 | 1,798,752
Total comprehensive income for the year | - | 1,798,752 | 1,798,752
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (598,286) | (598,286)
Total transactions with owners | - | (598,286) | (598,286)
At 30 September 2025 | 1,000,000 | 13,305,306 | 14,305,306
| The notes on pages 17 to 39 form part of these financial statements.
Consolidated Statement of Changes in Equity for the year ended 30 September 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 October 2023 | 1,000,000 | 10,972,395 | 11,972,395
Comprehensive income for the year |  |  |
Profit for the year | - | 1,732,445 | 1,732,445
Total comprehensive income for the year | - | 1,732,445 | 1,732,445
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (600,000) | (600,000)
Total transactions with owners | - | (600,000) | (600,000)
At 30 September 2024 | 1,000,000 | 12,104,840 | 13,104,840
| The notes on pages 17 to 39 form part of these financial statements.
Page 13
H. Marcel Guest, Limited Company Statement of Changes in Equity for the year ended 30 September 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 October 2024 | 1,000,000 | 2,176,959 | 3,176,959
Comprehensive income for the year |  |  |
Profit for the year | - | 459,198 | 459,198
Total comprehensive income for the year | - | 459,198 | 459,198
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (598,286) | (598,286)
Total transactions with owners | - | (598,286) | (598,286)
At 30 September 2025 | 1,000,000 | 2,037,871 | 3,037,871
Company Statement of Changes in Equity for the year ended 30 September 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 October 2023 | 1,000,000 | 2,256,855 | 3,256,855
Comprehensive income for the year |  |  |
Profit for the year | - | 520,104 | 520,104
Total comprehensive income for the year | - | 520,104 | 520,104
Contributions by and distributions to owners |  |  |
Dividends: Equity capital | - | (600,000) | (600,000)
Total transactions with owners | - | (600,000) | (600,000)
At 30 September 2024 | 1,000,000 | 2,176,959 | 3,176,959
| The notes on pages 17 to 39 form part of these financial statements.
Page 14
H. Marcel Guest, Limited Consolidated Statement of Cash Flows for the year ended 30 September 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 1,798,752 | 1,732,445
Adjustments for: |  |
Depreciation of tangible assets | 660,349 | 600,361
Impairments of fixed asset investments | - | 25
Loss on disposal of tangible assets | - | 398
Interest paid | 9,910 | 2,861
Interest received | (51,768) | (51,380)
Taxation charge | 648,984 | 408,430
(Increase) in stocks | (123,350) | (273,938)
Decrease/(increase) in debtors | 756,711 | (663,049)
(Increase) in amounts owed by associates | (27,574) | (9,144)
(Decrease)/increase in creditors | (278,388) | 331,549
Net fair value (gains) recognised in P&L | (72,331) | (25,386)
Corporation tax (paid) | (509,234) | (142,332)
R&D expenditure credit | (182,488) | -
Net cash generated from operating activities | 2,629,573 | 1,910,840
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (1,345,544) | (1,159,764)
Sale of tangible fixed assets | - | 2,500
Purchase of listed investments | (410,000) | -
Purchase of unlisted and other investments | (151,805) | -
Interest received | 51,768 | 51,380
Net cash used in investing activities | (1,855,581) | (1,105,884)
Cash flows from financing activities |  |
Dividends paid | (198,286) | (600,000)
Interest paid | (9,910) | (2,861)
Net cash used in financing activities | (208,196) | (602,861)
Net increase in cash and cash equivalents | 565,796 | 202,095
Cash and cash equivalents at beginning of year | 3,400,691 | 3,198,596
Cash and cash equivalents at the end of year | 3,966,487 | 3,400,691
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 3,966,487 | 3,400,691
Consolidated Analysis of Net Debt Page 15
H. Marcel Guest, Limited Consolidated Analysis of Net Debt (continued) for the year ended 30 September 2025 for the year ended 30 September 2025
|  | At 1 October 2024 | Cash flows | At 30 September 2025
|  | £ | £ | £
Cash at bank and in hand | 3,400,691 | 565,796 | 3,966,487
Debt due within 1 year | - | - | -
| 3,400,691 | 565,796 | 3,966,487
The notes on pages 17 to 39 form part of these financial statements.
Page 16
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
1. | General information
H. Marcel Guest, Limited is a private company limited by shares, incorporated in England. The registered office is Riverside Works, Collyhurst Road, Manchester, M40 7RU. The principal activity is the manufacture of paints, surface coatings and related products and services. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3). Parent company disclosure exemptions In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities: ∙No cash flow statement or net debt reconciliation has been presented for the parent company; ∙No statement of comprehensive income has been presented for the parent company; ∙Disclosure in respect of the parent company's income, expense, net gains and net losses on financial instruments measured at amortised cost have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and ∙No disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. Page 17
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 2.Accounting policies (continued)
| 2.3 | Foreign currency translation
Functional and presentation currency The company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
| 2.5 | Operating leases: the Group as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Page 18
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 2.Accounting policies (continued)
| 2.6 | Research and development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
| 2.7 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.8 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.9 | Pensions
Defined contribution pension plan The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense in the profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the group in independently administered funds. Scheme membership and benefits The group also operates a hybrid arrangement scheme with both benefit and defined contribution elements. The benefits of "director members" are provided on a money purchase basis, but such benefits are restricted to the net assets available, having first made full provision for the benefits of all defined benefit members. The principal employer is H. Marcel Guest, Limited and the participating employer is HMG Paints Limited. Page 19
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 2.Accounting policies (continued)
| 2.10 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 20
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 2.Accounting policies (continued)
| 2.11 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, either on a reducing balance basis or a straight-line basis. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2% | straight line
|  |  |  | Leasehold improvements | - | 10% | reducing balance
|  |  |  | Plant and machinery | - | 15% | reducing balance
|  |  |  | Motor vehicles | - | 25% | reducing balance
|  |  |  | Fixtures and fittings | - | 20% | reducing balance / 33.33% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.12 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Investments in unlisted group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated profit and loss the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit and loss for the period. Page 21
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 2.Accounting policies (continued)
| 2.13 | Associates and joint ventures
An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control. An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions. In the consolidated accounts, where material, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
| 2.14 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.15 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.16 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.17 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. Page 22
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 2.Accounting policies (continued)
| 2.18 | Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
| 2.19 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.20 | Financial instruments
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. Page 23
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 2.Accounting policies (continued)
| 2.20 | Financial instruments (continued)
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
| 2.21 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Page 24
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could different from those estimates. The items in the financial statements where these judgements and estimates have been made include: Stock provision Stock is reviewed to assess obsolescence on a regular basis. In determining whether a provision for obsolescence should be recorded in profit and loss, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, a provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. As at 30 September 2025, the value of stock net of provision was £5,106,969 (2024: £4,983,619). Stock valuation and overhead absorption Stock is valued including raw material costs, production labour and an allocation of production related overheads. The overhead calculation is based on a judgement of the production element of certain overheads which may differ from the actual. As at 30 September 2025, the value of labour and overheads included in stock was £727,603 (2024: £738,005).
4. | Turnover
The whole of the turnover is attributable to the sales of paint products. Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 26,631,761 | 25,129,042
| Rest of Europe | 1,030,009 | 988,754
| Rest of the world | 85,494 | 133,523
|  | 27,747,264 | 26,251,319
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other operating income | 182,488 | 2,513
| Other operating income for the year includes £182,488 in respect of the Research and Development Expenditure Credit (RDEC) scheme.
Page 25
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Defined contribution pension cost | 299,854 | 471,992
| Depreciation of tangible fixed assets | 660,349 | 600,361
| Exchange differences | 24,724 | 24,666
| Research & development charged as an expense | 8,202 | 18,951
| Other operating lease rentals | 380,785 | 153,703
7. | Auditors' remuneration
| During the year, the Group obtained the following services from the Group's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Audit of the Group's and subsidiary annual financial statements | 38,500 | 36,550
| Fees payable to the Group's auditor and its associates in respect of: |  |
| Taxation compliance services | 3,900 | 3,750
| Other services relating to taxation | 16,020 | 14,695
| The auditing of a pension scheme associated with the company pursuant to legislation | 8,700 | 8,300
| All other services | 1,200 | 1,100
Page 26
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Wages and salaries |  | 7,542,355 | 6,600,515 | 336,777 | 85,831
| Social security costs |  | 763,332 | 627,674 | 20,774 | 4,294
| Cost of defined contribution scheme |  | 299,854 | 471,992 | 2,810 | -
|  |  | 8,605,541 | 7,700,181 | 360,361 | 90,125
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Production | 78 | 77
|  | Selling and distribution | 75 | 72
|  | Administration | 28 | 33
|  | Maintenance | 18 | 16
|  |  | 199 | 198
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 302,595 | 149,826
| Group contributions to defined contribution pension schemes | 710 | 900
|  | 303,305 | 150,726
| During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £165,140 (2024 - £106,237).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2024 - £NIL).
Page 27
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
10. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 51,768 | 51,380
11. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 1,309 | 1,078
| Other interest payable | 1,634 | 1,783
| Interest on corporation tax | 6,967 | -
|  | 9,910 | 2,861
12. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 559,758 | 318,416
| Total current tax | 559,758 | 318,416
| Deferred tax |  |
| Origination and reversal of timing differences | 89,226 | 90,014
| Total deferred tax | 89,226 | 90,014
| Tax on profit | 648,984 | 408,430
Page 28
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 2,447,736 | 2,140,875
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 611,934 | 535,219
| Effects of: |  |
| Expenses not deductible for tax purposes | 16,908 | 4,261
| Fixed asset timing differences | 20,142 | 20,685
| Adjustment in research and development tax credit leading to a (decrease) in the tax charge | - | (151,735)
| Total tax charge for the year | 648,984 | 408,430
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
13. | Dividends
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Dividends payable on equity shares | 598,286 | 600,000
Page 29
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
14. | Tangible fixed assets
| Group
|  | Freehold property | Leasehold improvements | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 October 2024 | 1,157,447 | 2,118,031 | 6,784,931 | 482,383 | 1,362,964 | 11,905,756
| Additions | - | 629,067 | 674,804 | - | 41,673 | 1,345,544
| At 30 September 2025 | 1,157,447 | 2,747,098 | 7,459,735 | 482,383 | 1,404,637 | 13,251,300
| Depreciation |  |  |  |  |  |
| At 1 October 2024 | 734,360 | 703,073 | 4,663,809 | 263,195 | 1,288,225 | 7,652,662
| Charge for the year on owned assets | 23,149 | 158,867 | 364,353 | 63,068 | 50,912 | 660,349
| At 30 September 2025 | 757,509 | 861,940 | 5,028,162 | 326,263 | 1,339,137 | 8,313,011
| Net book value |  |  |  |  |  |
| At 30 September 2025 | 399,938 | 1,885,158 | 2,431,573 | 156,120 | 65,500 | 4,938,289
| At 30 September 2024 | 423,087 | 1,414,958 | 2,121,122 | 219,188 | 74,739 | 4,253,094
Page 30
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025 14.Tangible fixed assets (continued)
| Company
|  | Freehold property | Motor vehicles | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 October 2024 | 1,157,447 | 10,320 | 1,167,767
| At 30 September 2025 | 1,157,447 | 10,320 | 1,167,767
| Depreciation |  |  |
| At 1 October 2024 | 734,360 | 8,488 | 742,848
| Charge for the year on owned assets | 23,149 | 458 | 23,607
| At 30 September 2025 | 757,509 | 8,946 | 766,455
| Net book value |  |  |
| At 30 September 2025 | 399,938 | 1,374 | 401,312
| At 30 September 2024 | 423,087 | 1,832 | 424,919
Page 31
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
15. | Fixed asset investments
| Group
|  | Investments in associates | Listed investments | Unlisted investments | Other fixed asset investments | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 October 2024 | 24,500 | 572,265 | 50,025 | - | 646,790
| Additions | - | 410,000 | 50,000 | 101,805 | 561,805
| Revaluations | - | 57,123 | - | 15,208 | 72,331
| At 30 September 2025 | 24,500 | 1,039,388 | 100,025 | 117,013 | 1,280,926
| Impairment |  |  |  |  |
| At 1 October 2024 | - | - | 25 | - | 25
| At 30 September 2025 | - | - | 25 | - | 25
| Net book value |  |  |  |  |
| At 30 September 2025 | 24,500 | 1,039,388 | 100,000 | 117,013 | 1,280,901
| At 30 September 2024 | 24,500 | 572,265 | 50,000 | - | 646,765
| The Group holds a 49% equity investment in Vintro Paints Limited, a 25% equity investment in CC Solutions Limited and a 51% equity investment in Preservation Paints Limited. These investments are accounted for on a cost basis.
Page 32
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
| Company
|  | Investments in subsidiary companies | Investments in associates | Listed investments | Unlisted investments | Other fixed asset investments | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 October 2024 | 2,361,115 | 24,500 | 572,265 | 50,025 | - | 3,007,905
| Additions | - | - | 410,000 | 50,000 | 101,805 | 561,805
| Revaluations | - | - | 57,123 | - | 15,208 | 72,331
| At 30 September 2025 | 2,361,115 | 24,500 | 1,039,388 | 100,025 | 117,013 | 3,642,041
| Impairment |  |  |  |  |  |
| At 1 October 2024 | 354,991 | - | - | 25 | - | 355,016
| At 30 September 2025 | 354,991 | - | - | 25 | - | 355,016
| Net book value |  |  |  |  |  |
| At 30 September 2025 | 2,006,124 | 24,500 | 1,039,388 | 100,000 | 117,013 | 3,287,025
| At 30 September 2024 | 2,006,124 | 24,500 | 572,265 | 50,000 | - | 2,652,889
| Subsidiary undertakings
| The following were subsidiary undertakings of the company:
| Name | Registered office | Principal activity | Class of shares | Holding
| HMG Paints Limited |  | Manufacture of paints, surface coatings and related products and services. | Ordinary | 100%
| Cadulac Chemicals Limited |  | Dormant | Ordinary | 100%
| HMG Coatings (London) Limited |  | Dormant | Ordinary | 100%
| W.H. Screeton Associates Limited |  | Dormant | Ordinary | 100%
| HMG Paints (Europe) Limited | Snowflake, Main Street, Clonmany, Co. Donegal, Donegal, Ireland, F93 R6X0 | Dormant | Ordinary | 100%
| Unless stated, the registered address of the subsidiary companies is Riverside Works, Collyhurst Road, Manchester M40 7RU.
Page 33
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
| Associates
| The following were associates of the company:
| Name | Registered office | Class of shares | Holding
| CC Solutions Limited (entered liquidation) | Central Square, 29 Wellington Street, Leeds, LS1 4DL | Ordinary | 25%
| Vintro Paint Limited | 707c Street 3, Thorp Arch Estate, Wetherby, LS23 7FF | Ordinary | 49%
| Preservation Paints Limited (dissolved) | Riverside Works, Collyhurst Road, Manchester, M40 7RU | Ordinary | 51%
Page 34
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
16. | Stocks
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Raw materials and consumables | 2,909,501 | 2,834,224
| Finished goods and goods for resale | 2,197,468 | 2,149,395
|  | 5,106,969 | 4,983,619
| The carrying value of stocks are stated net of impairment losses totalling £240,673 (2024: £306,291).
17. | Debtors
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Due after more than one year |  |  |  |
| Amounts owed by associated undertakings | 36,205 | - | - | -
| Other debtors | - | 203,853 | - | 150,139
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Due within one year |  |  |  |
| Trade debtors | 4,388,639 | 4,584,490 | - | -
| Amounts owed by group undertakings | - | - | 233,878 | 191,416
| Amounts owed by associated undertakings | 156,659 | 165,290 | 19,900 | 36,088
| Other debtors | 146,102 | 220,592 | 121,665 | 127,206
| Prepayments and accrued income | 335,810 | 618,327 | 15,751 | 13,991
| Deferred taxation | - | - | - | 707
|  | 5,027,210 | 5,588,699 | 391,194 | 369,408
| Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Amounts owed by associated undertakings are unsecured. Interest is charged at 3% per annum on part of the balance, with the remainder interest free. There is no fixed repayment schedule and the balance is repayable no later than 15 January 2027. The loan includes an option to convert the outstanding balance into shares. Included within other debtors at 30 September 2024 was an interest-free loan to a director of £5,000. The loan was fully repaid during the year, and the balance outstanding at 30 September 2025 was £Nil. Included within other debtors is £107,114 (2024: £24,004) due from a director. The balance is unsecured, interest free and repayable on demand.
Page 35
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
18. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Cash at bank and in hand | 3,966,487 | 3,400,691 | 515,205 | 296,640
19. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Trade creditors | 2,944,517 | 3,402,893 | 27,365 | 18,191
| Amounts owed to group undertakings | - | - | 979,145 | 486,605
| Corporation tax | 186,452 | 318,416 | - | 51,780
| Other taxation and social security | 830,232 | 694,632 | 19,840 | 3,176
| Other creditors | 579,377 | 229,953 | 502,770 | 148,484
| Accruals and deferred income | 789,104 | 694,140 | 11,360 | 8,800
|  | 5,329,682 | 5,340,034 | 1,540,480 | 717,036
| Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Included within other creditors is £502,770 (2024: £148,439) due to directors. Thes balance is unsecured, interest free and repayable on demand.
20. | Financial instruments
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Financial assets |  |  |  |
| Financial assets measured at fair value through profit or loss | 1,156,401 | 572,265 | 1,156,401 | 572,265
| Financial assets measured at fair value through profit or loss comprise of listed and other fixed asset investments.
Page 36
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
21. | Deferred taxation
| Group
|  | 2025 | 2024
|  | £ | £
| At beginning of year | (631,847) | (541,833)
| (Charged) to profit or loss | (89,226) | (90,014)
| At end of year | (721,073) | (631,847)
| Company
|  | 2025 | 2024
|  | £ | £
| At beginning of year | 707 | 810
| Charged to profit or loss | (17,092) | (103)
| At end of year | (16,385) | 707
| The provision for deferred taxation is made up as follows:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Accelerated capital allowances | (717,086) | (644,233) | 612 | 707
| Other timing differences | (3,987) | 12,386 | (16,997) | -
|  | (721,073) | (631,847) | (16,385) | 707
22. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1,000,000 (2024 - 1,000,000) Ordinary shares of £1.00 each | 1,000,000 | 1,000,000
Page 37
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
23. | Reserves
Profit and loss account The profit and loss account includes all current and prior period retained profits and losses after dividends paid.
24. | Pension commitments
The group operates a defined contribution pension scheme and also a hybrid arrangement with both defined benefit and defined contribution elements. The assets of the schemes are held separately from those of the company in individual independently administered funds. The pension cost charge represents contributions payable by the group to the fund and amounted to £299,854 (2024: £471,992) in relation to defined contribution schemes. Contributions totalling £52,038 (2024: £49,588) were payable to the funds at the balance sheet date.
25. | Commitments under operating leases
| At 30 September 2025 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group | Company | Company
|  | 2025 | 2024 | 2025 | 2024
|  | £ | £ | £ | £
| Not later than 1 year | 376,650 | 381,377 | 12,720 | -
| Later than 1 year and not later than 5 years | 412,426 | 651,659 | 36,529 | -
|  | 789,076 | 1,033,036 | 49,249 | -
Page 38
H. Marcel Guest, Limited Notes to the Financial Statements for the year ended 30 September 2025
26. | Related party transactions
| The Group has taken advantage of the exemptions available under FRS 102 Section 33 "Related Party Transactions" not to disclose transactions with other wholly owned group companies. During the year the Group entered into transactions with associates and with other related parties by virtue of common directorships. The Group made sales to an associated company, totalling £281,030 (2024: £210,128). Amounts due from this company at the year end totalled £192,864 (2024: £165,290). The Group made purchases from entities in which a director also holds a directorship totalling £29,814 (2024: £152,321). At the year end, amounts due from related parties by virtue of common directorship totalled £3,687 (2024: £1,890). Group key management personnel remuneration totalled £2,370,044, relating to 36 personnel (2024: £2,169,254, personnel: 36). Company The Company made purchases from entities in which a director also holds a directorship totalling £Nil (2024: £126,274), and the Company made sales to these companies of £Nil (2024: £2,640). At the year end, amounts due to related parties by virtue of common directorship totalled £511 (2024: £Nil). At 30 September 2025, amounts due to the Company from associated companies totalled £19,900 (2024: £36,08 8). In the previous year, £50,000 was due from Aspira Aerial Applications Limited, a related party due to common shareholders and directors. The balance was unsecured, interest free and repayable on demand. The amount was repaid in full during the year and no amount was outstanding at 30 September 2025.
27. | Controlling party
In the opinion of the directors, the ultimate controlling party, by virtue of their shareholding is the Falder family.
Page 39