REGISTERED NUMBER: 02268972 (England and Wales)

E.L.C. (U.K.) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

6

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

to

13

Notes to the Financial Statements

14

to

22

DIRECTORS:

Mr Mohammad Alleyassin

Mr Mohammed Tagih Rais

REGISTERED OFFICE:

4 Highlands Court

Cranmore Avenue

Solihull

West Midlands

B90 4LE

BUSINESS ADDRESS:

Kirby House

Lynn Lane

Shenstone

WS14 0AT

REGISTERED NUMBER:

02268972 (England and Wales)

AUDITORS:

Shareef

Statutory Auditors

4 Highlands Court

Cranmore Avenue

Solihull

West Midlands

B90 4LE

The directors present their strategic report for the year ended 30 June 2025.

REVIEW OF BUSINESS

The principle activity of the Company is that of the manufacture and distribution of packaging and food. It has steadily grown in the last few years and remains profitable with good margins.The profit before tax in 2025 was £357,139 an increase of 46% on 2024, with a gross profit margin of 7.41% (2024 6.48%).

The company's net assets as at 30 June 2025 amounted to £4.466m (2024 £4.213m).

Latest management accounts for 2025/6 show profits and turnover that are, on an annual basis, likely to exceed of those for 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

The company performed well during the Covid pandemic due to most of it's customers being in the takeaway sector and increased levels of performance have continued during since. The company relies on growth in the economy as a whole to fuel it's profits so current recessionary pressures may reduce income in the next few years but the directors are confident that, the company's position in the market place, will ensure that income and profits are maximised in future years.

CREDIT RISK

The company's credit risk is mostly attributable to it's trade debtors. The company's debtors are widely spread over a number of customers so there is no significant concentration of credit risk. The trade debtors figure in the accounts is shown net of allowances for bad debts.

LIQUIDITY RISK

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs, by use of working capital.

FUTURE PROSPECTS

The company's increasing turnover ensures that it can take advantage of economies of scale and it's long term relationship with many of it's customers should ensure continued growth in turnover and profitability.

KEY PERFORMANCE INDICATORS

The key performance indicators are gross profit margin of 7.41% (2024 6.48%) and operating profit margin of 0.74% (2024 0.52%).

FINANCIAL MANAGEMENT

The company's financial instruments comprise borrowings, cash and various items, such as trade debtors and trade creditors, and they are strictly controlled by the directors, who control day to day operations within the company.

ON BEHALF OF THE BOARD:

Mr Mohammad Alleyassin - Director

1 April 2026

The directors present their report with the financial statements of the company for the year ended 30 June 2025.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2025.

DIRECTORS

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

Mr Mohammad Alleyassin

Mr Mohammed Tagih Rais

POLITICAL DONATIONS AND EXPENDITURE

The company paid donations in the year of £28,845, all of which were charity donations.

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, Shareef, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Mohammad Alleyassin - Director

1 April 2026

Opinion

We have audited the financial statements of E.L.C. (U.K.) Limited (the 'company') for the year ended 30 June 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 30 June 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 three, 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:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws, and we considered 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 and FRS 102. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates. Audit procedures performed by the engagement team included, but were not limited to: - enquiries with management, and the Company's legal counsel (internal and, where relevant, external), including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these; reading key correspondence with regulatory authorities in relation to compliance with certain employment laws and indirect tax matters; - understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities; - challenging assumptions and judgements made by management in their significant accounting estimates, in particular, in relation to accrued expenses); - identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users; There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the 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.

Naeem Shareef (Senior Statutory Auditor)

for and on behalf of Shareef

Statutory Auditors

4 Highlands Court

Cranmore Avenue

Solihull

West Midlands

B90 4LE

1 April 2026

TURNOVER

48,398,356

47,192,042

Cost of sales

44,811,435

44,131,878

GROSS PROFIT

3,586,921

3,060,164

Distribution costs

801,073

780,255

Administrative expenses

2,434,468

2,040,753

3,235,541

2,821,008

351,380

239,156

Other operating income

52,500

45,833

OPERATING PROFIT

4

403,880

284,989

Interest payable and similar expenses

5

46,741

41,123

PROFIT BEFORE TAXATION

357,139

243,866

Tax on profit

6

104,058

60,436

PROFIT FOR THE FINANCIAL YEAR

253,081

183,430

PROFIT FOR THE YEAR

253,081

183,430

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

253,081

183,430

FIXED ASSETS

Tangible assets

7

801,572

882,321

Investment property

8

1,100,030

1,100,030

1,901,602

1,982,351

CURRENT ASSETS

Stocks

9

2,024,333

2,261,055

Debtors

10

3,331,779

3,341,040

Cash at bank and in hand

1,798,842

1,897,010

7,154,954

7,499,105

CREDITORS

Amounts falling due within one year

11

3,877,294

4,578,296

NET CURRENT ASSETS

3,277,660

2,920,809

TOTAL ASSETS LESS CURRENT LIABILITIES

5,179,262

4,903,160

CREDITORS

Amounts falling due after more than one year

12

(418,519

)

(385,968

)

PROVISIONS FOR LIABILITIES

16

(294,362

)

(303,892

)

NET ASSETS

4,466,381

4,213,300

CAPITAL AND RESERVES

Called up share capital

17

35,100

35,100

Non distributable reserves

18

369,686

369,686

Retained earnings

18

4,061,595

3,808,514

SHAREHOLDERS' FUNDS

4,466,381

4,213,300

The financial statements were approved by the Board of Directors and authorised for issue on 1 April 2026 and were signed on its behalf by:

Mr Mohammad Alleyassin - Director

Called up

Non

share

Retained

distributable

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 July 2023

35,100

3,625,084

369,686

4,029,870

Changes in equity

Total comprehensive income

-

183,430

-

183,430

Balance at 30 June 2024

35,100

3,808,514

369,686

4,213,300

Changes in equity

Total comprehensive income

-

253,081

-

253,081

Balance at 30 June 2025

35,100

4,061,595

369,686

4,466,381

Cash flows from operating activities

Cash generated from operations

1

430,150

562,103

Interest paid

(21,160

)

(27,492

)

Interest element of hire purchase payments paid

(25,581

)

(13,631

)

Tax paid

(46,715

)

(77,143

)

Net cash from operating activities

336,694

443,837

Cash flows from investing activities

Purchase of tangible fixed assets

(179,916

)

(279,344

)

Sale of tangible fixed assets

10,600

13,640

Net cash from investing activities

(169,316

)

(265,704

)

Cash flows from financing activities

Loan repayments in year

(29,050

)

(27,323

)

Capital repayments in year

100,993

22,408

Amounts due from connected companies

(68,663

)

(57,289

)

Net cash from financing activities

3,280

(62,204

)

Increase in cash and cash equivalents

170,658

115,929

Cash and cash equivalents at beginning of year

2

1,588,058

1,472,129

Cash and cash equivalents at end of year

2

1,758,716

1,588,058

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

2025

2024

£

£

Profit before taxation

357,139

243,866

Depreciation charges

250,065

191,838

Profit on disposal of fixed assets

-

(3,202

)

Finance costs

46,741

41,123

653,945

473,625

Decrease in stocks

236,722

350,456

Decrease/(increase) in trade and other debtors

77,924

(365,049

)

(Decrease)/increase in trade and other creditors

(538,441

)

103,071

Cash generated from operations

430,150

562,103

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 30 June 2025

30.6.25

1.7.24

£

£

Cash and cash equivalents

1,798,842

1,897,010

Bank overdrafts

(40,126

)

(308,952

)

1,758,716

1,588,058

Year ended 30 June 2024

30.6.24

1.7.23

£

£

Cash and cash equivalents

1,897,010

1,856,766

Bank overdrafts

(308,952

)

(384,637

)

1,588,058

1,472,129

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.24

Cash flow

At 30.6.25

£

£

£

Net cash

Cash at bank and in hand

1,897,010

(98,168

)

1,798,842

Bank overdrafts

(308,952

)

268,826

(40,126

)

1,588,058

170,658

1,758,716

Debt

Finance leases

(242,811

)

(100,993

)

(343,804

)

Debts falling due within 1 year

(28,059

)

(1,730

)

(29,789

)

Debts falling due after 1 year

(280,707

)

30,780

(249,927

)

(551,577

)

(71,943

)

(623,520

)

Total

1,036,481

98,715

1,135,196

1.	STATUTORY INFORMATION

E.L.C. (U.K.) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates

There are a number of significant judgements and estimates, which affect various figures in the accounts. These relate to stocks and fixed assets.All estimates are considered to be reasonable.

Turnover

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

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.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

Financial instruments

Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and investments in commercial paper, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other creditors and bank loans 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 receipts discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.

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.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,255,021

1,132,635

Social security costs

97,812

82,605

Other pension costs

15,967

11,531

1,368,800

1,226,771

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

2025

2024

Administration and distribution

55

58

2025

2024

£

£

Directors' remuneration

52,000

52,000

4.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

34,000

34,000

Depreciation - owned assets

90,128

95,636

Depreciation - assets on hire purchase contracts

159,937

96,201

Profit on disposal of fixed assets

-

(3,202

)

Auditors' remuneration

7,000

7,000

Stocks recognised as an expense

44,611,468

44,110,517

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

1,331

5,318

Bank loan interest

19,829

22,174

Hire purchase

25,581

13,631

46,741

41,123

6.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

113,588

46,715

Deferred tax

(9,530

)

13,721

Tax on profit

104,058

60,436

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:

2025

2024

£

£

Profit before tax

357,139

243,866

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 24.530%)

89,285

59,820

Effects of:

Depreciation in excess of capital allowances

14,773

-

Change in tax rates used for deferred tax calculations

-

616

capital allowance assets

increase in value of

Total tax charge

104,058

60,436

7.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 July 2024

630,985

32,808

1,782,512

32,941

2,479,246

Additions

-

-

179,916

-

179,916

Disposals

-

-

(20,000

)

-

(20,000

)

At 30 June 2025

630,985

32,808

1,942,428

32,941

2,639,162

DEPRECIATION

At 1 July 2024

480,014

32,446

1,052,369

32,096

1,596,925

Charge for year

22,645

54

227,155

211

250,065

Eliminated on disposal

-

-

(9,400

)

-

(9,400

)

At 30 June 2025

502,659

32,500

1,270,124

32,307

1,837,590

NET BOOK VALUE

At 30 June 2025

128,326

308

672,304

634

801,572

At 30 June 2024

150,971

362

730,143

845

882,321

Cost or valuation at 30 June 2025 is represented by:

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

Cost

630,985

32,808

1,942,428

32,941

2,639,162