REGISTERED NUMBER: 01672255 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

ULVERSCROFT GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Income and Retained Earnings

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

M L Petty

D R Williams

N Hodges

D Edmonds

SECRETARY:

K A Cooper

REGISTERED OFFICE:

The Green

Bradgate Road

Anstey

Leicester

Leicestershire

LE7 7FU

REGISTERED NUMBER:

01672255 (England and Wales)

AUDITORS:

HB&O Ltd

Chartered Accountants and Statutory Auditors

Seven Stars House

1 Wheler Road

Coventry

CV3 4LB

BANKERS:

Barclays Bank PLC

1-3 Haymarket Tower

Leicester

LE1 1WA

The directors present their strategic report of the company and the group for the year ended 31 October 2025.

REVIEW OF BUSINESS

Turnover for the group increased by 6.9% (2024: 0.4% decrease) during the year under review to £8,244,721. Operating losses are reported to be £817,648 (2024: operating loss £906,132) which continues to reflect the challenging environment within which the group operates.

At the year end, the group had shareholders' funds of £6,747,209 (2024: £7,671,503). The directors therefore believe that the group's financial position continues to be strong, with net current assets of £954,135 (2024: £1,449,357) at the year end.

The group have bank borrowings of £Nil (2024: £Nil) and have cash reserves of £1,212,222 (2024: £1,011,776) which are deemed sufficient to provide the necessary working capital for the foreseeable future and to take advantage of any suitable business development opportunities or acquisitions that may arise.

The directors believe that the group's publishing programme continues to be the best in its chosen market and the number of titles published provides the widest possible choice to its customers. This offering is coupled with good service levels and the provision of shelf ready products.

The group continues to review, assess and invest in, where appropriate, new technology to enhance its product offering and to derive further efficiencies in its operations.

As part of it's ongoing strategy and the development of its offering, the group continue to successfully invest in and roll out its digital platform, uLIBRARY. This has enabled the group to offer subscribers to uLIBRARY eBooks as well as eAudiobooks.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have assessed the main risks facing the group, of which a key risk is that the group's customer base is largely funded by central and local governments. This causes fluctuations and uncertainty around the amount of financial resources available to libraries to purchase the group's products. The group will continue to review its various operations on an ongoing basis in order to minimise the impact of these risks.

The group finances its operations through retained profits and the use of local currency operational bank accounts in each of its operational jurisdictions. The directors' objectives are to retain sufficiently liquid funds in its operational locations to enable the group to meet its day to day obligations as they fall due and to maximise returns on funds. They also seek to minimise the group's exposure to foreign exchange movements by carefully managing the timing of remitting funds to the United Kingdom.

The group's funds are held primarily in short term fixed rate deposit accounts. The directors believe that this gives them flexibility to release cash resources at short notice and also allows them to take advantage of changing conditions in the finance markets as they arise.

ON BEHALF OF THE BOARD:

M L Petty - Director

30 June 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company during the year continued to be that of a investment company.

The principal activity of the group during the year continued to be that of a publishing and distribution of large print books and unabridged audio books and other publishers' selected products to public libraries and consumers throughout the world.

DIVIDENDS

No dividends were declared in the year (2024: £Nil).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report.

M L Petty

D R Williams

N Hodges

D Edmonds

GOING CONCERN

The directors consider that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly the directors have continued to prepare the financial statements on the going concern basis.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the Directors' report have been omitted as they are included in the Group strategic report on page 2.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 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 directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

M L Petty - Director

30 June 2026

Opinion

We have audited the financial statements of Ulverscroft Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2025 and of the group's loss 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 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 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 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 Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Directors.

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

-	adequate accounting records have not been kept 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 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 three, 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 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 directors either intend to liquidate the group or the parent 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:

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;

- Reviewing minutes of meetings of those charged with governance; and

- Enquiry of management to identify any instances of non-compliance with 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.

Gregg Olner MPhil BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of HB&O Ltd

Chartered Accountants and Statutory Auditors

Seven Stars House

1 Wheler Road

Coventry

CV3 4LB

30 June 2026

TURNOVER

3

8,244,721

7,713,645

Cost of sales

5,384,374

5,144,621

GROSS PROFIT

2,860,347

2,569,024

Distribution costs

891,034

914,432

Administrative expenses

2,786,961

2,560,724

3,677,995

3,475,156

OPERATING LOSS

5

(817,648

)

(906,132

)

Income from fixed asset investments

6

64,629

78,392

(753,019

)

(827,740

)

Fair value movements

128,762

212,606

(624,257

)

(615,134

)

Interest payable and similar expenses

7

37

-

LOSS BEFORE TAXATION

(624,294

)

(615,134

)

Tax on loss

8

-

54,158

LOSS FOR THE FINANCIAL YEAR

(624,294

)

(669,292

)

Retained earnings at beginning of year

2,184,603

3,153,895

Donations paid

10

(300,000

)

(300,000

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

1,260,309

2,184,603

Loss attributable to:

Owners of the parent

(624,294

)

(669,292

)

FIXED ASSETS

Intangible assets

11

334,839

410,193

Tangible assets

12

933,180

952,878

Investments

13

1,841,055

2,075,175

Investment property

14

2,784,000

2,783,900

5,893,074

6,222,146

CURRENT ASSETS

Stocks

15

558,505

793,635

Debtors

16

1,600,093

1,661,941

Cash at bank and in hand

17

1,212,222

1,011,776

3,370,820

3,467,352

CREDITORS

Amounts falling due within one year

18

2,416,685

2,017,995

NET CURRENT ASSETS

954,135

1,449,357

TOTAL ASSETS LESS CURRENT LIABILITIES

6,847,209

7,671,503

CREDITORS

Amounts falling due after more than one year

19

100,000

-

NET ASSETS

6,747,209

7,671,503

CAPITAL AND RESERVES

Called up share capital

22

64,000

64,000

Share premium

23

3,490,254

3,490,254

Revaluation reserve

23

707,646

707,646

Capital redemption reserve

23

1,225,000

1,225,000

Retained earnings

23

1,260,309

2,184,603

SHAREHOLDERS' FUNDS

6,747,209

7,671,503

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2026 and were signed on its behalf by:

M L Petty - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

875,868

876,269

Investments

13

3,044,001

3,278,121

Investment property

14

2,784,000

2,784,000

6,703,869

6,938,390

CURRENT ASSETS

Debtors

16

3,601,386

3,451,704

Cash at bank and in hand

17

158,675

51,212

3,760,061

3,502,916

CREDITORS

Amounts falling due within one year

18

1,248,696

1,189,776

NET CURRENT ASSETS

2,511,365

2,313,140

TOTAL ASSETS LESS CURRENT LIABILITIES

9,215,234

9,251,530

CREDITORS

Amounts falling due after more than one year

19

100,000

-

NET ASSETS

9,115,234

9,251,530

CAPITAL AND RESERVES

Called up share capital

22

64,000

64,000

Share premium

3,490,254

3,490,254

Revaluation reserve

707,646

707,646

Capital redemption reserve

1,225,000

1,225,000

Retained earnings

3,628,334

3,764,630

SHAREHOLDERS' FUNDS

9,115,234

9,251,530

Company's profit for the financial year

163,704

283,122

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2026 and were signed on its behalf by:

M L Petty - Director

Cash flows from operating activities

Cash generated from operations

1

158,469

(694,373

)

Interest paid

(37

)

-

Tax paid

(17,444

)

-

Net cash from operating activities

140,988

(694,373

)

Cash flows from investing activities

Purchase of intangible fixed assets

(55,315

)

(33,120

)

Purchase of tangible fixed assets

(12,738

)

(25,815

)

Purchase of fixed asset investments

(247,820

)

(171,361

)

Sale of fixed asset investments

610,702

808,269

Income from fixed asset investments

64,629

78,392

Net cash from investing activities

359,458

656,365

Cash flows from financing activities

Charitable donations paid

(300,000

)

(300,000

)

Net cash from financing activities

(300,000

)

(300,000

)

Increase/(decrease) in cash and cash equivalents

200,446

(338,008

)

Cash and cash equivalents at beginning of year

2

1,011,776

1,349,784

Cash and cash equivalents at end of year

2

1,212,222

1,011,776

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

2025

2024

£

£

Loss before taxation

(624,294

)

(615,134

)

Depreciation charges

163,003

156,878

Gain on revaluation of fixed assets

(128,762

)

(212,606

)

Finance costs

37

-

Finance income

(64,629

)

(78,392

)

(654,645

)

(749,254

)

Decrease in stocks

235,130

145,888

Decrease in trade and other debtors

61,848

102,913

Increase/(decrease) in trade and other creditors

516,136

(193,920

)

Cash generated from operations

158,469

(694,373

)

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

1,212,222

1,011,776

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

1,011,776

1,349,784

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

1,011,776

200,446

1,212,222

1,011,776

200,446

1,212,222

Total

1,011,776

200,446

1,212,222

1.	STATUTORY INFORMATION

Ulverscroft Group 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.

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 as modified by the revaluation of certain assets.

The preparation of financial statements in compliance with FRS 102 requires the use of certain accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.

The financial statements are presented to the nearest pound.

Basis of consolidation

The consolidated financial statements present the results of the group and its own subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss from the date on which control is obtained. They are deconsolidated from the date control ceases.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) There were no critical judgements in applying the entity’s accounting policies.

(b) Key accounting estimates and assumptions:

The group 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.

(i) Stock provisioning:

The group considers it necessary to assess the recoverability of the cost of stock and the associated provisioning required. When calculating the provision, management takes into account the nature, condition and age of the stock, as well as applying assumptions around anticipated saleability and future usage.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

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

- the group 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 group 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.

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss over its useful economic life being 10 years from the date of transition to FRS 102 or acquisition, if later. Any impairment losses are recognised in the profit and loss account within administrative expenses.

Software development is initially recognised at cost. After recognition, under the cost model, software development is measured at cost less any accumulated amortisation and any accumulated impairment losses.

Software development is considered to have a finite useful life of 4 to 7 years. As such, software development is written off over that period on a straight line basis.

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. 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.

Depreciation is provided on the following annual basis:

Freehold property - 2% on cost and not provided for

Plant & machinery - straight line over 4 years

Fixtures, fittings & motor vehicles - straight line over 4 to 10 years

The directors consider that the head office held within freehold property is maintained in such a state of repair that the residual value is at least equal to the carrying value. As a result, the corresponding depreciation would not be material and therefore is not charged in the profit and loss account.

The directors perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the carrying value is not higher than the recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Investments

Investment property is carried at fair value and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the profit and loss account.

Investments in subsidiaries are measured at cost less accumulated impairment. Any impairment losses are recognised in the profit and loss account within administrative expenses.

Listed investments are measured at fair value at the balance sheet date.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the consolidated profit and loss account.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Foreign currency transactions are translated into the functional currency using the house exchange rates at the date of the transaction.

At each period end foreign currency monetary items are translated using the closing rate. Non monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Going concern

Having conducted a review of the company and group's resources and the challenges presented by the current economic climate, the directors are satisfied that the company and group has sufficient cashflows to meet its liabilities as they fall due for at least one year from the approval of the financial statements. As such, these financial statements have been prepared on the going concern basis

Charitable donations

Charitable donations are recognised when they become legally payable and are charged to the profit and loss reserve.

Termination payments

Termination payments are accounted for as staff costs and are recognised on communication of intention to pay.

3.

TURNOVER

Turnover is wholly attributable to the principal activity of the group.

The directors consider that the disclosure of a geographical analysis and class of business of the group's turnover would be seriously prejudicial to the interests of the group and this information is therefore not provided within these financial statements.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,326,378

2,275,002

Social security costs

225,573

197,121

Other pension costs

84,232

85,054

2,636,183

2,557,177

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

2025

2024

Production

28

32

Administrative and distribution

55

52

83

84

2025

2024

£

£

Directors' remuneration

125,872

133,386

Directors' pension contributions to money purchase schemes

9,951

11,392

Compensation for loss of office

100,000

-

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

2

5.	OPERATING LOSS

The operating loss is stated after charging:

2025

2024

£

£

Other operating leases

104,508

92,491

Depreciation - owned assets

32,334

35,172

Goodwill amortisation

98,500

98,500

Development costs amortisation

32,169

23,206

Auditors' remuneration

24,850

26,607

Auditors' remuneration for non audit work

-

6,576

Exchange losses

121,369

107,858

6.

INCOME FROM FIXED ASSET INVESTMENTS

2025

2024

£

£

Income from investments

64,629

78,392

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

37

-