Company registration number 01933854 (England and Wales)
CANARY TRADING COMPANY LTD
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
CANARY TRADING COMPANY LTD
COMPANY INFORMATION
Directors
Mr AM Mansour
Mr MH Mansour
Company number
01933854
Registered office
9 Lydford Road
England
NW2 5QY
Auditor
Xeinadin Audit Ltd
Suite 13, Leavesden Park
5 Hercules Way
Watford
Hertfordshire
WD25 7GS
CANARY TRADING COMPANY LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9 - 10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
CANARY TRADING COMPANY LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors present the strategic report for the year ended 31 March 2025.

Review of the business

The Group achieved an increase in like-for-like sales during this challenging trading period.

Principal risks and uncertainties

The Directors recognise that purchasing margins remain a key determinant of overall gross margin performance and will continue to monitor these closely, with a focus on achieving improvements in the coming months. Maintaining robust cash flow remains essential to meeting Company's ongoing obligations, and the Directors are fully aware of the importance of strengthening cash generation, primarily through enhanced margins and continued cost control.

With the Bank of England base rate now beginning to decline, the Directors will be able to revisit potential acquisition opportunities that were previously deferred during the period of rising interest rates.

Development and performance

The new contract will bring more opportunities by way of additional services to be provided. The procurement of some of these services will be outside of the control of the Group and are reliant upon referrals from third parties such as the NHS. Management are continually monitoring the best ways of maximising these services

Key performance indicators

| 2025 | 2024
| £ | £
Turnover | 15,182,168 | 13,254,392
Gross Profit | 4,408,404 | 2,879,564
EBITDA* | 715,390 | 143,512

* EBTIDA is excluding any gain or loss on disposal of fixed assets and pharmacy unit.

On behalf of the board

Mr AM Mansour
Director
23 June 2026
CANARY TRADING COMPANY LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

The directors present their annual report and consolidated financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company and group continued to be that of dispensing chemists.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the consolidated financial statements were as follows:

Mr AM Mansour
Mr MH Mansour
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law, the directors have prepared the group and parent company consolidated 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 consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these consolidated 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;

- state whether applicable U nited K ingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and

- prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the consolidated financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions of the small companies regime.

CANARY TRADING COMPANY LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
On behalf of the board
Mr AM Mansour
Director
23 June 2026
CANARY TRADING COMPANY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CANARY TRADING COMPANY LTD
- 4 -
Opinion

We have audited the consolidated financial statements of Canary Trading Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the consolidated financial statements, including 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 consolidated financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's 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 consolidated financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the consolidated 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 consolidated financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the consolidated 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 parent company's ability to continue as a going concern for a period of at least twelve months from when the consolidated 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 consolidated financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the consolidated 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the course of 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 consolidated 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 our audit:

- T he information given in the strategic report and the directors' r eport for the financial year for which the consolidated financial statements are prepared is consistent with the consolidated financial statements; and

- The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

CANARY TRADING COMPANY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CANARY TRADING COMPANY LTD
- 5 -
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 their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company consolidated financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated financial statements.

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

Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

- Reading minutes of meetings of those charged with governance;

- Obtaining and reading correspondence from legal and regulatory bodies including HMRC;

- Identifying and testing journal entries;

- Challenging assumptions and judgements made by management in their significant accounting estimates.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above. The further removed instances of non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

CANARY TRADING COMPANY LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CANARY TRADING COMPANY LTD
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Thomas (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Ltd, Statutory Auditor
Chartered Accountants
Suite 13, Leavesden Park
5 Hercules Way
Watford
WD25 7GS
Hertfordshire
23 June 2026
CANARY TRADING COMPANY LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
15,182,168
13,254,392
Cost of sales
(10,773,764)
(10,374,828)
Gross profit
4,408,404
2,879,564
Administrative expenses
(4,268,457)
(3,365,055)
Other operating income
130,460
125,299
Operating profit/(loss)
4
270,407
(360,192)
Interest payable and similar expenses
7
(434,768)
(476,181)
Amounts written off investments
50,000
155,000
Loss before taxation
(114,361)
(681,373)
Tax on loss
8
(22,586)
(18,919)
Loss for the financial year
(136,947)
(700,292)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
CANARY TRADING COMPANY LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
9
5,955,510
6,455,914
Total intangible assets
5,955,510
6,455,914
Tangible assets
10
4,610,066
2,502,769
10,565,576
8,958,683
Current assets
Stocks
13
988,481
1,003,617
Debtors
14
1,630,476
1,324,827
Cash at bank and in hand
196,112
1,091,808
2,815,069
3,420,252
Creditors: amounts falling due within one year
15
(6,110,290)
(4,663,124)
Net current liabilities
(3,295,221)
(1,242,872)
Total assets less current liabilities
7,270,355
7,715,811
Creditors: amounts falling due after more than one year
16
(6,061,469)
(6,392,564)
Provisions for liabilities
Deferred tax liability
18
33,716
11,130
(33,716)
(11,130)
Net assets
1,175,170
1,312,117
Capital and reserves
Called up share capital
20
200,000
200,000
Retained earnings
975,170
1,112,117
Total equity
1,175,170
1,312,117

These consolidated financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 23 June 2026 and are signed on its behalf by:
23 June 2026
Mr AM Mansour
Director
Company registration number 01933854 (England and Wales)
CANARY TRADING COMPANY LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
9
360,717
511,643
Tangible assets
10
4,495,292
2,441,931
Investments
11
3,773,753
3,773,753
8,629,762
6,727,327
Current assets
Stocks
13
155,615
157,787
Debtors
14
2,298,839
2,537,156
Cash at bank and in hand
54,020
922,685
2,508,474
3,617,628
Creditors: amounts falling due within one year
15
(4,769,161)
(3,262,602)
Net current (liabilities)/assets
(2,260,687)
355,026
Total assets less current liabilities
6,369,075
7,082,353
Creditors: amounts falling due after more than one year
16
(6,061,469)
(6,392,564)
Provisions for liabilities
Deferred tax liability
18
933
-
0
(933)
-
Net assets
306,673
689,789
Capital and reserves
Called up share capital
20
200,000
200,000
Retained earnings
106,673
489,789
Total equity
306,673
689,789
CANARY TRADING COMPANY LTD
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025
31 March 2025
- 10 -

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s loss for the year was £383,116 (2024 - £501,860 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 23 June 2026 and are signed on its behalf by:
23 June 2026
Mr AM Mansour
Director
Company registration number 01933854 (England and Wales)
CANARY TRADING COMPANY LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 April 2023
200,000
1,812,409
2,012,409
Year ended 31 March 2024:
Loss and total comprehensive income
-
(700,292)
(700,292)
Balance at 31 March 2024
200,000
1,112,117
1,312,117
Year ended 31 March 2025:
Loss and total comprehensive income
-
(136,947)
(136,947)
Balance at 31 March 2025
200,000
975,170
1,175,170
CANARY TRADING COMPANY LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 April 2023
200,000
991,649
1,191,649
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
(501,860)
(501,860)
Balance at 31 March 2024
200,000
489,789
689,789
Year ended 31 March 2025:
Profit and total comprehensive income
-
(383,116)
(383,116)
Balance at 31 March 2025
200,000
106,673
306,673
CANARY TRADING COMPANY LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
701,382
460,435
Interest paid
(434,768)
(476,181)
Income taxes paid
(61,470)
(104,095)
Net cash inflow/(outflow) from operating activities
205,144
(119,841)
Investing activities
Purchase of intangible assets
(384,569)
(1,469,208)
Proceeds from disposal of intangibles
326,158
(35,240)
Purchase of tangible fixed assets
(650,781)
(398,993)
Proceeds from disposal of tangible fixed assets
6,000
(18,213)
Proceeds from disposal of subsidiaries, net of cash disposed
100
155,000
Proceeds from disposal of investments
(53,453)
53,453
Net cash used in investing activities
(756,545)
(1,713,201)
Financing activities
Repayment of bank loans
(344,295)
(310,903)
Net cash used in financing activities
(344,295)
(310,903)
Net decrease in cash and cash equivalents
(895,696)
(2,143,945)
Cash and cash equivalents at beginning of year
1,091,808
3,235,753
Cash and cash equivalents at end of year
196,112
1,091,808
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
1
Accounting policies
Company information

Canary Trading Company Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 9 Lydford Road, London, NW2 5QY.

The group consists of Canary Trading Company Limited and all of its subsidiaries.

1.1
Basis of preparation

These consolidated financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these consolidated financial statements are rounded to the nearest £.

The consolidated financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

1.2
Business combinations

In the parent company consolidated financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group consolidated financial statements consist of the consolidated financial statements of the parent company Canary Trading Company Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All consolidated financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the consolidated financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s consolidated financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

A t the time of approving the consolidated financial statements, t he directors have a reasonable expectation that the group and parent company ha ve adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.

1.5
Revenue

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years. The amortisation charge is recognised within administrative expenses in the statement of profit or loss.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% straight line
Leasehold buildings
10% straight line
Fixtures and fittings
15% reducing balance method
Motor vehicles
25% reducing balance method

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company consolidated financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 17 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the g roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent c ompany consolidated financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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

Basic 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 m ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts 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 cost, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -
1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

As lessor

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Fixed assets

Management apply judgement on the estimated useful life of each class of fixed assets.

Impairment of goodwill

Management establishes a reliable estimate of the useful life of goodwill arising on the business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of each cash generating units to which goodwill is attributed, any legal, regulatory or contractual provisions that can limit the useful life and assumptions that market participants would consider in respect of similar businesses.

3
Turnover and other revenue

All sales are generated in the United Kingdom. A split of sales generated by class has not been provided as it would be prejudicial to the business.

2025
2024
£
£
Other revenue
Rental income
130,460
125,299
4
Operating profit/(loss)
2025
2024
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's consolidated financial statements
4,000
5,000
Depreciation of tangible fixed assets
69,534
16,184
(Profit)/loss on disposal of tangible fixed assets
(9,266)
18,213
Amortisation of intangible assets
434,848
434,066
(Profit)/loss on disposal of intangible assets
(50,133)
35,240
Operating lease charges
276,966
216,438
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Directors
2
2
2
2
Dispensing and counter staff
98
91
17
17
Total
100
93
19
19

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
1,934,150
1,554,356
347,150
281,424
Social security costs
96,720
96,220
6,535
12,775
Pension costs
27,023
24,688
3,925
2,935
2,057,893
1,675,264
357,610
297,134
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
24,000
24,000
7
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
434,768
476,181
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(19,712)
Adjustments in respect of prior periods
-
0
34,222
Total current tax
-
0
14,510
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
8
Taxation
2025
2024
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
22,586
4,409
Total tax charge
22,586
18,919

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Loss before taxation
(114,361)
(681,373)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2024: 19.00%)
(28,590)
(129,461)
Tax effect of expenses that are not deductible in determining taxable profit
-
0
677
Gains not taxable
(11,475)
(29,450)
Unutilised tax losses carried forward
497
78,261
Group relief
(62,799)
-
0
Permanent capital allowances in excess of depreciation
(23,729)
60,261
Depreciation on assets not qualifying for tax allowances
17,384
-
0
Amortisation on assets not qualifying for tax allowances
108,712
-
0
Under/(over) provided in prior years
-
0
34,222
Deferred tax
22,586
4,409
Taxation charge
22,586
18,919
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2024
9,921,974
Additions
384,569
Disposals
(520,000)
At 31 March 2025
9,786,543
Amortisation and impairment
At 1 April 2024
3,466,060
Amortisation charged for the year
434,848
Disposals
(69,875)
At 31 March 2025
3,831,033
Carrying amount
At 31 March 2025
5,955,510
At 31 March 2024
6,455,914
Company
Goodwill
£
Cost
At 1 April 2024
938,523
Disposals
(130,000)
At 31 March 2025
808,523
Amortisation and impairment
At 1 April 2024
426,880
Amortisation charged for the year
40,426
Disposals
(19,500)
At 31 March 2025
447,806
Carrying amount
At 31 March 2025
360,717
At 31 March 2024
511,643
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 25 -
10
Tangible fixed assets
Group
Freehold buildings
Leasehold buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2024
2,436,934
108,892
330,904
3,650
2,880,380
Additions
2,099,997
-
0
79,568
-
0
2,179,565
Disposals
-
0
-
0
(6,551)
-
0
(6,551)
At 31 March 2025
4,536,931
108,892
403,921
3,650
5,053,394
Depreciation and impairment
At 1 April 2024
-
0
108,892
265,400
3,319
377,611
Depreciation charged in the year
45,369
-
0
24,082
83
69,534
Eliminated in respect of disposals
-
0
-
0
(3,817)
-
0
(3,817)
At 31 March 2025
45,369
108,892
285,665
3,402
443,328
Carrying amount
At 31 March 2025
4,491,562
-
0
118,256
248
4,610,066
At 31 March 2024
2,436,934
-
0
65,504
331
2,502,769
Company
Freehold buildings
Leasehold buildings
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2024
2,436,934
62,473
90,073
2,589,480
Additions
2,099,997
-
0
-
0
2,099,997
Disposals
-
0
-
0
(4,051)
(4,051)
At 31 March 2025
4,536,931
62,473
86,022
4,685,426
Depreciation and impairment
At 1 April 2024
-
0
62,473
85,076
147,549
Depreciation charged in the year
45,369
-
0
658
46,027
Eliminated in respect of disposals
-
0
-
0
(3,442)
(3,442)
At 31 March 2025
45,369
62,473
82,292
190,134
Carrying amount
At 31 March 2025
4,491,562
-
0
3,730
4,495,292
At 31 March 2024
2,436,934
-
0
4,997
2,441,931

All the assets of the Company and Group are charged as security for the bank loans.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Tangible fixed assets
(Continued)
- 26 -

The carrying amount of freehold land and buildings at the balance sheet date was £4,491,562, of which £2,245,781 has been attributed to land and £2,245,781 to buildings. The directors have applied a 50:50 apportionment between land and buildings based on their assessment of the relative values of each component at the date of acquisition.

11
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
3,773,753
3,773,753
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2024 and 31 March 2025
3,773,753
Carrying amount
At 31 March 2025
3,773,753
At 31 March 2024
3,773,753
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Manor Pharmacy (Wheathampstead) Limited
England & Wales
Ordinary
100.00
-
My Pharmacy Limited
England & Wales
Ordinary
100.00
-
Pampard Pharmacy Limited
England & Wales
Ordinary
0
100.00
13
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Finished goods and goods for resale
988,481
1,003,617
155,615
157,787

The carrying amount of stocks includes £ £988,481 (2024 - £ £1,003,617) pledged as security for liabilities.

CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 27 -
14
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,212,056
941,317
227,171
218,047
Amounts owed by group undertakings
-
0
-
0
1,840,281
2,211,032
Other debtors
339,073
315,971
207,656
81,266
Prepayments and accrued income
79,347
67,539
23,731
26,811
1,630,476
1,324,827
2,298,839
2,537,156
15
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
17
320,957
334,157
320,957
334,157
Trade creditors
1,752,772
1,690,597
287,766
304,366
Amounts owed to group undertakings
-
0
-
0
185,000
100,000
Corporation tax payable
(21,268)
40,202
-
0
-
0
Other taxation and social security
22,762
33,418
579
4,296
Other creditors
3,922,608
2,449,586
3,906,497
2,437,471
Accruals and deferred income
112,459
115,164
68,362
82,312
6,110,290
4,663,124
4,769,161
3,262,602
16
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
17
6,061,469
6,392,564
6,061,469
6,392,564
Amounts included above which fall due after five years are as follows:
Payable by instalments
4,777,642
5,055,936
4,777,642
5,055,936
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 28 -
17
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
6,382,426
6,726,721
6,382,426
6,726,721
Payable within one year
320,957
334,157
320,957
334,157
Payable after one year
6,061,469
6,392,564
6,061,469
6,392,564

Bank loans repayable within one year and after more than one year are secured by fixed and floating charges over the assets of the companies within the Group, as well as personal guarantees provided by the directors totalling £1.5 million.

Included within bank loans are 7 bank loans with terms as follows:

- Interest payable base + 2.95% per annum repayable in equal instalments up to November 2047.

- Interest payable base + 2.69% per annum repayable in equal instalments up to May 2034.

- Interest payable base + 1.59% per annum repayable in equal instalments up to January 2044.

- Interest payable base + 2.74% per annum repayable in equal instalments up to November 2037.

- Interest payable base + 2.05% per annum repayable in equal instalments up to May 2034.

- Interest payable base + 2.05% per annum repayable in equal instalments up to January 2044.

- Interest payable base + 2.05% per annum repayable in equal instalments up to May 2034.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
33,716
11,130
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
933
-
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
18
Deferred taxation
(Continued)
- 29 -
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 April 2024
11,130
-
Charge to profit or loss
22,586
933
Liability at 31 March 2025
33,716
933
19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,023
24,688

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200,000
200,000
200,000
200,000
21
Operating lease commitments
As lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
180,850
201,450
45,000
52,350
Years 2-5
554,650
608,900
180,000
180,000
After 5 years
146,350
272,950
54,000
99,000
881,850
1,083,300
279,000
331,350
CANARY TRADING COMPANY LTD
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 30 -
22
Directors' transactions

Included within other creditors is £3,904,848 (2024: £2,429,518) payable to the directors. The loan is unsecured, interest free and repayable on demand.

23
Cash generated from group operations
2025
2024
£
£
Loss after taxation
(136,947)
(700,291)
Adjustments for:
Taxation charged
22,586
18,919
Finance costs
434,768
476,181
(Gain)/loss on disposal of tangible fixed assets
(9,266)
18,213
(Gain)/loss on disposal of intangible assets
(50,133)
35,240
Amortisation and impairment of intangible assets
434,848
434,066
Depreciation and impairment of tangible fixed assets
69,534
16,184
Other gains and losses
(50,000)
(155,000)
Movements in working capital:
Decrease/(increase) in stocks
15,136
(249,458)
Increase in debtors
(200,393)
(71,557)
Increase in creditors
171,249
637,938
Cash generated from operations
701,382
460,435
24
Analysis of changes in net debt - group
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
1,091,808
(895,696)
196,112
Borrowings excluding overdrafts
(6,726,721)
344,295
(6,382,426)
(5,634,913)
(551,401)
(6,186,314)
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