Company registration number 00539713 (England and Wales)
CLARKES OF WALSHAM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Whitings LLP
Chartered Accountants
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY
CLARKES OF WALSHAM LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
CLARKES OF WALSHAM LIMITED
COMPANY INFORMATION
Directors
B L Clarke
M J Clarke
H N Clarke
R J Balls
Secretary
R J Balls
Company number
00539713
Registered office
The High Street
Walsham-Le-Willows
Bury St Edmunds
Suffolk
IP31 3BA
Auditor
Whitings LLP
Chartered Accountants & Statutory Auditor
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY
Bankers
Lloyds Bank
9 Buttermarket
Bury St Edmunds
Suffolk
IP33 1DB
Solicitors
Ashtons Legal
The Long Barn
Fornham Business Centre
Fornham St Martin
Bury St Edmunds
Suffolk
IP31 1SL
CLARKES OF WALSHAM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

The company reports a strong trading year with an £840,578 increase in turnover and increased gross profit margin.

Growth was achieved across all parts of the business with the aggregate operation at Summer Road providing particularly strong performance in its 3rd full year of operation.

Significant capital investment of £354,036 continued across the business.

Principal risks and uncertainties

The company's performance is influenced by broad economic conditions as well as those in the agricultural and building sectors.

Competition in the builders merchant market is largely from national suppliers. Competitor activity can affect the performance of the company.

Key performance indicators

The key financial performance indicators are turnover, gross profit margin and net profit before tax. Turnover has increased by 6% from £12,970,878 in 2024 to £13,811,456 and gross profit margin has increased from 33.3% in 2024 to 33.8%. Net profit before tax has increased to £60,609 from a loss of £47,709 in 2024.

Future Developments

Clarkes will continue to build on it’s unique business of serving the agricultural, building and retail sectors as it has done for the past 118 years.

The company continues to trade successfully with ongoing investment in the business.

On behalf of the board

R J Balls
Director
10 July 2026
CLARKES OF WALSHAM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Results and dividends

The profit for the year, after taxation, amounted to £29,436 (2024 - loss £47,709)

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

B L Clarke
M J Clarke
H N Clarke
R J Balls
Post reporting date events

There have been no significant events affecting the Company since the year end.

Future developments

Future developments are included in the Strategic Report.

Auditor

In accordance with the company's articles, a resolution proposing that Whitings LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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). 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; and

- 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.

CLARKES OF WALSHAM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
R J Balls
Director
10 July 2026
CLARKES OF WALSHAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLARKES OF WALSHAM LIMITED
- 4 -
Opinion

We have audited the financial statements of Clarkes of Walsham Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

- the information given in the strategic report and the directors' r eport 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.

CLARKES OF WALSHAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLARKES OF WALSHAM LIMITED (CONTINUED)
- 5 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which 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 directors' r esponsibilities s tatement, 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 is 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.

Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- Enquiry of management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, and fraud;

- Enquiry of management around actual and potential litigation and claims;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Challenging assumptions and judgments made by management in their significant accounting estimates; and

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CLARKES OF WALSHAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLARKES OF WALSHAM LIMITED (CONTINUED)
- 6 -

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 an auditor's report 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.

Jonathan Moore ACCA (Senior Statutory Auditor)
For and on behalf of Whitings LLP, Statutory Auditor
Chartered Accountants
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY
10 July 2026
CLARKES OF WALSHAM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
13,811,456
12,970,878
Cost of sales
(9,142,387)
(8,651,179)
Gross profit
4,669,069
4,319,699
Administrative expenses
(4,657,388)
(4,396,523)
Other operating income
31
81
Operating profit/(loss)
4
11,712
(76,743)
Interest receivable and similar income
9
49,093
29,234
Interest payable and similar expenses
8
(196)
(196)
Profit/(loss) before taxation
60,609
(47,705)
Tax on profit/(loss)
10
(31,173)
(4)
Profit/(loss) for the financial year
29,436
(47,709)

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of

comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 11 to 22 form part of these financial statements.

CLARKES OF WALSHAM LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,569,136
1,495,767
Current assets
Stocks
12
3,931,584
3,726,179
Debtors
13
829,529
812,471
Cash at bank and in hand
1,082,607
1,397,089
5,843,720
5,935,739
Creditors: amounts falling due within one year
14
(928,672)
(1,007,931)
Net current assets
4,915,048
4,927,808
Total assets less current liabilities
6,484,184
6,423,575
Creditors: amounts falling due after more than one year
15
(4,000)
(4,000)
Provisions for liabilities
Deferred tax liability
16
209,217
178,044
(209,217)
(178,044)
Net assets
6,270,967
6,241,531
Capital and reserves
Called up share capital
18
5,100
5,100
Share premium account
19
6,350
6,350
Capital redemption reserve
19
7,250
7,250
Profit and loss reserves
19
6,252,267
6,222,831
Total equity
6,270,967
6,241,531

The notes on pages 11 to 22 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 10 July 2026 and are signed on its behalf by:
M J Clarke
H N Clarke
Director
Director
Company registration number 00539713 (England and Wales)
CLARKES OF WALSHAM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2024
5,100
6,350
7,250
6,270,540
6,289,240
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
-
(47,709)
(47,709)
Balance at 31 December 2024
5,100
6,350
7,250
6,222,831
6,241,531
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
-
29,436
29,436
Balance at 31 December 2025
5,100
6,350
7,250
6,252,267
6,270,967

The notes on pages 11 to 22 form part of these financial statements.

CLARKES OF WALSHAM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(40,296)
240,300
Income taxes paid
-
0
(27,839)
Net cash (outflow)/inflow from operating activities
(40,296)
212,461
Investing activities
Purchase of tangible fixed assets
(354,036)
(301,273)
Proceeds from disposal of tangible fixed assets
30,953
25,126
Interest received
49,093
29,234
Net cash used in investing activities
(273,990)
(246,913)
Financing activities
Interest paid
(196)
(196)
Net cash used in financing activities
(196)
(196)
Net decrease in cash and cash equivalents
(314,482)
(34,648)
Cash and cash equivalents at beginning of year
1,397,089
1,431,737
Cash and cash equivalents at end of year
1,082,607
1,397,089

The notes on pages 11 to 22 form part of these financial statements.

CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
1
Accounting policies
Company information

Clarkes of Walsham Limited are builders merchants supplying building, farming and garden materials.

Clarkes of Walsham Limited is a private company limited by shares incorporated in England and Wales. The registered office is The High Street, Walsham-Le-Willows, Bury St Edmunds, Suffolk, IP31 3BA.

1.1
Basis of preparation

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 2).

The following principal accounting policies have been applied

1.2
Revenue

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of turnover can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.3
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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property
- Over 50 years
Plant and machinery
- Straight line method at 10% and 20%
Office equipment
- Reducing balance method at 25%
Motor Vehicles
- Straight line method at 10%, 20% and 33%
CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 12 -
1.4
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.8
Provisions

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.

Increases in provisions are generally charged as an expense to profit or loss.

1.9
Retirement benefits

The Company operates a group personal pension scheme for employees and money purchase pension schemes for certain directors. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the Profit and Loss Account.

1.10
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

1.11

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.

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

2
Judgements and key sources of estimation uncertainty

Estimates and judgments 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 company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. 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.

Useful economic lives of tangible assets:-

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.

CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 15 -
3
Turnover

All turnover arose within the United Kingdom

4
Operating profit/(loss)
2025
2024
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Depreciation of tangible fixed assets
264,061
288,204
Profit on disposal of tangible fixed assets
(14,347)
(13,151)
Operating lease charges
133,021
121,811
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,750
8,250
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
320,623
300,795
Company pension contributions to defined contribution schemes
52,500
44,750
373,123
345,545

During the year retirement benefits were accruing to 4 directors (2024 - 4) in respect of defined contribution pension schemes.

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
104,111
79,447
Company pension contributions to defined contribution schemes
12,500
10,000
CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 16 -
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Manufacturing staff
12
14
Distribution staff
44
45
Office and management staff
23
23
Total
79
82

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
2,564,247
2,454,440
Social security costs
291,164
241,725
Pension costs
127,055
119,894
2,982,466
2,816,059
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost
Preference share dividends
196
196
9
Interest receivable and similar income
2025
2024
£
£
Interest income
Other interest receivable
49,093
29,234
10
Taxation
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
31,173
4
CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
10
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit/(loss) before taxation
60,609
(47,705)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
15,152
(11,926)
Effects of:
Expenses that are not deductible in determining taxable profit
15,506
11,415
Other differences leading to an increase (decrease) in the tax charge
515
515
Taxation charge in the financial statements
31,173
4
11
Tangible fixed assets
Freehold property
Plant and machinery
Office equipment
Motor Vehicles
Total
£
£
£
£
£
Cost
At 1 January 2025
1,519,171
967,004
304,772
1,531,147
4,322,094
Additions
26,000
17,240
9,101
301,695
354,036
Disposals
-
0
(20,933)
(10,379)
(238,214)
(269,526)
At 31 December 2025
1,545,171
963,311
303,494
1,594,628
4,406,604
Depreciation and impairment
At 1 January 2025
635,890
878,883
277,295
1,034,259
2,826,327
Depreciation charged in the year
35,248
39,055
12,184
177,574
264,061
Eliminated in respect of disposals
-
0
(20,933)
(10,379)
(221,608)
(252,920)
At 31 December 2025
671,138
897,005
279,100
990,225
2,837,468
Carrying amount
At 31 December 2025
874,033
66,306
24,394
604,403
1,569,136
At 31 December 2024
883,281
88,121
27,477
496,888
1,495,767
CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
11
Tangible fixed assets
(Continued)
- 18 -

The carrying value of land and buildings comprises:

2025
2024
£
£
Freehold
812,929
838,834
Short leasehold
61,104
44,447
874,033
883,281

Included in land and buildings is freehold land at cost of £154,429 (2024 - £154,429) which is not depreciated.

12
Stocks
2025
2024
£
£
Raw materials and consumables
1,026
2,059
Finished goods and goods for resale
3,930,558
3,724,120
3,931,584
3,726,179
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
741,271
700,971
Other debtors
875
2,450
Prepayments and accrued income
87,383
109,050
829,529
812,471
14
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
425,443
547,464
Taxation and social security
298,196
255,250
Other creditors
205,033
205,217
928,672
1,007,931
CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
15
Creditors: amounts falling due after more than one year
2025
2024
£
£
Share capital treated as debt
4,000
4,000

Disclosure of the terms and conditions attached to the non-equity shares is made in note 18.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
160,179
137,771
Tax losses
(67)
(8,833)
Other timing differences
49,105
49,106
209,217
178,044
2025
Movements in the year:
£
Liability at 1 January 2025
178,044
Charge to profit or loss
31,173
Liability at 31 December 2025
209,217

The net deferred tax expected to reverse next year is £58,527 (202 4 - £35,619) relating to the reversal of timing differences on tangible fixed assets.

17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
127,055
119,894

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

CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,100
5,100
5,100
5,100
2025
2024
2025
2024
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
4,000
4,000
4,000
4,000
Preference shares classified as liabilities
4,000
4,000

The preference shares entitle shareholders to one dividend of 4.9% which is deemed to be payable on the 1st day of January each year.

The preference shares have no voting rights unless the dividend thereon is three months in arrears. On winding up the company, assets remaining after payment of all debts and liabilities shall be applied first to the repayment of preference shares

19
Reserves
Share premium

This reserve records the amount above the nominal value received for shares issued, less transaction costs.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss

The profit and loss account represents retained profits available for distribution.

20
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
96,240
-
CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
21
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
94,439
91,468
Years 2-5
188,623
250,647
After 5 years
4,781
6,147
287,843
348,262
22
Directors' transactions

Dividends totalling £196 (2024 - £196) were paid in the year in respect of shares held by the company's directors.

23
Ultimate controlling party

The company is under control of its directors who are the shareholders.

24
Cash (absorbed by)/generated from operations
2025
2024
£
£
Profit/(loss) after taxation
29,436
(47,709)
Adjustments for:
Taxation charged
31,173
4
Finance costs
196
196
Investment income
(49,093)
(29,234)
Gain on disposal of tangible fixed assets
(14,347)
(13,151)
Depreciation and impairment of tangible fixed assets
264,061
288,204
Movements in working capital:
Increase in stocks
(205,405)
(56,087)
(Increase)/decrease in debtors
(17,058)
186,096
Decrease in creditors
(79,259)
(88,019)
Cash (absorbed by)/generated from operations
(40,296)
240,300
CLARKES OF WALSHAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
25
Analysis of changes in net funds
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
1,397,089
(314,482)
1,082,607
Debt due after 1 year
(4,000)
-
(4,000)
1,393,089
(314,482)
1,078,607
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