REGISTERED NUMBER: 03782325 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

Perfect Colours Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

J J Burroughs

M Voysey

SECRETARY:

M Voysey

REGISTERED OFFICE:

12 Salisbury Road

Bromley

Kent

BR2 9PU

REGISTERED NUMBER:

03782325 (England and Wales)

AUDITORS:

Thornton Springer LLP

Chartered Accountants and

Statutory Auditor

67 Westow Street

London

SE19 3RW

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

REVIEW OF BUSINESS

The turnover for the financial period ended 31st December 2025 shows an increase of 8.15% over the previous year, the increase is in line with our expectations.

Our operating strategy involves concentrating our trading on profitable product lines and discontinue those producing low margin which will result in similar or lower turnover levels but generating profit growth. This effectively leads to restructuring by reducing staff costs which also will contribute to future growth in profits.

Much effort was expended over the year FY2025 to make sure that overheads was aligned with overall gross profit, but in a way that would not adversely affect the turnover and profit of the business.

Gross profit increased by 14.5% compared to previous year, during the year we achieved increase in turnover and invested in systems which is part of our long term business plan.

The next financial year will bring increase sales revenue and increase the profitability of the business whilst continuing to invest in systems.

We have a business plan that shows an appetite for growth over the next few years. Our core activity remains our top priority whilst looking for other avenues to increase the overall business.

Market and strategic position

The company is a broad line large format reseller but is gradually repositioning over the next three years from the mass market as large format is concerned to be more specialised and focused on niche ( more profitable) products and services. The broad base of less specialised products and services will continue to be sold but utilizing a less specialist and therefore lower costs workers, thus reducing the cost of sale in the line with market conditions for those offerings.

Strategically the company is aiming to promote its value-added proposition adding value and services to products and has done extensive marketing to reflect this. The demands of customers now are much more around having bundled services; products and fixed costs and Perfect Colours is adapting to accommodate this.

Operational Review

The business has expended much resource and effort to take control of its pricing and the two separate price rises were implemented last year, as well as an added enhancement to the Oasis system that automatically retains the same margin by raising the end user price if a cost price is increased by a supplier. Each supplier must produce an electronic catalogue in csv format that can be downloaded quickly and easily to maintain cost pricing and therefore margin. Continued refinement of the process is planned in 2026 as well as growing the number of customers that order online from the current levels of 22% to 30%. Orders received online are generally higher in margin and value and customers that consistently order online have proved over twice as loyal as those who do not.

The business has traditionally purchased from distributors, but one of the aims of 2026 is to deal directly with the manufacturer and this has been successful with manufacturers such as Summa, where margins have increased from 10-15% to 35% plus. We have also forged similar relationships to buy direct direct Karla and Liyu also resulting in greatly increased margins up to 40%

Further innovations on the systems side have included the implantation of Clockwork software, which is the system that is now used in the engineering and service department and helps us understand the activities of the engineers, their efficiency, and overall productivity. The system is cloud based, totally paperless and supports a ticket system that customers can access and be updated on their enquiry etc. Clockwork also bills the customer for every minute on site and monitors traveling and the use of replacement parts per repair.

Other work has been done with Oasis, our software provider, to include automation that delivers the right information on sales, stock, back orders, and profitability within the company. This has led to time saving in the production of this information along with improvements, as understanding of margin per product improves overall. The implementation of an upload system for monthly rentals has also shown further on time and further refinements are planned in 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's activities expose it to a number of financial risks including credit risk and liquidity risk.

Credit Risk

The company's principal financial assets are bank balances and trade debtors.

The company's credit risk is primarily attributable to its trade debtors, however its exposure is spread over a number of key customers.

Liquidity Risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments the company has access to short term and long term debt finance.

Cost of living

Perfect Colours Limited is committed to its employee's welfare and well-being. With the cost of living threatening to become a national crisis, the Company continues to keep a close eye on this and its effects on the market and on its employees.

In order to mitigate future financial risk, the Board continues to strictly manage its cost base and capital expenditure. No dividends will be paid during the financial year ending December 2025..

Customer Concentration Risk

Perfect Colours Limited is actively broadening the customer base to reduce reliance on a few key clients.

Supply Chain Risk

Perfect Colours Limited maintains a strong relationship with multiple suppliers and negotiates long-term agreements to ensure continuity.

HEALTH & SAFETY

Health and Safety is the single most important aspect of our business. The health, safety, and well-being of our staff, and those of our supply chain, remains our number one priority. During the year we have focussed heavily on ensuring that our working practices and procedures are not only safe and compliant, but that they also consider and cater for the mental health of our employees and workforce. In 2025, the company enhanced its health and safety protocols, with a particular focus on mental health support for employees. Comprehensive training programs were conducted, and new safety measures were implemented across all sites to ensure compliance with the latest regulations.

Perfect Colours Limited plans for FY2026 to continue to maintain their ISO 9001 and 14001 accreditations and will be applying to achieve ISO 45001 accreditation.

KEY PERFORMANCE INDICATORS

The principal KPIs used by the director to assess the performance and position of the business of the company are as follows:

Turnover

The directors monitor the development of the business by assessing the growth in turnover, relating it to project performance. The company's sales increased by £1,315,457, 8.15%, up from the previous year (2024: 3.33% decrease).

Operating profit

Operating profit and profit before tax are key measures of the company's performance. The company earned an operating profit for the period of £336,443, compared with an operating profit of £78,315 in 2024.

Net assets

The directors also monitor the position of net assets within the company. The company's net assets increased by £264,495 (2024: increased by £1,263).

FUTURE DEVELOPMENTS

The company's future plan is concentrated mainly on discontinuance of hardware stocks, loss making and marginal profit stock lines and focus attention and resources mainly on profitable consumables stock lines and equipment rentals. The effects of these changes will see savings on overheads, increases in turnover and an improved gross profit margin and net profit.

For FY 2026 the company is directly focused not only on the more profitable products but to maintain and grow and add value to the most profitable clients, whilst spending less time or dispensing with clients who return little gross margin, pay slowly and have high service demands, which are incompatible with the profit generated.

Furthermore the company aims to sell more products as a service leading to more predictable and higher margins and revenue. The company is also heavily involved in equipment rentals, and this will continue and where possible be expanded for the reason stated above. The business overall is aiming to expands services overall that can be sold as a subscription and the general strategy to move from transnational to a subscription-based model.

To ensure that prices keep pace with inflation the business will implement at least two main prices rises per year, one in January and one in June. More localised and random increases from suppliers will be passed onto customers also. The directors of the business have invested a lot of time and effort in robust systems to ensure gross margin is maintained and where possible increased regardless of supplier price increases.

The company will seek to work with similar businesses in the industry and look to set up some collaborations/ associations to strengthen its product portfolio.

It is not anticipated that any further major developments will be considered for a period of some 5 years, apart from improving liquidity and allowing the company's finances to stabilise.

BY ORDER OF THE BOARD:

J J Burroughs - Director

27 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 sale of office supplies, rental and maintenance of office equipment on operating lease agreements.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

J J Burroughs

M Voysey

DONATIONS AND EXPENDITURE

Donations totalling £2,200 declared in the financial statements were made to a UK registered charity. The director confirmed that the company received no benefits and no advantages in return for the amounts donated.

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, Thornton Springer LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

BY ORDER OF THE BOARD:

J J Burroughs - Director

27 May 2026

Opinion

We have audited the financial statements of Perfect Colours 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, 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 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, 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.

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with relevant laws and regulations. Non-compliance with these laws and regulations might have a material effect on the financial statements.

We evaluated management's incentives and opportunity for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were posting of unusual journal entries outside the normal course of business and revenue recognition journal entries to manipulate the company's performance profit measures and other key performance indicators.

Audit procedures performed included: review of the financial statements and disclosures to underlying supporting documentation, review of compliance with the laws and regulations, enquiries with management, testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

There is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard, performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions. We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Garth Myers ACA, FCCA (Senior Statutory Auditor)

for and on behalf of Thornton Springer LLP

Chartered Accountants and

Statutory Auditor

67 Westow Street

London

SE19 3RW

28 May 2026

TURNOVER

17,452,707

16,137,250

Cost of sales

(13,552,763

)

(12,731,051

)

GROSS PROFIT

3,899,944

3,406,199

Administrative expenses

(4,045,802

)

(3,834,713

)

(145,858

)

(428,514

)

Other operating income

493,312

506,829

OPERATING PROFIT

5

347,454

78,315

Interest payable and similar expenses

6

(71,948

)

(77,052

)

PROFIT BEFORE TAXATION

275,506

1,263

Tax on profit

7

-

-

PROFIT FOR THE FINANCIAL YEAR

275,506

1,263

PROFIT FOR THE YEAR

275,506

1,263

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

275,506

1,263

FIXED ASSETS

Intangible assets

8

114,893

147,720

Tangible assets

9

965,764

1,007,890

1,080,657

1,155,610

CURRENT ASSETS

Stocks

10

992,182

1,123,149

Debtors

11

5,260,745

4,422,349

Cash at bank

72,281

47,367

6,325,208

5,592,865

CREDITORS

Amounts falling due within one year

12

(5,525,156

)

(5,063,563

)

NET CURRENT ASSETS

800,052

529,302

TOTAL ASSETS LESS CURRENT LIABILITIES

1,880,709

1,684,912

CREDITORS

Amounts falling due after more than one year

13

(728,346

)

(808,055

)

NET ASSETS

1,152,363

876,857

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

1,152,263

876,757

SHAREHOLDERS' FUNDS

1,152,363

876,857

The financial statements were approved by the Board of Directors and authorised for issue on 27 May 2026 and were signed on its behalf by:

J J Burroughs - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

875,494

875,594

Changes in equity

Total comprehensive income

-

1,263

1,263

Balance at 31 December 2024

100

876,757

876,857

Changes in equity

Total comprehensive income

-

275,506

275,506

Balance at 31 December 2025

100

1,152,263

1,152,363

Cash flows from operating activities

Cash generated from operations

1

333,236

(432,628

)

Interest paid

(34,670

)

(10,813

)

Interest element of hire purchase payments paid

(37,278

)

(66,239

)

Net cash from operating activities

261,288

(509,680

)

Cash flows from investing activities

Purchase of tangible fixed assets

(321,188

)

(248,070

)

Sale of tangible fixed assets

116,508

87,945

Net cash from investing activities

(204,680

)

(160,125

)

Cash flows from financing activities

New loans in year

85,494

652,156

Capital repayments in year

(55,785

)

(7,586

)

Amount introduced by directors

-

50,392

Amount withdrawn by directors

(61,403

)

-

Net cash from financing activities

(31,694

)

694,962

Increase in cash and cash equivalents

24,914

25,157

Cash and cash equivalents at beginning of year

2

47,367

22,210

Cash and cash equivalents at end of year

2

72,281

47,367

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

31.12.25

31.12.24

£

£

Profit before taxation

275,506

1,263

Depreciation charges

301,240

348,679

Profit on disposal of fixed assets

(21,606

)

-

Finance costs

71,948

77,052

627,088

426,994

Decrease in stocks

130,967

33,096

Increase in trade and other debtors

(827,385

)

(11,345

)

Increase/(decrease) in trade and other creditors

402,566

(881,373

)

Cash generated from operations

333,236

(432,628

)

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 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

72,281

47,367

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

47,367

22,210

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

47,367

24,914

72,281

47,367

24,914

72,281

Debt

Finance leases

(440,459

)

55,785

(384,674

)

Debts falling due within 1 year

(160,284

)

(99,131

)

(259,415

)

Debts falling due after 1 year

(516,821

)

13,636

(503,185

)

(1,117,564

)

(29,710

)

(1,147,274

)

Total

(1,070,197

)

(4,796

)

(1,074,993

)

1.	STATUTORY INFORMATION

Perfect Colours Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	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.

The presentation currency of the financial statements is in Pound Sterling (£). Monetary amounts are rounded to the nearest £1.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Depreciation of tangible fixed assets:

Depreciation is provided in order to write down the assets to their residual values over their estimated useful lives. The selection of estimated useful lives and residual values requires the exercise of management judgement.

Provison for doubtful debts:

Provision for doubtful debts are made so as to disclose trade debtors and other debtors as amounts recoverable. The selection of debts that are potentially irrecoverable for specific provision and/ or a general provision requires the exercise of management judgement.

Turnover

Turnover represents net invoiced sales of goods, suppliers rebates income and income from office equipment rentals and maintenance, excluding value added tax. Income is recognised when the contractual title to the goods passes to the customer.

Goodwill

Goodwill being the amount paid in connection with the acquisition of Hobs Consumables is being amortised over a period of ten years.

Intangible assets

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

Tangible fixed assets

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

Short leasehold

-

over the period of the lease

Improvements to property

-

over the period of the lease

Plant and machinery

-

33% on cost and 20% on reducing balance

Motor vehicles

-

25% on cost

Stocks

Stocks are valued at the lower of cost and estimated selling price less selling costs. Costs include purchase costs and all other costs incurred in bring stock to its present location and condition, including any import costs, duties and carriages.

Hire purchase and leasing commitments

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

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

Rentals paid under operating leases are charged to profit or 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 or loss in the period to which they relate.

Financial instruments

The company chose to adopt section 11 and 12 of Financial Reporting Standard 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and intra-group balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest and accounted through the income statement.

Financing transaction assets are subsequently carried at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Basic financial liabilities include all trade and other creditors, bank overdrafts, intra-group balances and hire purchase contracts, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at market rate of interest.

Financing transaction debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

4.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

1,978,938

1,835,143

Social security costs

250,467

197,956

Other pension costs

126,817

126,094

2,356,222

2,159,193

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

31.12.25

31.12.24

Sales

21

17

Administration

8

8

Warehouse & Engineering

16

12

45

37

31.12.25

31.12.24

£

£

Directors' remuneration

287,093

252,973

Directors' pension contributions to money purchase schemes

100,000

100,000

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

31.12.25

31.12.24

£

£

Emoluments etc

162,000

130,183

Pension contributions to money purchase schemes

60,000

60,000

5.	OPERATING PROFIT

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

31.12.25

31.12.24

£

£

Hire of plant and machinery

5,914

5,610

Depreciation - owned assets

171,500

250,060

Depreciation - assets on hire purchase contracts

96,912

65,794

Profit on disposal of fixed assets

(21,606

)

-

Goodwill amortisation

32,827

32,826

Auditors' remuneration

23,600

22,578

Foreign exchange differences

4,513

41

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Bank loan interest

252

510

Loan

34,418

10,303

Hire purchase

37,278

66,239

71,948

77,052