REGISTERED NUMBER: 01480389 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

SUNRAY ENGINEERING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

R G Bromley

C D Browning

D J Kerry

J Mcfarland

H J Warrender

SECRETARY:

N J Martin

REGISTERED OFFICE:

Portobello

School Street

Willenhall

West Midlands

WV13 3PW

BUSINESS ADDRESS:

6 Kingsnorth Industrial Estate

Wotton Road

Ashford

Kent

TN26 6LL

REGISTERED NUMBER:

01480389 (England and Wales)

AUDITORS:

McCabe Ford Williams

Statutory Auditors and Chartered Accountants

Building 1063

Cornforth Drive

Kent Science Park

Sittingbourne

Kent

ME9 8PX

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development, performance, and position of the business during the year. This review is aligned with the size and nature of our operations and has been prepared in the context of the risks, uncertainties, and challenges faced by the Company during the period.

Sunray Engineering's principal activities continued to be the design, manufacture, and installation of Steel Fire and Security Doors, Steel Security Louvre Doors, Louvre Products and Walling Systems, Steel Blast and Ballistic Doors, Security Window Bars, and GRP Grating and Walkways.

Trading conditions throughout the year remained highly competitive. In certain market sectors, projects have been predominantly price driven, with some businesses sacrificing margin in pursuit of turnover. This has led to a degree of dilution within the mid market, characterised by downward pricing pressure and competing products that are not always comparable on a like for like basis. Despite these challenges, the business has maintained a strong market position and presence, delivering record levels of growth once again.

We have continued to experience consistent sales growth, supported by strong gross profit and net profitability, while simultaneously reinvesting in both the Business and the site infrastructure.

Gross profit margins have remained stable, with expected variations dependent on product type and sales mix.

The Company continued to invest across several key areas, including the implementation of new IT systems and an ERP/MRP platform, the expansion of a robust R&D programme to improve product performance, the acquisition of new machinery to support manufacturing efficiencies, and ongoing site development and building upgrades to support operational performance.

The Company has also maintained and upheld its comprehensive range of accreditations, including ISO 9001, ISO 14001, and ISO 45001. Our continued investment and commitment in these areas ensures quality, compliance, consistency, accuracy and repeatability, along with adherence to certification standards across all aspects of the Business.

PRINCIPAL RISKS AND UNCERTAINTIES

While we remain cautious regarding the potential impact of broader economic uncertainty including rising energy and material costs we remain confident in our ability to achieve further growth across all product lines. This confidence is supported by our ongoing commitment to exploring new market opportunities and complementary sectors aligned with our extensive product range.

We continue to mitigate financial and operational risks through:

- a robust approach to contractual terms,

- rigorous debtor management, and

- strict adherence to budgetary controls, supported by continual monitoring of financial performance.

FUTURE DEVELOPMENTS

The Company remains focused on its detailed five year strategic plan. Although the plan is flexible to accommodate evolving market conditions, it is underpinned by tangible and evidenced assumptions, supported by results that have consistently met and exceeded expectations. This strategy also draws on the extensive knowledge and experience the Business holds within the industry.

We will continue investing in the expansion and enhancement of our wide product portfolio, ensuring we remain competitive in multiple operating sectors. Our strong financial position enables us to make informed and strategic investment decisions and provides resilience during periods of economic instability.

KEY PERFORMANCE INDICATORS

The Company monitors its performance against strategic objectives through a series of key performance indicators (KPIs). The primary KPIs include:

- Sales, Gross Profit, Operating Profit, Net Assets

These KPIs provide a clear framework for assessing the Company's financial performance and operational progress.

Comparing the KPIs for 2025 and 2024 are as follows:

Year Ended 31 December 2025

Period Ended 31 December 2024

Movement

Turnover

£14,896,866

£20,402,768

-£5,505,902 (-27%)

Gross profit margin

61%

64%

-3%

Operating profit

£3,592,709

£6,868,347

-£3,275,638 (-48%)

Net assets

£11,091,778

£13,121,425

-£2,029,647 (-15%)

Please note that the 17 month period end to 31 December 2024 is not entirely comparable, in respect to turnover and operating profit, to the year ended 31 December 2025 due to the long comparative period.

ON BEHALF OF THE BOARD:

D J Kerry - Director

21 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 is disclosed in the Strategic Report.

DIVIDENDS

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2025 will be £5,000,000.

The resolution and payment date of the dividend was 19th September 2025.

FUTURE DEVELOPMENTS

The directors anticipate that the company will continue to operate with its existing service and goods offering with the same clients and the existing management team and resources.

DIRECTORS

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

R G Bromley

C D Browning

D J Kerry

J Mcfarland

H J Warrender

Other changes in directors holding office are as follows:

M C Tailby ceased to be a director after 31 December 2025 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (strategic report and directors' report) Regulations 2013 to set out within the company's strategic report the company's strategic information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

TRADING NAME

The company trades under the name Sunray Doors.

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 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:

D J Kerry - Director

21 May 2026

Opinion

We have audited the financial statements of Sunray Engineering Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including, but not limited to, the Companies Act 2006, UK tax legislation and the company's various International Standards certifications.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, the relevant regulator and certification bodies.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgments and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

There are inherent limitations in our audit procedures described above. 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.

Ashley Phillips FCCA (Senior Statutory Auditor)

for and on behalf of McCabe Ford Williams

Statutory Auditors and Chartered Accountants

Building 1063

Cornforth Drive

Kent Science Park

Sittingbourne

Kent

ME9 8PX

21 May 2026

TURNOVER

5

14,896,866

20,402,768

Cost of sales

5,871,945

7,289,071

GROSS PROFIT

9,024,921

13,113,697

Administrative expenses

5,432,212

6,245,350

OPERATING PROFIT

7

3,592,709

6,868,347

Interest receivable and similar income

329,776

357,386

3,922,485

7,225,733

Interest payable and similar expenses

9

28,724

24,973

PROFIT BEFORE TAXATION

3,893,761

7,200,760

Tax on profit

10

976,283

1,874,331

PROFIT FOR THE FINANCIAL YEAR

2,917,478

5,326,429

PROFIT FOR THE YEAR

2,917,478

5,326,429

OTHER COMPREHENSIVE INCOME

Revaluation of tangible assets

70,500

-

Income tax relating to other comprehensive income

(17,625

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

52,875

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,970,353

5,326,429

FIXED ASSETS

Intangible assets

12

-

114,267

Tangible assets

13

4,960,330

4,697,558

4,960,330

4,811,825

CURRENT ASSETS

Stocks

14

487,328

509,918

Debtors

15

1,594,431

1,716,117

Cash in hand

5,753,923

8,664,601

7,835,682

10,890,636

CREDITORS

Amounts falling due within one year

16

1,137,767

1,984,574

NET CURRENT ASSETS

6,697,915

8,906,062

TOTAL ASSETS LESS CURRENT LIABILITIES

11,658,245

13,717,887

CREDITORS

Amounts falling due after more than one year

17

-

(67,832

)

PROVISIONS FOR LIABILITIES

19

(566,467

)

(528,630

)

NET ASSETS

11,091,778

13,121,425

CAPITAL AND RESERVES

Called up share capital

20

100

100

Other reserves

21

1,129,182

1,076,307

Retained earnings

21

9,962,496

12,045,018

SHAREHOLDERS' FUNDS

11,091,778

13,121,425

The financial statements were approved by the Board of Directors and authorised for issue on 21 May 2026 and were signed on its behalf by:

D J Kerry - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 August 2023

100

6,718,589

1,076,307

7,794,996

Changes in equity

Total comprehensive income

-

5,326,429

-

5,326,429

Balance at 31 December 2024

100

12,045,018

1,076,307

13,121,425

Changes in equity

Dividends

-

(5,000,000

)

-

(5,000,000

)

Total comprehensive income

-

2,917,478

52,875

2,970,353

Balance at 31 December 2025

100

9,962,496

1,129,182

11,091,778

1.	STATUTORY INFORMATION

Sunray Engineering 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 (£).

These financial statements have been rounded to the nearest whole £.

The comparatives are drawn up for the period ending 31 December 2024, a 17 month period. Therefore, the comparatives are not entirely comparable.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The comparatives in the financial statements are not directly comparable. The comparatives are for the period ended 31 December 2024 which is a 17 month period commencing on 1 August 2023. The company transitioned from a 31 July 2023 year end to reporting to 31 December in order to align itself with the group's December reporting date. This year, the financial statements are prepared for the 12 months to 31 December 2025.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

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 fair value of the consideration received or receivable, net of discounts and value-added taxes. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

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 four years.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Sunray Engineering Limited applies a capitalisation threshold of £1,000. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold buildings

- in accordance with the property (see below)

Improvements to property

- 10% on cost

Plant and machinery

- 10% on cost

Motor vehicles

- 25% on reducing balance

Fixtures and fittings

- 10% on cost

Freehold land and buildings

Freehold land and buildings is initially recognised at cost, which includes purchase cost and any directly attributable expenditure, and then subsequently stated at its fair value at the reporting date under the revaluation model. Gains or losses arising from changes in the fair value of the freehold land and buildings are included in other comprehensive income for the period they relate to, so far that there is a net revaluation gain. Accumulated losses resulting in a fair value which is less than the historic cost of the freehold land and buildings, is recognised in the profit or loss account in accordance with the revaluation model.

Depreciation is calculated over the estimated useful economic lives of the properties. The residual values of the properties are considered to be equal to their fair value and therefore no depreciation is charged.

Impairment of assets

Assets that are subject to depreciation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset is tested for impairment. Impairment losses are recognised for the amount by which the asset's carrying value exceeds its recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and value in use.

Stocks

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

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

Financial instruments

Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds financial instruments which comprise of cash and cash equivalents, trade and other receivables, equity instruments, trade and other payables and loans and borrowings. The company has chosen to apply the provisions of Section 11 Basic Financial Instruments in full.

Financial assets / liabilities - classified as basic financial instruments:

Cash and cash equivalents

This includes cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

Trade and other receivables

Trade and other receivables are initially recognised at the transaction price, including any transaction costs, and subsequently measured at amortised cost including the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the company assesses whether there is objective evidence that a receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivable. The amount of provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in the profit and loss account.

Trade and other payables and loans and borrowings

Trade and other payables and loans and borrowings are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred. The company has not elected to capitalise qualifying development expenditure.

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

A lease is classified as a financial lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets, or if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in other creditors as a liability on the balance sheet.

Provisions

Provisions (liabilities or uncertain timing or amount) are recognised where there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be measured reliably.

Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present increased risks for all businesses. In response to such conditions, the directors have carefully considered these risks including an assessment of uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

The directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios alongside measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

Significant judgements

Management do not consider there to be any significant judgements made in the process of applying the entity's accounting policies.

Key sources of estimation uncertainty

The preparation of the financial statements requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the reporting date. Actual outcomes may differ from those estimates.

The directors consider the following to be the key source of estimation uncertainty that has a significant risk of resulting in a material adjustment to the carrying amounts of assets within the next financial year.

i) Fair value of freehold property

The company's freehold property, which is occupied for the purposes of the trade, is measured at fair value at the reporting date. Fair value is determined by reference to market evidence, including recent transactions for comparable properties, prevailing market yields and current market conditions.

The valuation requires the use of estimates and assumptions and is subject to uncertainty. Changes in market conditions or in the assumptions applied could result in material changes to the carrying value of the property in future periods.

5.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Sale of goods

14,896,866

20,402,768

14,896,866

20,402,768

All turnover relates to the sales of goods within the United Kingdom.

6.	EMPLOYEES AND DIRECTORS

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Wages and salaries

3,352,711

4,509,420

Social security costs

436,955

523,354

Other pension costs

365,438

367,725

4,155,104

5,400,499

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

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

Administration

10

12

Development

9

8

Distribution

6

5

Manufacturing

36

38

Sales

13

12

74

75

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Directors' remuneration

285,410

689,447

Directors' pension contributions to money purchase schemes

79,964

80,680

Information regarding the highest paid director is as follows:

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Emoluments etc

153,205

249,967

Pension contributions to money purchase schemes

38,648

16,958

7.	OPERATING PROFIT

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

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Other operating leases

50,614

88,355

Depreciation - owned assets

226,782

400,011

Loss/(profit) on disposal of fixed assets

103,251

(15,238

)

Computer software amortisation

19,044

62,663

Foreign exchange differences

422

394

Franchise fees

1,110,787

351,869

8.	AUDITORS' REMUNERATION

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

22,000

44,250

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Other interest payable

19,961

3,352

Hire purchase interest

8,763

21,621

28,724

24,973

10.

TAXATION

Analysis of the tax charge

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

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

938,446

1,843,979

Deferred tax

37,837

30,352

Tax on profit

976,283

1,874,331

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

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

Period

1.8.23

Year Ended

to

31.12.25

31.12.24

£

£

Profit before tax

3,893,761

7,200,760

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

973,440

1,800,190

Effects of:

Expenses not deductible for tax purposes

25,306

15,671

Capital allowances in excess of depreciation

(39,150

)

-

Depreciation in excess of capital allowances

-

186

Adjustments to deferred tax charge in respect of previous periods

-

91,673

Changes in provisions leading to an increase/(decrease) in the tax charge

37,837

(33,389

)

Overprovision of tax charge in the prior period

(15,821

)

-

Other timing differences

(5,329

)

-

Total tax charge

976,283

1,874,331