REGISTERED NUMBER: 15900606 (England and Wales)

Group Strategic Report,

Report of the Director and

Audited

Consolidated Financial Statements

for the period

16 August 2024 to 31 December 2025

for

London Fluid System Technologies Limited

Previously known as

Hudson Park Estates Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTOR:

R J Hewson

REGISTERED OFFICE:

2 Kingley Park

Kings Langley

Hertfordshire

WD4 8GW

REGISTERED NUMBER:

15900606 (England and Wales)

AUDITORS:

Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

The director presents his strategic report of the company and the group for the period 16 August 2024 to 31 December 2025.

REVIEW OF BUSINESS

London Fluid System Technologies Limited (LFST) is an authorised distributor of Swagelok high-quality fluid system products and operates under an exclusive distribution agreement covering the South East of the UK, Türkiye and parts of Central Asia and the Caspian region. The Company also provides approved installation, training and assembly services and trades as Swagelok London, Türkiye & Caspian.

On 1 January 2025, ownership of the business transferred from Adrian Wynne to Richard Hewson through the establishment of a new company entity. The transition was completed without disruption to employees, customers or suppliers, with all business operations, professional relationships and supply arrangements continuing uninterrupted. No associates, suppliers or customers were lost during the transition.

During the year, Swagelok revised the Company’s service territory, removing West Africa and adding Hampshire (UK) and Türkiye. This reduced operational risk and supported the opening of a new sales office in Istanbul. LFST continued to invest in people, equipment and infrastructure in line with its new three-year strategic plan, with the revised territory expected to support future revenue growth.

The director believes the Company remains financially strong and well positioned for continued investment and long-term growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the Company relate to global supply chain pressures, raw material availability and wider geopolitical uncertainty, including regional conflicts and potential tariffs. Management continues to work closely with Swagelok and supply partners to monitor and mitigate these risks.

LFST’s business remains closely aligned to the Swagelok brand and distribution network; however, the director remains confident in the strength of the relationship and future market opportunities.

The Company operates across a diverse range of sectors including alternative fuels, semiconductor, manufacturing, power generation, research and development, helping to reduce market concentration risk. While certain territories present additional compliance and geopolitical considerations, the Company maintains established controls, export compliance procedures and cyber security policies supported by regular mandatory training through Swagelok.

FINANCIAL PERFORMANCE AND KEY PERFORMANCE INDICATORS

Sales in 2025 were approximately 12% lower than 2024, primarily due to the removal of the West Africa territory, changes to purchasing arrangements in Kazakhstan and challenging UK market conditions. Despite this, gross profit margins remained broadly consistent with prior years at in excess of 35%, supported by improved margins within Türkiye operations. Net profit before tax reduced following ownership transition adjustments.

Swagelok sets several performance measures under the distributor agreement, including equity levels, sales growth, gross profit margin, profitability, stock holding and reinvestment into the business. The Company remained compliant with all requirements throughout the year.

FUTURE DEVELOPMENTS

LFST remains a long-established and stable business. The director does not anticipate any significant change to the Company’s strategy and remains optimistic regarding future trading prospects and growth opportunities.

ON BEHALF OF THE BOARD:

R J Hewson - Director

4 June 2026

The director presents his report with the financial statements of the company and the group for the period 16 August 2024 to 31 December 2025.

COMMENCEMENT OF TRADING

The company was incorporated on 16 August 2024 as Hudson Park Estates Ltd and acquired the trade and business assets of Green Fluid Systems Limited in December 2024 and began trading under the Swagelok brand at which time the company changed its name from Hudson Park Estates Ltd to London Fluid System Technologies Limited. The principal activity of the company since 1 January 2025 was the sale of distribution of fluid system products and supporting services under the Swagelok brand.

These are the company's first set of financial statements and have been prepared for the 17 month period since incorporation on 16 August 2024 to 31 December 2025.

DIVIDENDS

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

DIRECTOR

R J Hewson held office during the whole of the period from 16 August 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information.

AUDITORS

The auditors, Bennett Brooks & Co Limited were appointed during the period and will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R J Hewson - Director

4 June 2026

Opinion

We have audited the financial statements of London Fluid System Technologies Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2025 and of the group's profit for the period 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 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 director's 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 and 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 Group Strategic Report or the Report of the Director.

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 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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 UK tax legislation and regulations which govern the preparation of financial statements, 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 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 of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business. Audit procedures performed included:

-Enquiry of management around actual and potential litigation and claims and instances of non-compliance with laws and regulations;

- Auditing the risk of management override of controls, through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business; and

- Reviewing financial statement disclosures and agreeing to supporting documentation to assess compliance with applicable laws and regulations.

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.

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.

Jason Leach (Senior Statutory Auditor)

for and on behalf of Bennett Brooks & Co Limited

Chartered Accountants

& Statutory Auditors

St George's Court

Winnington Avenue

Northwich

Cheshire

CW8 4EE

4 June 2026

TURNOVER

3

19,966,207

Cost of sales

(12,895,982

)

GROSS PROFIT

7,070,225

Distribution costs

(911,229

)

Administrative expenses

(5,099,212

)

1,059,784

Other operating income

19,123

OPERATING PROFIT

5

1,078,907

Interest payable and similar expenses

6

(382,971

)

PROFIT BEFORE TAXATION

695,936

Tax on profit

7

(219,196

)

PROFIT FOR THE FINANCIAL PERIOD

476,740

Profit attributable to:

Owners of the parent

476,740

PROFIT FOR THE PERIOD

476,740

OTHER COMPREHENSIVE INCOME

Foreign exchange gain on translation

6,884

Income tax relating to other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

6,884

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

483,624

Total comprehensive income attributable to:

Owners of the parent

483,624

FIXED ASSETS

Intangible assets

9

252,474

Tangible assets

10

560,274

Investments

11

-

812,748

CURRENT ASSETS

Stocks

12

1,836,631

Debtors

13

3,179,469

Cash at bank

2,402,621

7,418,721

CREDITORS

Amounts falling due within one year

14

(7,656,510

)

NET CURRENT LIABILITIES

(237,789

)

TOTAL ASSETS LESS CURRENT LIABILITIES

574,959

PROVISIONS FOR LIABILITIES

17

(91,235

)

NET ASSETS

483,724

CAPITAL AND RESERVES

Called up share capital

18

100

Retained earnings

483,624

SHAREHOLDERS' FUNDS

483,724

The financial statements were approved by the director and authorised for issue on 4 June 2026 and were signed by:

R J Hewson - Director

FIXED ASSETS

Intangible assets

9

16,355

Tangible assets

10

498,216

Investments

11

1,073,891

1,588,462

CURRENT ASSETS

Stocks

12

1,560,200

Debtors

13

2,840,832

Cash at bank

1,910,697

6,311,729

CREDITORS

Amounts falling due within one year

14

(7,435,466

)

NET CURRENT LIABILITIES

(1,123,737

)

TOTAL ASSETS LESS CURRENT LIABILITIES

464,725

PROVISIONS FOR LIABILITIES

17

(91,235

)

NET ASSETS

373,490

CAPITAL AND RESERVES

Called up share capital

18

100

Retained earnings

373,390

SHAREHOLDERS' FUNDS

373,490

Company's profit for the financial year

373,390

The financial statements were approved by the director and authorised for issue on 4 June 2026 and were signed by:

R J Hewson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

483,624

483,624

Balance at 31 December 2025

100

483,624

483,724

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

373,390

373,390

Balance at 31 December 2025

100

373,390

373,490

Cash flows from operating activities

Cash generated from operations

1

3,898,261

Interest paid

(382,971

)

Tax paid

(134,411

)

Net cash from operating activities

3,380,879

Cash flows from investing activities

Purchase of intangible fixed assets

(11,995

)

Purchase of tangible fixed assets

(125,936

)

Aquisition of trade and assets less cash

(6,847,311

)

Net cash from investing activities

(6,985,242

)

Cash flows from financing activities

New loans in year

7,000,000

Loan repayments in year

(1,000,000

)

Share issue

100

Net cash from financing activities

6,000,100

Increase in cash and cash equivalents

2,395,737

Cash and cash equivalents at beginning of period

2

-

Effect of foreign exchange rate changes

6,884

Cash and cash equivalents at end of period

2

2,402,621

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

£

Profit before taxation

695,936

Depreciation charges

292,017

Impairment of fixed assets

80,749

Finance costs

382,971

1,451,673

Decrease in stocks

1,149,143

Decrease in trade and other debtors

324,107

Increase in trade and other creditors

973,338

Cash generated from operations

3,898,261

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:

Period ended 31 December 2025

31.12.25

16.8.24

£

£

Cash and cash equivalents

2,402,621

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 16.8.24

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

-

2,402,621

2,402,621

-

2,402,621

2,402,621

Debt

Debts falling due within 1 year

-

(6,000,000

)

(6,000,000

)

-

(6,000,000

)

(6,000,000

)

Total

-

(3,597,379

)

(3,597,379

)

1.	STATUTORY INFORMATION

London Fluid System Technologies 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 General Information page.

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

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.

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

- the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);

- the requirements of Section 7 Statement of Cash Flows;

- the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Basis of consolidation

The Group consolidated financial statements include the financial statements of the Company and its subsidiary undertakings. A subsidiary is an entity controlled by the Group. Control is power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in 'Other comprehensive income'.

Going concern

The group has net current liabilities of £237,789 (company £1,123,737) primarily due to the revolving nature of the acquisition loan financing of £6,000,000 which is technically presented within amounts falling due within one year. The company meets its day-to-day working capital requirements through its bank facilities.

The current economic conditions continue to create uncertainty over (a) the level of demand for the company’s products. (b) the availability of bank finance for the foreseeable future. The company’s forecasts and projections, taking account a severe but plausible change in trading performance, show that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a. Critical judgements in applying the company's accounting policies

i. Carrying value of stocks

The condition of stock held is reviewed by the director and provisions made where the expected selling price is lower than the purchase cost of the stock. This involves the use of judgement.

b. Key accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below

i. Carrying value of investments in group undertakings

The carrying value of investments in group undertakings represents amounts invested at the end of the reporting period following any impairments. The company assesses the recoverability of these balances based on available information, including management’s judgment, the financial position of the entity, and other relevant factors.

Impairments are recognized when there is objective evidence that amounts are unlikely to be recovered in full. Full details of any impairments are disclosed in Note 5.

Turnover

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

Amounts not invoiced at the reporting date are shown within 'prepayments and accrued income'.

Commission receivable is disclosed within 'other income'.

Business combinations and goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2025, is being amortised evenly over its estimated useful life of five years.

Business combinations are accounted for by applying the purchase method. On the acquisition of a business, fair values are attributed to the Parent Company’s share of assets. When the cost of acquisition differs from the values attributable to such net assets the difference is treated as goodwill (positive or negative). This is capitalised and amortised dependent on useful economic life of the asset.

Goodwill is amortised over 5 years.

Intangible assets

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

Amortisation is provided on all intangible assets, at rates calculated to write off the cost of each asset, on a systematic basis over the expected useful life as follows:

Computer software

- 33% on cost

Goodwill

- 20% on cost

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price of the asset and costs attributable to bringing the asset to its working condition for its intended use. Assets are assessed for impairment at each reporting date.

Depreciation is provided at the following annual rates in order to write off each asset on a straight line basis over its estimated useful life.

Long Leasehold

- Straight line over the term of the lease

Improvements to property

- 20% - 33% on cost

Plant and Machinery

- 33% on cost

Fixtures and fittings

- 20% - 33% on cost

Motor vehicles

- 25% - 33% on reducing balance

Computer equipment

- 33% on cost

Repairs, maintenance and minor inspection costs are expensed as incurred.

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss and included in ‘administration expenses’.

Stocks

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

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

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 period 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.

Foreign currencies

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 the profit and loss account.

Hire purchase and leasing commitments

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Short term debtors and creditors

Short term debtors and creditors with no interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the income statement.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and cash held with banks.

Financial instruments

The group has elected to apply the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet 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.

Basic financial assets

Basis financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipt discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from related companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, there the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised costs, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classed as equity.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

£

United Kingdom

14,042,356

Emerging Markets

5,923,851

19,966,207

4.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

2,464,201

Social security costs

377,886

Other pension costs

305,965

3,148,052

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

Administration

56

Distribution

13

69

£

Director's remuneration

393,085

Information regarding the highest paid director is as follows:

£

Emoluments etc

393,085

5.	OPERATING PROFIT

The operating profit is stated after charging:

£

Hire of plant & machinery

150,380

Other operating leases

13,954

Depreciation - owned assets

225,581

Goodwill amortisation

56,476

Computer software amortisation

9,960

Auditors' remuneration

40,500

Auditors' remuneration for non audit work

28,115

Foreign exchange differences

82,212

Impairment of tangible fixed assets

80,749

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

£

Bank interest

382,971