The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

The director has considered the company's financial position and its ability to continue as a going concern. The company incurred a loss before tax of £48,257 for the financial year ended 31 December 2025 and had net assets of £1,403,861 at that date.

The loss for the year was significantly impacted by non-recurring items, including a loss on disposal of tangible fixed assets of £277,656 and foreign exchange losses of £267,585. Excluding these items, the company would have generated a profit before tax for the year.

The company is dependent on financial support from other group entities to enable it to meet its liabilities as they fall due. The director has received confirmation from the parent company that sufficient financial resources will be made available to the company, if required, to enable it to meet its obligations as they fall due and that such support will remain available for at least twelve months from the date of approval of these financial statements.

Having made due enquiries and considering the factors described above, the director has a reasonable expectation that the company has and will have adequate resources to continue in operational existence for the foreseeable future. For this reason, the director continues to adopt the going concern basis in preparing the financial statements.

The recognition of deferred tax assets is based on whether it is probable that sufficient taxable profits will be available in future periods against which deductible temporary differences and tax losses carried forward can be utilised. Where deferred tax assets relate to tax losses carried forward, consideration is given to the availability of future taxable profits against which those losses can be offset.

The company has recognised a deferred tax asset of £762,300 at 31 December 2025 (2024: £837,178). The recognition of this asset requires judgement regarding the company's ability to generate sufficient future taxable profits against which the underlying tax losses and deductible temporary differences can be utilised. Accordingly, the recoverability of the deferred tax asset is dependent on the company's future profitability.

In assessing the recoverability of the deferred tax asset, the director has reviewed the company's budgets and forecasts, including projected taxable profits for future periods. Based on this review, the director is satisfied that it is probable that sufficient taxable profits will arise against which the tax losses carried forward and other deductible temporary differences can be utilised. Accordingly, the deferred tax asset has been recognised in the financial statements.

Tangible fixed assets consists of long leasehold property and fixtures, fittings and equipment. The company capitalised leasehold improvement costs under long leasehold property and the cost is depreciated on a straight line basis over the lease term of the property. Judgement is required in determining the estimated useful life.

Assets should be reviewed for impairment annually. The requirement to account for an impairment charge depends primarily on the estimated useful economic life of the asset, estimates of residual values and the company's ability to generate cashflows from the assets use. The director regularly reviews the asset's useful economic life and changes it as necessary to reflect current thinking on remaining life in light of prospective economic utilisation and physical condition of the assets concerned. Changes in the asset's useful life can have a significant impact on amortisation charges and depreciation for the period. Details of the useful economic lives is included in the accounting policies.

Trade debtors are recoverable in accordance with standard commercial terms.

Accrued income includes amounts of £923,102 (2024: £1,228,427) to be invoiced to group undertakings and is recoverable in accordance with standard commercial terms.

Amounts owed by group undertakings are unsecured, interest free and are repayable on demand.

Amounts owed to group undertakings are unsecured, interest free and are payable within 120 days from the date of invoice.

Trade creditors, other creditors and accruals are payable in accordance with standard commercial credit terms.

Taxation is payable in accordance with the statutory provisions.

The registred address of SCTH Srl is Via Di Tizziano 169. Bagno A Ripoli (FI), CAP 50012, Italy.

Dernamaria SRL prepares consolidated financial statements which include Ermanno Scervino Limited.

Mr. Toni Scervino owns 99% of the share capital in the ultimate parent undertaking company SCTH Srl and is therefore considered both the controlling and ultimate controlling party.