REGISTERED NUMBER: 06905848 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

FOR

CHEANEY SHOES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTORS:

W J Church BSc, MBA, MRICS

J D I Church BA (Hons) C. Dip A.F

A J Bateman

REGISTERED OFFICE:

69 Rushton Road

Desborough

Northamptonshire

NN14 2RR

REGISTERED NUMBER:

06905848 (England and Wales)

AUDITORS:

Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

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

REVIEW OF BUSINESS

The financial year was a challenging one as cost pressures continued to adversely affect the business. Sales decreased by 4% to £9,017,130. Net assets decreased slightly to £9,253,956 resulting in an EBITDA performance for the year of £240,597 .

Our shop in Marylebone closed in the year with the Landlord taking back the premises for redevelopment. In place, following significant capital expenditure last year, we opened a retail shop on New Bond Street at the start of the year which has been trading in line with expectations.

The company has been adding to its traditional welted footwear a range of self-manufactured trainers and lighter weight shoes.

The business has maintained a strong balance sheet and cash reserves, giving a sound basis for ongoing growth in the years ahead.

PRINCIPAL RISKS AND UNCERTAINTIES

Our business is dependent upon maintaining a sufficient order book to supply the factory, receiving a consistent supply of quality leather at stable prices, and growing and retaining a skilled labour force.

Financial risk management

A significant element of our raw materials are purchased in Euros, giving us foreign currency risk exposure. We are able to offset part of this by using Euro inflows from our European sales.

The manufacturing business requires a sufficient level of working capital to meet its needs. The financial requirements of the business are monitored on a regular basis, and financial facilities are in place to ensure sufficient headroom.

Interest rate risk

The Company finances its operations through a mixture of retained profits, bank borrowings and related party loans. The Company's exposure to interest rate fluctuations on its borrowings is managed by use of a mixture of fixed and variable rates.

Utility bills

In common with many businesses the company is continuing to face significant increases in its energy costs. The Company uses an energy broker to agree contracts with suppliers. These have provided protection against the current market increases. It is difficult to accurately forecast the increase in costs the business will face as these contracts end. The costs will be dependent upon future market pricing and the level of any Government support available.

Currency risk

The Company is exposed to transaction foreign exchange risk. Transactions are partially hedged via Euro purchases against Euro receipts.

SIGNED BY ORDER OF THE DIRECTORS:

W J Church BSc, MBA, MRICS - Director

13 January 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of design, manufacture and distribution of footwear.

DIVIDENDS

The total distribution of dividends for the year ended 31 July 2025 was £75,000 (2024: £180,000).

DIRECTORS

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

W J Church BSc, MBA, MRICS

J D I Church BA (Hons) C. Dip A.F

A J Bateman

POLITICAL DONATIONS AND EXPENDITURE

There were no political donations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;

-	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.

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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:

W J Church BSc, MBA, MRICS - Director

13 January 2026

Opinion

We have audited the financial statements of Cheaney Shoes Limited (the 'company') for the year ended 31 July 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 July 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 Auditors' 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 in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 Statement of Directors' Responsibilities set out on page three, 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 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.

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:

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.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Robyn Liddell (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

14 January 2026

TURNOVER

3

9,017,130

9,399,464

Cost of sales

6,912,706

6,681,492

GROSS PROFIT

2,104,424

2,717,972

Distribution costs

1,272,042

1,356,620

Administrative expenses

917,371

844,868

2,189,413

2,201,488

OPERATING (LOSS)/PROFIT

5

(84,989

)

516,484

Interest receivable and similar income

63,912

104,226

(21,077

)

620,710

Interest payable and similar expenses

6

2,679

2,679

(LOSS)/PROFIT BEFORE TAXATION

(23,756

)

618,031

Tax on (loss)/profit

7

(54,778

)

132,836

PROFIT FOR THE FINANCIAL YEAR

31,022

485,195

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

31,022

485,195

FIXED ASSETS

Intangible assets

9

1

1

Tangible assets

10

1,729,703

1,906,718

1,729,704

1,906,719

CURRENT ASSETS

Stocks

11

6,840,486

6,835,833

Debtors

12

599,967

713,817

Cash at bank and in hand

1,761,498

1,773,058

9,201,951

9,322,708

CREDITORS

Amounts falling due within one year

13

1,389,682

1,610,237

NET CURRENT ASSETS

7,812,269

7,712,471

TOTAL ASSETS LESS CURRENT LIABILITIES

9,541,973

9,619,190

CREDITORS

Amounts falling due after more than one year

14

-

(17,574

)

PROVISIONS FOR LIABILITIES

17

(227,865

)

(243,530

)

NET ASSETS

9,314,108

9,358,086

CAPITAL AND RESERVES

Called up share capital

18

50,000

50,000

Revaluation reserve

19

290,273

299,391

Retained earnings

19

8,973,835

9,008,695

SHAREHOLDERS' FUNDS

9,314,108

9,358,086

The financial statements were approved by the Board of Directors and authorised for issue on 13 January 2026 and were signed on its behalf by:

J D I Church BA (Hons) C. Dip A.F - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 August 2023

50,000

8,694,382

308,509

9,052,891

Changes in equity

Dividends

-

(180,000

)

-

(180,000

)

Total comprehensive income

-

494,313

(9,118

)

485,195

Balance at 31 July 2024

50,000

9,008,695

299,391

9,358,086

Changes in equity

Dividends

-

(75,000

)

-

(75,000

)

Total comprehensive income

-

40,140

(9,118

)

31,022

Balance at 31 July 2025

50,000

8,973,835

290,273

9,314,108

Cash flows from operating activities

Cash generated from operations

1

296,629

114,255

Interest element of hire purchase payments paid

(2,679

)

(2,679

)

Tax paid

(119,519

)

(122,916

)

Net cash from operating activities

174,431

(11,340

)

Cash flows from investing activities

Purchase of tangible fixed assets

(156,534

)

(346,619

)

Sale of tangible fixed assets

8,012

-

Interest received

63,912

104,226

Net cash from investing activities

(84,610

)

(242,393

)

Cash flows from financing activities

Capital repayments in year

(26,381

)

(26,381

)

Equity dividends paid

(75,000

)

(180,000

)

Net cash from financing activities

(101,381

)

(206,381

)

Decrease in cash and cash equivalents

(11,560

)

(460,114

)

Cash and cash equivalents at beginning of year

2

1,773,058

2,233,172

Cash and cash equivalents at end of year

2

1,761,498

1,773,058

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(23,756

)

618,031

Depreciation charges

333,708

295,791

Profit on disposal of fixed assets

(8,171

)

-

Finance costs

2,679

2,679

Finance income

(63,912

)

(104,226

)

240,548

812,275

Increase in stocks

(4,653

)

(926,276

)

Decrease in trade and other debtors

84,697

48,676

(Decrease)/increase in trade and other creditors

(23,963

)

179,580

Cash generated from operations

296,629

114,255

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 July 2025

31/7/25

1/8/24

£

£

Cash and cash equivalents

1,761,498

1,773,058

Year ended 31 July 2024

31/7/24

1/8/23

£

£

Cash and cash equivalents

1,773,058

2,233,172

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

1,773,058

(11,560

)

1,761,498

1,773,058

(11,560

)

1,761,498

Debt

Finance leases

(43,669

)

26,381

(17,288

)

(43,669

)

26,381

(17,288

)

Total

1,729,389

14,821

1,744,210

1.	STATUTORY INFORMATION

Cheaney Shoes Limited 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Long leasehold

-

over the life of the lease

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

at varying rates on cost

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

6,762,561

6,560,236

Rest of the world

2,254,569

2,839,228

9,017,130

9,399,464

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,696,817

3,738,983

Social security costs

364,143

340,332

Other pension costs

82,058

86,011

4,143,018

4,165,326

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

2025

2024

Direct labour staff

62

79

Administrative staff

28

30

Retail & e-commerce staff

33

32

123

141

2025

2024

£

£

Directors' remuneration

275,113

277,584

Directors' pension contributions to money purchase schemes

10,143

9,135

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

97,219

93,711

Pension contributions to money purchase schemes

4,411

3,907

5.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

315,124

281,463

Depreciation - assets on hire purchase contracts

18,584

14,328

Profit on disposal of fixed assets

(8,171

)

-

Auditors' remuneration

14,695

12,825

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Hire purchase

2,679

2,679

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

(39,113

)

187,827

Over/under provision in prior

year

-

(56,950

)

Total current tax

(39,113

)

130,877

Deferred tax

(15,665

)

1,959

Tax on (loss)/profit

(54,778

)

132,836

UK corporation tax was charged at 25%) in 2024.