Company registration number SC081970 (Scotland)
PHOTOLOX LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
PHOTOLOX LTD
COMPANY INFORMATION
Directors
Ian Loxley
Suzanne Loxley
Secretary
Morton Fraser Secetaries Limited
Company number
SC081970
Registered office
9 Haymarket Square
EDINBURGH
EH3 8RY
Auditor
MMG Audit Limited
4 Albert Place
Perth
PH2 8JE
Business address
1 Drum Mains Park
Orchardton Woods
Cumbernauld
GLASGOW
G68 9LD
Bankers
Virgin Money
38 Stewarton Street
WISHAW
ML2 8AE
Solicitors
Morton Fraser MacRoberts LLP Solicitors
9 Haymarket Square
EDINBURGH
EH3 8RY
PHOTOLOX LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 37
PHOTOLOX LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -

The directors present the strategic report for the year ended 31 January 2025.

Review of the business

The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future.

The operating profit of the group has fallen from an operating profit of £45,814 to £31,079 showing a decrease of £14,735. The loss after taxation showed a de crease from a loss of £36,968 to a profit of £8,644.

Principal risks and uncertainties

The principal risks facing the company relate to changes in general economic conditions which may influence customer demand and discretionary spending. The directors mitigate these risks through continued focus on product development, maintaining reliable product availability and regularly reviewing opportunities within both existing and new markets.

Development and performance

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and they remain confident that the company will continue to grow.

On behalf of the board

Ian Loxley
Director
12 March 2026
PHOTOLOX LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -

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

Principal activities

The principal activity of the company and group continued to be that of the production of photograph y and ancillary products.

The percentage of business attributable to markets outside the United Kingdom was 61.07%.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £200,272. 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:

Ian Loxley
Suzanne Loxley
Financial instruments

The company’s principal financial instruments comprise cash and items that arise directly from the company’s operations such as trade debtors and trade creditors.

The company’s activities expose it to a number of financial risks including credit risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and these are summarised below. The company does not use derivative financial instruments for speculative purposes.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company’s policy is to ensure that cash is available within the bank current accounts, whilst maintaining short, medium, and long-term funding arrangements.

Foreign currency risk

The company’s activities expose it to the financial risks of changes in foreign currency exchange rates. These risks are mitigated across the Photolox group, which maintains operations in several currency areas globally.

Credit risk

The company’s principal financial assets are bank balances and cash, trade, and other receivables.

The company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, provides evidence of a reduction in cash recoverability.

Risk around the impact of Brexit on the company’s customer base are monitored frequently via risk reporting and account managers maintain relationships with supply chain.

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 auditor of the company 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 auditor of the company is aware of that information.

PHOTOLOX LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -
On behalf of the board
Ian Loxley
Director
12 March 2026
PHOTOLOX LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 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 group and company, 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 and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

We have audited the financial statements of Photolox Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group's and the parent company's affairs as at 31 January 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he 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.

PHOTOLOX LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PHOTOLOX LTD
- 6 -
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 their 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 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' 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 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

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:

- We gained an understanding of the legal and regulatory framework that directly and indirectly affect the financial statements and those applicable to the company and the industry in which it operates;

- W e identified that the principal risks of non-compliance with laws and regulations related to general legislation, breaches of health and safety regulations and tax legislation

- We identified the laws and regulations applicable to the company through discussions with management and through our own knowledge of the industry.

- We enquired with management about their own identification and assessment of the risk of irregularities;

We considered the opportunities that may exist within the organisation for fraud and identified the greatest risk in relation to revenue recognition, transfer pricing, accuracy of consolidation adjustments and management override of internal controls. Our audit procedures to respond to these risks included, but were not limited to;

- Reviewing the financial statement disclosure and testing of financial statement balances to supporting documentation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries with management, review of meeting minutes and inspecting legal correspondence;

- We identified and assess ed the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;

- We communicated relevant identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to any indications of fraud or non-compliance throughout the audit.

- We performed analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatements due to fraud;

- Evaluating evidence of any bias by the directors that may represent a material misstatement by comparing accounting estimates to the underlying supporting documentation and assessing the rationale applied.

- We performed audit testing on journal entries posted with unusual account combinations, backdated journals, and journals with unusual or minimal descriptions.

- Evaluating consolidation adjustments, ensuring appropriate reconciliation and elimination on inter-group balances.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to a material misstatement in the financial statements or non-compliance with regulation. As a result of these, we considered the opportunities that may exist within the organisation for fraud and audit procedures were designed in response to the risks identified, recognising that 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, for example, forgery, deliberate concealment, or collusion.

As part of an audit in accordance with ISAs (UK), professional judgement was exercised, and professional scepticisms was maintained throughout the audit.

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.

PHOTOLOX LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PHOTOLOX LTD
- 8 -

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Crichton BAcc CTA CA (Senior Statutory Auditor)
For and on behalf of MMG Audit Limited
12 March 2026
Chartered Accountants
Statutory Auditor
4 Albert Place
Perth
PH2 8JE
PHOTOLOX LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
5,879,041
7,254,166
Cost of sales
(3,797,954)
(4,961,669)
Gross profit
2,081,087
2,292,497
Administrative expenses
(2,162,759)
(2,427,432)
Other operating income
112,750
180,749
Operating profit
4
31,078
45,814
Interest receivable and similar income
7
3,432
2,989
Interest payable and similar expenses
8
(47,335)
(67,778)
Loss before taxation
(12,825)
(18,975)
Tax on loss
9
21,468
(17,993)
Profit/(loss) for the financial year
8,643
(36,968)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 18 to 37 form part of these financial statements.

PHOTOLOX LTD
GROUP BALANCE SHEET
AS AT 31 JANUARY 2025
31 January 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
11
5,796
8,304
Total intangible assets
5,796
8,304
Tangible assets
12
2,378,387
2,535,534
Investment property
13
-
0
1,700,000
2,384,183
4,243,838
Current assets
Stocks
17
901,848
789,872
Debtors
18
906,009
499,108
Cash at bank and in hand
1,592,370
740,775
3,400,227
2,029,755
Creditors: amounts falling due within one year
19
(684,114)
(741,232)
Net current assets
2,716,113
1,288,523
Total assets less current liabilities
5,100,296
5,532,361
Creditors: amounts falling due after more than one year
20
(524,041)
(678,615)
Provisions for liabilities
Deferred tax liability
23
37,736
123,598
(37,736)
(123,598)
Net assets
4,538,519
4,730,148
Capital and reserves
Called up share capital
26
30,002
30,002
Revaluation reserve
168,833
1,582,806
Profit and loss reserves
4,339,684
3,117,340
Total equity
4,538,519
4,730,148

The notes on pages 18 to 37 form part of these financial statements.

PHOTOLOX LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2025
31 January 2025
- 11 -

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

The financial statements were approved by the board of directors and authorised for issue on 12 March 2026 and are signed on its behalf by:
12 March 2026
Ian Loxley
Director
Company registration number SC081970 (Scotland)
PHOTOLOX LTD
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2025
31 January 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,377,174
2,534,322
Investment property
13
-
0
1,700,000
Investments
14
8,864
8,864
2,386,038
4,243,186
Current assets
Stocks
17
867,103
756,639
Debtors
18
2,207,580
1,599,489
Cash at bank and in hand
1,555,109
703,234
4,629,792
3,059,362
Creditors: amounts falling due within one year
19
(1,793,061)
(1,536,451)
Net current assets
2,836,731
1,522,911
Total assets less current liabilities
5,222,769
5,766,097
Creditors: amounts falling due after more than one year
20
(524,041)
(678,615)
Provisions for liabilities
Deferred tax liability
23
78,808
198,094
(78,808)
(198,094)
Net assets
4,619,920
4,889,388
Capital and reserves
Called up share capital
26
30,002
30,002
Revaluation reserve
168,833
1,582,806
Profit and loss reserves
4,421,085
3,276,580
Total equity
4,619,920
4,889,388

The notes on pages 18 to 37 form part of these financial statements.

PHOTOLOX LTD
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2025
31 January 2025
- 13 -

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s loss for the year was £69,195 (2024 - £107,348 loss).

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 12 March 2026 and are signed on its behalf by:
12 March 2026
Ian Loxley
Director
Company registration number SC081970 (Scotland)
PHOTOLOX LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2023
30,002
1,582,806
3,323,580
4,936,388
Year ended 31 January 2024:
Loss and total comprehensive income
-
-
(36,968)
(36,968)
Dividends
10
-
-
(169,272)
(169,272)
Balance at 31 January 2024
30,002
1,582,806
3,117,340
4,730,148
Year ended 31 January 2025:
Profit and total comprehensive income
-
-
8,643
8,643
Dividends
10
-
-
(200,272)
(200,272)
Transfers
-
(1,413,973)
1,413,973
-
Balance at 31 January 2025
30,002
168,833
4,339,684
4,538,519

The notes on pages 18 to 37 form part of these financial statements.

PHOTOLOX LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 15 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2023
30,002
1,582,806
3,553,201
5,166,009
Year ended 31 January 2024:
Loss and total comprehensive income for the year
-
-
(107,349)
(107,349)
Dividends
10
-
-
(169,272)
(169,272)
Balance at 31 January 2024
30,002
1,582,806
3,276,580
4,889,388
Year ended 31 January 2025:
Profit and total comprehensive income
-
-
(69,196)
(69,196)
Dividends
10
-
-
(200,272)
(200,272)
Transfers
-
(1,413,973)
1,413,973
-
Balance at 31 January 2025
30,002
168,833
4,421,085
4,619,920

The notes on pages 18 to 37 form part of these financial statements.

PHOTOLOX LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 16 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
9,566
442,203
Interest paid
(47,335)
(67,778)
Income taxes (paid)/refunded
(10,257)
1,679
Net cash (outflow)/inflow from operating activities
(48,026)
376,104
Investing activities
Purchase of tangible fixed assets
(31,953)
(81,791)
Proceeds from disposal of tangible fixed assets
20,423
3,158
Proceeds from disposal of investment property
1,290,000
-
Interest received
3,432
2,989
Net cash generated from/(used in) investing activities
1,281,902
(75,644)
Financing activities
Repayment of bank loans
(145,779)
(118,979)
Payment of finance leases obligations
(36,230)
(47,610)
Dividends paid to equity shareholders
(200,272)
(169,272)
Net cash used in financing activities
(382,281)
(335,861)
Net increase/(decrease) in cash and cash equivalents
851,595
(35,401)
Cash and cash equivalents at beginning of year
740,775
776,176
Cash and cash equivalents at end of year
1,592,370
740,775

The notes on pages 18 to 37 form part of these financial statements.

PHOTOLOX LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 17 -
2025
2024
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
488
491,401
Interest paid
(47,335)
(67,778)
Income taxes paid
(899)
-
0
Net cash (outflow)/inflow from operating activities
(47,746)
423,623
Investing activities
Purchase of tangible fixed assets
(31,953)
(81,791)
Proceeds from disposal of tangible fixed assets
20,423
3,158
Proceeds from disposal of investment property
1,290,000
-
0
Interest received
3,432
2,989
Net cash generated from/(used in) investing activities
1,281,902
(75,644)
Financing activities
Repayment of bank loans
(145,779)
(118,979)
Payment of finance leases obligations
(36,230)
(47,610)
Dividends paid to equity shareholders
(200,272)
(169,272)
Net cash used in financing activities
(382,281)
(335,861)
Net increase in cash and cash equivalents
851,875
12,118
Cash and cash equivalents at beginning of year
703,234
691,116
Cash and cash equivalents at end of year
1,555,109
703,234

The notes on pages 18 to 37 form part of these financial statements.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 18 -
1
Accounting policies
Company information

Photolox Ltd (“the company”) is a private company limited by shares domiciled and incorporated in Scotland. The registered office is 5th Floor, Quartermile Two, 2 Lister Square, EDINBURGH, EH3 9GL.

The group consists of Photolox Ltd and it's subsidiary, Vakcolor BV.

1.1
Basis of preparation

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
Basis of consolidation

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of Photolox Ltd and all of its subsidiaries (ie entities that the g roup controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

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

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 19 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received 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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
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:

Heritable property
Straight line basis over 50 years
Tenants improvements
Straight line basis over 5 years
Plant and equipment
Straight line basis over 8 years
Fixtures and fittings
Straight line basis over 4 years
Motor vehicles
Straight line basis over 4 years

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 recognised in the profit and loss account.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 20 -
1.8
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.10
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.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 21 -
1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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.

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 m ethod 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.

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.

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 group after deducting all of its liabilities.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 22 -
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. Amounts 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’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 if, and only if, there is 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.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 23 -
1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 d asset are consumed.

1.18
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 24 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

The group's entire turnover derives from its principal activity

2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
3,590,504
4,318,528
European Union
757,052
2,917,534
Other
1,531,485
18,104
5,879,041
7,254,166
2025
2024
£
£
Other revenue
Interest income
3,432
2,989
Grants received
9,750
9,750
Rental income arising from investment properties
103,000
171,000
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(9,750)
(9,750)
Fees payable to the group's auditor for the audit of the group's financial statements
11,235
10,800
Depreciation of owned tangible fixed assets
248,044
264,255
(Profit)/loss on disposal of tangible fixed assets
(20,423)
6,820
Profit on disposal of investment property
(5,466)
-
0
Amortisation of intangible assets
2,508
2,556
Operating lease charges
4,910
5,975
5
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Office and Management
24
26
24
26
Manufacturing
42
52
42
52
Total
66
78
66
78
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
5
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
1,933,153
2,174,944
1,842,915
2,073,804
Social security costs
174,769
200,118
161,343
183,770
Pension costs
64,846
69,644
64,846
69,644
2,172,768
2,444,706
2,069,104
2,327,218
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
43,997
70,299
Company pension contributions to defined contribution schemes
36,000
36,000
79,997
106,299

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
3,432
2,989
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,432
2,989
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
42,049
63,289
Other finance costs:
Interest on finance leases and hire purchase contracts
5,286
4,489
Total finance costs
47,335
67,778
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 26 -
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
57,290
900
Adjustments in respect of prior periods
(333)
-
0
Total current tax
56,957
900
Deferred tax
Origination and reversal of timing differences
(78,425)
17,093
Total tax (credit)/charge
(21,468)
17,993

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

2025
2024
£
£
Loss before taxation
(12,825)
(18,975)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(3,206)
(4,744)
Tax effect of expenses that are not deductible in determining taxable profit
1,214
477
Tax effect of income not taxable in determining taxable profit
(2,438)
(2,438)
Adjustments in respect of prior years
(333)
-
0
Permanent capital allowances in excess of depreciation
-
0
(325)
Depreciation on assets not qualifying for tax allowances
9,500
9,500
Other non-reversing timing differences
1,043
9,775
Effect of overseas tax rates
8,973
5,748
Transfer pricing adjustment in prior periods
(47,354)
-
0
Difference between current and deferred tax on asset realisation
11,133
-
0
Taxation (credit)/charge
(21,468)
17,993
10
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Interim paid
200,272
169,272
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 27 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 February 2024 and 31 January 2025
111,591
Amortisation and impairment
At 1 February 2024
103,287
Amortisation charged for the year
2,508
At 31 January 2025
105,795
Carrying amount
At 31 January 2025
5,796
At 31 January 2024
8,304
Company
Goodwill
£
Cost
At 1 February 2024 and 31 January 2025
85,000
Amortisation and impairment
At 1 February 2024 and 31 January 2025
85,000
Carrying amount
At 31 January 2025
-
0
At 31 January 2024
-
0
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 28 -
12
Tangible fixed assets
Group
Heritable property
Tenants improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 February 2024
1,900,000
7,952
3,418,821
86,637
95,845
5,509,256
Additions
-
0
-
0
36,319
-
0
54,578
90,897
Disposals
-
0
-
0
(7,774)
-
0
(27,452)
(35,226)
At 31 January 2025
1,900,000
7,952
3,447,366
86,637
122,972
5,564,927
Depreciation and impairment
At 1 February 2024
38,000
7,952
2,757,483
86,637
83,649
2,973,722
Depreciation charged in the year
38,000
-
0
184,202
-
0
25,842
248,044
Eliminated in respect of disposals
-
0
-
0
(7,774)
-
0
(27,452)
(35,226)
At 31 January 2025
76,000
7,952
2,933,911
86,637
82,040
3,186,540
Carrying amount
At 31 January 2025
1,824,000
-
0
513,455
-
0
40,932
2,378,387
At 31 January 2024
1,862,000
-
0
661,338
-
0
12,196
2,535,534

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2025
2024
2025
2024
£
£
£
£
Plant and equipment
43,876
76,188
87,751
152,376
Motor vehicles
20,467
6,099
40,934
12,197
64,343
82,287
128,685
164,573

Land and buildings with a carrying amount of £1,8 24,000 were revalued at 8th March 2023 by Shepherd Commercial, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
12
Tangible fixed assets
(Continued)
- 29 -
Group
Company
2025
2024
2025
2024
£
£
£
£
Cost
1,287,075
1,287,075
1,287,075
1,287,075
Accumulated depreciation
-
-
-
-
Carrying value
1,287,075
1,287,075
1,287,075
1,287,075
Company
Heritable property
Tenants improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 February 2024
1,900,000
7,952
3,350,247
86,637
95,843
5,440,679
Additions
-
0
-
0
36,319
-
0
54,578
90,897
Disposals
-
0
-
0
(7,774)
-
0
(27,452)
(35,226)
At 31 January 2025
1,900,000
7,952
3,378,792
86,637
122,969
5,496,350
Depreciation and impairment
At 1 February 2024
38,000
7,952
2,690,121
86,637
83,647
2,906,358
Depreciation charged in the year
38,000
-
0
184,202
-
0
25,842
248,044
Eliminated in respect of disposals
-
0
-
0
(7,774)
-
0
(27,452)
(35,226)
At 31 January 2025
76,000
7,952
2,866,550
86,637
82,037
3,119,176
Carrying amount
At 31 January 2025
1,824,000
-
0
512,242
-
0
40,932
2,377,174
At 31 January 2024
1,862,000
-
0
660,126
-
0
12,196
2,534,322
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 30 -
13
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 February 2024
1,700,000
1,700,000
Disposals
(1,700,000)
(1,700,000)
At 31 January 2025
-
-

During the year the Investment Properties with a carrying amount of £1,700,000 at 31 January 2024 were disposed of. The property had last been revalued at 8th March 2023 by Shepherd Commercial, independent valuers not connected with the company on the basis of market value.

14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
8,864
8,864
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2024 and 31 January 2025
8,864
Carrying amount
At 31 January 2025
8,864
At 31 January 2024
8,864
15
Subsidiaries

Details of the company's subsidiaries at 31 January 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Vakcolor B.V.
Spoorstraat 13, Buchten, 6122CJ, Netherlands
Ordinary Shares
100.00
16
Financial instruments
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
16
Financial instruments
(Continued)
- 31 -

As part of the sale of investment property, the company entered into two interest-free deferred consideration agreements:

- Loan 1: £310,000 repayable monthly from February 2025 to January 2030.

- Loan 2: £150,000 repayable monthly from February 2030 to January 2033.

Both loans are unsecured and constitute financing transactions under FRS 102. Accordingly, the total deferred consideration of £460,000 has been discounted to present value using a market rate of 5%.

The difference between the nominal value and present value is recogni s ed as interest income over the term of the loans using the effective interest method.

The receivable is split between debtors due within one year and debtors due after more than one year.

No impairment has been recogni s ed, and management considers the balance fully recoverable.

17
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Work in progress
90,027
53,442
72,706
35,843
Finished goods and goods for resale
811,821
736,430
794,397
720,796
901,848
789,872
867,103
756,639
18
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
444,060
340,642
1,752,986
1,455,426
Corporation tax recoverable
5,542
3,621
-
0
-
0
Other debtors
50,273
11,087
50,273
2,065
Prepayments and accrued income
40,350
143,758
38,537
141,998
540,225
499,108
1,841,796
1,599,489
Amounts falling due after more than one year:
Other debtors
365,784
-
0
365,784
-
0
Total debtors
906,009
499,108
2,207,580
1,599,489
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 32 -
19
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
21
145,779
139,959
145,779
139,959
Obligations under finance leases
22
40,708
24,769
40,708
24,769
Trade creditors
326,736
348,643
351,047
341,777
Amounts owed to group undertakings
-
0
-
0
1,098,884
817,992
Corporation tax payable
56,958
900
56,958
900
Other taxation and social security
65,170
124,052
57,848
117,857
Government grants
24
9,750
9,750
9,750
9,750
Other creditors
911
10,411
911
10,411
Accruals and deferred income
38,102
82,748
31,176
73,036
684,114
741,232
1,793,061
1,536,451
20
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
21
400,362
551,961
400,362
551,961
Obligations under finance leases
22
82,241
75,466
82,241
75,466
Government grants
24
41,438
51,188
41,438
51,188
524,041
678,615
524,041
678,615
21
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
546,141
691,920
546,141
691,920
Payable within one year
145,779
139,959
145,779
139,959
Payable after one year
400,362
551,961
400,362
551,961

Bank loans are secured by a bond and floating charge over the assets of the company together with a standard security over the premises at Orchardton Woods, Cumbernauld, Glasgow.

Bank loan s expire on 2nd June 2025 and 19th June 2025. The loan s ha ve an interest rate of 2.25% above base rate per annum.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 33 -
22
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
40,709
24,769
40,709
24,769
In two to five years
82,240
75,466
82,240
75,466
122,949
100,235
122,949
100,235

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
78,051
106,615
Tax losses
(41,072)
(74,496)
Revaluations
757
91,479
37,736
123,598
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
78,051
106,615
Revaluations
757
91,479
78,808
198,094
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 February 2024
123,598
198,094
Credit to profit or loss
(85,862)
(119,286)
Liability at 31 January 2025
37,736
78,808
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
23
Deferred taxation
(Continued)
- 34 -
24
Government grants
Group
Company
2025
2024
2025
2024
£
£
£
£
Arising from government grants
51,188
60,938
51,188
60,938

Deferred income is included in the financial statements as follows:

Current liabilities
9,750
9,750
9,750
9,750
Non-current liabilities
41,438
51,188
41,438
51,188
51,188
60,938
51,188
60,938
25
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,846
69,644

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30,002
30,002
30,002
30,002
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 35 -
27
Operating lease commitments
Lessee

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

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
100,013
100,013
100,013
100,013
Between two and five years
30,689
130,701
30,689
130,701
130,702
230,714
130,702
230,714
28
Events after the reporting date

On 19 November 2025, the Group acquired the entire issued share capital of a company for consideration of £550,000.

The acquisition completed after the reporting date of 31 January 2025. Accordingly, in accordance with FRS 102 Section 32, this represents a non-adjusting event and has not been recognised in these financial statements.

At the date of approval of these financial statements, the fair value assessment of the identifiable assets and liabilities acquired has not been finalised and therefore the detailed financial effect of the acquisition cannot be reasonably estimated. The financial impact of the acquisition will be reflected in the Group financial statements for the year ending 31 January 2026.

30
Directors' transactions

Dividends totalling £200,272 (2024 - £169,272) were paid in the year in respect of shares held by the company's directors.

PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 36 -
31
Cash generated from group operations
2025
2024
£
£
Profit/(loss) after taxation
8,643
(36,968)
Adjustments for:
Taxation (credited)/charged
(21,468)
17,993
Finance costs
47,335
67,778
Investment income
(3,432)
(2,989)
(Gain)/loss on disposal of tangible fixed assets
(20,423)
6,820
Gain on disposal of investment property
(5,466)
-
0
Amortisation and impairment of intangible assets
2,508
2,556
Depreciation and impairment of tangible fixed assets
248,044
264,255
Movements in working capital:
(Increase)/decrease in stocks
(111,976)
91,142
Decrease in debtors
10,486
3,375
(Decrease)/increase in creditors
(134,935)
37,991
Decrease in deferred income
(9,750)
(9,750)
Cash generated from operations
9,566
442,203
32
Cash generated from operations - company
2025
2024
£
£
Loss after taxation
(69,196)
(107,349)
Adjustments for:
Taxation (credited)/charged
(62,329)
36,195
Finance costs
47,335
67,778
Investment income
(3,432)
(2,989)
(Gain)/loss on disposal of tangible fixed assets
(20,423)
6,820
Gain on disposal of investment property
(5,466)
-
0
Depreciation and impairment of tangible fixed assets
248,044
264,255
Movements in working capital:
(Increase)/decrease in stocks
(110,464)
85,919
Increase in debtors
(192,624)
(389,788)
Increase in creditors
178,793
540,310
Decrease in deferred income
(9,750)
(9,750)
Cash generated from operations
488
491,401
PHOTOLOX LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 37 -
33
Analysis of changes in net funds/(debt) - group
1 February 2024
Cash flows
New finance leases
31 January 2025
£
£
£
£
Cash at bank and in hand
740,775
851,595
-
1,592,370
Borrowings excluding overdrafts
(691,920)
145,779
-
(546,141)
Obligations under finance leases
(100,235)
36,230
(58,944)
(122,949)
(51,380)
1,033,604
(58,944)
923,280
34
Analysis of changes in net funds/(debt) - company
1 February 2024
Cash flows
New finance leases
31 January 2025
£
£
£
£
Cash at bank and in hand
703,234
851,875
-
1,555,109
Borrowings excluding overdrafts
(691,920)
145,779
-
(546,141)
Obligations under finance leases
(100,235)
36,230
(58,944)
(122,949)
(88,921)
1,033,884
(58,944)
886,019
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