REGISTERED NUMBER: 02756941 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

SKILLBOND DIRECT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

S C Rich

R G Slade

A M Woolf

N Wainstein

D Shah

SECRETARY:

N Wainstein

REGISTERED OFFICE:

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

REGISTERED NUMBER:

02756941 (England and Wales)

AUDITORS:

Oury Clark Chartered Accountants

Statutory Auditors

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

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

REVIEW OF BUSINESS

Sales for the year ended 31st December 2025 were £19.18m (2024: £18.54m) and the gross margin was 29.3% (2024: 29.7%).

Operating profit was £0.68m (2024: £0.65m) and profit after tax was £0.43m (2024: £0.14m).

The Directors are satisfied with the results for the year and the business continues to perform well in a competitive marketplace. We have continued to invest in new equipment and staff to expand our product range and digital portfolio, so we can ensure the company is able to deliver high quality products and services to our customers.

The business acquired the trade and assets of Metrodent Direct Limited, a competitor, on 1st December 2025. This acquisition strengthens our position in the market.

The Directors recognise our obligations to prevent slavery and human trafficking, and have taken the necessary steps to ensure it does not take place in our business or supply chain.

The Directors also have continued to reshape Skillbond's carbon footprint with the introduction of multiple projects to reduce plastic and environmental impact.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a very competitive market which is a continuing risk and may result in sales and customers being lost to competitors. The company manages this risk by focusing on its strengths: superior products and services to its customers.

Global Commodity Prices

A reasonable proportion of the company's business is derived from the sale of precious metal alloys. Consequently the turnover and direct costs are significantly affected by movements in the global commodity prices of the constituent metals. These risks are actively managed through daily monitoring of commodity prices.

Credit Risk

Trade debtors are the company's principal financial asset arising from the credit sales of its principal activity which is the manufacture and distribution of dental supplies. The Directors manage credit risk by setting limits for customers based on payment history and third party credit references. The credit controller reviews limits on a regular basis in conjunction with debt ageing and collection history.

Stock Risk

Stocks comprise a significant portion of the company's assets. The directors make every effort to keep stocks under control with continued investment in stock management systems and regular review to help identify any slow moving or obsolete lines, making provisions where necessary.

Staff Risk

Significant investment in staff recruitment, training, motivation and appraisal have enabled us to recruit and retain high quality members of staff to help provide superior customer service and drive the business forward.

NHS Budget

Any changes to the structure of government funding of the industry, particularly in light of continuing pressure to reduce costs across the NHS, could have a negative impact on the company's sales.

KEY PERFORMANCE INDICATORS

The company monitors its performance through the use of key performance indicators.

a) Sales have increased by 3.5%

b) Gross profit has increased by 2.1%

c) Operating profit has increased by 4.5%

These key performance indicators are monitored through monthly management accounts and are reviewed in comparison with prior periods and budgets. Any adverse trends are identified at an early stage and investigated.

ON BEHALF OF THE BOARD:

D Shah - Director

7 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and distribution of dental supplies.

DIVIDENDS

An interim dividend of £24 per share was paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2025 will be £240,000 (2024: £240,000).

DIRECTORS

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

S C Rich

R G Slade

A M Woolf

N Wainstein

D Shah

THIRD-PARTY INDEMNITY INSURANCE

The Company has purchased and maintained throughout the financial year, at its expense, third-party indemnity insurance for the benefit of its directors. This insurance is in respect of certain losses or liabilities which the directors may incur to third parties in the course of performing their duties.

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). 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, Oury Clark Chartered Accountants, are deemed to be re-appointed under Section 487 (2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

D Shah - Director

7 May 2026

Opinion

We have audited the financial statements of Skillbond Direct Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, Notes to the Cash Flow Statement and 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 December 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 and one day 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 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 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.

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:

Identifying and assessing potential irregularities, including fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Considering the nature of the industry, sector, control environment and current business activities, including possible performance targets and subsequent remuneration.

Enquiring of management concerning policies and procedures relating to:

1. Complying with laws and regulations and whether there were any instances of non-compliance;

2. Mitigating, detecting and responding to fraud risk and whether there has been any actual or possible instances of fraud.

Discussions within the engagement team regarding how and where fraud may occur in the financial statements along with the possible indicators of fraud. We identified the following areas most likely to be susceptible to fraud:

1. Revenue recognition;

2. Management override;

3. Management bonuses;

4. Understatement of creditors;

5. Stock provision;

6. Stock valuation;

7. Stock existence.

Discussing within the engagement team the legal and regulatory framework in which the company operates and in particular those which would have an impact on the financial statements. The key laws and regulations considered were the Companies Act 2006, UK tax legislation and UK employment law.

Audit response to the risks identified

As noted above, we identified revenue recognition, management override, management bonuses, understatement of creditors, stock provision, stock valuation and stock existence as the matters that would most likely be susceptible to fraud. Our procedures to respond to these risks included the following:

1. Performing a detailed sales test of detail and cut off testing including reviewing delivery confirmation to ensure that revenue is recognised in the correct period;

2. Reviewing three months of journals posted during the year and investigating large or unusual transactions;

3. Reviewing three months of postings to the nominal ledger during the year and investigating any large or unusual transactions;

4. Testing a sample of sales for overstatement;

5. Completing an after date review of the nominal ledger, bank statements and purchase invoices for any understatement of creditors;

6. Reviewing stock provision in line with expectations and discussions with client regarding slow moving stock;

7. Test of detail vouching stock values to sales price and cost to ensure stock is held at lower of cost and net realisable value;

8. Testing for existence and completeness during the onsite stock-take.

Further, we also identified compliance with the Companies Act 2006, UK tax legislation and UK employment law as being key areas where there may be possible non-compliance. Our procedures to respond to these risks included the following:

1. Review the disclosures in the financial statements through completion of a disclosure checklist and testing supporting documentation to assess compliance with the Companies Act 2006;

2. Safeguard review of financial statements by a Chartered Accountant not on the engagement team;

3. Safeguard review of tax computations by a person qualified as a CTA, not on the engagement team;

4. Review the corporation tax return to ensure it complies with UK tax legislation and completion of our detailed corporation tax checklist;

5. Checking a sample of compliance with right to work checks and reviewing legal fees for indications of material issues arising out of non-compliance with UK employment law.

The above matters and identified laws and regulations and potential fraud risks were communicated to all engagement team members, in order to enable the team to have the ability to identify such risks. The whole team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above and 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.

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.

Ian Phipps (Senior Statutory Auditor)

for and on behalf of Oury Clark Chartered Accountants

Statutory Auditors

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

8 May 2026

TURNOVER

4

19,183,663

18,535,217

Cost of sales

13,565,079

13,034,715

GROSS PROFIT

5,618,584

5,500,502

Administrative expenses

4,938,519

4,849,685

OPERATING PROFIT

6

680,065

650,817

Interest receivable and similar income

50,141

9,945

730,206

660,762

Interest payable and similar expenses

7

114,972

180,411

PROFIT BEFORE TAXATION

615,234

480,351

Tax on profit

8

186,894

342,373

PROFIT FOR THE FINANCIAL YEAR

428,340

137,978

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

428,340

137,978

FIXED ASSETS

Intangible assets

10

375,194

334,189

Tangible assets

11

1,705,659

2,258,106

2,080,853

2,592,295

CURRENT ASSETS

Stocks

12

4,803,901

3,477,651

Debtors

13

3,945,356

4,114,844

Cash at bank

861,608

497,580

9,610,865

8,090,075

CREDITORS

Amounts falling due within one year

14

3,253,427

2,656,916

NET CURRENT ASSETS

6,357,438

5,433,159

TOTAL ASSETS LESS CURRENT LIABILITIES

8,438,291

8,025,454

CREDITORS

Amounts falling due after more than one year

15

(1,969,479

)

(1,650,000

)

PROVISIONS FOR LIABILITIES

19

(377,675

)

(472,657

)

NET ASSETS

6,091,137

5,902,797

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

Retained earnings

21

6,081,137

5,892,797

SHAREHOLDERS' FUNDS

6,091,137

5,902,797

The financial statements were approved by the Board of Directors and authorised for issue on 7 May 2026 and were signed on its behalf by:

D Shah - Director

S C Rich - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

10,000

5,994,819

6,004,819

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

137,978

137,978

Balance at 31 December 2024

10,000

5,892,797

5,902,797

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

428,340

428,340

Balance at 31 December 2025

10,000

6,081,137

6,091,137

Cash flows from operating activities

Cash generated from operations

1

1,249,743

(1,492,917

)

Interest paid

(114,972

)

(4,625

)

Finance costs paid

-

(329,779

)

Tax paid

(288,400

)

(351,000

)

Net cash from operating activities

846,371

(2,178,321

)

Cash flows from investing activities

Purchase of intangible fixed assets

(191,007

)

(193,183

)

Purchase of tangible fixed assets

(310,269

)

(941,717

)

Sale of tangible fixed assets

140,426

220,664

Interest received

50,141

9,945

Net cash from investing activities

(310,709

)

(904,291

)

Cash flows from financing activities

Loan repayments in year

-

(45,936

)

Movement on group loans

569,729

2,250,000

Equity dividends paid

(240,000

)

(240,000

)

Net cash from financing activities

329,729

1,964,064

Increase/(decrease) in cash at bank

865,391

(1,118,548

)

Cash at bank at beginning of year

2

(4,823

)

1,113,725

Cash at bank at end of year

2

860,568

(4,823

)

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

31.12.25

31.12.24

£

£

Profit before taxation

615,234

480,351

Depreciation charges

931,422

900,165

Profit on disposal of fixed assets

(59,128

)

(148,162

)

Deferred tax movement

97,534

(284,239

)

Finance costs

114,972

180,411

Finance income

(50,141

)

(9,945

)

1,649,893

1,118,581

Increase in stocks

(1,326,250

)

(470,287

)

Decrease in trade and other debtors

48,837

485,524

Increase/(decrease) in trade and other creditors

877,263

(2,626,735

)

Cash generated from operations

1,249,743

(1,492,917

)

2.	CASH AT BANK

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 December 2025

31.12.25

1.1.25

£

£

Cash at bank

861,608

497,580

Bank overdrafts

(1,040

)

(502,403

)

860,568

(4,823

)

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash at bank

497,580

1,114,057

Bank overdrafts

(502,403

)

(332

)

(4,823

)

1,113,725

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

497,580

364,028

861,608

Bank overdrafts

(502,403

)

501,363

(1,040

)

(4,823

)

865,391

860,568

Total

(4,823

)

865,391

860,568

1.	STATUTORY INFORMATION

Skillbond Direct 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 (£).

The company's principal trading address is Dudley House, The Valley Centre, Gordon Road, High Wycombe HP13 6EQ.

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.

The financial statements have been prepared on a going concern basis as the directors consider that given the company has net assets, net current assets and is profitable it will be able to continue its operations for at least twelve months and one day from approval of the financial statements and as such this is the most appropriate basis of accounting.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

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

Revenue is recognised when the risks and rewards of inventory or a hire purchase asset are passed to the customer or when a service is provided.

Goodwill

Goodwill is recognised on the purchase of trade and assets of a business in December 2025. It will be amortised evenly over its estimated useful life of 10 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.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and are reviewed annually for signs of impairment. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Improvements to property

-

25% on reducing balance basis and 25% on cost

Plant and machinery

-

20% on cost and 10% on cost

Fixtures and fittings

-

25% on reducing balance and 25% on cost

Computer equipment

-

33% on cost, 20% on cost and 10% on cost

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined on the first-in, first-out (FIFO) basis and includes all direct costs and an appropriate portion of fixed and variable overheads.

Allowances are made for obsolete or slow-moving stock based on the judgement of management and the date an item was last sold. See note 3 for further information.

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 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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

Rentals paid under operating leases are charged to profit and loss on a straight line basis over the period of the lease.

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 and loss in the period to which they relate.

Financial instruments

Basic Financial Instruments as covered by Section 11 of FRS 102 are measured at amortised cost. The company does not have any Other Financial Instruments as covered by Section 12 of FRS 102.

Cash flow statement

The cash flow statement has been prepared on the indirect method.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

Key sources of estimation uncertainty are estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities. These are as follows:

Depreciation and amortisation

Tangible and intangible fixed assets are depreciated and amortised over their useful economic lives respectively. The actual useful lives of assets are assessed annually and will vary depending on a number of factors. In assessing the lives of assets, factors such as technological advancement and current trading levels are taken into account.

Stock impairment

The directors have established a specific provision for certain inventory items based on their assessment of future sales potential. For slow-moving stock, a full provision (100%) is made for items that have remained unsold for more than four years from the balance sheet date. Additionally, a 70% provision is made for items that have not been sold for over three years and a 20% provision is made for items that have not been sold for two years from the balance sheet date.

The directors believe this approach reflects the Company's unique position as a potential sole supplier of certain stock to the market. Given this, the need to maintain a comprehensive product catalogue for specific stock ranges is considered essential and it is not uncommon for the Company to sell items that have been held in inventory for at least three years.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the entity which is the production and wholesaling of dental products.

5.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

2,810,272

2,730,791

Social security costs

339,671

263,759

Other pension costs

247,344

241,956

3,397,287

3,236,506

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

31.12.25

31.12.24

Administration

37

32

Production

22

23

Sales

11

11

70

66

31.12.25

31.12.24

£

£

Directors' remuneration

646,564

586,665

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:

31.12.25

31.12.24

£

£

Emoluments etc

301,987

277,819

6.	OPERATING PROFIT

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

31.12.25

31.12.24

£

£

Hire of plant and machinery

80,750

93,723

Other operating leases

296,231

277,845

Depreciation - owned assets

781,418

746,819

Profit on disposal of fixed assets

(59,128

)

(148,162

)

Computer software amortisation

150,002

153,346

Auditors' remuneration

74,289

40,426

Auditors' remuneration for non audit work

19,614

67,982

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Bank interest

2,749

4,625

Intercompany interest

112,223

51,000

HMRC interest

-

124,786

114,972

180,411

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

281,875

58,134

Deferred tax

(94,981

)

284,239

Tax on profit

186,894

342,373

UK corporation tax has been charged at 25% .