REGISTERED NUMBER: 01177941 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2025

FOR

MCGEAN-ROHCO (U.K.) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Profit or Loss

8

Statement of Profit or Loss and Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

Mr D L Whitney Jnr (USA)

Mr D M Wehner (USA)

Ms M M Gliozzi

SECRETARY:

Mr T J Lipscombe

REGISTERED OFFICE:

Qualcast Road

Lower Horseley Fields

Wolverhampton

West Midlands

WV1 2QP

REGISTERED NUMBER:

01177941 (England and Wales)

AUDITORS:

Stanton Ralph & Co Limited

Chartered Accountants

Statutory Auditor

The Old Police Station

Whitburn Street

Bridgnorth

Shropshire

WV16 4QP

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

REVIEW OF BUSINESS

McGean-Rohco (UK) Limited continues to manufacture for the aviation industry as well as performing toll blending for the general metal finishing industries. It is expected that we will continue to meet our budgeted manufacturing and fiscal targets as well as meeting our legislative requirements as a responsible operator within the chemical Industry.

KEY FINANCIAL PERFORMANCE INDICATORS

Total revenues for the year to 31st December 2025 were £11,121,006 compared to £11,078,764 for the year to 31st December 2024 representing a 0.38% increase.

Gross profit margins have reduced slightly with a 48.09% gross profit margin having been achieved for the financial year compared to 48.43% in the prior year due to the impact of some price increases bringing the profit back to similar levels of prior years. The gross profit margin reflects tight cost controls. The company achieved operating profits of £2,113,358 which as a percentage of turnover is 19.00% compared with £2,052,173 (18.52%) in 2024. Raw material prices continue to be tightly monitored by the directors.

PRINCIPAL RISKS AND UNCERTAINTIES

Business risk

The potential risks and uncertainties the company faces derive from international politics of the countries with whom we are trading. These uncertainties are mitigated by having a very wide customer base, situated in Europe, Africa, The Middle East and Pakistan.

Foreign currency risk

The company conducts significant trade in Euros and US Dollars, as a result it is exposed to fluctuations in foreign currency markets. Management view the currencies as stable and thus the associated risk of fluctuations is low. The company does not utilise derivative financial instruments to reduce the risk associated with foreign currencies.

Credit risk

The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the financial statements are net of expected credit losses.

ANALYSIS OF DEVELOPMENT AND PERFORMANCE FOR THE PERIOD AND AT THE PERIOD END

The management continues to monitor the company's performance, benchmarking its sales, margins and costs against budget, and prior year. Key changes within the industry can be identified with sales reported by product range.

Good understanding of our customer needs enables stock turnover to remain high. Debtor days are recorded monthly, with sales managers notified of any slow paying debt.

ON BEHALF OF THE BOARD:

Mr D M Wehner (USA) - Director

25th March 2026

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

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of the manufacture and sale of chemical additives for the aviation industry and in the toll blending market place.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2025 will be £1,123,469 (2024: £526,006).

FUTURE DEVELOPMENTS

The company continues to trade as suppliers to the aviation industry and in the toll blending market.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2025 to the date of this report.

Mr D L Whitney Jnr (USA)

Mr D M Wehner (USA)

Ms M M Gliozzi

COUNTRY OF INCORPORATION

The company is incorporated and registered in England and Wales.

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 UK-adopted international accounting standards. 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 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr D M Wehner (USA) - Director

25th March 2026

Opinion

We have audited the financial statements of McGean-Rohco (U.K.) Limited (the 'company') for the year ended 31st December 2025 which comprise the Statement of Profit or Loss, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the 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 International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion the financial statements:

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

-	have been properly prepared in accordance with IFRSs as adopted by the UK; 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, as outlined above, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and its likely future developments, including in relation to the legal and regulatory framework applicable and how the entity and is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we

designed procedures which included:

- enquiry of management and those charged with governance around actual and potential litigation and

claims as well as actual, suspected and alleged fraud;

- reviewing minutes of meetings of those charged with governance;

- assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;

- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with laws and regulations; and

- performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Ann Hill FCA (Senior Statutory Auditor)

for and on behalf of Stanton Ralph & Co Limited

Chartered Accountants

Statutory Auditor

The Old Police Station

Whitburn Street

Bridgnorth

Shropshire

WV16 4QP

25th March 2026

CONTINUING OPERATIONS

11,078,764

Revenue

3

11,121,006

(5,713,724

)

Cost of sales

(5,773,467

)

5,365,040

GROSS PROFIT

5,347,539

8,943

Other operating income

4

8,943

(3,321,810

)

Administrative expenses

(3,243,124

)

2,052,173

OPERATING PROFIT

2,113,358

(7,821

)

Finance costs

6

(12,065

)

34,306

Finance income

6

32,965

2,078,658

PROFIT BEFORE INCOME TAX

7

2,134,258

(540,895

)

Income tax

8

(569,661

)

1,537,763

PROFIT FOR THE YEAR

1,564,597

1,537,763

PROFIT FOR THE YEAR

1,564,597

-

OTHER COMPREHENSIVE INCOME

-

1,537,763

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,564,597

ASSETS

NON-CURRENT ASSETS

Owned

53,112

Intangible assets

10

30,379

429,974

Property, plant and equipment

11

437,366

Right-of-use

53,985

Property, plant and equipment

11, 19

38,581

537,071

506,326

CURRENT ASSETS

680,959

Inventories

12

637,885

2,197,683

Trade and other receivables

13

1,905,812

2,887,607

Cash and cash equivalents

14

3,212,670

5,766,249

5,756,367

6,303,320

TOTAL ASSETS

6,262,693

EQUITY

SHAREHOLDERS' EQUITY

339,466

Called up share capital

15

339,466

3,937,541

Retained earnings

16

4,378,669

4,277,007

TOTAL EQUITY

4,718,135

LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities - borrowings

33,021

Lease liabilities

18, 19

25,888

6,137

Deferred tax

20

12,441

39,158

38,329

CURRENT LIABILITIES

1,606,495

Trade and other payables

17

1,359,903

Financial liabilities - borrowings

12,171

Lease liabilities

18, 19

7,969

368,489

Tax payable

138,357

1,987,155

1,506,229

2,026,313

TOTAL LIABILITIES

1,544,558

6,303,320

TOTAL EQUITY AND LIABILITIES

6,262,693

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 25th March 2026 and were signed on its behalf by:

Mr D M Wehner (USA) - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2024

339,466

2,925,784

3,265,250

Changes in equity

Dividends

-

(526,006

)

(526,006

)

Total comprehensive income

-

1,537,763

1,537,763

Balance at 31st December 2024

339,466

3,937,541

4,277,007

Changes in equity

Dividends

-

(1,123,469

)

(1,123,469

)

Total comprehensive income

-

1,564,597

1,564,597

Balance at 31st December 2025

339,466

4,378,669

4,718,135

Cash flows from operating activities

1,634,228

Cash generated from operations

1

2,273,851

(3,956

)

Interest paid

(6,365

)

(3,865

)

Lease interest paid

(5,700

)

(404,604

)

Tax paid

(793,489

)

1,221,803

Net cash from operating activities

1,468,297

Cash flows from investing activities

(62,080

)

Purchase of tangible fixed assets

(41,395

)

34,306

Interest received

32,965

(27,774

)

Net cash from investing activities

(8,430

)

Cash flows from financing activities

(18,887

)

Payment of lease liabilities

(11,335

)

54,022

New lease finance secured

-

(526,006

)

Equity dividends paid

(1,123,469

)

(490,871

)

Net cash from financing activities

(1,134,804

)

703,158

Increase in cash and cash equivalents

325,063

2,184,449

Cash and cash equivalents at beginning of year

2

2,887,607

2,887,607

Cash and cash equivalents at end of year

2

3,212,670

1.	RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

31.12.25

31.12.24

£

£

Profit before income tax

2,134,258

2,078,658

Depreciation charges

72,140

60,546

Finance costs

12,065

7,821

Finance income

(32,965

)

(34,306

)

2,185,498

2,112,719

Decrease/(increase) in inventories

43,074

(9,786

)

Decrease/(increase) in trade and other receivables

291,871

(452,644

)

Decrease in trade and other payables

(246,592

)

(16,061

)

Cash generated from operations

2,273,851

1,634,228

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 31st December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

3,212,670

2,887,607

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,887,607

2,184,449

1.	STATUTORY INFORMATION

McGean-Rohco (U.K.) 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.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is the Pound Sterling (£), rounded to the nearest £1.

The financial statements contain information about McGean-Rohco (UK) Limited as an individual company.

There were no other new standards or interpretations effective for the first time for periods beginning on or after 1 January 2023 that had a significant effect on the company's financial statements.

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of stock at the date of the financial statements. If in the future such estimates and assumptions which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. Where necessary, the comparatives have been reclassified or extended from the previously reported results to take into account presentational changes.

Revenue

Performance obligations and timing of revenue recognition

The company's revenue is derived from selling goods with revenue recognised at a point in time when control of the goods has transferred to the customer. This is generally when the goods are delivered to the customer. However, for export sales, control might also be transferred when delivered either to the port of departure or port of arrival, depending on the specific terms of the contract with a customer. There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occured the company no longer has physical possession, usually will have a present right to payment as a single payment on delivery and retains none of the significant risks and rewards of the goods pertaining to the goods in question.

Allocating amounts to performance obligations

For most contracts there is a fixed unit price for each product sold. Therefore there is no judgement involved in allocating the contract price to each unit ordered in such contracts. Where a customer orders more than one product line the company is able to determine the split of the total contract price between each product line by reference to each product's stand alone selling prices, all product lines being sold separately.

Determining the transaction price

All of the company's revenue is derived from fixed price contracts so that the amount of revenue to be earned from each contract is determined by reference to those fixed prices.

Government Grants

Government grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the company recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the company should purchase, construct or otherwise acquire non-current assets, including property, plant and equipment, are recognised as deferred income in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognised in profit or loss in the period in which they become receivable.

Cash and cash equivalents

Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Property, plant and equipment

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

Plant and machinery

-

20% on cost and 10% on cost

Property, plant and equipment are initially recorded at cost of purchase or construction.

Freehold land is not depreciated.

Inventories

Inventories are valued at the lower of cost and net realisable value, including an appropriate proportion of fixed and variable overhead, after making due allowance for obsolete and slow moving items.

Taxation

Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date at rates anticipated to be in force at the time of reversal. Deferred tax assets are recognised to the extent that they are more likely than not to be recoverable.

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.

Leases

Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

Employee benefit costs

The company contributes to a defined contribution pension schemes on behalf of employees. Contributions payable to the pension schemes are charged to the income statement in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand. In the cash flow statement, cash and cash equivalents are shown net of any bank borrowings and overdrafts.

Creditors payable within one year

Creditors with no stated interest rate and payable within one year are recorded at transaction price. Any impairments are recognised in the profit and loss account.

Financial assets & liabilities

The company's financial assets, measured at amortised cost, comprise trade and other receivables and cash and cash equivalents in the Statement of Financial Position.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable (other than financial assets or liabilities at fair value through profit or loss) are added to or deducted from the fair value as appropriate, on initial recognition.

3.

REVENUE

Segmental reporting

All of the revenue is derived from the manufacture and contractual sale of chemical additives for the aviation industry and in the toll blending market place and the revenue for the financial year is split between the following geographical locations:

31.12.25

31.12.24

£

£

United Kingdom

1,536,960

2,235,241

Rest of the World

9,584,046

8,843,522

Total Revenue

11,121,006

11,078,764

4.	OTHER OPERATING INCOME

31.12.25

31.12.24

£

£

Rents received

8,943

8,943

8,943

8,943

5.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

1,587,633

1,486,132

Social security costs

192,716

174,144

Other pension costs

175,230

172,033

1,955,579

1,832,309

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

31.12.25

31.12.24

Processing and laboratory work

11

9

Administration and selling

8

9

19

18

31.12.25

31.12.24

£

£

Directors' remuneration

-

48,060

Directors' pension contributions to money purchase schemes

-

16,376

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

Money purchase schemes

-

1

The company's key management comprises its directors whose remuneration is disclosed above so that no separate disclosure of key management remuneration is presented.

6.	NET FINANCE INCOME

31.12.25

31.12.24

£

£

Finance income:

Bank interest

32,965

34,306

31.12.25

31.12.24

£

£

Finance costs:

Interest payable

6,365

3,956

Leasing

5,700

3,865

12,065

7,821

Net finance income

20,900

26,485

7.	PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging/(crediting):

31.12.25

31.12.24

£

£

Cost of inventories recognised as expense

5,773,467

5,713,724

Depreciation - owned assets

34,003

27,811

Depreciation - assets on hire purchase contracts or finance leases

15,404

10,002

Computer software amortisation

22,733

22,733

Auditors' remuneration

16,143

15,540

Foreign exchange differences

(10,617

)

2,685

We use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. £1,750 (2024: £1,500) is included within the audit fee for tax work and £2,000 for accounts work.

8.	INCOME TAX

Analysis of tax expense

31.12.25

31.12.24

£

£

Current tax:

Tax

563,357

541,651

Deferred tax

6,304

(756

)

Total tax expense in statement of profit or loss

569,661

540,895

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.25

31.12.24

£

£

Profit before income tax

2,134,258

2,078,658

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

533,565

519,665

Effects of:

Expenses not deductible for tax purposes

28,473

15,310

Depreciation in excess of capital allowances

1,319

6,676

Deferred tax provision movement

6,304

(756

)

Tax expense

569,661

540,895