REGISTERED NUMBER: 02829062 (England and Wales)

STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2025

FOR

TRANS-CONTINENTAL MARKETING LIMITED

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

16

DIRECTORS:

Y Ali

S D Ali

SECRETARY:

Y Ali

REGISTERED OFFICE:

Unit B Bardon 22 Industrial Estate

Reg's Way

Coalville

Leicestershire

LE67 1FL

REGISTERED NUMBER:

02829062 (England and Wales)

INDEPENDENT AUDITORS:

Watergates Ltd (Statutory Auditor)

109 Coleman Road

Leicester

Leicestershire

LE5 4LE

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

REVIEW OF BUSINESS

Trans-Continental Marketing Limited (TCM) is a British family-owned manufacturer established in 1993 The company manufactures and supplies refuse sacks, bin liners and food bags to the UK's major grocery retailers.

The company's strategic position is built on three durable advantages: scarcity of domestic manufacturing capability in a market increasingly favouring secure UK supply; deep, long-term partnerships with national retail customers; and recent investment in modern, high-efficiency production capacity. Together these position TCM as a resilient, strategically significant supplier at a time when global supply-chain volatility has materially increased the value customers place on reliable domestic production.

FINANCIAL PERFORMANCE AND KEY PERFORMANCE INDICATORS

Turnover increased by 5.4% to £17.56m (2024 restated: £16.66m), driven by sustained demand across the company's core retail accounts. Gross profit was maintained at £3.33m (2024 restated: £3.29m).

Operating profit was £0.99m (2024 restated: £1.32m). The movement reflects planned investment in administrative and operational capability to support expanded UK manufacturing capacity, together with a non-recurring bad-debt charge of £0.20m arising on a balance owed by a related entity, which the directors do not expect to recur. EBITDA was £1.37m (2024 restated: £1.68m). Adjusted for the non-recurring bad-debt charge, EBITDA was £1.57m.

FINANCIAL POSITION AND CASH GENERATION

The year was characterised by a substantial strengthening of the company's financial position. Cash generated from operations rose to £2.29m (2024: £0.95m), supported by disciplined management of stock and debtor balances. The company eliminated its bank overdraft, closing the year with positive cash of £0.04m (2024: overdraft of £0.24m), and reduced total net debt by 62% to £0.94m (2024: £2.35m) through repayment of hire-purchase and finance-lease obligations.

Net assets grew to £1.83m (2024 restated: £1.46m). The company continues to fund its operations through invoice financing and trade facilities, which were renewed in December 2025. As explained in note 10, comparative figures have been restated to correct a prior-period error in the carrying value of fixed assets, identified following a reconciliation of the Fixed Asset Register to physical assets in use.

MARKET POSITION AND STRATEGIC STRENGTHS

The directors believe the company occupies a distinctive and defensible position in the UK market:

As one of a few UK-based manufacturers of its core product range, TCM offers customers security of domestic supply that is difficult to replicate.

The company's long-standing relationships with major UK retailers reflect a consistent record of service, quality and reliability across multiple commercial cycles.

Heightened global supply-chain volatility has strengthened customer preference for resilient, locally manufactured supply - a structural trend the directors expect to support both demand and the company's competitive position in the years ahead.

PRINCIPAL RISKS AND UNCERTAINTIES

Customer concentration

A substantial portion of turnover is concentrated with a small number of major retailers. The directors manage this through sustained service performance, deep customer relationships and close board-level oversight of these accounts.

Liquidity and facilities

The company operates with net current liabilities and relies on the continued availability of its invoice financing and trade facilities, secured by a fixed and floating charge in favour of Santander UK PLC and renewed in December 2025. Supported by cash-flow forecasts covering at least twelve months and the continued support of directors and related parties, the directors are satisfied that adequate resources are available.

Input price volatility

Polymer feedstock and electricity are the company's most significant variable costs. The company manages this exposure through procurement and costing discipline, foreign-exchange forward contracts on overseas purchases, and the pass-through of sustained cost movements through agreed customer pricing.

Interest rate risk

Funding structures are reviewed periodically to maintain an appropriate balance of cost and flexibility.

Health and safety, environment and people

The company maintains a proactive safety culture targeting a zero-accident rate, is committed to minimising the environmental impact of its products across their lifecycle, and regards retention of a skilled, motivated workforce as essential to its continued success.

FUTURE DEVELOPMENTS

Investment in high-efficiency machinery positions the company to deepen its established retail relationships and extend its product range into adjacent categories. With domestic supply security an increasing priority for UK retailers, the directors intend to continue investing in capacity and technology to consolidate the company's position as a leading UK manufacturer and to drive sustainable growth.

ON BEHALF OF THE BOARD:

Y Ali - Director

19th June 2026

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

PRINCIPAL ACTIVITY

The principal activity of the Company in the year under review was that of manufacture of plastic-based consumables.

DIVIDENDS

No interim dividends were paid during the year ended 30th June 2025.

The directors recommend final dividends per share as follows:

Ordinary 1 shares

£1.60

Redeemable Preference 1 shares

NIL

The total distribution of dividends for the year ended 30th June 2025 will be £ 160,000 .

DIRECTORS

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

Y Ali

S D Ali

DONATIONS

Donations during the year related to charitable donations only.

GOING CONCERN

The directors continue to adopt the going concern basis in preparing the financial statements. Their assessment of going concern is presented in note 2.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, Watergates Ltd (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Y Ali - Director

19th June 2026

Opinion

We have audited the financial statements of Trans-continental Marketing Limited (the 'Company') for the year ended 30th June 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 30th 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 Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and inspecting correspondence with local tax authorities.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. Also designing audit procedures to incorporate unpredictability around the nature, timing and extent of our testing.

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.

Nazir Malida FCCA (Senior Statutory Auditor)

for and on behalf of Watergates Ltd (Statutory Auditor)

109 Coleman Road

Leicester

Leicestershire

LE5 4LE

19th June 2026

TURNOVER

4

17,557,094

16,656,565

Cost of sales

(14,222,304

)

(13,366,452

)

GROSS PROFIT

3,334,790

3,290,113

Administrative expenses

(2,349,595

)

(1,975,110

)

985,195

1,315,003

Other operating income

-

3,000

OPERATING PROFIT

6

985,195

1,318,003

Interest receivable and similar income

3,840

-

989,035

1,318,003

Interest payable and similar expenses

7

(382,270

)

(441,482

)

PROFIT BEFORE TAXATION

606,765

876,521

Tax on profit

8

(82,855

)

(393,763

)

PROFIT FOR THE FINANCIAL YEAR

523,910

482,758

PROFIT FOR THE YEAR

523,910

482,758

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

523,910

482,758

FIXED ASSETS

Tangible assets

11

4,032,253

4,166,633

CURRENT ASSETS

Stocks

12

2,237,311

2,686,447

Debtors

13

1,696,623

2,329,360

Cash at bank and in hand

40,441

357

3,974,375

5,016,164

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14

(5,379,812

)

(6,360,071

)

NET CURRENT LIABILITIES

(1,405,437

)

(1,343,907

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,626,816

2,822,726

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

15

(323,990

)

(966,665

)

PROVISIONS FOR LIABILITIES

19

(476,618

)

(393,763

)

NET ASSETS

1,826,208

1,462,298

CAPITAL AND RESERVES

Called up share capital

20

1,150,000

1,150,000

Retained earnings

21

676,208

312,298

SHAREHOLDERS' FUNDS

1,826,208

1,462,298

The financial statements were approved by the Board of Directors and authorised for issue on 19th June 2026 and were signed on its behalf by:

Y Ali - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2023

1,150,000

79,540

1,229,540

Changes in equity

Dividends

-

(250,000

)

(250,000

)

Total comprehensive income

-

482,758

482,758

Balance at 30th June 2024

1,150,000

312,298

1,462,298

Changes in equity

Dividends

-

(160,000

)

(160,000

)

Total comprehensive income

-

523,910

523,910

Balance at 30th June 2025

1,150,000

676,208

1,826,208

Cash flows from operating activities

Cash generated from operations

1

2,287,542

949,394

Interest paid

(270,554

)

(324,828

)

Interest element of hire purchase payments paid

(111,716

)

(116,654

)

-

(22,426

)

Net cash from operating activities

1,905,272

485,486

Cash flows from investing activities

Purchase of tangible fixed assets

(269,892

)

(99,494

)

Sale of tangible fixed assets

18,589

-

Interest received

3,840

-

Net cash from investing activities

(247,463

)

(99,494

)

Cash flows from financing activities

Loan repayments in year

(240,000

)

-

Capital repayments in year

(926,892

)

(237,143

)

Amount introduced by directors

-

52,512

Amount withdrawn by directors

(46,349

)

-

Equity dividends paid

(160,000

)

(250,000

)

Net cash from financing activities

(1,373,241

)

(434,631

)

Increase/(decrease) in cash and cash equivalents

284,568

(48,639

)

Cash and cash equivalents at beginning of year

2

(244,127

)

(195,488

)

Cash and cash equivalents at end of year

2

40,441

(244,127

)

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

30/6/25

30/6/24

as

restated

£

£

Profit before taxation

606,765

876,521

Depreciation charges

357,077

358,303

Loss on disposal of fixed assets

28,607

-

Finance costs

382,270

441,482

Finance income

(3,840

)

-

1,370,879

1,676,306

Decrease/(increase) in stocks

449,136

(943,119

)

Decrease/(increase) in trade and other debtors

632,737

(1,447,626

)

(Decrease)/increase in trade and other creditors

(165,210

)

1,663,833

Cash generated from operations

2,287,542

949,394

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30th June 2025

30.6.25

1.7.24

£

£

Cash and cash equivalents

40,441

357

Bank overdrafts

-

(244,484

)

40,441

(244,127

)

Year ended 30th June 2024

30.6.24

1.7.23

as restated

£

£

Cash and cash equivalents

357

691

Bank overdrafts

(244,484

)

(196,179

)

(244,127

)

(195,488

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.24

Cash flow

At 30.6.25

£

£

£

Net cash

Cash at bank and in hand

357

40,084

40,441

Bank overdrafts

(244,484

)

244,484

-

(244,127

)

284,568

40,441

Debt

Finance leases

(1,647,652

)

926,892

(720,760

)

Debts falling due within 1 year

(240,000

)

21,656

(218,344

)

Debts falling due after 1 year

(218,344

)

218,344

-

(2,105,996

)

1,166,892

(939,104

)

Total

(2,350,123

)

1,451,460

(898,663

)

1.	STATUTORY INFORMATION

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

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

2.	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.

GOING CONCERN

The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Liquidity is monitored regularly by reference to forecasts and available facilities. The business has continued to fulfil significant order delivery commitments, confirm and progress negotiations on new orders for delivery in the next 12 months and secure payments, for prior and future deliveries.

At 30 June 2025, the company had net current liabilities of £1.4m (2024: £1.3m). However the net asset position remained strong at £1.8m (2024: £1.5m). In assessing the appropriateness of the going concern basis, the directors have considered the company’s forecasts and cash flow projections for a period of at least 12 months from the date of approval of these financial statements.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This assessment is based on the continued availability of the company’s Invoice finance and trade loan facilities, which were renewed in December 2025, together with the ongoing financial support from the directors and related parties, as required, to meet any short-term liquidity requirements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, net of discounts, rebates, value-added tax, and other sales taxes. Revenue is recognised when the company satisfies its performance obligations by transferring control of the goods (refuse sacks, bin liners, and other products) to the customer, which typically occurs upon delivery.

Revenue is recognised at the point of despatch of goods or collection by the customer.

The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer (usually on dispatch of the goods);

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

TANGIBLE FIXED ASSETS

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual

value of each asset over its estimated useful life:

Plant and machinery - 7.5% reducing balance

Fixtures and fittings - 25% reducing balance

Motor vehicles - 25% reducing balance

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

IMPAIRMENT OF ASSETS

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately 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.

Cost comprises overheads that have been incurred in bringing the stocks to their present location and condition and are valued at the lower of cost and net realisable value.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

DEBTORS

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

CREDITORS

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

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:

- at fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably;

- at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

The company uses foreign exchange forward contracts to manage its exposure to fluctuations in foreign currency exchange rates arising from purchases from overseas suppliers.

At the reporting date, certain foreign exchange forward contracts had been designated as hedging instruments in fair value hedge relationships. The hedged item comprises foreign currency denominated trade payables arising from inventory purchases. The purpose of the hedge is to mitigate the impact of exchange rate movements on the value of these outstanding liabilities.

The foreign exchange forward contracts are measured at fair value, with changes in fair value recognised in profit or loss. The corresponding changes in the fair value of the hedged item attributable to the hedged risk are also recognised in profit or loss.

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 statement of financial position date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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 Income Statement except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'.

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.

HIRE PURCHASE AND LEASING COMMITMENTS

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease

term, unless the rental payments are structured to increase in line with expected general inflation, in which

case the Company recognises annual rent expense equal to amounts owed to the lessor.

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 lease are depreciated over their estimate 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.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements in applying the Company's accounting policies

The directors conclude that there are no critical judgements in applying the Company's accounting policies.

Key source of estimation uncertainty

Depreciation and amortisation rates are based on estimates of the useful lives and residual values of the assets involved.

Determining whether stock values are recoverable requires estimations based on up to date trading information. The directors use their knowledge of the business, the trading environment and future projections to assess whether provision is necessary in these areas. When calculating the stock provision, management considers the nature and condition of the stock as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.