REGISTERED NUMBER: 01420923 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 August 2025

for

Linco Care Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

Mr S Sekaleshfar

Mr F Sekaleshfar

Mr B B Todd

Mr M Todd

Mr J J Todd

SECRETARY:

Mr F Sekaleshfar

REGISTERED OFFICE:

Linco House

Manchester Road

Carrington

Manchester

M31 4BX

REGISTERED NUMBER:

01420923 (England and Wales)

AUDITORS:

Freedman Frankl & Taylor

Statutory Auditors

Chartered Accountants

Reedham House

31 King Street West

Manchester

M3 2PJ

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

Linco Care Limited is a specialist manufacturer and distributor of cosmetic products with all major operations located at one site in Manchester, UK. We operate a flexible manufacturing system and bespoke formulation development in contract manufacturing. Our brands include Calypso, Silkia, Dimples, Cabana Sun and others. We distribute across the UK and in over 60 countries worldwide, with customer types ranging from large grocery chains and department stores to local distributors.

Our core values are Quality, Ethics, and Innovation and our strategy is to create value for the masses, seek new opportunities and always adopt fair trade.

Linco Care Limited has continued its work on the implementation of quality assurance systems, succeeding in numerous audits, namely GMP ISO22716 (Good Manufacturing Practices), BRCGS (British Retail Consortium Global Sourcing), SMETA (Sedex Members Ethical Trade Audit) and others.

The company has a strong and stable workforce, steadily increasing in size, and many employees have over 10, or even over 20, years of service. The business prides itself in recruiting and developing local people and is committed to continuously improving their working environment. The Directors are most grateful for the continued support and dedication of all personnel, which has always been pivotal to the success of the business and hope it will continue for many years to come.

REVIEW OF BUSINESS

Strong sales performance has supported continued growth, enabling the Company to prioritise supply chain resilience and production efficiencies. Targeted investment in product innovation and manufacturing has expanded our global presence in the sun protection and skincare markets.

The Calypso brand maintained positive momentum through strategic retail and digital marketing, alongside participation in key industry exhibitions. These initiatives have strengthened brand recognition and customer engagement, ensuring the Company remains well-positioned to deliver long-term growth and market expansion.

More innovative sun and skincare products have eased the introduction into niche markets globally, including the Far East. This was predominantly due to several heatwaves worldwide.

The Directors are satisfied with the performance of the company during the last 12 months and with the financial position at August 2025. They remain focussed on investing in and continually improving the business. The financial stability of Linco Care Limited looks secure in the short and medium term.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors continue to monitor all risks to the business:

- Debtors control via ongoing reviews of customer credit limits and proforma payments from international customers.

- Exposure to Foreign Exchange Market - Forex exposure is limited through currency accounts with balances maintained at appropriate levels. Exchange rates are monitored and transfers between currency accounts are processed according to trends.

- Health and Safety - all reasonable steps have been taken to mitigate key risks and suitable monitoring is in place throughout.

RESEARCH AND DEVELOPMENT

R&D is still classed as a pivotal department and process within Linco Care Ltd. With expenditure increasing year on year, we strive to innovate and to evolve the product range each year.

LOOKING FORWARD

Linco Care aims to increase productivity by 30% through a machinery expansion plan due to complete before the end of 2026. The Directors ensure continued close relationships with customers and suppliers in order to navigate potential threats and risks to the business.

ON BEHALF OF THE BOARD:

Mr F Sekaleshfar - Director

5 May 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 31 August 2025 will be £ 860,000 .

DIRECTORS

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

Mr S Sekaleshfar

Mr F Sekaleshfar

Mr B B Todd

Mr M Todd

Mr J J Todd

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.

STRATEGIC REPORT

In accordance with Section 414C (11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 the company has chosen to set out in the Company's Strategic Report information required by schedule 7 of the large and medium - sized Companies and Groups (Accounts and Reports) Regulations 2008.

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.

ON BEHALF OF THE BOARD:

Mr F Sekaleshfar - Director

5 May 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 August 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks to irregularities

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

-

the nature of the industry and sector, control environment and business performance;

-

results of enquiries of management about their own identification and assessment of the risks of irregularities;

-

any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

-

the matters discussed among the audit engagement team and involving other internal specialists including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risks of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

Our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

-

enquiring of management concerning actual and potential litigation and claims;

-

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

-

in addressing the risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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.

Mr Adam Caplan BSc(Hons) BFP FCA (Senior Statutory Auditor)

for and on behalf of Freedman Frankl & Taylor

Statutory Auditors

Chartered Accountants

Reedham House

31 King Street West

Manchester

M3 2PJ

6 May 2026

TURNOVER

3

12,067,096

14,563,736

Cost of sales

(8,407,568

)

(9,870,853

)

GROSS PROFIT

3,659,528

4,692,883

Distribution costs

(130,172

)

(235,969

)

Administrative expenses

(3,024,089

)

(2,997,466

)

OPERATING PROFIT

5

505,267

1,459,448

Interest receivable and similar income

-

1,002

505,267

1,460,450

Interest payable and similar expenses

6

(18,771

)

(13,231

)

PROFIT BEFORE TAXATION

486,496

1,447,219

Tax on profit

7

(130,702

)

(298,324

)

PROFIT FOR THE FINANCIAL YEAR

355,794

1,148,895

PROFIT FOR THE YEAR

355,794

1,148,895

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

355,794

1,148,895

FIXED ASSETS

Tangible assets

9

1,481,255

1,368,030

CURRENT ASSETS

Stocks

10

5,191,965

5,429,906

Debtors

11

1,720,392

3,306,276

Cash at bank

1,694,931

1,213,562

8,607,288

9,949,744

CREDITORS

Amounts falling due within one year

12

(1,382,094

)

(2,098,429

)

NET CURRENT ASSETS

7,225,194

7,851,315

TOTAL ASSETS LESS CURRENT LIABILITIES

8,706,449

9,219,345

PROVISIONS FOR LIABILITIES

14

(126,181

)

(134,871

)

NET ASSETS

8,580,268

9,084,474

CAPITAL AND RESERVES

Called up share capital

15

1,000

1,000

Retained earnings

16

8,579,268

9,083,474

SHAREHOLDERS' FUNDS

8,580,268

9,084,474

The financial statements were approved by the Board of Directors and authorised for issue on 5 May 2026 and were signed on its behalf by:

Mr F Sekaleshfar - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

1,000

8,414,979

8,415,979

Changes in equity

Dividends

-

(480,400

)

(480,400

)

Total comprehensive income

-

1,148,895

1,148,895

Balance at 31 August 2024

1,000

9,083,474

9,084,474

Changes in equity

Dividends

-

(860,000

)

(860,000

)

Total comprehensive income

-

355,794

355,794

Balance at 31 August 2025

1,000

8,579,268

8,580,268

Cash flows from operating activities

Cash generated from operations

1

1,860,822

1,111,961

Interest paid

(18,771

)

(13,231

)

Tax paid

(282,039

)

(400,622

)

Net cash from operating activities

1,560,012

698,108

Cash flows from investing activities

Purchase of tangible fixed assets

(217,074

)

(247,814

)

Sale of tangible fixed assets

8,660

5,800

Interest received

-

1,002

Net cash from investing activities

(208,414

)

(241,012

)

Cash flows from financing activities

Amount introduced by directors

-

14,799

Amount withdrawn by directors

(10,229

)

-

Equity dividends paid

(860,000

)

(480,400

)

Net cash from financing activities

(870,229

)

(465,601

)

Increase/(decrease) in cash and cash equivalents

481,369

(8,505

)

Cash and cash equivalents at beginning of year

2

1,213,562

1,222,067

Cash and cash equivalents at end of year

2

1,694,931

1,213,562

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

2025

2024

£

£

Profit before taxation

486,496

1,447,219

Depreciation charges

95,300

88,704

Profit on disposal of fixed assets

(111

)

(2,705

)

Finance costs

18,771

13,231

Finance income

-

(1,002

)

600,456

1,545,447

Decrease/(increase) in stocks

237,941

(498,636

)

Decrease/(increase) in trade and other debtors

1,585,884

(602,758

)

(Decrease)/increase in trade and other creditors

(563,459

)

667,908

Cash generated from operations

1,860,822

1,111,961

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 August 2025

31.8.25

1.9.24

£

£

Cash and cash equivalents

1,694,931

1,213,562

Year ended 31 August 2024

31.8.24

1.9.23

£

£

Cash and cash equivalents

1,213,562

1,222,865

Bank overdrafts

-

(798

)

1,213,562

1,222,067

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank

1,213,562

481,369

1,694,931

1,213,562

481,369

1,694,931

Total

1,213,562

481,369

1,694,931

1.	STATUTORY INFORMATION

Linco Care 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 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.

Significant judgements and estimates

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability.

Tangible fixed assets

Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Stocks

Stocks are valued at lower of cost and net realisable value. Management exercises significant judgment in assessing the need for provisions against inventory. This assessment involves evaluating the condition, age, and turnover of stock, as well as current and expected market demand. Estimates are made regarding future selling prices and costs to sell, which are inherently uncertain and may differ from actual outcomes.

Provisions are recorded to reduce inventories to their net realizable value when events or changes in circumstances indicate that their carrying amount may not be recoverable. The determination of such provisions requires assumptions about future demand patterns, product life cycles, and market conditions.

Turnover

The turnover shown in the profit and loss account represents amounts receivable for goods dispatched during the year, exclusive of Value Added Tax.

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

Tangible fixed assets

Tangible fixes assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Buildings leasehold

2% - 25% per annum straight line

Plant and machinery

15% per annum straight line

Fixtures, fittings and computer equipment

15% - 25% per annum straight line

Motor vehicles

25% per annum straight line

Assets under construction

No depreciation will be charged until the asset is in use

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

Impairment of fixed assets

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

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

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

Stocks

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

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

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the .year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign exchange

Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

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.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Going concern

The financial position of the company, its cash flow and future liquidity position have been evaluated by the directors, together with the Company's objectives for growth, and the process for managing its capital and its financial risk management objectives including any overdraft requirement.

The company has strong financial resources, together with the strength of its management team, manufacturing base and sales team. Therefore, the Directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Director's assessment covers the period to 31st May 2027.

The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the annual financial statements.

3.

TURNOVER

The turnover and 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

10,082,815

9,429,168

Europe

1,055,445

1,668,990

Asia

(184,711

)

2,789,293

MIddle East

700,534

438,355

Australia and New Zealand

168,705

123,455

Africa

67,301

64,736

Caribbean

-

43,964

America

177,007

5,775

12,067,096

14,563,736

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,919,520

3,245,432

Social security costs

271,004

249,469

Other pension costs

65,397

64,791

3,255,921

3,559,692

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

2025

2024

Production staff

58

64

Distribution staff

4

5

Administrative staff

11

12

73

81

2025

2024

£

£

Directors' remuneration

388,193

386,168

Directors' pension contributions to money purchase schemes

8,828

8,828

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

220,688

220,688

Pension contributions to money purchase schemes

8,828

8,828

5.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

95,300

88,704

Profit on disposal of fixed assets

(111

)

(2,705

)

Auditors' remuneration

22,000

18,000

Foreign exchange differences

13,014

7,307

Operating lease charges

222,857

222,857

Research and development costs

62,486

85,597

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest

18,771

13,231

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

139,392

372,190

Adjustments in respect of

prior periods

-

28,046

Total current tax

139,392

400,236

Deferred tax

(8,690

)

(101,912

)

Tax on profit

130,702

298,324