Company registration number NI613058 (Northern Ireland)
LW SURPHLIS & SON LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
LW SURPHLIS & SON LTD
COMPANY INFORMATION
Directors
Mr M Surphlis
Mrs M Surphlis
Mr A Surphlis
Mr Colin Surphlis
Secretary
Mr M Surphlis
Company number
NI613058
Registered office
31 Drumlegagh Church Road
Newtownstewart
Co Tyrone
Northern Ireland
BT78 4HF
Auditor
HM Chartered Accountants
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
LW SURPHLIS & SON LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
LW SURPHLIS & SON LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

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

Review of the business

The directors consider the results for the period and the position of the company at the year end to be satisfactory after having created significant growth. The director s consider the profit on ordinary activities before taxation to be satisfactory in the light of difficult trading conditions.

Principal risks and uncertainties

The directors believe that the challenging economic conditions within agriculture are likely to continue for years to come and therefore remain focused upon their strategy of diversity of the business model. With the company having a low level of borrowings and building significant reserves the company is in a healthy financial position.

Key performance indicators

Financial risk management objectives and policies

The company's financial instruments comprise bank overdraft, medium bank loans, hire purchase finance and loans from the directors. The main purpose of these financial instruments is to manager the company's funding and liquidity requirements. The company has other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.

The principal financial risks to which the company is exposed are those of liquidity, foreign currency and credit. Each of these are managed in accordance with Board approved policies

Key Performance Indicators (KPIs)

Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPIs in the statutory accounts is not necessary for an understanding of the development, performance or position of the business.

On behalf of the board

Mr M Surphlis
Director
13 March 2026
LW SURPHLIS & SON LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -

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

Principal activities

The principal activity of the company is general and meal merchant.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £1,500. 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:

Mr M Surphlis
Mrs M Surphlis
Mr A Surphlis
Mr Colin Surphlis
Future developments

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on appropriate diversification and development of new products, as well as continuing review of the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain their position.

Auditor

In accordance with the company's articles, a resolution proposing that HM Chartered Accountants be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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

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

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

- select suitable accounting policies and then apply them consistently;

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

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

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

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

LW SURPHLIS & SON LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -
Statement of disclosure to auditor

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

On behalf of the board
Mr M Surphlis
Director
13 March 2026
LW SURPHLIS & SON LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LW SURPHLIS & SON LTD
- 4 -
Opinion

We have audited the financial statements of LW Surphlis & Son Ltd (the 'company') for the year ended 30 June 2025 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

LW SURPHLIS & SON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LW SURPHLIS & SON LTD
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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

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

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

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

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

LW SURPHLIS & SON LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LW SURPHLIS & SON LTD
- 6 -

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

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

- tested journal entries to identify unusual transactions;

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

- investigated the rationale behind significant or unusual transactions;

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

agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC and the company’s legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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

Angela Craigan
Senior Statutory Auditor
For and on behalf of HM Chartered Accountants
13 March 2026
Chartered Accountants
Statutory Auditors
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
LW SURPHLIS & SON LTD
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2025
- 7 -
2025
2024
Notes
£
£
Turnover
29,293,663
28,346,508
Cost of sales
(28,010,330)
(27,107,211)
Gross profit
1,283,333
1,239,297
Administrative expenses
(1,086,174)
(1,093,302)
Operating profit
3
197,159
145,995
Interest payable and similar expenses
7
(116,537)
(106,942)
Profit before taxation
80,622
39,053
Tax on profit
8
(7,315)
59,640
Profit for the financial year
73,307
98,693

The income statement has been prepared on the basis that all operations are continuing operations.

LW SURPHLIS & SON LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
- 8 -
2025
2024
£
£
Profit for the year
73,307
98,693
Other comprehensive income
-
-
Total comprehensive income for the year
73,307
98,693
The notes on pages 12 to 25 form part of these financial statements.
LW SURPHLIS & SON LTD
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2025
30 June 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,499,288
1,496,860
Current assets
Stocks
11
3,010,598
2,831,048
Debtors
12
5,684,309
5,559,312
Cash at bank and in hand
200,182
265,885
8,895,089
8,656,245
Creditors: amounts falling due within one year
13
(6,606,043)
(6,342,347)
Net current assets
2,289,046
2,313,898
Total assets less current liabilities
3,788,334
3,810,758
Creditors: amounts falling due after more than one year
14
(603,644)
(716,735)
Provisions for liabilities
(351,586)
(332,726)
Net assets
2,833,104
2,761,297
Capital and reserves
Called up share capital
18
1,020,000
1,020,000
Profit and loss reserves
1,813,104
1,741,297
Total equity
2,833,104
2,761,297
The financial statements were approved by the board of directors and authorised for issue on 13 March 2026 and are signed on its behalf by:
Mr M Surphlis
Director
Company Registration No. NI613058
The notes on pages 12 to 25 form part of these financial statements.
LW SURPHLIS & SON LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2023
1,020,000
1,644,104
2,664,104
Year ended 30 June 2024:
Profit and total comprehensive income
-
98,693
98,693
Dividends
9
-
(1,500)
(1,500)
Balance at 30 June 2024
1,020,000
1,741,297
2,761,297
Year ended 30 June 2025:
Profit and total comprehensive income
-
73,307
73,307
Dividends
9
-
(1,500)
(1,500)
Balance at 30 June 2025
1,020,000
1,813,104
2,833,104
LW SURPHLIS & SON LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
379,777
284,917
Interest paid
(116,537)
(106,942)
Income taxes refunded
11,545
46,214
Net cash inflow from operating activities
274,785
224,189
Investing activities
Purchase of tangible fixed assets
(492,949)
(365,579)
Proceeds on disposal of tangible fixed assets
160,445
90,595
Net cash used in investing activities
(332,504)
(274,984)
Financing activities
Repayment of other loans
(67,429)
3,476
New bank loans less repayments
(14,093)
(46,885)
Inception less payment of obligations under finance leases
(56,012)
67,819
Dividends paid
(1,500)
(1,500)
Net cash (used in)/generated from financing activities
(139,034)
22,910
Net decrease in cash and cash equivalents
(196,753)
(27,885)
Cash and cash equivalents at beginning of year
(431,856)
(403,974)
Cash and cash equivalents at end of year
(628,606)
(431,856)
Relating to:
Bank balances and short term deposits
200,182
265,885
Bank overdrafts
(828,788)
(697,741)
The notes on pages 12 to 25 form part of these financial statements.
LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 12 -
1
Accounting policies
Company information

LW Surphlis & Son Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is 31 Drumlegagh Church Road, Newtownstewart, Co Tyrone, Northern Ireland, BT78 4HF.

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
Going concern

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

1.3
Turnover

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

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

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recover able.

1.4
Tangible fixed assets

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

LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 13 -

At each balance sheet date, the carrying amounts of tangible assets are reviewed to determine whether there is an indication that those assets have suffered an impairment loss. Where the carrying value exceeds the estimated recoverable amount (being the greater of fair value less costs to sell and value-in-use), an impairment loss is recognised by writing down the assets cash-generating units to their recoverable amount. An impairment loss is recognised immediately in the profit and loss. Any reversal of a previous impairment loss is similarly recognised immediately in the profit and loss.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
25% reducing balance

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

1.5
Impairment of fixed assets

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

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

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

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

1.6
Stocks

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

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

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

LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 14 -
1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

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

Other financial assets

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

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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.

LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

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

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

Other financial liabilities

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

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Derecognition of financial liabilities

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

1.9
Equity instruments

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

LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 16 -
1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

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

1.12
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.

1.13
Retirement benefits

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

LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 17 -
1.14
Leases
As lessee

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 statement of financial position 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.

1.15
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 company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Going Concern

The directors have prepared budgets and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.

Impairment of Trade Debtors

The company trades with a large and varied number of customers on credit terms. Some debts due will not be paid through the default of a small number of customers. The company uses estimates based on historical experience and current information in determining the level of debts for which an impairment charge is required. The level of impairment required is reviewed on an ongoing basis. The total amount of trade debtors is £5,510,819 (20 2 4: £5,396,137).

Impairment of Stocks

The company holds stocks amounting to £3,010,598 (2024: £2,831,048 ) at the financial year end date. The directors are of the view that an adequate charge has been made to reflect the possibility of stocks being sold at less than cost. However, this estimate is subject to inherent uncertainty.

Useful Lives of Tangible Fixed Assets

Long-lived assets comprising primarily of fixtures, fittings, equipment, motor vehicles and plant and machinery represent a significant portion of total assets. The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial year. The net book value of Tangible Fixed Assets subject to depreciation at the financial year end date was £1,499,934 (202 4: £1,496,860).

3
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
5,572
(12,958)
Fees payable to the company's auditor for the audit of the company's financial statements
9,720
9,000
Depreciation of owned tangible fixed assets
281,627
218,851
Depreciation of tangible fixed assets held under finance leases
92,919
145,767
Profit on disposal of tangible fixed assets
(44,471)
(45,370)
LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 19 -
4
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,720
9,000
5
Employees

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

2025
2024
Number
Number
Administration and support
7
11
Production
44
41
Total
51
52

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,545,328
1,585,026
Social security costs
161,861
150,442
Pension costs
33,646
44,730
1,740,835
1,780,198
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
41,800
29,667
7
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
80,834
81,111
Other finance costs:
Interest on finance leases and hire purchase contracts
19,703
9,831
Other interest
16,000
16,000
116,537
106,942
LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 20 -
8
Taxation
2025
2024
£
£
Current tax
Adjustments in respect of prior periods
(11,545)
(46,214)
Deferred tax
Origination and reversal of timing differences
18,860
(13,426)
Total tax charge/(credit)
7,315
(59,640)

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

2025
2024
£
£
Profit before taxation
80,622
39,053
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2024: 25.00%)
15,318
9,763
Tax effect of expenses that are not deductible in determining taxable profit
1,039
-
0
Adjustments in respect of prior years
(11,545)
(46,214)
Permanent capital allowances in excess of depreciation
(14,186)
13,329
Research and development tax credit
(2,024)
(21,970)
Other non-reversing timing differences
(147)
1,179
Tax at marginal rate
-
0
(2,301)
Deferred tax movement
18,860
(13,426)
Taxation charge/(credit) for the year
7,315
(59,640)
9
Dividends
2025
2024
£
£
Final paid
1,500
1,500
LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 21 -
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2024
4,151,534
259,733
4,399,261
8,810,528
Additions
252,081
18,418
222,450
492,949
Disposals
(215,170)
(10,998)
(89,500)
(315,668)
At 30 June 2025
4,188,445
267,152
4,532,211
8,987,808
Depreciation and impairment
At 1 July 2024
3,361,994
218,690
3,732,984
7,313,668
Depreciation charged in the year
143,569
8,390
222,587
374,546
Eliminated in respect of disposals
(130,685)
(7,472)
(61,537)
(199,694)
At 30 June 2025
3,374,878
219,608
3,894,034
7,488,520
Carrying amount
At 30 June 2025
813,567
47,544
638,177
1,499,288
At 30 June 2024
789,541
41,041
666,278
1,496,860

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Motor vehicles
361,795
616,740
11
Stocks
2025
2024
£
£
Finished goods and goods for resale
3,010,598
2,831,048
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
5,510,819
5,396,137
Other debtors
72,090
55,625
Prepayments and accrued income
101,400
107,550
5,684,309
5,559,312
LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 22 -
13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
15
846,552
715,505
Obligations under finance leases
90,825
135,096
Other borrowings
15
50,000
50,000
Trade creditors
4,937,683
4,728,660
Taxation and social security
41,901
70,686
Other creditors
608,455
594,612
Accruals and deferred income
30,627
47,788
6,606,043
6,342,347
14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
15
18,719
32,812
Obligations under finance leases
164,658
176,399
Other borrowings
15
420,267
507,524
603,644
716,735
15
Loans and overdrafts
2025
2024
£
£
Bank loans
36,483
50,576
Bank overdrafts
828,788
697,741
Other loans
470,267
557,524
1,335,538
1,305,841
Payable within one year
896,552
765,505
Payable after one year
438,986
540,336
LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
15
Loans and overdrafts
(Continued)
- 23 -

An all monies debenture conferring on the bank, fixed and floating security over the property, assets, undertaking, rights and revenue (both present and future) of the Borrower registered in favour of Ulster Bank Limited and Ulster Bank Ireland Limited.

An all monies charge over the Borrower's property being a storage shed located in 0.288 acres adjoining existing premises at 31 Drumlegagh Church Road, Newtownstewart contained in Land Certificate Folio no TY 94757.

Joint and Several letter of guarantee and indemnity from Maurice Surphlis, Mrs Mary Surphlis and Adrian Surphlis guaranteeing the Borrower's liability to the bank in the sum of £1,378,000 with the following collateral;

An all monies charge over the Business Premises and approx 4.9 acres at 31 Drumlegagh Church Road, Newtownstewart, Omagh contained in Land Certificate Folios nos T 38199, 33699 Co Tyrone TY 5590 and 28901 Co Tyrone pledged by Mauraice, Mary & Adrian Surphlis.

An all monies charge over dwelling house, large shed and approx 11 acres at 76 Drumlegagh Road, Newtownstewart contained in Land Certificate Folio no 26782 Co Tyrone pledged by Maurice & Mary Surphlis.

Joint and Several letter of Guarantee to the sum of £135,000 pledged by Maurice Surplis, Mary Surphlis and Adrian Surphlis. An all monies charge over the Business Premises and approx 4.9 acres at 31 Drumlegagh Church Road, Newtownstewart, Omagh contained in Land Certificate Folios nos T 38199, 33699 Co Tyrone TY 5590 and 28901 Co Tyrone pledged by Mauraice, Mary & Adrian Surphlis.

An all monies charge over dwelling house, large shed and approx 11 acres at 76 Drumlegagh Road, Newtownstewart contained in Land Certificate Folio no 26782 Co Tyrone pledged by Maurice & Mary Surphlis.

An all monies charge over the Borrower's property being a storage shed and yard located in 2 acres at Garvegagh Road, Lower Castlederg contained in Land Certificate Folio no TY 81559.

The loan is for a term of 10 years at a variable interest rate which is currently 9.42%.

16
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
ACAs
352,238
333,572
Timing differences
(652)
(846)
351,586
332,726
LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
16
Deferred taxation
(Continued)
- 24 -
2025
Movements in the year:
£
Liability at 1 July 2024
332,726
Charge to profit or loss
18,860
Liability at 30 June 2025
351,586

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,646
44,730

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

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,020,000
1,020,000
1,020,000
1,020,000
19
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, is as follows.

2025
2024
£
£
Aggregate compensation
41,800
29,667
20
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

LW SURPHLIS & SON LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
20
Directors' transactions
(Continued)
- 25 -
Advances
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr A Surphlis - Directors Current Account
-
(163,257)
48,098
(33,950)
(149,109)
Mrs M Surphlis - Directors Current Account
-
(286,650)
27,818
(500)
(259,332)
Mr M Surphlis - Directors Current Account
-
(454,433)
4,963
(51,652)
(501,122)
Mr Colin Surphlis - Directors Current Account
-
(129,310)
45,614
(18,354)
(102,050)
(1,033,650)
126,493
(104,456)
(1,011,613)
21
Cash generated from operations
2025
2024
£
£
Profit for the year
73,307
98,693
Adjustments for:
Income tax expense recognised in profit or loss
7,315
(59,640)
Finance costs recognised in profit or loss
116,537
106,942
Gain on disposal of tangible fixed assets
(44,471)
(45,370)
Depreciation and impairment of tangible fixed assets
374,546
365,237
Movements in working capital:
(Increase) in stocks
(179,550)
(507,761)
(Increase)/decrease in debtors
(54,892)
243,472
Increase in creditors
86,988
83,346
Cash generated from operations
379,780
284,920
22
Analysis of changes in net debt
1 July 2024
Cash flows
30 June 2025
£
£
£
Cash at bank and in hand
265,885
(65,703)
200,182
Bank overdrafts
(697,741)
(131,047)
(828,788)
(431,856)
(196,750)
(628,606)
Borrowings excluding overdrafts
(608,100)
101,350
(506,750)
Lease liabilities
(311,495)
56,012
(255,483)
(1,351,451)
(39,388)
(1,390,839)
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