REGISTERED NUMBER: 00642270 (England and Wales)

HENTON & CHATTELL LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Page

Company Information

1

Strategic Report

2

to

5

Report of the Director

6

to

7

Report of the Independent Auditors

8

to

10

Income Statement

11

Other Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Statement of Cash Flows

16

Notes to the Financial Statements

17

to

26

DIRECTOR:

P J Chaloner

SECRETARY:

E B Chaloner

REGISTERED OFFICE:

London Road

Nottingham

Nottinghamshire

NG2 3HW

REGISTERED NUMBER:

00642270 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

The director presents his strategic report for the year ended 30 September 2025.

REVIEW OF BUSINESS

Henton & Chattell Ltd delivered resilient trading during the year despite challenging market conditions across the UK and Ireland.

Turnover for the financial year was £38.9 million (2024: £39.5 million), representing a decrease of 1.6% compared with the prior year. Gross profit margin improved to 17% (2024: 16%), reflecting disciplined pricing, product mix improvements and continued focus on supporting the company's specialist dealer network.

Profit before tax was £50,513 (2024: £390,585). The reduction reflects increased operating costs and continued strategic investment within the business during the year.

During the year the company continued to develop its presence in the agricultural and professional groundcare sectors. A significant strategic milestone was achieved in July 2025, when the business commenced trading from its new agricultural and groundcare machinery facility in Newark, Nottinghamshire. The new site strengthens the company's presence in the East Midlands and provides dedicated sales, service and parts support for agricultural and professional groundcare equipment.

The Newark operation represents an important step in the company's long-term strategy to expand its activities within the agricultural machinery market and diversify its revenue streams across both consumer and professional sectors.

Although demand in the lawn and garden category softened during the season, the business demonstrated resilience through improved gross margins, strong supplier partnerships and continued development of its dealer and customer base.

The directors remain confident in the long-term outlook of the business, supported by the strength of its brand portfolio, established dealer network and ongoing investment in agricultural and professional groundcare markets

Market Environment

Trading conditions during the 2025 season were significantly influenced by unusual weather patterns across the UK. Data published by the UK Met Office confirmed that Spring 2025 was one of the driest on record, with rainfall substantially below the long-term average across much of England. This was followed by one of the warmest summers recorded in the UK, with prolonged periods of warm, dry weather.

These conditions materially affected the lawn and garden machinery market, as reduced grass growth across much of the country resulted in lower demand for mowing equipment during the key selling season. Industry associations reported that purchases by retailers across parts of the lawn and garden machinery sector were down by as much as 20% in certain product categories during the period.

Against this challenging market backdrop, the company continued to expand its cylinder mower range during the year. Sales in this specialist category progressed positively, supported by demand from sports turf and professional groundcare customers. Further investment resulted in the introduction of new cylinder mower models at industry trade events in Autumn 2025, focused on stadium and professional turf maintenance applications. The year also saw the launch of a number of additional new products across the company's range, which were well received by dealers and customers.

.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continually review the principal risks and uncertainties facing the business and take appropriate steps to mitigate their potential impact.

Demand for garden, groundcare and agricultural machinery is influenced by wider economic conditions, including consumer confidence, inflation and levels of public and private sector investment. The company mitigates this risk through diversification across multiple customer segments, including specialist dealers, commercial groundcare operators and the agricultural sector.

Sales within the lawn and garden sector are strongly influenced by seasonal weather patterns. Unusual weather conditions, such as prolonged periods of drought or excessive rainfall, can materially affect demand for mowing equipment. The company mitigates this risk through maintaining a broad product range, diversified markets and flexible stock management.

Global supply chains remain subject to disruption due to geopolitical events, freight capacity constraints and shipping delays. The company works closely with its supplier partners to manage lead times, maintain appropriate stock levels and ensure continuity of supply.

The industry continues to evolve with the increasing adoption of battery-powered machinery and other emerging technologies. The company actively collaborates with leading manufacturers to ensure its product portfolio reflects changing market expectations and technological developments.

The business operates in a regulated environment influenced by product safety standards, environmental legislation and international trade requirements. The company monitors regulatory developments and ensures compliance through ongoing review of its operational processes and supplier partnerships.

Through careful monitoring and proactive management of these risks, the directors believe the company is well positioned to respond to changing market conditions and pursue its long-term strategic objectives.

SECTION 172(1) STATEMENT

For the financial year ended 30th September 2025, the directors of Henton and Chattell Ltd confirm their commitment to fulfilling their responsibilities under Section 172(1) of the Companies Act 2006. In doing so, they have acted in good faith to promote the long-term success of the company for the benefit of its shareholders, while considering the interests of stakeholders including employees, customers, suppliers, and the wider community.

Long-Term Strategy and Decision-Making

The company supplies garden, groundcare, and agricultural machinery across the UK and Europe, serving specialist retailers, e-commerce platforms, and professional users such as golf courses, landscape contractors, local authorities, and farmers. The directors hold regular board meetings to review and refine the company’s strategic objectives, ensuring key decisions align with long-term growth and sustainability.

Customer and supplier consultation plays a crucial role in identifying market trends, risks, and opportunities, helping to shape strategic direction. The company continues to invest in R&D for new Cobra-branded products and is in the process of acquiring an additional site to expand its groundcare and agricultural business.

Employee Engagement and Development

Henton and Chattell Ltd values its employees and fosters a positive, family-oriented workplace culture. The company invests in staff training and career development through both in-house and external programs. Regular group meetings and individual discussions ensure employees are engaged and aligned with the company’s strategic objectives, while career progression opportunities help retain and motivate staff.

Customer and Supplier Relationships

The company places a strong emphasis on trust and collaboration with both customers and suppliers. Meeting and exceeding expectations is a priority, and the directors work closely with stakeholders to foster long-term partnerships. Ethical and fair business practices underpin these relationships, ensuring mutual success and sustainability.

Environmental and Community Impact

Henton and Chattell Ltd is committed to reducing its environmental footprint by focusing on energy efficiency, waste reduction, and the development of long-lasting, serviceable products. The company continually seeks ways to minimise its environmental impact through responsible operations and supply chain management.

Ethical Business Conduct and Reputation

Founded in 1931 as a family-owned business, Henton and Chattell Ltd has a long-standing commitment to integrity, fairness, and transparency. Policies and training programs ensure that these values remain central to all business activities. Customer service and product quality standards are fundamental to maintaining high service levels and trust across the industry.

Fairness to Shareholders and Financial Stability

The company’s shareholders are dedicated to long-term business growth and financial sustainability. As in previous years, shareholders will not be drawing a dividend this year, instead choosing to reinvest profits to support the continued expansion and success of the business. This approach enables the company to fund innovation, operational improvements, and strategic growth, ensuring a strong financial position for the future.

Conclusion

The directors remain committed to acting in the best interests of Henton and Chattell Ltd and its stakeholders. The company continues to evolve, invest, and uphold its strong ethical and financial foundations while positioning itself for sustainable success.

KEY PERFORMANCE INDICATORS

The company's key financial and other performance indicators during the year were as follows:

2025

2024

Turnover (£)

38,924,769

39,544,653

Turnover growth (%)

(1.6)

6.3

Gross profit margin (%)

17

16

Profit before tax

50,513

390,585

Performance was in line with expectations, demonstrating resilience in a complex operating environment and the effectiveness of the company’s strategic focus on margin stability and customer retention.

ON BEHALF OF THE BOARD:

P J Chaloner - Director

25 June 2026

The director presents his report with the financial statements of the company for the year ended 30 September 2025.

The directors remain confident in the company’s ability to continue delivering long-term value through disciplined growth, product innovation, and strategic investment. Despite ongoing challenges in the external environment, Henton & Chattell Ltd remains well placed to meet the evolving needs of its customers, suppliers, and stakeholders.

DIVIDENDS

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

FUTURE DEVELOPMENTS

The company continues to pursue its long-term growth ambitions by investing in infrastructure and new product development, aimed at building and consolidating market share in targeted categories.

A key milestone in January 2025 was the agreement of heads of terms for the acquisition of a regional agricultural machinery dealer in Newark. The transaction includes the transfer of employees and use of the existing site, enhancing the company’s presence in the agricultural sector and increasing its capacity to serve rural and groundcare customers.

Looking ahead to 2026, the company will launch a new, larger model within the Fortis cylinder mower range, specifically developed for the professional sports pitch market, further strengthening its presence in the high-performance turfcare sector.

These initiatives support the company’s strategic goals of market diversification, customer engagement, and sustainable growth.

DIRECTOR

P J Chaloner held office during the whole of the period from 1 October 2024 to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING

In line with new requirements from "The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, we present out streamlined energy and carbon report:

2025

2024

Units

Energy consumption

MWh

452

479

Scope 1 emissions

tCO2e

128

166

Scope 2 emissions

tCO2e

37

44

Total gross scope 1 & 2 emissions

tCO2e

165

210

Intensity ratio

tCO2e/£m

4

5

Methodology

The Government conversion factors were used to convert KWH and fuels used into CO2 emissions. The intensity ratio has been calculated with reference to CO2 equivalent (tCO2e) per GBP million revenue for the year ending 30th September 2025.

Action taken in the financial year

-We are replacing lights with LED fittings as they need upgrading.

-We have a few controls with motion sensors for areas which are not used frequently.

-We are moving to greener electric vehicles or hybrid vehicles in our fleet when these vehicles are replaced.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P J Chaloner - Director

25 June 2026

Opinion

We have audited the financial statements of Henton & Chattell Limited (the 'company') for the year ended 30 September 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 30 September 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page seven, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws and regulations as part of our financial statements audit. This included the identification and testing of unusual material journal entries and challenging management on key areas of uncertainty being the estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Employment law and Environmental regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statements items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, international omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Rachel Rudkin FCCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

25 June 2026

TURNOVER

3

38,924,769

39,544,653

Cost of sales

32,403,680

33,123,633

GROSS PROFIT

6,521,089

6,421,020

Administrative expenses

5,978,197

5,449,797

542,892

971,223

Other operating income

102,138

104,833

OPERATING PROFIT

5

645,030

1,076,056

Interest payable and similar expenses

6

594,518

685,471

PROFIT BEFORE TAXATION

50,512

390,585

Tax on profit

7

(17,084

)

125,571

PROFIT FOR THE FINANCIAL YEAR

67,596

265,014

PROFIT FOR THE YEAR

67,596

265,014

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

67,596

265,014

FIXED ASSETS

Tangible assets

8

4,242,819

4,161,134

Investment property

9

518,187

530,828

4,761,006

4,691,962

CURRENT ASSETS

Stocks

10

12,746,444

10,380,369

Debtors

11

4,839,763

4,937,992

Cash at bank and in hand

7,855

28,502

17,594,062

15,346,863

CREDITORS

Amounts falling due within one year

12

12,406,615

9,939,163

NET CURRENT ASSETS

5,187,447

5,407,700

TOTAL ASSETS LESS CURRENT LIABILITIES

9,948,453

10,099,662

CREDITORS

Amounts falling due after more than one year

13

(2,285,585

)

(2,487,306

)

PROVISIONS FOR LIABILITIES

18

(124,492

)

(141,576

)

NET ASSETS

7,538,376

7,470,780

CAPITAL AND RESERVES

Called up share capital

19

34,598

34,598

Revaluation reserve

124,451

124,451

Retained earnings

7,379,327

7,311,731

SHAREHOLDERS' FUNDS

7,538,376

7,470,780

The financial statements were approved by the director and authorised for issue on 25 June 2026 and were signed by:

P J Chaloner - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

34,598

7,044,967

126,201

7,205,766

Changes in equity

Total comprehensive income

-

266,764

(1,750

)

265,014

Balance at 30 September 2024

34,598

7,311,731

124,451

7,470,780

Changes in equity

Total comprehensive income

-

67,596

-

67,596

Balance at 30 September 2025

34,598

7,379,327

124,451

7,538,376

Cash flows from operating activities

Cash generated from operations

1

2,181,564

1,813,152

Interest paid

(566,591

)

(660,394

)

Interest element of hire purchase payments paid

(27,927

)

(25,077

)

Tax paid

(109,831

)

(76,368

)

Net cash from operating activities

1,477,215

1,051,313

Cash flows from investing activities

Purchase of tangible fixed assets

(393,317

)

(359,854

)

Sale of tangible fixed assets

-

49,384

Net cash from investing activities

(393,317

)

(310,470

)

Cash flows from financing activities

Loan repayments in year

(590,743

)

(731,798

)

Capital repayments in year

(49,874

)

-

Amount withdrawn by directors

(125,000

)

-

Receipts from sales financing

-

600,000

Repayment of other borrowing

-

(494,196

)

Net cash from financing activities

(765,617

)

(625,994

)

Increase in cash and cash equivalents

318,281

114,849

Cash and cash equivalents at beginning of year

2

(709,992

)

(824,841

)

Cash and cash equivalents at end of year

2

(391,711

)

(709,992

)

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year

67,596

265,014

Depreciation charges

324,304

329,678

Profit on disposal of fixed assets

-

(28,679

)

Finance costs

594,518

685,471

Taxation

(17,084

)

125,571

969,334

1,377,055

(Increase)/decrease in stocks

(2,366,075

)

1,752,781

Decrease in trade and other debtors

98,229

469,259

Increase/(decrease) in trade and other creditors

3,480,076

(1,785,943

)

Cash generated from operations

2,181,564

1,813,152

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 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

7,855

28,502

Bank overdrafts

(399,566

)

(738,494

)

(391,711

)

(709,992

)

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

28,502

28,745

Bank overdrafts

(738,494

)

(853,586

)

(709,992

)

(824,841

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

28,502

(20,647

)

7,855

Bank overdrafts

(738,494

)

338,928

(399,566

)

(709,992

)

318,281

(391,711

)

Debt

Finance leases

(343,199

)

49,874

(293,325

)

Debts falling due within 1 year

(3,289,426

)

442,645

(2,846,781

)

Debts falling due after 1 year

(2,307,091

)

148,067

(2,159,024

)

(5,939,716

)

640,586

(5,299,130

)

Total

(6,649,708

)

958,867

(5,690,841

)

1.	STATUTORY INFORMATION

Henton & Chattell 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.

Turnover

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

Turnover represents the sale of garden machinery and parts. Revenue is recognised when the goods are despatched.

Tangible fixed assets

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

Freehold property

-

2% on cost

Improvements to property

-

Straight line over the term of the lease

Plant and machinery

-

7.5% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investment property

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

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average cost method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Financial instruments

The company has adopted the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

Trade debtors

The company utilises a sales financing facility to generate cash flow based on the value of sales invoices raised, the customer debt then being assigned to the facility provider. The amounts due in respect of trade debtors as at the year end are included in debtors with the liability to the sales financing provider included in creditors due within one year.

Critical accounting judgements and estimation uncertainty

In the application of the Companies accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

(i) Useful economic life of property, plant and equipment

The annual deprecation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimates, based on use by the company and the physical condition of the assets.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sales of goods

38,924,769

39,544,653

38,924,769

39,544,653

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,201,038

3,015,499

Social security costs

384,973

307,124

Other pension costs

86,305

83,259

3,672,316

3,405,882