Treats Foods Limited 30/06/2025 iXBRL

Company registration number: 03488907

Treats Foods Limited

Financial statements

30 June 2025

Treats Foods Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Notes to the financial statements

Treats Foods Limited

Directors and other information


	Directors	Mr A Merali
		Mrs S Merali


	Secretary	Mr S Damani


	Company number	03488907


	Registered office	7 Greenock Road
		London
		W3 8DU


	Auditor	Anderson Shaw
		Chartered Certified Accountants
		Statutory Auditors
		Scottish Provident House
		76 - 80 College Road
		Harrow, Middlesex
		HA1 1BQ

Treats Foods Limited

Strategic report

Year ended 30 June 2025

Business review

The period under review began with renewed optimism for improvement in the UK economy following the change in government. However, these hopes were soon undermined by the measures announced in the Autumn Budget on 30 October 2024. The significant rise in various taxes, including employers' national insurance contributions together with the reduction in business rates relief for small businesses and an increase in the National Minimum Wage, had an immediate adverse impact on the retail and hospitality sectors. These sectors were already experiencing substantial challenges due to continuing Ukraine-Russia war and the Israel-Gaza conflict.

Although the Bank of England reduced the base rate from 5.25% in August 2023 to 5.00% in August 2024, and further to 4.25% in May 2025, the rising cost of living continued to affect consumers across the country, particularly our core customers. However, the directors made a conscious decision not to pass on increased costs of raw materials, energy, and labour to our valued customers, choosing instead to maintain competitive pricing to retain loyal customers and attract those trading down.

One segment of our retail business, linked to a global brand, continued to face challenges from the backlash of ongoing Gaza-Israel conflict in certain demographic areas where we operate. The chances of resolution in the near term remain slim, prompting the directors to adopt a cautious approach. The termination of a temporary outside catering contract reduced overall turnover. This exceptional revenue stream had previously helped sustain cash flow particularly during the pandemic.

Given the circumstances, the company managed its diverse business activities reasonably well during the period. It is geared up to face economic challenges that lie ahead with strong leadership, enhanced management and effective execution. As part of our long-term strategy, the company's parent company, Treats Holdings Limited, undertook a reorganisation between 30 March 2026 and 1 April 2026 which resulted in a demerger of part of the holdings of the parent company. The transactions involved the transfer of assets and loan waiver between group companies. These transactions formed part of a wider group restructuring and occurred after the reporting date. The key objective of the reorganisation was to streamline diverse business activities into independently run units that can grow rapidly without the constraints of a rigid centralised structure.

Management has assessed the impact of these events and concluded that they do not affect the company's ability to continue as a going concern. The financial statements for the year ended 30June 2025 have not been adjusted for these transactions.

Key performance indicators

In the light of rapidly changing retail landscape and uncertain geopolitical events, the directors adopted a more flexible approach when setting key performance indicators (KPIs). Actual performance was evaluated against reasonable benchmarks, bearing in mind cost of living crisis and increased competition in marketplace. Team members were recognised for their hard-work and excellent results. The operations team carried out a survey to gauge employee satisfaction and their well-being. The feedback was very positive with one common theme of how positive our work culture was. The directors will continue to engage with the staff at every level to ensure they remain motivated and committed to developing their teams and ensuring their well-being. Key performance indicators achieved during the year-ended 30 June 2025 are summarised below: 2025 2024Combined Turnover £10,254,066 £12,099,221Gross Profit £6,115,704 £7,382,695Gross Profit Margin 59.64% 61.02%(Loss)/Profit Before Taxation £(18,751) £450,834

Principal risk and uncertainties facing the company

Following the tax-heavy Autumn Budget announced on 30 October 2024 and U-turns on pre-election Manifesto, the incumbent government has struggled to contain the fallout from the wrath of pensioners, business community and the public. The loss of confidence in the UK economy amongst investors and ultra-high-net worth individuals has impacted investment in the country. The recent ruling party's loss at local elections has prompted the movement to replace the Prime Minister. Depending upon who (whether left-wing or centre-left) wins the leadership contest and leads the country, the financial market would evaluate economic prospects and direction of travel, i.e. higher taxes or more borrowing to fund spending and give its verdict. Nonetheless, the current political instability does not bode well for the UK.

On 28 February 2026 hostilities in the Middle East escalated, resulting in an increase in global oil prices and energy costs. This event occurred after the reporting period ended 30 June 2025.The company will continue to monitor developments and has identified mitigation measures, including targeted cost control, supplier re-sourcing and the utilisation of committed borrowing facilities. The directors have taken this matter into account in their going concern and viability assessments.

As a responsible business, we take a very cautious approach and mitigate risks by being agile and adapt to changing circumstances. We anticipate a very challenging economic outlook over the next twelve to eighteen months, and hence, started streamlining our operations and identified product lines that are heavily impacted by an increase in raw materials and energy costs. Despite these challenges, the directors remain confident in the company's resilience in riding out local and global crises successfully.

Future developments

Faced with rapidly changing economic and geopolitical outlook, the directors are determined to protect assets and mitigate risks to our business by streamlining our operation. Non-profitable units and product lines are being discontinued to preserve invaluable resources and management time. However, the directors will continue to seek new opportunities particularly in the sectors that they feel are less immune to economic downturn and geopolitical influences.

Looking ahead, the directors believe the use of artificial intelligence is likely to bring enormous benefits in the form of efficiency and labour cost savings. By keeping up with the technology and adapting to new ways of working, the company can remain competitive and survive in the long run.

Viability and going concern

In preparing the financial statements, the directors have considered the company's current position, principal risks and mitigations and have reviewed forecasts. On the basis of this review, and having regard to available cash resources and committed facilities, the directors have a reasonable expectation that the company will be able to continue in operation and meet its liabilities as they fall due for the foreseeable future.

This report was approved by the board of directors on 3 June 2026 and signed on behalf of the board by:

Mr A Merali

Director

Treats Foods Limited

Directors report

Year ended 30 June 2025

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

Directors

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

Mr A Merali

Mrs S Merali

Dividends

The directors do not recommend the payment of a dividend.

Financial instruments

The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures.

Events after the end of the reporting period

Particulars of events after the reporting period are detailed in note 25 to the financial statements.

Disclosure of information in the strategic report.

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

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 company and 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 judgments and accounting estimates that are reasonable and prudent; and

- 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 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 company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 03 June 2026 and signed on behalf of the board by:

Mr A Merali

Director

Treats Foods Limited

Independent auditor's report to the members of

Treats Foods Limited

Year ended 30 June 2025

Opinion

We have audited the financial statements of Treats Foods Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 30 June 2025 and of its loss 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 auditor’s 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 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 has 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 directors' report. 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 the 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 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.

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: As part of our planning process:- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health and Safety, Food standards, Environmental, Employment Laws and UK Tax laws and regulations- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.- Using our knowledge of the company, together with the discussions held with the directors of company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.The key procedures we undertook to detect irregularities including fraud during the course of the audit included:- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. Performed analytical procedures and obtain explanations for major variances.- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.- Testing key revenue lines for evidence of management bias.- Performing a physical verification of fixed assets and stock.- Obtaining third-party confirmation of bank balances.- Documenting and verifying all significant related party balances and transactions. Obtaining written confirmations for intercompany balances.- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates in respect of carrying values of fixed assets, depreciation of fixed assets, amortisation of intangible assets and valuation of stock.- Assessing the extent of compliance, with the relevant laws and regulations.- Reviewing documentation such as the company board minutes, correspondence with solicitors, correspondence with HMRC for indications of irregularities including fraud.Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.A further description of our responsibilities is available on the Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditor's report. 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 directors. - Conclude on the appropriateness of the directors 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 company’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 company 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.

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 auditors 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.

Bharatkumar L Shah (Senior Statutory Auditor)

For and on behalf of

Anderson Shaw

Chartered Certified Accountants and Statutory Auditors

Scottish Provident House

76 - 80 College Road

Harrow, Middlesex

HA1 1BQ

03 June 2026

Treats Foods Limited

Statement of comprehensive income

Year ended 30 June 2025

		2025	2024
	Note	£	£


Turnover	4	10,254,066	12,099,221
Cost of sales		( 4,138,362)	( 4,716,526)
		_______	_______
Gross profit		6,115,704	7,382,695

Administrative expenses		( 6,329,572)	( 7,179,127)
Other operating income	5	172,967	224,782
		_______	_______
Operating (loss)/profit	6	( 40,901)	428,350

Other interest receivable and similar income	9	23,683	30,263
Interest payable and similar expenses	10	( 1,533)	( 7,779)
		_______	_______
(Loss)/profit before taxation		( 18,751)	450,834

Tax on (loss)/profit	11	( 13,460)	( 131,693)
		_______	_______
(Loss)/profit for the financial year and total comprehensive income		( 32,211)	319,141
		_______	_______

All the activities of the company are from continuing operations.

Treats Foods Limited

Statement of financial position

30 June 2025

		2025		2024
	Note	£	£	£	£

Fixed assets
Intangible assets	12	6,666		9,998
Tangible assets	13	12,423,106		10,763,905
		_______		_______
			12,429,772		10,773,903

Current assets
Stocks	14	166,618		173,454
Debtors	15	1,736,811		1,482,666
Cash at bank and in hand		1,242,864		1,195,811
		_______		_______
		3,146,293		2,851,931
Creditors: amounts falling due
within one year	16	( 8,846,354)		( 6,860,772)
		_______		_______
Net current liabilities			( 5,700,061)		( 4,008,841)
			_______		_______
Total assets less current liabilities			6,729,711		6,765,062


Provisions for liabilities	17		( 466,787)		( 469,927)

			_______		_______
Net assets			6,262,924		6,295,135
			_______		_______

Capital and reserves
Called up share capital	20		50,000		50,000
Fair value reserve	21		454,209		454,209
Profit and loss account	21		5,758,715		5,790,926
			_______		_______
Shareholders funds			6,262,924		6,295,135
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 03 June 2026 , and are signed on behalf of the board by:

Mr A Merali

Director

Company registration number: 03488907

Treats Foods Limited

Statement of changes in equity

Year ended 30 June 2025

	Called up share capital	Fair value reserve	Profit and loss account	Total
	£	£	£	£


At 1 July 2023	50,000	454,209	5,471,785	5,975,994

(Loss)/profit for the year			319,141	319,141
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	319,141	319,141

	_______	_______	_______	_______
At 30 June 2024 and 1 July 2024	50,000	454,209	5,790,926	6,295,135

(Loss)/profit for the year			( 32,211)	( 32,211)
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	( 32,211)	( 32,211)

	_______	_______	_______	_______
At 30 June 2025	50,000	454,209	5,758,715	6,262,924
	_______	_______	_______	_______

Treats Foods Limited

Notes to the financial statements

Year ended 30 June 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 7 Greenock Road, London, W3 8DU.The company is a wholly owned subsidiary of Treats Holdings Limited and operates as part of the group's retail and manufacturing division. The company's principal activities are retail and manufacturing of sandwiches and other food products. The retail arm trades under the "Treats" fascia and also operates as franchisor to independent franchisees retailing under those brands. In addition, the company operates retail stores as franchisee for a globally renowned coffee house.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The Directors have assessed the Company's ability to continue as a going concern, taking into account the current macroeconomic environment, including geopolitical uncertainties, inflationary pressures and volatility in energy and commodity markets. The Directors have considered the potential impact of these factors on the Company's financial position, liquidity and forecast trading performance. In forming their judgement, the Directors have reviewed the Company's cash resources, liquidity headroom and financial forecasts. The assessment has also taken into account the group reorganisation completed on 1 April 2026, as described in note 25, including the demerger of part of the holdings of Treats Holdings Ltd, the transfer of subsidiaries, the distribution in specie of freehold properties and the waiver of an intercompany loan.Based on the forecasts prepared, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

Disclosure exemptions

The company satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Treats Holdings Limited which can be obtained from the Registrar of Companies (England and Wales), Companies House, Cardiff. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS102:(a) No cash flow statement has been presented for the company.(b) Disclosures in respect of financial instruments have not been presented.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgments are continually reviewed and are based on the experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.The key areas of judgment are in respect of fair value adjustments of investment properties, depreciation of fixed assets, amortisation of intangible assets, accruals and valuation of stock.Further details of significant estimates and judgements are set out in the relevant accounting policies and notes to the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

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.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:


Goodwill	-	over ten years in equal instalments
Domain name	-	over four years in equal instalments

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Freehold properties	-	Freehold land - Nil: Freehold Buildings - Over 50 years
Short leasehold properties	-	Straight line over the life of the lease
Fittings fixtures and equipment	-	20 %	reducing balance
Motor vehicles	-	25 %	reducing balance

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Investment properties

Investment properties are measured initially at cost, which include purchase price and any directly attributable expenditure. Investment properties are revalued to their fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Impairment

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. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.Costs being generally determined on the basis of first-in, first-out method.

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 in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.Debt instruments are subsequently measured at amortised cost.Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss.Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	8,338,030	10,247,478
Franchise and management	1,916,036	1,851,743
	_______	_______
	10,254,066	12,099,221
	_______	_______

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2025	2024
	£	£
Rental income	172,890	222,597
Other operating income	77	2,185
	_______	_______
	172,967	224,782
	_______	_______

6. Operating loss/profit

Operating loss/profit is stated after charging/(crediting):

	2025	2024
	£	£
Amortisation of intangible assets	3,332	10,831
Depreciation of tangible assets	534,526	412,032
Operating lease rentals	580,080	703,761
Foreign exchange differences	936	237
Fees payable for the audit of the financial statements	25,000	25,000
	_______	_______

7. Staff costs

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

	2025	2024
Total	131	147
	_______	_______

The aggregate payroll costs incurred during the year were:

	2025	2024
	£	£
Wages and salaries	3,566,379	3,725,118
Social security costs	338,220	324,111
Other pension costs	43,086	47,698
	_______	_______
	3,947,685	4,096,927
	_______	_______

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	348,929	348,021
Company contributions to pension schemes in respect of qualifying services	2,650	2,657
	_______	_______
	351,579	350,678
	_______	_______

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

	2025	2024
	Number	Number
Defined contribution plans	2	2
	_______	_______

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

	2025	2024
	£	£
Aggregate remuneration	247,636	248,311
Company contributions to pension plans in respect of qualifying services	1,321	1,321
	_______	_______
	248,957	249,632
	_______	_______

9. Other interest receivable and similar income

	2025	2024
	£	£
Bank deposits	-	95
Other interest receivable and similar income	23,683	30,168
	_______	_______
	23,683	30,263
	_______	_______

10. Interest payable and similar expenses

	2025	2024
	£	£
Other interest payable and similar expenses	1,533	7,779
	_______	_______

11. Tax on loss/profit

Major components of tax expense

	2025	2024
	£	£
Current tax:
UK current tax expense	16,600	82,095
	_______	_______

Deferred tax:
Origination and reversal of timing differences	( 3,140)	49,598
	_______	_______
Tax on loss/profit	13,460	131,693
	_______	_______

Reconciliation of tax expense

The tax assessed on the loss/profit for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK of 25.00 % (2024: 25.00%).

	2025	2024
	£	£
(Loss)/profit before taxation	( 18,751)	450,834
	_______	_______

(Loss)/profit multiplied by rate of tax	( 4,688)	112,709
Effect of expenses not deductible for tax purposes	208	1,710
Effect of capital allowances and depreciation	21,080	( 32,324)
Timing differences reversal/origination	( 3,140)	49,598
	_______	_______
Tax on loss/profit	13,460	131,693
	_______	_______

12. Intangible assets

	Goodwill	Domain name	Total
	£	£	£
Cost
At 1 July 2024 and 30 June 2025	624,577	13,329	637,906
	_______	_______	_______
Amortisation
At 1 July 2024	624,576	3,332	627,908
Charge for the year	-	3,332	3,332
	_______	_______	_______
At 30 June 2025	624,576	6,664	631,240
	_______	_______	_______
Carrying amount
At 30 June 2025	1	6,665	6,666
	_______	_______	_______
At 30 June 2024	1	9,997	9,998
	_______	_______	_______

13. Tangible assets

	Freehold properties	Short leasehold properties	Fixtures, fittings and equipment	Motor vehicles	Investment properties	Total
	£	£	£	£	£	£
Cost
At 1 July 2024	5,268,500	592,695	5,604,219	157,184	3,681,665	15,304,263
Additions	-	306,962	525,390	45,000	1,316,375	2,193,727
	_______	_______	_______	_______	_______	_______
At 30 June 2025	5,268,500	899,657	6,129,609	202,184	4,998,040	17,497,990
	_______	_______	_______	_______	_______	_______
Depreciation
At 1 July 2024	270,648	433,507	3,769,730	66,473	-	4,540,358
Charge for the year	33,231	41,986	425,381	33,928	-	534,526
	_______	_______	_______	_______	_______	_______
At 30 June 2025	303,879	475,493	4,195,111	100,401	-	5,074,884
	_______	_______	_______	_______	_______	_______
Carrying amount
At 30 June 2025	4,964,621	424,164	1,934,498	101,783	4,998,040	12,423,106
	_______	_______	_______	_______	_______	_______
At 30 June 2024	4,997,852	159,188	1,834,489	90,711	3,681,665	10,763,905
	_______	_______	_______	_______	_______	_______

Investment properties

Included within the above is investment properties measured at fair value as follows:

		£
	At 1 July 2024	3,681,665
	Additions	1,316,375
		_______
	At 30 June 2025	4,998,040
		_______

The directors, who are not professionally qualified valuers, have reviewed the fair value of the investment properties at 30 June 2025 which is not materially different to the carry value of £4,998,040 (2024 - £3,681,665).Accordingly no adjustment has been reflected in the financial statements. The valuation was arrived at by reference to market evidence of transaction prices for similar properties in its location and takes into account the state of the rental market in the area where the property is situated.The historical cost of the investment properties are £4,392,428.

14. Stocks

	2025	2024
	£	£
Finished goods and goods for resale	166,618	173,454
	_______	_______

15. Debtors

	2025	2024
	£	£
Trade debtors	265,211	233,669
Amounts owed by group undertakings	12,837	-
Prepayments and accrued income	577,171	486,365
Other debtors	881,592	762,632
	_______	_______
	1,736,811	1,482,666
	_______	_______

Other debtors includes:-sundry loans amounting to £474,278 (2024 - £451,484) which are repayable on demand and bears interest at commercial rate (Note-27).

16. Creditors: amounts falling due within one year

	2025	2024
	£	£
Trade creditors	812,234	943,473
Amounts owed to group undertakings	7,077,211	4,881,383
Accruals and deferred income	652,157	794,642
Social security and other taxes	167,267	103,937
Director loan accounts	9,505	9,009
Other creditors	127,980	128,328
	_______	_______
	8,846,354	6,860,772
	_______	_______

The amounts owed to group undertakings are non interest bearing loans and repayable on demand.Directors' current account is interest free and repayable on demand.

17. Provisions

	Deferred tax (note 18)	Total
	£	£
At 1 July 2024	469,927	469,927
Additions	( 3,140)	( 3,140)
	_______	_______
At 30 June 2025	466,787	466,787
	_______	_______

18. Deferred tax

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

	2025	2024
	£	£
Included in provisions (note 17)	466,787	469,927
	_______	_______

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

	2025	2024
	£	£
Accelerated capital allowances	315,384	318,524
Fair value adjustment of investment properties	151,403	151,403
	_______	_______
	466,787	469,927
	_______	_______

19. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 43,086 (2024: £ 47,698 ).

20. Called up share capital

Issued, called up and fully paid

	2025		2024
	No	£	No	£
Ordinary shares of £ 1.00 each	50,000	50,000	50,000	50,000
	_______	_______	_______	_______

21. Reserves

Profit and loss account:This reserve records retained earnings and accumulated losses.Fair value reserve account:This reserve records fair value gains and losses on investment properties.

22. Capital commitments

Capital expenditure contracted for but not provided for in the financial statements is as follows:

	2025	2024
	£	£
Tangible assets	336,000	-
	_______	_______

23. Operating leases

The company as lessee

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


	£	£

Not later than 1 year	638,213	-
Later than 1 year and not later than 5 years	1,856,631	1,008,770
Later than 5 years	1,313,962	1,332,814
	_______	_______
	3,808,806	2,341,584
	_______	_______

24. Other financial commitments

The company has entered into composite cross company guarantees with Treats Investments Ltd, London Metro Hotels Ltd, Treats Holdings Ltd and Capital Hotels Ltd in respect of bank loan facilities for the other group companies.

25. Events after the end of the reporting period

Between 30 March and 1 April 2026, the Group undertook a reorganisation which resulted in a demerger of part of the holdings of the Parent company, Treats Holdings Ltd. As part of this reorganisation:1. Transfer of subsidiary The Parent company's investment in Treats Foods Ltd was transferred to a newly incorporated holding company, Treats Foods Holdings Ltd, whose shareholders mirror those of Treats Holdings Ltd. This transaction formed part of a wider group restructuring and occurred after the reporting date. It is therefore a non adjusting event under FRS 102.2. Loan waiver Treats Holdings Ltd waived a loan payable by the Company at the date of waiver. As the waiver occurred after the reporting date, it is a non adjusting event under FRS 102.3. Distribution in specie of freehold properties The Company distributed all of its freehold properties to a fellow group company by way of a distribution in specie, recorded at their carrying values at the date of the transaction. The carrying amount of the properties at 30 June 2025 was £9,962.661. This transaction took place after the reporting date and is a non adjusting event.Management has assessed the impact of these events and concluded that they do not affect the Company's ability to continue as a going concern. The financial statements for the year ended 30 June 2025 have not been adjusted for these transactions.

26. Directors advances, credits and guarantees

	During the year the directors entered into the following advances with the company:

2025
		Balance brought forward	Amounts repaid	Balance o/standing
		£	£	£
	Mr A Merali and Mrs S Merali	-	-	-
		_______	_______	_______

2024
		Balance brought forward	Amounts repaid	Balance o/standing
		£	£	£
	Mr A Merali and Mrs S Merali	1,161,109	( 1,161,109)	-
		_______	_______	_______

The company advanced a loan to the directors during April 2023 - June 2023. The loan was unsecured with interest charged at commercial rates. Interest charged in the year ended 30 June 2024 amounted to £14,811. The loan was repaid by the directors in March 2024.

27. Related party transactions

The company has advanced a loan to AM Coffee Retail Ltd (AM Coffee) which is controlled by close family members of the directors. The loan is unsecured with interest charged at commercial rates. As at 30 June 2025, £439,278 (2024 - £426,484) was owed by AM Coffee. Interest charged in the year amounted to £12,795 (2024 - £12,422).The company has advanced loans to an officer of the company at an interest rate of 4% per annum. The loans are unsecured and repayable on demand. As at 30 June 2025, balance outstanding was £35,000 (2024: £25,000).

28. Controlling party

As at 30 June 2025, Treats Holdings Limited, a company incorporated in England and Wales, was the ultimate holding company. In the opinion of the directors, Mr A Merali controls the company .