REGISTERED NUMBER: 02285392 (England and Wales)

PLUM PRODUCTS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Director

4

Report of the Independent Auditors

5

to

8

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

to

27

DIRECTOR:

J M Schaffer

SECRETARY:

Mrs D M Schaffer

REGISTERED OFFICE:

The Cliff

Middle Street

Ingham

Lincoln

Lincolnshire

LN1 2YQ

REGISTERED NUMBER:

02285392 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tara Bellamy FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

BANKERS:

Santander

Bridle Road

Bootle

Merseyside

L30 4GB

REVIEW OF BUSINESS

The Group is a leading toy business involved in the design, development and distribution of children's outdoor play equipment and activity toys. Manufacturing is out-sourced to third parties. The company is also a distributor of 3rd party brands.

The Group continues to be a leading international supplier to many high street multiples and specialist online retailers selling via direct from factory (FOB), bulk deliveries and direct to customer channels. Turnover for the year increased by £927,566 from £11.43 million to £12.36 million. The Group significantly improved its trading performance returning to profitability during the year.

Third party brands are distributed using the same warehousing, logistics, sales and support infrastructure as Plum branded products.

The Group meets its day to day working capital requirements through the use of agreed banking facilities with Santander. The Group's forecasts and projections show that it is able to operate within the level of its agreed current facilities.

The management of the business and the execution of its strategy are subject to a number of risks, and various parts of the business are more sensitive than others to external factors such as the economic cycle and exchange rates.

The following section comprises a summary of the main risks we believe could potentially impact upon our operating and financial performance:

People

The Group recognises its success depends partly on the continued contribution of key directors, NPD staff, sales, marketing, warehousing and other personnel. The Group recognises that helping to support the health and wellbeing of its workforce is a priority. The Group has always been fortunate in being able to recruit talented staff. This ability has been enhanced in recent years as the group's profile has increased. Our people risk has remained at an acceptable level during 2025.

Information Technology

The Group continues to invest in IT giving it a competitive edge in the market enabling it to offer multiple methods of order fulfilment. It has continued to refine and build further on its ERP platform with improved automation of processes. These investments mean the Group is well positioned to continually develop and improve its customer service offering particularly in relation to new marketplaces.

Competition

The further tightening of the Toy Safety standards and the stringent requirements of major international customers have raised the barrier to entry in the core product areas. Nevertheless, the business is fully cognisant of its competition, and the Directors are always seeking opportunities to increase market share to reduce the competitive risk.

Customer Concentration

The Group has significant customer concentration in certain countries, so that economic difficulties or changes in the purchasing policies or patterns of its key customers could have an adverse effect on the Group's financial results. This concentration exposes the Group to risk of a material adverse effect if one or more of its large customers were to significantly reduce purchases for any reason.

Global Economic Conditions

The Group designs, manufactures and market a wide variety of products globally through sales to retailer customers and directly to consumers. The Group's performance is impacted by the level of discretionary consumer spending which remains weak in many countries around the world in which the Group does business. Consumers discretionary purchases of toy products are often impacted by job losses, bankruptcies, reduced access to credit and lower consumer confidence. Any of these factors can reduce the amount that consumers spend on the purchase of the Group's products.

Legal

The Group is subject to varying UK and EU legal and compliance regulations, particularly around toy safety. The Group takes its responsibilities very seriously and ensures that its policies, systems and procedures are continually updated and comply with the legal requirements in all the sectors in which it operates.

FUTURE DEVELOPMENTS

The continued aim of the Group is to build a global brand. Sales are now being made in over thirty countries.

The Group invests in new product development and marketing. One criterion of this development is that the new products are suitable for world markets. Hand in hand with this, the Group also invests in presenting at trade shows around the world.

The Group is expanding its US position having been impacted by a previous partner going into Chapter 11. This presents a significant opportunity for the business.

FINANCIAL RISK MANAGEMENT

The Group's operations expose it to the usual financial risks such as exchange rates, commodity prices and credit risk. The senior management of the Group monitor these risks continuously and take steps to minimise them wherever possible.

It is the general policy of the Group, with few exceptions, to use credit insurance to protect against customer default.

PRINCIPAL RISKS AND UNCERTAINTIES

Liquidity risk

The Group manages its cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The Group is exposed to interest rate risk on its fixed rate borrowings and floating rate bank overdrafts and loans, which are reviewed regularly by the directors to ensure that borrowing costs are minimised.

Foreign currency risk

The Group's principal foreign currency exposures arise from trading with overseas companies. The Group minimises foreign currency risk where possible by buying and selling goods in the same currency. The use of forward currency "hedging" is also used to reduce currency risk.

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.

ON BEHALF OF THE BOARD:

J M Schaffer - Director

16 July 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the design, distribution and sale of children's play equipment and leisure products.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

J M Schaffer has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

P B Schaffer ceased to be a director after 31 December 2025 but prior to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

J M Schaffer - Director

16 July 2026

Opinion

We have audited the financial statements of Plum Products Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2025 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of director

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements, (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimate and judgemental areas of the financial statements such as depreciation of tangible fixed asset, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in preparation of the financial statements.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified compliance with all relevant toy regulations and safety standards as most likely to have such an effect as all toys sold must meet these regulations and standards, along with the Health and Safety regulations as having such effect.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. We enquired with management and inspected health and safety report from visits in the year, along with our enquires confirming that the company provides regular training for employees through an external company. Compliance with all relevant toy regulations is ensured by products being tested by independent test houses and the company holds certificates of compliance for all products. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

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

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Tara Bellamy FCA (Senior Statutory Auditor)

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

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

16 July 2026

TURNOVER

3

12,355,684

11,428,118

Cost of sales

9,097,281

8,755,125

GROSS PROFIT

3,258,403

2,672,993

Distribution costs

771,226

814,690

Administrative expenses

2,356,672

2,409,893

3,127,898

3,224,583

130,505

(551,590

)

Other operating income

31,145

93,671

OPERATING PROFIT/(LOSS)

5

161,650

(457,919

)

Interest receivable and similar income

6

1,640

4,165

163,290

(453,754

)

Interest payable and similar expenses

7

127,089

109,671

PROFIT/(LOSS) BEFORE TAXATION

36,201

(563,425

)

Tax on profit/(loss)

8

(5,038

)

(97,009

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

41,239

(466,416

)

Profit/(loss) attributable to:

Owners of the parent

41,239

(466,416

)

PROFIT/(LOSS) FOR THE YEAR

41,239

(466,416

)

OTHER COMPREHENSIVE (LOSS)/INCOME

Currency translation differences

(110,553

)

36,752

Income tax relating to other comprehensive (loss)/income

-

-

OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR, NET OF INCOME TAX

(110,553

)

36,752

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(69,314

)

(429,664

)

Total comprehensive loss attributable to:

Owners of the parent

(69,314

)

(429,664

)

FIXED ASSETS

Property, plant and equipment

10

196,039

156,761

Investments

11

-

-

196,039

156,761

CURRENT ASSETS

Stocks

12

1,991,109

1,920,966

Debtors

13

3,587,092

3,355,137

Cash at bank and in hand

899,144

524,443

6,477,345

5,800,546

CREDITORS

Amounts falling due within one year

14

3,756,044

2,870,653

NET CURRENT ASSETS

2,721,301

2,929,893

TOTAL ASSETS LESS CURRENT LIABILITIES

2,917,340

3,086,654

CREDITORS

Amounts falling due after more than one year

15

50,000

150,000

NET ASSETS

2,867,340

2,936,654

CAPITAL AND RESERVES

Called up share capital

20

1,400,150

1,400,150

Share premium

21

14,850

14,850

Retained earnings

21

1,452,340

1,521,654

SHAREHOLDERS' FUNDS

2,867,340

2,936,654

The financial statements were approved by the director and authorised for issue on 16 July 2026 and were signed by:

J M Schaffer - Director

FIXED ASSETS

Property, plant and equipment

10

194,795

155,569

Investments

11

18

18

194,813

155,587

CURRENT ASSETS

Stocks

12

1,991,102

1,920,309

Debtors

13

3,276,334

3,136,550

Cash at bank and in hand

883,687

392,778

6,151,123

5,449,637

CREDITORS

Amounts falling due within one year

14

4,780,776

4,072,439

NET CURRENT ASSETS

1,370,347

1,377,198

TOTAL ASSETS LESS CURRENT LIABILITIES

1,565,160

1,532,785

CREDITORS

Amounts falling due after more than one year

15

50,000

150,000

NET ASSETS

1,515,160

1,382,785

CAPITAL AND RESERVES

Called up share capital

20

1,400,150

1,400,150

Share premium

21

14,850

14,850

Retained earnings

21

100,160

(32,215

)

SHAREHOLDERS' FUNDS

1,515,160

1,382,785

Company's profit/(loss) for the financial year

132,375

(237,696

)

The financial statements were approved by the director and authorised for issue on 16 July 2026 and were signed by:

J M Schaffer - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

1,400,150

1,951,318

14,850

3,366,318

Changes in equity

Total comprehensive loss

-

(429,664

)

-

(429,664

)

Balance at 31 December 2024

1,400,150

1,521,654

14,850

2,936,654

Changes in equity

Total comprehensive loss

-

(69,314

)

-

(69,314

)

Balance at 31 December 2025

1,400,150

1,452,340

14,850

2,867,340

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

1,400,150

205,481

14,850

1,620,481

Changes in equity

Total comprehensive loss

-

(237,696

)

-

(237,696

)

Balance at 31 December 2024

1,400,150

(32,215

)

14,850

1,382,785

Changes in equity

Total comprehensive income

-

132,375

-

132,375

Balance at 31 December 2025

1,400,150

100,160

14,850

1,515,160

Cash flows from operating activities

Cash generated from operations

1

(31,946

)

(492,393

)

Interest paid

(127,089

)

(109,671

)

Taxation refund

53,012

-

Net cash from operating activities

(106,023

)

(602,064

)

Cash flows from investing activities

Purchase of tangible fixed assets

(118,990

)

(7,303

)

Foreign exchange movement - fixed assets

146

(134

)

Interest received

1,640

4,165

Net cash from investing activities

(117,204

)

(3,272

)

Cash flows from financing activities

New short term loans in year

1,650,699

732,652

Short term loan repayments in

(1,321,184

)

(834,228

)

Net cash from financing activities

329,515

(101,576

)

Increase/(decrease) in cash and cash equivalents

106,288

(706,912

)

Cash and cash equivalents at beginning of year

2

520,245

1,227,157

Cash and cash equivalents at end of year

2

626,533

520,245

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

36,201

(563,425

)

Depreciation charges

79,504

72,745

Loss on disposal of fixed assets

61

-

Effect of foreign exchange difference

(110,553

)

36,751

Finance costs

127,089

109,671

Finance income

(1,640

)

(4,165

)

130,662

(348,423

)

(Increase)/decrease in stocks

(70,143

)

201,852

Increase in trade and other debtors

(147,121

)

(431,461

)

Increase in trade and other creditors

54,656

85,639

Cash generated from operations

(31,946

)

(492,393

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

899,144

524,443

Bank overdrafts

(272,611

)

(4,198

)

626,533

520,245

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

524,443

1,294,744

Bank overdrafts

(4,198

)

(67,587

)

520,245

1,227,157

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

524,443

374,701

899,144

Bank overdrafts

(4,198

)

(268,413

)

(272,611

)

520,245

106,288

626,533

Debt

Debts falling due within 1 year

(832,652

)

(429,515

)

(1,262,167

)

Debts falling due after 1 year

(150,000

)

100,000

(50,000

)

(982,652

)

(329,515

)

(1,312,167

)

Total

(462,407

)

(223,227

)

(685,634

)

1.	STATUTORY INFORMATION

Plum Products 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and all subsidiary undertakings controlled by the Group made up to 31 December 2025. Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries sold or acquired are included in the income statement up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis and are covered within the accounting policies:

(i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value 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. See note 10 for the carrying amount of the property, plant and equipment and note 2 (Tangible Fixed Assets) for the useful economic lives for each class of asset.

(ii) When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note 12 for the net carrying amount of the stock and associated provision.

(iii) The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors and associated impairment provision.

(iv) The recognition of deferred tax assets relating to carried forward losses requires management to assess the probability of future taxable profits sufficient to utilise those losses.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover

Turnover represents amounts receivable for goods net of VAT and trade discounts, with regards the design, distribution and sale of toy, garden and leisure products, including children's play equipment, garden products and barbeque products.

Revenue from the sale of goods is recognised when control of the goods passes to the customer, being when the significant risks and rewards of ownership have transferred, the amount of revenue can be measured reliably and collection is probable.

For export sales, the point at which control transfers is determined by the underlying contractual shipping terms.

Interest Received

Interest income is recognised upon the date on which it is received.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

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

Land and buildings leasehold

10% and 20% straight line, and over the length of the lease

Plant and machinery

25% reducing balance

Computer equipment

50% straight line

Fixtures, fittings and equipment

25% reducing balance

Motor vehicles

25% reducing balance

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all costs of purchase, conversion and other, incurred in bringing stock to its present location and condition. Cost is calculated using the average cost formula.

Financial instruments

The Group applies the provisions of Sections 11 and 12 of FRS 102 in accounting for financial instruments.

Basic financial assets include trade debtors, intercompany balances and cash balances.

Basic financial liabilities include trade creditors, bank loans, overdrafts and accrued expenses.

The Group's principal financial instruments comprise bank loans, overdrafts, cash and trade receivables and payables.

Credit risk arises principally from trade receivables. The Group manages this exposure through credit insurance and credit approval procedures.

The Group manages liquidity through regular cash flow forecasting and maintenance of appropriate banking facilities.

The Group conducts significant transactions in foreign currencies, principally USD, EUR and HKD. The Group mitigates risk through matching purchases and sales where possible and the use of forward exchange contracts.

The Group is exposed to variable interest rates on overdrafts and borrowing facilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.