REGISTERED NUMBER: 01633743 (England and Wales)

CROSSFOLD ELECTRICAL WHOLESALERS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

L B Silver

D A Silver

S A Silver

SECRETARY:

L B Silver

REGISTERED OFFICE:

Unit 11 and 12

Prospect Business Park

Langston Road

Loughton

Essex

IG10 3TR

REGISTERED NUMBER:

01633743 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

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

REVIEW OF BUSINESS

The business has continued to demonstrate resilience and sustainable growth over the last three financial years. Following a period of exceptional expansion in earlier years, 2024 represented a planned year of consolidation, with turnover reducing marginally by 1.1% to £27.5 million (2023: £27.8 million). Despite the slight reduction in revenue, gross profit increased from £6.7 million to £7.1 million, with the gross profit margin improving from 24.0% to 26.0%, reflecting an improved sales mix and continued focus on profitability.

During the year ended 31 December 2025, the business returned to strong growth, with turnover increasing by 18.7% to £32.6 million. Gross profit also increased significantly to £8.2 million, with the business maintaining a healthy gross profit margin of 25.2%. The directors are pleased with the company's performance, which demonstrates the strength of the business model and provides a solid platform for future growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are aware of the pitfalls of the construction industry but believe the Company has positioned itself within its core market to be able to take advantage of and respond to changes in the market.

Liquidity risk

The Director's view is that the Company's exposure to any liquidity issues is low. The Directors undertake regular reviews of its day-to-day cash requirements, and, in their opinion, the Company has sufficient working capital and access to additional funds to meet its needs. In addition, customers have continued to pay promptly despite the difficult trading conditions.

Credit risk

The Company's credit risk is primarily attributable to trade receivables with its key customers, some of whom are low risk local authorities & housing associations.

Customers are regularly vetted for any potential issues. All new customers are given a credit check and any credit terms are agreed based on the results of those checks. Furthermore, the Company has credit insurance on most of its customers.

Supply chain

The company purchases from UK suppliers and though those may get supplies from abroad, in general, the supply chain held up well following Brexit and the increase in import regulations, the COVID-19 pandemic, Russia-Ukraine conflict and latterly the tariff issues.

Payment of creditors

The Company has agreed trading terms with its suppliers and the Directors ensure that payments are made within those credit arrangements. The Company maintains strong relationships with its suppliers.

KEY PERFORMANCE INDICATORS

In the opinion of the Directors, the critical key performance indicator for the Company is the gross profit margin achieved - and the target is set at 24% annually.

The gross profit margin was 24% in 2023 and was 26% in 2024. In 2025 the company continues to hit its targets with a gross profit margin of 25%.

DEVELOPMENT AND PERFORMANCE

Following the Grenfell Tower tragedy, a significant amount of turnover was relating to smoke detectors which are low margin products, and this partly explains the reduction in the gross margin between 2018 to 2020. As proportionately fewer and fewer of these are purchased, the knock-on effect is that the gross profit margin increases.

The business moved premises in August 2019 primarily to take advantage of larger warehouse space but also better road links The growth in the business since the pandemic has meant that a further warehouse was taken on in a prior year. As the business continues to expand, the Directors will continue to look out for further suitable warehousing opportunities.

Stock levels have increased significantly at the year-end up by 26% to £2.9m, this is due to the stocking up ahead of the 2026 year. The Directors constantly review stock performance/turnover and are aware when stock needs to be replenished or where sales for product has slowed. These reviews ensure that very little stock ends up being treated as obsolete.

The increase in paperwork brought about by the rapid growth has resulted in the streamlining of the purchase processing via automated software.

FUTURE DEVELOPMENTS

During 2025, average employee numbers have increased by 4 to 43 due to new employees being taken on part way through 2025. The company is budgeting for an increase of seven further employees during 2026 despite the impact of the national insurance increases in March 2025.

ON BEHALF OF THE BOARD:

L B Silver - Director

15 July 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of electrical wholesalers.

DIVIDENDS

The total distribution of dividends for the period ended 31st December 2025 is £1,291,862.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

L B Silver

D A Silver

S A Silver

Other changes in directors holding office are as follows:

S Silver - resigned 31 October 2025

A Silver - deceased 9 July 2025

CHARITABLE DONATIONS

In the year under review, donations have been made totalling £15,804 including one payment of £3,000 to The Greggs Foundation, to support those in need in the local community.

DISCLOSURE IN THE STRATEGIC REPORT

Disclosures on KPIs, review of business and principal risks and uncertainties have been made in the Strategic report.

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 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.

ON BEHALF OF THE BOARD:

L B Silver - Director

15 July 2026

Opinion

We have audited the financial statements of Crossfold Electrical Wholesalers Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

Objectives

The objectives of our audit in respect of fraud, are;

- to identify and assess the risks of material misstatement of the financial statements due to fraud;

- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and

- to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Audit Approach

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Consumer Rights Act, the Consumer Protection (Distance Selling) Regulations, Companies Act 2006, FRS 102, and UK taxation legislation.

- We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.

- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance. We used our knowledge of the Company and the industry in which it operates to determine if management's explanations were consistent with our own conclusions.

- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business.Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area.

- No instances of fraud, non-compliance or suspected non-compliance with laws and regulations were identified from the above procedures.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Context of the ability of the audit to detect fraud or breaches of law or regulation

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. For example, 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.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance 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.

Stephanie Williams (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

15 July 2026

TURNOVER

32,598,090

27,461,609

Cost of sales

(24,386,943

)

(20,321,908

)

GROSS PROFIT

8,211,147

7,139,701

Administrative expenses

(3,655,352

)

(3,047,137

)

4,555,795

4,092,564

Other operating income

6,878

23,647

OPERATING PROFIT

5

4,562,673

4,116,211

Interest receivable and similar income

202,714

130,500

4,765,387

4,246,711

Interest payable and similar expenses

6

(532

)

-

PROFIT BEFORE TAXATION

4,764,855

4,246,711

Tax on profit

7

(1,203,800

)

(1,058,325

)

PROFIT FOR THE FINANCIAL YEAR

3,561,055

3,188,386

PROFIT FOR THE YEAR

3,561,055

3,188,386

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,561,055

3,188,386

FIXED ASSETS

Tangible assets

9

1,211,598

1,196,523

Investments

10

1,300

1,300

1,212,898

1,197,823

CURRENT ASSETS

Stocks

11

2,920,907

2,312,350

Debtors

12

7,609,843

5,055,743

Cash at bank and in hand

6,481,455

5,314,785

17,012,205

12,682,878

CREDITORS

Amounts falling due within one year

13

6,998,489

4,930,280

NET CURRENT ASSETS

10,013,716

7,752,598

TOTAL ASSETS LESS CURRENT LIABILITIES

11,226,614

8,950,421

PROVISIONS FOR LIABILITIES

15

43,000

36,000

NET ASSETS

11,183,614

8,914,421

CAPITAL AND RESERVES

Called up share capital

16

54,320

54,320

Share premium

17

1,889,288

1,889,288

Retained earnings

17

9,240,006

6,970,813

11,183,614

8,914,421

The financial statements were approved by the Board of Directors and authorised for issue on 15 July 2026 and were signed on its behalf by:

L B Silver - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

54,320

4,956,847

1,889,288

6,900,455

Changes in equity

Dividends

-

(1,174,420

)

-

(1,174,420

)

Total comprehensive income

-

3,188,386

-

3,188,386

Balance at 31 December 2024

54,320

6,970,813

1,889,288

8,914,421

Changes in equity

Dividends

-

(1,291,862

)

-

(1,291,862

)

Total comprehensive income

-

3,561,055

-

3,561,055

Balance at 31 December 2025

54,320

9,240,006

1,889,288

11,183,614

Cash flows from operating activities

Cash generated from operations

1

3,431,658

5,136,998

Interest paid

(532

)

-

Tax paid

(1,098,113

)

(1,034,174

)

Net cash from operating activities

2,333,013

4,102,824

Cash flows from investing activities

Purchase of tangible fixed assets

(77,195

)

(47,723

)

Sale of tangible fixed assets

-

12,788

Interest received

202,714

130,500

Net cash from investing activities

125,519

95,565

Cash flows from financing activities

Equity dividends paid

(1,291,862

)

(1,174,420

)

Net cash from financing activities

(1,291,862

)

(1,174,420

)

Increase in cash and cash equivalents

1,166,670

3,023,969

Cash and cash equivalents at beginning of year

2

5,314,785

2,290,816

Cash and cash equivalents at end of year

2

6,481,455

5,314,785

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

2025

2024

£

£

Profit before taxation

4,764,855

4,246,711

Depreciation charges

62,120

42,803

Profit on disposal of fixed assets

-

(650

)

Finance costs

532

-

Finance income

(202,714

)

(130,500

)

4,624,793

4,158,364

Increase in stocks

(608,557

)

(770,350

)

(Increase)/decrease in trade and other debtors

(2,554,100

)

1,144,802

Increase in trade and other creditors

1,969,522

604,182

Cash generated from operations

3,431,658

5,136,998

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

6,481,455

5,314,785

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

5,314,785

2,290,816

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

5,314,785

1,166,670

6,481,455

5,314,785

1,166,670

6,481,455

Total

5,314,785

1,166,670

6,481,455

1.	STATUTORY INFORMATION

Crossfold Electrical Wholesalers 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The financial statements have been prepared under the historical cost convention.

The directors’ believe that the company is experiencing good levels of sales and gross margins, and that it is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

a) Accrued rebate income and impact on stock

In line with general industry practice, at times the Company receives rebates from some suppliers in relation to purchases made. At any one time there is stock held on which rebates have or are due to be received, which would reduce the actual unit cost of this stock below the initial amount invoiced. Given the low value of stock compared to total purchase levels and the resulting high stock turnover, the impact is expected to be immaterial, however the directors do make an adjustment to reflect the impact of these rebates on the stock value, and properly record stock at the lower of cost and net realisable value. The directors have estimated the impact of the purchase rebates on stock by looking at ratios of rebates, purchases and stock.

b) Depreciation and amortisation

The annual depreciation charge for tangible assets 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 current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of trade discounts, settlement discounts and value added taxes.

Turnover is recognised when the risks and rewards of ownership are passed onto the customer. This is considered to be most accurately assessed to be at the point of dispatch or collection.

Tangible fixed assets

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

Long leasehold

-

Over the term of the lease

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Tangible fixed assets are stated at costs less accumulated depreciation and accumulated impairment losses.

Note that long leasehold assets also include improvements to short leasehold property. These are depreciated over the term of the short lease.

Impairment of Assets

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

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

Unlisted investments

Investments in shares are shown at cost, where they are unlisted and there is no available open market. Any impairment to the value paid is recorded in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items. The cost of stock is derived using an average purchase price where applicable, as certain stocks are provided free of charge when certain purchasing volumes are met.

From time to time, the company holds stocks consignment from certain manufacturers. These remain the property of the manufacturer until sold. At this point the Company is advised and a sales invoice is raised to the third party. The purchase is recognised in the financial statements when the goods are shipped to the customer. The amount of consignment stocks held at the year end were Nil (2024: £103,970).

Purchase rebates

Purchase rebates from suppliers are recognised in the period in which they were earned and are credited to the profit and loss account against the value of the corresponding purchases. Rebates earned but not yet received are accrued for at the year end.

The element of purchase rebates associated with items still held in stock is credited against the closing stock figure at the year end.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Operating lease commitments

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is a finance lease or an operating lease based on the substances of the arrangement.

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

Short- term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

Provisions for liabilities

Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises.

The Company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence.

Cash and cash equivalents

Cash is represented by cash in hand and includes current account balances and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Grant income

Income received in relation to grants are classified either as relating to revenue or to assets.

Grants relating to revenue are recognised in other income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Where a timing difference arises, the income is held on the balance sheet. When received in arrears the expected income is recognises as a debtor so long as the relevant conditions have been satisfied. When received in advance of costs, the income is held as deferred income and systematically released to the profit and loss in the periods the cost is incurred.

Grants relating to assets are recognised initially as deferred income and released to other income on a systematic basis over the expected useful life of the asset.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,039,911

1,760,421

Social security costs

262,249

203,518

Other pension costs

23,952

21,271

2,326,112

1,985,210

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

2025

2024

Sales and warehousing

34

30

Administrative

5

4

Directors

4

5

43

39

Total directors remuneration for the year was £568,255 (2024: £544,270), excluding employers NI. Employers pension contributions of £1,321 (2024: £1,321) were also paid in relation to directors.

The amount recorded in relation to the highest paid director was £388,255, which relates to gross salary and bonuses, excluding employers NI. Pension contributions of £1,321 were paid in relation to the highest paid director.

One director has benefits accruing under money purchase pension schemes (2024: 1).

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

26,396

26,817

Other operating leases

204,500

187,494

Depreciation - owned assets

62,120

42,803

Profit on disposal of fixed assets

-

(650

)

Auditors' remuneration

32,390

30,070

Auditors' remuneration for compliance services

7,935

4,700

Auditor's remuneration for tax compliance services

2,000

1,505

Auditors' Remuneration - other advisory

10,225

37,468

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest payable

532

-

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

1,196,800

1,070,225

Deferred tax

7,000

(11,900

)

Tax on profit

1,203,800

1,058,325

UK corporation tax was charged at 25%) in 2024.

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

4,764,855

4,246,711

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

1,191,214

1,061,678

Effects of:

Expenses not deductible for tax purposes

9,942

6,729

Capital allowances in excess of depreciation

(4,356

)

-

Depreciation in excess of capital allowances

-

1,818

Movement in deferred tax provision

7,000

(11,900

)

Total tax charge

1,203,800

1,058,325

8.

DIVIDENDS

Total interim dividends payable in the period were £1,291,862 (2024: £1,174,420).

9.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2025

1,046,714

96,644

123,659

202,337

1,469,354

Additions

-

5,310

3,320

68,565

77,195

At 31 December 2025

1,046,714

101,954

126,979

270,902

1,546,549

DEPRECIATION

At 1 January 2025

34,017

76,598

63,915

98,301

272,831

Charge for year

11,800

6,339

9,460

34,521

62,120

At 31 December 2025

45,817

82,937

73,375

132,822

334,951

NET BOOK VALUE

At 31 December 2025

1,000,897

19,017

53,604

138,080

1,211,598

At 31 December 2024

1,012,697

20,046

59,744

104,036

1,196,523