REGISTERED NUMBER: 03952398 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Period 1 April 2025 to 31 December 2025

for

The English Cheesecake Company Limited

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

to

26

DIRECTORS:

Mr D Boudy

Mr R M Muller

Mr N Taylor

Mrs R Sudhir

SECRETARY:

Mr R M Muller

REGISTERED OFFICE:

The Bakery

Gardner Road

Maidenhead

Berkshire

SL6 7TU

REGISTERED NUMBER:

03952398 (England and Wales)

AUDITORS:

Clifford Roberts

Chartered Accountants &

Statutory Auditors

Pacioli House

9 Brookfield

Duncan Close

Northampton

Northamptonshire

NN3 6WL

The directors present their strategic report for the 9 months to 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company is the wholesale and retail sales of desserts.

REVIEW OF BUSINESS

The 9 months to 31 December 2025 generated sales of £22.2m (12-month equivalent: £29.6m), representing approximately 30% pro-rata growth compared to £22.8m for the 12 months to 31 March 2025. Profit/(Loss) for the year after tax in the 9 months to 31st December 2025 is £303,298 compared to £1,125,194 in the 12 months to 31 March 2025.

The growth in turnover came within the retail sector both through winning new customers and launching new products.

The Company absorbed raw materials and labour increases throughout the period and put price increases in the latter end of the period. This adversely impacted on the gross profit margin. The EBITDA for the period was also adversely impacted by non-recurring costs in relation of the sale of the Company.

The Company was acquired by Emmi Desserts Corby Limited on 25 November 2025. The business' focus is building the brand and further developing new products across different formats which with investment in key new equipment alongside excellent customer relationships and communication will make for a strong start in 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

Exposure to price, cash flow, credit, interest rate and business risk arises in the normal course of The English Cheesecake Company Limited's business. These risks are limited by the Company's financial management policies described below:

Price Risk

The Company is exposed to commodity price risk due to its operations. The Company looks to mitigate this risk wherever possible by entering into price and volume contracts to support its performance. The volatility of the commodity market as well as increases in the packaging costs due to board costs going up, had an impact in the profit as we did not resort to price increase until late in 2025. Cost increases were mitigated wherever possible through efficiency improvements.

Cash Flow Risk

The Company is exposed to movements in working capital. To mitigate this the Company operates appropriate credit collection process to minimise overdue debts. Supplier payments are maintained to agreed terms and inventory is monitored regularly.

Credit Risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Interest Rate Risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

Business Risk

The Board has established a formal process of identifying, evaluating and managing the business risk faced, with ongoing review of progress against strategic objectives. The business risks reviewed include:

- external business risk including regulatory and compliance obligations

- operational risk arising from supplier dependency, material damage, fire

- legal risk arising from contracts with suppliers

- information risk including integrity of IT systems and security of information.

FUTURE DEVELOPMENTS

The directors expect an improvement in profitability in the coming period resulting from increasing the sales, improving gross margins and controlling overhead costs. The directors will focus on improving the efficiency of the manufacturing site by streamlining operations and further capital investment.

SUBSEQUENT EVENTS

The directors have considered events occurring after the reporting date up to the date of approval of these financial statements and have concluded that there are no adjusting or non-adjusting events requiring disclosure.

KEY PERFORMANCE INDICATORS

The Directors monitor performance of the company through monthly KPIs which include, but are not limited to:

Period 01.04.25 to 31.12.25

Year Ended 31.03.25

Net Sales

22,240,085

22,790,585

Gross Profit

8,433,357

9,212,732

EBITDA

810,844

1,979,138

GOING CONCERN

Based on forecasts and projections, together with available market information and the director's knowledge and experience of the industry, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Accordingly, the company continues to adopt the going concern basis in preparing the annual financial statements.

ON BEHALF OF THE BOARD:

Mr N Taylor - Director

29 June 2026

The directors present their report with the financial statements of the company for the period 1 April 2025 to 31 December 2025.

DIVIDENDS

Interim dividends of £278,758 (March 25: £252,499) were paid during the period. There was no recommended final dividend.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors who have held office during the period from 1 April 2025 to the date of this report are as follows:

Mr D Boudy - appointed 11 December 2025

Mr R M Muller - appointed 11 December 2025

Mr N Taylor - appointed 25 November 2025

Mrs R Sudhir - appointed 25 November 2025

Mr A P Laurier - resigned 25 November 2025

Mr J M Laurier - resigned 25 November 2025

Mr P L Weldon - resigned 25 November 2025

DISCLOSURE IN THE STRATEGIC REPORT

The principal activity, subsequent events, future developments and financial risk management objectives and policies in respect of the exposure to price, cash flow and business risks are set out in the strategic report (as defined by section 414 C (11) of the Companies Act 2006).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Clifford Roberts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr N Taylor - Director

29 June 2026

Opinion

We have audited the financial statements of The English Cheesecake Company Limited (the 'company') for the period ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 31 December 2025 and of its profit for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors 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 Directors.

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-

We obtained an understanding of the legal and regulatory framework applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006, UK Generally Accepted Accounting Practice, UK corporate taxation laws and the BRC Global Standard for Food Safety.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and by observing the oversight of management, the culture of honesty and ethical behaviour and whether strong emphasis is placed on fraud prevention, which may reduce the opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud in the first instance . We corroborated our inquiries through our review of all relevant available audit information.

-

We assessed and understood the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. The audit procedures performed by the engagement team included:

>

Identifying and assessing the design and effectiveness of controls management has in place to prevent and detect fraud;

>

Understanding of how senior management considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

>

Challenging assumptions and judgements made by management in its significant accounting estimates;

>

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and,

>

Assessing the extent of compliance with relevant laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Luke Marlow ACA (Senior Statutory Auditor)

for and on behalf of Clifford Roberts

Chartered Accountants &

Statutory Auditors

Pacioli House

9 Brookfield

Duncan Close

Northampton

Northamptonshire

NN3 6WL

30 June 2026

TURNOVER

3

22,240,085

22,790,585

Cost of sales

13,806,728

13,577,853

GROSS PROFIT

8,433,357

9,212,732

Distribution costs

3,775,071

3,349,330

Administrative expenses

4,097,438

4,297,128

7,872,509

7,646,458

560,848

1,566,274

Other operating income

-

54,693

OPERATING PROFIT

5

560,848

1,620,967

Interest receivable and similar income

4,087

11,659

564,935

1,632,626

Interest payable and similar expenses

6

99,947

118,144

PROFIT BEFORE TAXATION

464,988

1,514,482

Tax on profit

7

161,690

389,288

PROFIT FOR THE FINANCIAL PERIOD

303,298

1,125,194

PROFIT FOR THE PERIOD

303,298

1,125,194

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

303,298

1,125,194

FIXED ASSETS

Tangible assets

9

2,064,694

1,913,735

CURRENT ASSETS

Stocks

10

2,111,511

2,335,786

Debtors

11

4,331,649

4,321,105

Cash at bank

1,300,620

84,896

7,743,780

6,741,787

CREDITORS

Amounts falling due within one year

12

5,369,294

5,232,294

NET CURRENT ASSETS

2,374,486

1,509,493

TOTAL ASSETS LESS CURRENT LIABILITIES

4,439,180

3,423,228

CREDITORS

Amounts falling due after more than one year

13

(1,200,465

)

(346,699

)

PROVISIONS FOR LIABILITIES

17

(783,444

)

(701,754

)

NET ASSETS

2,455,271

2,374,775

CAPITAL AND RESERVES

Called up share capital

18

187

186

Share premium

19

7,116

-

Retained earnings

19

2,447,968

2,374,589

2,455,271

2,374,775

The financial statements were approved by the Board of Directors and authorised for issue on 29 June 2026 and were signed on its behalf by:

Mr N Taylor - Director

Called up

Share

share

Retained

Share

option

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2024

186

1,501,894

-

-

1,502,080

Changes in equity

Dividends

-

(252,499

)

-

-

(252,499

)

Total comprehensive income

-

1,125,194

-

-

1,125,194

Balance at 31 March 2025

186

2,374,589

-

-

2,374,775

Changes in equity

Issue of share capital

1

-

7,116

-

7,117

Dividends

-

(278,758

)

-

-

(278,758

)

Total comprehensive income

-

303,298

-

-

303,298

Exercise of options

-

-

-

48,839

48,839

Reserve transfer

-

48,839

-

(48,839

)

-

Balance at 31 December 2025

187

2,447,968

7,116

-

2,455,271

1.	STATUTORY INFORMATION

The English Cheesecake Company 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 English Ceesecake Company Limited has a separate principle place of business, being Unit 1 North, Oxgate Centre, Oxgate Lane, London, NW2 7JA.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (£), and cover the 9 month period to 31st December 2025. This results in the comparatives not being entirely comparable. The change of the year end from 31st March to 31st December is to fall in line with the group policy following the acquisition of the company.

Going concern

The financial statements have been prepared on a going concern basis after due consideration of the principal risks and uncertainties disclosed in the strategic report. In reaching their conclusion the directors have considered the financial position of the company and it having sufficient liquidity to enable it to meet its obligations as they fall due for a period of at least twelve months from the date of signing these financial statements.

Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

The company is included within the consolidated accounts of Emmi AG, which are available from their registered address Landenbergstrasse 1, 6002 Lucerne, Switzerland.

Significant judgements and estimates

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values 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 relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The items in the financial statements where these judgements and estimates were deemed to be significant include:

(a) Customer Rebates/Retrospective discounts

The company enters into arrangements with certain customers to pay rebates and/or retrospective discounts depending on volume achieved. These arrangements are negotiated on an individual customer basis. Accruals are recorded when goods are sold according to the terms of the contract and the expected rate at which these payments will be made.

(b) Debtors

Debtors are recorded when a sale is made. A review of the recoverability of debt is undertaken periodically through the year to determine any bad debt provision requirement.

(c) Stock valuation

Stock valuation, in accordance with FRS102, incorporates the cost of raw materials, direct labour costs associated with production and directly attributable overheads. Management reassesses the allocation of these costs at the end of each period.

(d) The determination of the useful life of assets

In determining the the useful life of assets, management estimate both the residual value and useful economic lives of assets. Both judgements rely on the experience of management.

(e) Dilapidation provision

Dilapidation are expected to be paid on the factory lease which runs to April 2032. Management obtained a professional valuation of anticipated dilapidation in 2023, completed by an independent third party.

An additional adjustment is made to the provision each year to incorporate the impact of inflation on the original valuation made.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company's activities. Turnover is shown as sales net of sales / value added tax, returns, rebates, promotions, customer marketing costs and discounts.

Turnover is recognised once the significant risks and rewards relating to a good have been transferred, which will depend on the terms of delivery of the goods.

Tangible fixed assets

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

Long leasehold

-

10% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

33% on cost

Stocks

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

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.

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.

Taxation

Taxation for the period 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to profit and loss over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight line basis over the lease term, except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Pension costs and other post-retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contributions plans are recognised as employees benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

The company operates a share option scheme under which options to subscribe for the company’s shares are granted to certain employees.

Equity-settled share-based payments are measured at the fair value of the options at the grant date. The fair value is determined using an appropriate valuation model, taking into account the terms and conditions upon which the options were granted, and is not subsequently remeasured.

The fair value is recognised as an employee expense over the vesting period, with a corresponding increase in equity. The charge is adjusted to reflect the number of options expected to vest, with an adjustment at the end of the vesting period based on actual vesting outcomes.

Where options lapse or are forfeited before vesting, any cumulative expense previously recognised is reversed.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Interest bearing borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Dividends

Dividend distribution to the companys shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

United Kingdom

22,240,085

22,790,585

22,240,085

22,790,585

4.	EMPLOYEES AND DIRECTORS

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

Wages and salaries

5,404,598

5,261,960

Social security costs

693,297

508,225

Other pension costs

142,343

186,087

6,240,238

5,956,272

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

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

Production

147

123

Sales, technical, management and admin

48

55

195

178

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

Directors' remuneration

136,479

207,532

Directors' pension contributions to money purchase schemes

80,881

121,321

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

Hire of plant and machinery

29,202

31,154

Other operating leases

259,526

301,297

Depreciation - owned assets

248,927

358,171

Loss on disposal of fixed assets

1,069

-

Auditors' remuneration

17,500

25,900

Auditors' remuneration for non audit work

2,500

-

Foreign exchange differences

4,806

4,436

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

Bank loan interest

63,219

79,396

Group loan interest

4,260

-

Interest payable

578

3,561

Hire purchase

1,553

2,070

Discount unwinding

30,337

33,117

99,947

118,144

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

Current tax:

UK corporation tax

110,337

407,524

Deferred tax

51,353

(18,236

)

Tax on profit

161,690

389,288

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.4.25

to

Year Ended

31.12.25

31.3.25

£

£

Profit before tax

464,988

1,514,482

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

116,247

378,621

Effects of:

Expenses not deductible for tax purposes

29,627

10,818

Capital allowances in excess of depreciation

(35,537

)

-

Depreciation in excess of capital allowances

-

18,085

Deferred tax

51,353

(18,236

)

Total tax charge

161,690

389,288