Hoggs of Fife (Holdings) Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: SC642176

Hoggs of Fife (Holdings) Limited

Financial Statements

31 May 2025

Hoggs of Fife (Holdings) Limited

Financial Statements

Year ended 31 May 2025

Contents	Page

Strategic report	1

Directors' report	3

Independent auditor's report to the members	5

Consolidated statement of comprehensive income	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of changes in equity	13

Company statement of changes in equity	14

Consolidated statement of cash flows	15

Notes to the financial statements	16

Hoggs of Fife (Holdings) Limited

Strategic Report

Year ended 31 May 2025

Introduction Hoggs of Fife (Holdings) Limited is the parent company of Hoggs of Fife Limited, a country clothing and workwear retailer selling both their own brand and their sub-brand, Fife Country along with other branded products. Based in Fife with distribution of their products to the UK Retail Trade, and direct retailing via its own home-shopping catalogues and eCommerce, and augmented by its Fife-based Retail Store, the company’s strategy is to grow sales and profit in all customer groups and product categories, underpinned by product development and improvement, and supported by excellent customer service. Business review Sales continued to grow on the back of continued investment in new products, marketing and employees. Other overheads continue to be well controlled and benefited from the settling down in global fuel and distribution costs. The strength of the company's product range continued to attract new business interest, both at home and abroad which along with a modest increase in product margin, resulted in a healthy growth in sales and profit over the previous year. Principal risks and uncertainties The Directors and Management Team regularly monitor all risks and uncertainties, taking appropriate actions to mitigate where and when necessary. Many of the key tasks that the business faces, such as, sales predictions, shipping schedules and product lead times, continued to be challenging, but the robust structure of the company's supply chain significantly lessened the impact of these, with a strategy implemented to increase the stock to higher levels pre Autumn / Winter in order to guarantee supply to customers at peak times. The company also absorbed much of the inflationary pressures exerted by items such as raw inputs and freight costs, in order to support its customers through the next financial year. Cyber Security remains a key risk for the Company, and the Company continues to mitigate the risks associated with data security through outsourcing its I.T. to a specialist I.T. Services Provider. Financial key performance indicators Sales of £12.2M were up on 2024 (£11.4M), and Gross Margin was up from 49.8% to 51.1%. Profit Before Tax increased to £1,724k (2024 - £1,499k) with Net Operating Profit Margin increasing to 13.2% (2024 - 12.4%). Working Capital Ratio decreased to 6.6 (2024 - 7.7). Other key performance indicators The Consolidated Statement of Financial Position for the Group on page 10 of the Financial Statements shows the Group's Financial Position at the year end with Net Assets of £9.8M (2024 - £9.1M).

This report was approved by the board of directors on 27 May 2026 and signed on behalf of the board by:

Mr R F Gibson

Director

Registered office:

Eden Valley Business Park

Cupar

Fife

KY15 4RB

Hoggs of Fife (Holdings) Limited

Directors' Report

Year ended 31 May 2025

The directors present their report and the financial statements of the group for the year ended 31 May 2025 .

Directors

The directors who served the company during the year were as follows:

Mr R F Gibson
Ms A M Gibson
Mr J S Lamond
Mrs A E Lang
Mrs C M McLaren

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Future developments

Within the subsidiary, in order to secure future sales growth, the company's strategy is to continue developing relationships with retail and agri businesses, and product development will reflect products which appeal to all target markets. To service the expectations of both B2B and B2C customers, and the move towards greater remote buying, the company will continue to invest in technology which facilitates this.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report 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 group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 27 May 2026 and signed on behalf of the board by:

Mr R F Gibson

Director

Registered office:

Eden Valley Business Park

Cupar

Fife

KY15 4RB

Hoggs of Fife (Holdings) Limited

Independent Auditor's Report to the Members of Hoggs of Fife (Holdings) Limited

Year ended 31 May 2025

Opinion

We have audited the financial statements of Hoggs of Fife (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2025 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, 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 FRS 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 group's and of the parent company's affairs as at 31 May 2025 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's or the parent 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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 directors' responsibilities statement, 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 is 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulations and prohibited business practices, and we considered that the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override controls), and determined that the principal risks were related to the potential posting of inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Audit procedures performed by the engagement team included: - Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims. - Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities. - Identifying and testing journal entries based on risk criteria. - Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing. - Testing transactions entered into outside of normal course of operation. - Investigated the rationale behind significant or unusual transactions. - Reviewed accounting estimates for evidence of bias. - Performed analytical review and sample testing of income. - Carried out a debtors' circularisation. - Agreed financial statement disclosures to supporting documentation. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. PB Audit Limited are eligible to act as auditors under the terms of Section 1212 of the Companies Act 2006.

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 an auditor's report 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.

Craig Wallace B.Acc.(Hons), F.C.C.A.

(Senior Statutory Auditor)

For and on behalf of

PB Audit Limited

Statutory auditor

18 North Street

Glenrothes

Fife

KY7 5NA

27 May 2026

Hoggs of Fife (Holdings) Limited

Consolidated Statement of Comprehensive Income

Year ended 31 May 2025

		2025	2024
Note		£	£
Turnover	4	12,219,291	11,429,817

Cost of sales	5,978,212	5,734,296
	---------------	---------------
Gross profit	6,241,079	5,695,521

Distribution costs		2,708,296	2,534,451
Administrative expenses		1,935,490	1,746,857
Other operating income	5	7,537	598
		--------------	--------------
Operating profit	6	1,604,830	1,414,811

Other interest receivable and similar income	10	108,758	86,375
Interest payable and similar expenses	11	834	4,056
		--------------	--------------
Profit before taxation		1,712,754	1,497,130

Tax on profit	12	432,324	412,028
		--------------	--------------
Profit for the financial year and total comprehensive income		1,280,430	1,085,102
		--------------	--------------

All the activities of the group are from continuing operations.

Hoggs of Fife (Holdings) Limited

Consolidated Statement of Financial Position

31 May 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	14	224,819	242,184

Current assets

Stocks	16	5,822,384	4,506,790
Debtors	17	751,493	1,285,618
Cash at bank and in hand		4,443,622	4,400,525
		---------------	---------------
		11,017,499	10,192,933

Creditors: amounts falling due within one year	18	1,379,341	1,317,646
		---------------	---------------
Net current assets		9,638,158	8,875,287
		--------------	--------------
Total assets less current liabilities		9,862,977	9,117,471

Provisions	19	56,205	58,629
		--------------	--------------
Net assets		9,806,772	9,058,842
		--------------	--------------

Capital and reserves

Called up share capital	22	21,300	21,300
Profit and loss account		9,785,472	9,037,542
		--------------	--------------
Shareholders funds		9,806,772	9,058,842
		--------------	--------------

These financial statements were approved by the board of directors and authorised for issue on 27 May 2026 , and are signed on behalf of the board by:

Mr R F Gibson

Director

Company registration number: SC642176

Hoggs of Fife (Holdings) Limited

Company Statement of Financial Position

31 May 2025

	2025	2024
Note	£	£

Fixed assets

Investments	15	8,104,922	7,400,000

Current assets

Debtors	17	29	144,870
Cash at bank and in hand		1,703,821	115,240
		--------------	-----------
		1,703,850	260,110

Creditors: amounts falling due within one year	18	2,000	147,370
		--------------	-----------
Net current assets		1,701,850	112,740
		--------------	--------------
Total assets less current liabilities		9,806,772	7,512,740
		--------------	--------------
Net assets		9,806,772	7,512,740
		--------------	--------------

Capital and reserves

Called up share capital	22	21,300	21,300
Share premium account	23	7,357,400	7,357,400
Revaluation reserve	23	704,922	–
Capital redemption reserve	23	21,300	21,300
Profit and loss account	23	1,701,850	112,740
		--------------	--------------
Shareholders funds		9,806,772	7,512,740
		--------------	--------------

The profit for the financial year of the parent company was £ 2,121,610 (2024: £ 530,312 ).

These financial statements were approved by the board of directors and authorised for issue on 27 May 2026 , and are signed on behalf of the board by:

Mr R F Gibson

Director

Company registration number: SC642176

Hoggs of Fife (Holdings) Limited

Consolidated Statement of Changes in Equity

Year ended 31 May 2025

		Called up share capital	Profit and loss account	Total
		£	£	£
At 1 June 2023		21,300	8,484,940	8,506,240

Profit for the year			1,085,102	1,085,102
		---------	--------------	--------------
Total comprehensive income for the year		–	1,085,102	1,085,102

Dividends paid and payable	13	–	( 532,500)	( 532,500)
		---------	--------------	--------------
Total investments by and distributions to owners		–	( 532,500)	( 532,500)

At 31 May 2024		21,300	9,037,542	9,058,842

Profit for the year			1,280,430	1,280,430
		---------	--------------	--------------
Total comprehensive income for the year		–	1,280,430	1,280,430

Dividends paid and payable	13	–	( 532,500)	( 532,500)
		-----	-----------	-----------
Total investments by and distributions to owners		–	( 532,500)	( 532,500)

		---------	--------------	--------------
At 31 May 2025		21,300	9,785,472	9,806,772
		---------	--------------	--------------

Hoggs of Fife (Holdings) Limited

Company Statement of Changes in Equity

Year ended 31 May 2025

			Called up share capital	Share premium account	Revaluation reserve	Capital redemption reserve	Profit and loss account	Total
			£	£	£	£	£	£
At 1 June 2023			21,300	7,357,400	–	21,300	114,928	7,514,928

Profit for the year							530,312	530,312
			---------	--------------	-----	---------	-----------	--------------
Total comprehensive income for the year			–	–	–	–	530,312	530,312

Dividends paid and payable		13	–	–	–	–	( 532,500)	( 532,500)
			---------	--------------	-----	---------	-----------	--------------
Total investments by and distributions to owners			–	–	–	–	( 532,500)	( 532,500)

At 31 May 2024			21,300	7,357,400	–	21,300	112,740	7,512,740

Profit for the year							2,121,610	2,121,610
Other comprehensive income for the year:
	User defined other comprehensive income movement 1		–	–	704,922	–	–	704,922
			---------	--------------	-----------	---------	--------------	--------------
Total comprehensive income for the year			–	–	704,922	–	2,121,610	2,826,532

Dividends paid and payable		13	–	–	–	–	( 532,500)	( 532,500)
			-----	-----	-----	-----	-----------	-----------
Total investments by and distributions to owners			–	–	–	–	( 532,500)	( 532,500)

			---------	--------------	-----------	---------	--------------	--------------
At 31 May 2025			21,300	7,357,400	704,922	21,300	1,701,850	9,806,772
			---------	--------------	-----------	---------	--------------	--------------

Hoggs of Fife (Holdings) Limited

Consolidated Statement of Cash Flows

Year ended 31 May 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	1,280,430	1,085,102

Adjustments for:
Depreciation of tangible assets	74,470	81,548
Other interest receivable and similar income	( 108,758)	( 86,375)
Interest payable and similar expenses	834	4,056
Tax on profit	432,324	412,028
Accrued expenses	15,570	–

Changes in:
Stocks	( 1,315,594)	1,868,314
Trade and other debtors	553,357	( 245,062)
Trade and other creditors	86,827	( 76,443)
	--------------	--------------
Cash generated from operations	1,019,460	3,043,168

Tax paid	( 494,682)	( 358,300)
	--------------	--------------
Net cash from operating activities	524,778	2,684,868
	--------------	--------------

Cash flows from investing activities

Purchase of tangible assets	( 57,286)	( 45,247)
Proceeds from sale of tangible assets	181	–
Interest received	108,758	86,375
	--------------	--------------
Net cash from investing activities	51,653	41,128
	--------------	--------------

Cash flows from financing activities

Interest paid	( 834)	( 4,056)
Dividends paid	( 532,500)	( 532,500)
	--------------	--------------
Net cash used in financing activities	( 533,334)	( 536,556)
	--------------	--------------

Net increase in cash and cash equivalents	43,097	2,189,440
Cash and cash equivalents at beginning of year	4,400,525	2,211,085
	--------------	--------------
Cash and cash equivalents at end of year	4,443,622	4,400,525
	--------------	--------------

Hoggs of Fife (Holdings) Limited

Notes to the Financial Statements

Year ended 31 May 2025

1. General information

The company is a private company limited by shares, registered in Scotland. The address of the registered office is Eden Valley Business Park, Cupar, Fife, KY15 4RB.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies. The following principal accounting policies have been applied:

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Finance costs

Finance costs are charges to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Consolidation

The financial statements consolidate the financial statements of Hoggs of Fife (Holdings) Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increase in provisions are generally charged as an expense to profit or loss.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements in conformity with generally accepted accounting principles requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results in the future could differ from those estimates. In this regard, the Directors believe that the critical accounting policies where judgments or estimations are necessary applied are summarised below. 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. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Stock Provision Stock is valued at the lower of cost and net realisable value. This includes any provisions for slow moving or obsolete stock. Calculations of such provisions requires judgments to be made on various aspects of stock based on forecasts and historical trading. The Directors review the valuation method on a regular basis to ensure that the carrying value of stock remains appropriate. Due consideration is given to amounts realised following the year end in relation to stock included in the financial statements at the year end.

Revenue recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: Sale of goods Turnover from the sale of goods is recognised when all of the following conditions are satisfied: - the Group has transferred the significant risks and rewards of ownership to the buyer; - the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; - the amount of turnover can be measured reliably; - it is probable that the Group will receive the consideration due under the transaction; and - the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Income tax

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated by not reversed by the reporting date, except that: - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. - Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Foreign currencies

Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible fixed assets under the cost model are are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided at the following rates:

Plant and machinery	-	10-20%
Fixtures and fittings	-	14.3-33.33%
Motor vehicles	-	25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Investments in joint ventures

Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighed average basis. Work in progress and finished goods include labour and attributable overheads. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

The Group has elected to apply the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Defined contribution plans

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	12,219,291	11,429,817
	---------------	---------------

The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2025	2024
	£	£
United Kingdom	11,900,794	11,179,953
Overseas	318,497	249,864
	---------------	---------------
	12,219,291	11,429,817
	---------------	---------------

5. Other operating income

	2025	2024
	£	£
Other operating income	7,537	598
	--------	-----

6. Operating loss

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	74,470	81,548
Impairment of trade debtors	(113,686)	16,095
Foreign exchange differences	34,403	12,891
	-----------	---------

7. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	11,000	24,100
	---------	---------

8. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Number of other staff - desc in a/c	50	52
	-----	-----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	1,596,037	1,348,989
Social security costs	173,478	134,535
Other pension costs	277,494	266,403
	--------------	--------------
	2,047,009	1,749,927
	--------------	--------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	420,071	273,775
Company contributions to defined contribution pension plans	164,328	99,423
	-----------	-----------
	584,399	373,198
	-----------	-----------

The number of directors who accrued benefits under company pension plans was as follows:

	2025	2024
	No.	No.
Defined contribution plans	5	3
	-----	-----

Remuneration of the highest paid director in respect of qualifying services:

	2025	2024
	£	£
Aggregate remuneration	99,228	112,804
Company contributions to defined contribution pension plans	56,332	23,945
	-----------	-----------
	155,560	136,749
	-----------	-----------

10. Other interest receivable and similar income

	2025	2024
	£	£
Interest on bank deposits	108,758	86,375
	-----------	---------

11. Interest payable and similar expenses

	2025	2024
	£	£
Other interest payable and similar charges	834	4,056
	-----	--------

12. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax income	434,748	420,682

Deferred tax:

Origination and reversal of timing differences	( 2,424)	( 8,654)
	-----------	-----------
Tax on profit	432,324	412,028
	-----------	-----------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	1,712,754	1,497,130
	--------------	--------------
Profit on ordinary activities by rate of tax	428,188	374,283
Effect of expenses not deductible for tax purposes	32,775	129
Effect of capital allowances and depreciation	4,341	8,655
Changes in provisions leading to an increase/(decrease) in the tax charge	(30,556)	37,615
Short term timing difference leading to an increase/(decrease) in taxation	(2,424)	(8,654)
	--------------	--------------
Tax on profit	432,324	412,028
	--------------	--------------

13. Dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	532,500	532,500
	-----------	-----------

14. Tangible assets

Group	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 June 2024	460,441	500,136	19,400	979,977
Additions	3,071	54,215	–	57,286
Disposals	–	( 723)	–	( 723)
	-----------	-----------	---------	--------------
At 31 May 2025	463,512	553,628	19,400	1,036,540
	-----------	-----------	---------	--------------
Depreciation
At 1 June 2024	278,959	439,434	19,400	737,793
Charge for the year	39,419	35,051	–	74,470
Disposals	–	( 542)	–	( 542)
	-----------	-----------	---------	--------------
At 31 May 2025	318,378	473,943	19,400	811,721
	-----------	-----------	---------	--------------
Carrying amount
At 31 May 2025	145,134	79,685	–	224,819
	-----------	-----------	---------	--------------
At 31 May 2024	181,482	60,702	–	242,184
	-----------	-----------	---------	--------------

The company has no tangible assets.

15. Investments

The group has no investments.

Company	Shares in group undertakings
	£
Cost
At 1 June 2024	7,400,000
Revaluations	704,922
	--------------
At 31 May 2025	8,104,922
	--------------
Impairment
At 1 June 2024 and 31 May 2025	–
	--------------

Carrying amount
At 31 May 2025	8,104,922
	--------------
At 31 May 2024	7,400,000
	--------------

Investments held at valuation

In respect of investments held at valuation, the comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:

The group has no investments held at valuation.

Company	Shares in group undertakings
	£
At 31 May 2025
Aggregate cost	7,400,000
Aggregate depreciation	–
	--------------
Carrying value	7,400,000
	--------------
At 31 May 2024
Aggregate cost	7,400,000
Aggregate depreciation	–
	--------------
Carrying value	7,400,000
	--------------

16. Stocks

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Raw materials and consumables	5,822,384	4,506,790	–	–
	--------------	--------------	-----	-----

17. Debtors

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade debtors	595,385	966,267	–	–
Amounts owed by group undertakings	554	–	–	–
Prepayments and accrued income	141,332	157,929	–	–
Other debtors	14,222	161,422	29	144,870
	-----------	--------------	-----	-----------
	751,493	1,285,618	29	144,870
	-----------	--------------	-----	-----------

18. Creditors: amounts falling due within one year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade creditors	184,514	143,187	–	–
Amounts owed to group undertakings	–	–	–	144,870
Accruals and deferred income	656,015	621,213	2,000	2,500
Corporation tax	185,533	245,467	–	–
Social security and other taxes	310,722	300,259	–	–
Other creditors	42,557	7,520	–	–
	--------------	--------------	--------	-----------
	1,379,341	1,317,646	2,000	147,370
	--------------	--------------	--------	-----------

19. Provisions

Group	Deferred tax (note 20)
	£
At 1 June 2024	58,629
Charge against provision	( 2,424)
	---------
At 31 May 2025	56,205
	---------

The company does not have any provisions.

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Included in provisions (note 19)	56,205	58,629	–	–
	---------	---------	-----	-----

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Accelerated capital allowances	56,205	58,629	–	–
	---------	---------	-----	-----

21. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 277,494 (2024: £ 266,403 ).

22. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	21,300	21,300	21,300	21,300
	---------	---------	---------	---------

24. Analysis of changes in net debt

	At 1 Jun 2024	Cash flows	At 31 May 2025
	£	£	£
Cash at bank and in hand	4,400,525	43,097	4,443,622
	--------------	---------	--------------

Hoggs of Fife (Holdings) Limited

Notes to the Financial Statements (continued)

Year ended 31 May 2025

25. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Not later than 1 year	48,609	223,128	–	–
Later than 1 year and not later than 5 years	20,382	16,970	–	–
	---------	-----------	-----	-----
	68,991	240,098	–	–
	---------	-----------	-----	-----