REGISTERED NUMBER: 14678866 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 July 2025

for

Gazelle UK Holdings Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Manpreet Singh Bawa

Gurmit Kaur Bawa

Mandeep Kaur Bawa

Kabir Singh Bawa

REGISTERED OFFICE:

Units 7-8

Hexagon Business Centre

Springfield Road

Hayes

Middlesex

UB4 0TH

REGISTERED NUMBER:

14678866 (England and Wales)

AUDITORS:

Shah Dodhia & Co

173 Cleveland Street

London

W1T 6QR

Introduction

The directors present their Strategic Report for the group for the year ended 31 July 2025.

Business review

The principal activity of Gazelle UK (Holdings) Ltd and its subsidiary ("the group") during the year was that of wholesalers and distributors of dairy products, eggs, ingredients and fine foods including organic and free range products to the hospitality and catering industry.

The current year has shown marginal growth despite current economic challenges. The directors expect the group to continue to grow revenues although the current cost-of-living and energy cost as well as inflation, high interest rates and increased employment cost may continue to affect hospitality venues, one of the primary sectors which the group supplies.

The subsidiary continues to be a Certified B Corporation, certified by B Lab as meeting high standards of social and environmental impact. The group continues to invest in reducing its carbon footprint and improving its sustainability.

Results and performance

Year ended 31 July 2025

Year ended 31 July 2024

£

£

Turnover

27,413,047

25,931,543

Gross profit

7,952,419

8,303,883

Profit before tax

5,272,107

4,019,745

The financial instruments used by the group arises wholly and directly from its activities. The main financial instruments comprise debtors, cash at bank and trade creditors. The financial risks arising from these financial instruments are considered low. The mature financial stability of the business ensures we maintain excellent terms with our preferred suppliers and their credit partners. Cash reserves have remained healthy over the year and working capital will continue to be monitored on a regular basis.

Outlook for the future

The group is positive on the long term outlook for the hospitality industry, especially in the Greater London area where it is a leading supplier. The directors are hopeful of continuing sustained growth in the business. The group continues to expand its product range and to invest in new staff, equipment, technology and assets to further drive growth and expansion.

The group will also invest significant sums in the renovation and refurbishments works of its owned buildings to modernise and bring them up to date, making them more efficient and sustainable as it continues to seek to acquire a new much larger distribution centre in the area.

Financial key performance indicators

The directors review the business performance regularly and compare this to available data for similar businesses. The directors are of the opinion that the company performs well compared to similar businesses.

Principal risks and uncertainties

The Companies Act 2006 requires that the strategic report includes a description of the principal risks and uncertainties facing the group. Some of the principal risks which could materially affect the group's business are noted below. Some risks are not yet known and some which are currently considered immaterial could be material later.

Products

The group carries a wide range of perishable products with limited shelf life. There is a small risk that some products may become expired or slow moving. The director monitors all purchasing and the product range on a regular basis, and ensures products sourced have a ready market so there is minimal obsolescence.

Principal risks and uncertainties..... cont'd

Foreign currency rates

The group purchases goods in sterling as well as foreign currencies. The effect of currency rates is carefully monitored and reflected in the pricing of the goods. Some currency hedging is carried out throughout the year to protect the group.

Supply chain disruptions

There are still risks and uncertainties in relation to the supply chain. Since the introduction of post Brexit charges on imports from EU, costs associated with importing has risen impacting the prices on certain imported goods. Shortages of product or a lack of supply could impact on the group not being able to stock sufficient products in its range to continue to fulfil customer orders. Where such issues arise in supplies, the directors source alternative supplies to mitigate any disruption in trading.

Labour

Recruitment and retention of staff is still challenging in this current environment. There are still significant staff shortages particularly in the warehouse and distribution segment, which has led to higher salaries to attract staff in this area. Shortages of staff can still lead to a disruption in distribution and operations but we continue to recruit and retain staff at competitive salaries for the business.

Inflationary price increases

The current inflationary pressure on goods stocked by the group could impact on the sale prices achieved and sales generated. Our suppliers still face staff shortages and high inflationary pressures that they continue to pass on. Some of the products held by the group, e.g. dairy and eggs have seen substantial price inflation. The directors carefully monitor supply costs and selling prices.

IT Systems

The group is reliant on its IT systems running smoothly. Any disruption caused by system breakdown could impact on its ability to continue its operations. The group has third party IT advisers who manage the systems and keep it secure from external threats.The group continues investing significantly in new technology solutions for the future.

ON BEHALF OF THE BOARD:

Manpreet Singh Bawa - Director

15 April 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 July 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2024 to the date of this report.

Manpreet Singh Bawa

Gurmit Kaur Bawa

Mandeep Kaur Bawa

Kabir Singh Bawa

POLITICAL DONATIONS AND EXPENDITURE

No political donations were made in the year (2024: £Nil).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Shah Dodhia & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Manpreet Singh Bawa - Director

15 April 2026

Opinion

We have audited the financial statements of Gazelle UK Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 July 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We made enquires of the directors' policies and procedures to prevent and detect fraud, as well as, whether they have knowledge of any actual, suspected or alleged fraud.

- We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates through discussion with directors and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.

- We designed audit procedures including analytical procedures to respond to the risk, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion;

- 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 focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK tax legislation, data protection, anti-money laundering, 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.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards, For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

The company is subject to many laws and regulations where non compliance could have a material effect in the financial statements, e.g. health and safety, employment law, anti-bribery, certain aspects of company legislation recognising the nature of the company's activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

In addition, as with any audit, there remained a higher risk of non-detecting of fraud, as these may involve collusion, forgery, intentional omission, misrepresentations or the override of internal controls. Our audit procedures are designed to detect material misstatement, We are not responsible for preventing non compliance or fraud and cannot be expected to detect non compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Satishchandra Baburaj Shah (Senior Statutory Auditor)

for and on behalf of Shah Dodhia & Co

173 Cleveland Street

London

W1T 6QR

22 April 2026

TURNOVER

27,413,047

25,931,543

Cost of sales

19,460,628

17,627,660

GROSS PROFIT

7,952,419

8,303,883

Administrative expenses

4,303,657

4,860,699

3,648,762

3,443,184

Other operating income

-

500

OPERATING PROFIT

4

3,648,762

3,443,684

Income from fixed asset investments

50,490

3,326

Interest receivable and similar income

958,534

556,514

1,009,024

559,840

4,657,786

4,003,524

Gain/loss on revaluation of investments

614,321

16,221

PROFIT BEFORE TAXATION

5,272,107

4,019,745

Tax on profit

5

1,330,957

1,019,930

PROFIT FOR THE FINANCIAL YEAR

3,941,150

2,999,815

Profit attributable to:

Owners of the parent

3,941,150

2,999,815

PROFIT FOR THE YEAR

3,941,150

2,999,815

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,941,150

2,999,815

Total comprehensive income attributable to:

Owners of the parent

3,941,150

2,999,815

FIXED ASSETS

Intangible assets

7

3,750

4,375

Tangible assets

8

4,495,837

4,514,375

Investments

9

6,437,467

1,727,124

10,937,054

6,245,874

CURRENT ASSETS

Stocks

10

727,751

576,131

Debtors

11

14,154,424

12,785,178

Cash at bank and in hand

6,862,611

7,987,380

21,744,786

21,348,689

CREDITORS

Amounts falling due within one year

12

2,927,839

1,952,876

NET CURRENT ASSETS

18,816,947

19,395,813

TOTAL ASSETS LESS CURRENT LIABILITIES

29,754,001

25,641,687

PROVISIONS FOR LIABILITIES

13

261,867

90,703

NET ASSETS

29,492,134

25,550,984

CAPITAL AND RESERVES

Called up share capital

14

500,001

500,001

Other reserves

15

20,860,174

20,860,174

Retained earnings

15

8,131,959

4,190,809

SHAREHOLDERS' FUNDS

29,492,134

25,550,984

The financial statements were approved by the Board of Directors and authorised for issue on 15 April 2026 and were signed on its behalf by:

Manpreet Singh Bawa - Director

FIXED ASSETS

Intangible assets

7

-

-

Tangible assets

8

-

-

Investments

9

500,001

500,001

500,001

500,001

CURRENT ASSETS

Cash at bank

805

805

CREDITORS

Amounts falling due within one year

12

7,890

4,064

NET CURRENT LIABILITIES

(7,085

)

(3,259

)

TOTAL ASSETS LESS CURRENT LIABILITIES

492,916

496,742

CAPITAL AND RESERVES

Called up share capital

14

500,001

500,001

Retained earnings

(7,085

)

(3,259

)

SHAREHOLDERS' FUNDS

492,916

496,742

Company's loss for the financial year

(3,826

)

(3,244

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 15 April 2026 and were signed on its behalf by:

Manpreet Singh Bawa - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 August 2023

500,001

1,190,994

20,860,174

22,551,169

Changes in equity

Total comprehensive income

-

2,999,815

-

2,999,815

Balance at 31 July 2024

500,001

4,190,809

20,860,174

25,550,984

Changes in equity

Total comprehensive income

-

3,941,150

-

3,941,150

Balance at 31 July 2025

500,001

8,131,959

20,860,174

29,492,134

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2023

500,001

(15

)

499,986

Changes in equity

Total comprehensive income

-

(3,244

)

(3,244

)

Balance at 31 July 2024

500,001

(3,259

)

496,742

Changes in equity

Total comprehensive income

-

(3,826

)

(3,826

)

Balance at 31 July 2025

500,001

(7,085

)

492,916

Cash flows from operating activities

Cash generated from operations

1

2,731,047

4,156,510

Tax paid

(584,117

)

(1,567,831

)

Net cash from operating activities

2,146,930

2,588,679

Cash flows from investing activities

Purchase of tangible fixed assets

(182,466

)

(131,701

)

Purchase of fixed asset investments

(4,118,822

)

(1,710,903

)

Sale of fixed asset investments

27,333

-

Interest received

958,534

556,514

Dividends received

50,490

3,326

Net cash from investing activities

(3,264,931

)

(1,282,764

)

Cash flows from financing activities

Amount introduced by directors

-

2,744,260

Amount withdrawn by directors

(6,768

)

-

Net cash from financing activities

(6,768

)

2,744,260

(Decrease)/increase in cash and cash equivalents

(1,124,769

)

4,050,175

Cash and cash equivalents at beginning of year

2

7,987,380

3,937,205

Cash and cash equivalents at end of year

2

6,862,611

7,987,380

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

5,272,107

4,019,745

Depreciation charges

201,628

186,217

Profit on disposal of fixed assets

(4,533

)

-

Gain on revaluation of fixed assets

(614,321

)

(16,221

)

Finance income

(1,009,024

)

(559,840

)

3,845,857

3,629,901

Increase in stocks

(151,620

)

(93,274

)

(Increase)/decrease in trade and other debtors

(1,362,478

)

106,624

Increase in trade and other creditors

399,288

513,259

Cash generated from operations

2,731,047

4,156,510

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2025

31/7/25

1/8/24

£

£

Cash and cash equivalents

6,862,611

7,987,380

Year ended 31 July 2024

31/7/24

1/8/23

£

£

Cash and cash equivalents

7,987,380

3,937,205

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/24

Cash flow

At 31/7/25

£

£

£

Net cash

Cash at bank and in hand

7,987,380

(1,124,769

)

6,862,611

7,987,380

(1,124,769

)

6,862,611

Total

7,987,380

(1,124,769

)

6,862,611

1.	STATUTORY INFORMATION

Gazelle UK Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The group and parent company financial statements were prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102"). The financial statements have been prepared under the historical cost convention unless otherwise stated.

The presentation currency of these financial statements is sterling.

The parent company is included in the consolidated financial statements and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The following exemptions available under FRS 102 in respect of certain disclosures for the parent company financial statements have been applied:

- No separate parent company Cash Flow Statement with related notes is included; and

- Key Management Personnel compensation for the company has not been included.

Basis of consolidation

The financial statements consolidate the financial statements of Gazelle UK (Holdings) Ltd and all of its subsidiary undertaking.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

In the company's own accounts, investments in subsidiary companies are stated at the cost to the company less impairment.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

No significant judgements have had to be made by the directors in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for good supplied, net of discounts and Value added Tax.

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

Intangible fixed assets

Intangible assets comprising of intellectual property is initially recorded at cost and amortised on a straight line basis over 10 years.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment loss. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property

Straight line over 50 years

Plant and machinery

25% reducing balance

Motor vehicles

25% reducing balance

Fixtures and fittings

25% reducing balance

Land included within freehold properties is not depreciated.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised in profit and loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Basic financial instruments

Financial assets and liabilities

Trade and other debtors/creditors

Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.

Interest-bearing loan classified as basic financial instruments

Loans are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Impairment of financial assets

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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

Derecognition of financial assets and financial liabilities

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

Going concern

The group meets its day-to-day working capital requirements from cash generated from operating activities. The group projections for the period to July 2027 indicate that the group will generate sufficient cashflow from operations and the group has adequate resources to continue in operational existence and will continue to meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date when these financial statements were approved. The group therefore adopts the going concern basis in preparing these financial statements.

Fixed assets investments

Long term investments in securities listed on the London Stock Exchange are carried forward in the financial statements at the fair value.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,787,842

2,746,003

Social security costs

325,673

309,294

Other pension costs

44,590

380,792

3,158,105

3,436,089

The average number of employees during the year was as follows:

2025

2024

Selling, distribution and administration

65

63

2025

2024

£

£

Directors' remuneration

883,495

967,500

Directors' pension contributions to money purchase schemes

10,000

349,571

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

453,495

442,000

Pension contributions to money purchase schemes

-

107,571

The number of directors who accrued benefits under company pension plan plan was 1 (2024: 4).

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

7,735

7,280

Depreciation - owned assets

201,004

185,592

Profit on disposal of fixed assets

(4,533

)

-

Intellectual Property amortisation

625

625

Auditors' remuneration

25,394

24,400

Taxation advisory services

4,000

9,000