REGISTERED NUMBER: 05887957 (England and Wales)

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 January 2026

for

Godfreys I.T. Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Balance Sheet

12

Notes to the Financial Statements

13

Directors:

Mr D P Palmer

Mr L Haggar-Pietrzak

Mr M P Parker

Registered office:

5-7 Pinbush Road

Lowestoft

Suffolk

NR33 7NL

Registered number:

05887957 (England and Wales)

Auditors:

Stephenson Smart (East Anglia) Limited

Chartered Accountants & Statutory Auditors

22-26 King Street

King's Lynn

Norfolk

PE30 1HJ

The directors present their strategic report for the year ended 31 January 2026.

Business review

The principal activity of the Company is the sale and distribution of power tools and accessories, hand tools, fixings, consumables, garden products, plumbing supplies, and complete kitchen and bathroom solutions. The Company operates through multiple online sales channels, including its own website, alongside a retail presence from its headquarters in Lowestoft.

The year ended 31 January 2026 represented a resilient trading performance against challenging economic conditions. During the year, the UK economy continued to experience elevated interest rates and inflationary pressures. Although the Bank of England reduced interest rates from 4.5% to 3.75% during the period, borrowing costs remained at their highest levels for over a decade, continuing to impact consumer confidence and household spending.

Despite these economic pressures, the Company delivered a resilient performance, with revenue decreasing by approximately 6% compared with the prior year. Inflationary increases in operating costs, wages, utilities, and product sourcing continued to place pressure on margins throughout the period. In response, management maintained a strong focus on cost control, operational efficiencies, and prudent purchasing strategies to protect profitability.

The Company continued to expand its online presence through the addition of further online marketplace channels, enabling wider market reach and improved customer accessibility.

The Company continued to invest in its long-term infrastructure and future growth through the successful implementation of a new ERP system for stock and accounts management, which became operational during the year. The new system has enhanced operational efficiency and provides a scalable platform to support the Company's future growth plans.

The Employee Ownership Trust ("EOT") structure continues to support the long-term continuity and independence of the business and has contributed positively to employee engagement and workforce stability.

Results and performance

The results of the Company for the year, as set out in pages 11 to 25, show a profit before tax of £918,086 (2025: £928,775).

In the current year dividends were paid of £707,238 (2025: £3,160,400) to enable the holding company to have sufficient reserves to make capital contributions to the Employee Ownership Trust as explained further above.

On 31 January 2026, the Member's funds of the Company totalled £3,356,485 (2025: £3,378,902).

Strategy

The Company's strategy remains focused on expanding its online market presence within domestic markets while maintaining strong profitability and operational efficiency.

Management continues to invest in technology, systems, infrastructure, and people to support sustainable long-term growth and enhance customer experience across all sales channels.

Principal risks and uncertainties

The principal risks faced by the Company through its normal business activities include market risk, credit risk, liquidity risk, health and safety, and wider economic risks arising from inflationary pressures and changes in interest rates. The Company seeks to mitigate these risks through active management, prudent financial controls, and ongoing monitoring of market conditions.

Market risk

The online retail sector remains highly competitive and subject to changing consumer preferences and economic conditions. The Company mitigates market risk through continued investment in its infrastructure, operational efficiencies, and customer offering to support long-term sustainable growth.

Credit risk

The Company's principal financial assets comprise cash balances, trade receivables, and other receivables. Credit risk associated with trade receivables is considered limited due to the Company's broad and diversified customer base, resulting in no significant concentration of exposure. Where appropriate, external credit reference agencies are used to support customer risk assessments. Amounts receivable from online marketplace platforms and other counterparties are predominantly held with established blue-chip organisations, thereby reducing overall credit risk exposure. Management regularly monitors outstanding balances and maintains relationships with a range of providers to further mitigate risk.

Liquidity risk

Liquidity risk is managed through the maintenance of appropriate cash reserves, bank facilities, and regular monitoring of forecast and actual cash flows. The Company maintains strong relationships with suppliers and lenders to ensure sufficient credit facilities remain available to support trading activities.

The directors are satisfied that the Company maintains adequate liquidity and is not exposed to significant liquidity risk.

Health and safety risk

The Board is committed to maintaining a safe working environment for employees, customers, contractors, and visitors. Health and safety performance is regularly reviewed by management to ensure appropriate standards, procedures, and compliance measures are maintained across the business.

Economic risk

The Company operates within an economic environment impacted by inflationary pressures, changes in interest rates, wage inflation, and softer consumer confidence, all of which may affect consumer spending and operating costs.

Management regularly reviews these factors and incorporates them into operational planning, pricing strategies, and financial forecasting processes.

Key performance indicators

The directors use several financial and operational measures to monitor business performance and efficiency.

2026

2025

Sales £m

23.0

25.0

Gross profit £m

7.10

7.62

Gross margin %

30.9

31.0

EBITDA £m

1.03

1.03

Other indicators monitored by the directors include:

Stock turn

Target: 6 times

Current ratio

Target: 2 or more

Stakeholder engagement

The Company is wholly owned by an Employee Ownership Trust ("EOT") established and administered within England and Wales for the benefit of all employees. The EOT structure provides employees with an indirect long-term interest in the success of the business and supports the long-term independence and continuity of the business.

The Buyaparcel Trustee Board entrusts the day-to-day management of the business to the Board of Directors of Godfreys I.T. Limited.

The Company provides regular updates to all teams across the business which reinforce the Company's culture, values, and ethical standards.

Employees are encouraged to contribute to the development of the business through employee representation and an active staff suggestion scheme, under which ideas and recommendations are reviewed and considered by management.

The Company remains committed to providing secure, fairly rewarded employment within an equal opportunities environment. The business values employee wellbeing, engagement, and development and does not utilise zero-hours contracts.

Future developments

The Company will continue to invest in systems, infrastructure, operational efficiencies, and personnel to support forecast growth and further expansion of its domestic online offering.

Post Balance sheet events

There have been no significant events affecting the Company since the balance sheet date.

On behalf of the board:

Mr M P Parker - Director

15 July 2026

The directors present their report with the financial statements of the company for the year ended 31 January 2026.

Dividends

Particulars of dividends declared are detailed in the strategic report and note 10 to the financial statements.

Results

The profit for the year, after taxation, amounted to £684,821 (2025: £695,850).

Directors

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

Mr D P Palmer

Mr L Haggar-Pietrzak

Mr M P Parker

Financial instruments and financial risk management policies

Financial instruments and financial risk management policies are discussed in the Strategic Report.

Future developments

The future developments of the business are discussed in the Strategic report.

Disclosure in the strategic report

In accordance with The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013, the review of the development and performance of the business, including key performance indicators, is contained in the Strategic Report.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' Report 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

Auditors

The auditors, Stephenson Smart (East Anglia) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Mr M P Parker - Director

15 July 2026

Opinion

We have audited the financial statements of Godfreys I.T. Limited (the 'company') for the year ended 31 January 2026 which comprise the Statement of Income and Retained Earnings, Balance Sheet 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 January 2026 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 Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report 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 Directors' Report.

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 five, 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:

Discussions with and enquiries of management and those charged with governance were held with a view to identify those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include the UK financial reporting standards, Company Law, Taxation and Pension legislation and distributable profits legislation.

- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include but are not limited to; health and safety legislation; employment regulations; UK General Data Protection regulations; HSE classification on labelling and packaging regulations; Import customs legislation and FCA for consumer credit regulations.

Audit procedures undertaken in response to the potential risks relating to irregularities (which includes fraud and non-compliance with laws and regulations) comprised of: Inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical reviews to identify unexpected movement in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than those irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements might not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).

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.

Michael Andrews FCA (Senior Statutory Auditor)

for and on behalf of Stephenson Smart (East Anglia) Limited

Chartered Accountants & Statutory Auditors

22-26 King Street

King's Lynn

Norfolk

PE30 1HJ

15 July 2026

Turnover

4

22,963,267

24,536,816

Cost of sales

(15,861,267

)

(16,919,737

)

Gross profit

7,102,000

7,617,079

Selling and distribution costs

(4,336,403

)

(5,001,007

)

Administrative expenses

(1,817,032

)

(1,674,120

)

Operating profit

6

948,565

941,952

Interest receivable and similar income

50,221

39,621

998,786

981,573

Interest payable and similar expenses

8

(80,700

)

(52,798

)

Profit before taxation

918,086

928,775

Tax on profit

9

(233,265

)

(232,925

)

Profit for the financial year

684,821

695,850

Retained earnings at beginning of year

3,378,780

5,843,330

Dividends

10

(707,238

)

(3,160,400

)

Retained earnings at end of year

3,356,363

3,378,780

Fixed assets

Intangible assets

11

14,239

6,902

Tangible assets

12

1,207,222

1,254,217

1,221,461

1,261,119

Current assets

Stocks

13

2,963,628

2,905,920

Debtors

14

1,774,905

1,276,542

Cash at bank and in hand

1,717,222

1,996,495

6,455,755

6,178,957

Creditors

Amounts falling due within one year

15

(3,160,344

)

(2,822,637

)

Net current assets

3,295,411

3,356,320

Total assets less current liabilities

4,516,872

4,617,439

Creditors

Amounts falling due after more than one year

16

(1,126,124

)

(1,197,059

)

Provisions for liabilities

20

(34,263

)

(41,478

)

Net assets

3,356,485

3,378,902

Capital and reserves

Called up share capital

21

98

98

Capital redemption reserve

22

24

24

Retained earnings

22

3,356,363

3,378,780

Shareholders' funds

3,356,485

3,378,902

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:

Mr M P Parker - Director

1.	Statutory information

Godfreys I.T. 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.

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 financial statements have been prepared on a going concern basis, under the historical cost convention. All accounting policies have been applied consistently.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Figures are rounded to the nearest whole pound sterling.

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 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Buyaparcel Limited as at 31 January 2026 and these financial statements may be obtained from companies house.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. No judgements (apart from those involving estimates) have been made when preparing the financial statements.

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

(a) Rebate provisions

A provision for rebates receivable has been calculated based on spend with the relevant suppliers. Not all spend qualifies for the rebate with some elements of spend counting towards achieving the target but are not treated as spend when working out the rebate receivable. An estimate is required where the supplier has not yet finalised the qualifying spend.

(b) Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

(c) Stocks

The carrying amount of stocks recognised on the balance sheet are subject to estimates around rates of provision applied to certain inventory items. The level of provisions recorded are subject to estimation uncertainty in determining the eventual sales price of goods to customers in the future, as well as assessing which items may be slow-moving or obsolete.

Foreign currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. The exchange rate used for imports from the EU are converted at the rate imposed by HMRC for the month of import and customs declaration.

Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of comprehensive income.

Revenue recognition

Turnover represents the supply of power tools and accessories, hand tools, fixings consumables, garden items and bathrooms and kitchens.

Revenue is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue relating to sales of in-store products is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the product. Revenue relating to sales of online products is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods.

Where customers have a right to return purchased goods in exchange for a refund, a liability for returns is recognised within other creditors and is based on historic trends and offset against turnover in the period in which the sale was made.

Operating leases: the Company as lessee

Lease payments are recognised as an expense over the lease term on a straight-line basis.

Interest income

Interest income is recognised in the statement of comprehensive income using the effective interest method.

Borrowing costs

All borrowing costs are recognised in the statement of comprehensive income in the year in which they are incurred.

Pensions

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured 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.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any amortisation and impairment losses.

All intangible assets are considered to have a finite useful life.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value over the useful life of that asset as follows:

Website and middleware development costs

- 25% - 100% straight line

Preferred suppliers

- Over the useful life of an asset expected to be one year

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property

- 2% to 4%

Plant, machinery and computers

- 4% to 50%

Motor vehicles

- 25%

Land included within freehold property is not depreciated.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow-moving stocks. Cost is determined on a weighted average cost basis allowing for purchase discounts and rebates.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the statement of comprehensive income.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the statement of comprehensive income immediately.

Any reversals of impairment are recognised in the statement of comprehensive income immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

4.

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:

31.1.26

31.1.25

£

£

Sale of goods

22,963,267

24,536,816

22,963,267

24,536,816

An analysis of turnover by geographical market is given below:

31.1.26

31.1.25

£

£

United Kingdom

22,290,764

24,511,324

Europe

672,503

25,492

22,963,267

24,536,816

5.	Employees and directors

31.1.26

31.1.25

£

£

Wages and salaries

1,039,327

922,800

Social security costs

110,042

74,442

Other pension costs

184,060

187,164

1,333,429

1,184,406

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

31.1.26

31.1.25

Retail

5

5

Administration

13

12

Warehouse operations

21

21

39

38

31.1.26

31.1.25

£

£

Directors' remuneration

107,725

92,407

Directors' pension contributions to money purchase schemes

149,138

151,323

During the year retirement benefits were accruing to 3 directors (2025 - 3) in respect of defined contribution schemes.

6.	Operating profit

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

31.1.26

31.1.25

£

£

Depreciation - owned assets

77,854

80,420

Profit on disposal of fixed assets

-

(1,079

)

Website & middleware development costs amortisation

5,766

4,117

Operating lease rentals

43,983

46,100

Bad debts

-

408,166

Foreign exchange differences on trading activities

15,477

8,711

7.	Auditors' remuneration

31.1.26

31.1.25

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

24,000

23,000

8.

Interest payable and similar expenses

31.1.26

31.1.25

£

£

Bank loan interest

80,700

76,352

Interest on overdue tax

-

(23,554

)

80,700

52,798

Interest payable is derived from financial liabilities measured at amortised cost.

9.

Taxation

Analysis of the tax charge

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

31.1.26

31.1.25

£

£

Current tax:

UK corporation tax

240,569

246,710

Adjustments in respect of prior periods

(89

)

719

Total current tax

240,480

247,429

Deferred tax:

Origination and reversal of timing differences

(7,215

)

(14,504

)

Tax on profit

233,265

232,925

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:

31.1.26

31.1.25

£

£

Profit before tax

918,086

928,775

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

229,522

232,194

Effects of:

Expenses not deductible for tax purposes

717

2,868

Adjustments to tax charge in respect of previous periods

(97

)

630

Depreciation of non-qualifying assets

3,123

3,122

Interest of VAT arrears foreign countries

-

(5,889

)

Total tax charge

233,265

232,925