REGISTERED NUMBER: 07954792 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

GDMP Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

G A Moreno Carrillo

M P Graves

REGISTERED OFFICE:

70 Heathwood Road

Bournemouth

BH9 2JZ

REGISTERED NUMBER:

07954792 (England and Wales)

AUDITORS:

RA Audit Services Limited (Statutory Auditor)

2nd Floor

Grove House

55 Lowlands Road

Harrow

Middlesex

HA1 3AW

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

FAIR REVIEW OF BUSINESS

The directors are satisfied with the results for the year under review that were in line with the expectations.

The principal activity of the company remained the same being franchisee of second hand electronic goods.

The company continued to trade through high street shops and online selling second hand electronic and technological products in the UK through its 28 stores.

Product warranty, brand awareness and our online presence remain the distinct advantages amongst local competitors and larger national brands, we expect to continue to lean on these areas to leverage our position in the market.

The reduction of cost above store level to enhance profitability remains a focus and work is taking place to deliver more on this front with improved efficiencies in operations through technology and the revision of operational procedures.

These efficiencies are expected to deliver gains and improvement in stock and people management, labour cost and stock shrinkage.

PRINCIPAL RISKS AND UNCERTAINTIES

There are a number of potential risks and uncertainties that could impact the company’s performance. The Board of Directors considers the risks associated with all significant business decisions, as well as changes in the external environment and the company’s operations. These risks are assessed regularly to ensure they are identified, monitored, and appropriately managed.

The principal risks include inaccurate product assessment, inadequate training of staff and managers, and ineffective internal control procedures. To mitigate these risks, the company provides regular training and development programmes, focuses on staff retention, and conducts periodic reviews of financial performance to ensure that gross profit margins are maintained at an appropriate level.

Financial risk

The company's financial risk is arising primarily from adjusting buying and selling prices of the products to match demand and supply at a given time.

However, the company is dealing in the second-hand electronic products which are highly technical and the risk has been mitigated by setting fixed prices across the whole franchise.

Competitive risk

UK's franchisee market is competitive, particularly in the high street retail sectors where our business is focused. Many companies have entered the market and are offering similar products which gives rise to competitive pricing structures. The impact of technology has been enormous, and it is essential that we keep abreast of advances in this area. Our Franchisor is one of the leaders in the market, continuous training improvements and product selection criteria has helped us to control competition risk.

KEY PERFORMANCE INDICATORS

The company's key performance indicators for the year ended 31 December 2025 are as follows:

YE 31.12.25

YE 31.12.24

Turnover

£26,738,012

£24,436,098

Gross profit

£11,755,742

£10,501,123

Gross profit margin

43.96%

42.97%

Profit before tax

£1,624,503

£2,196,496

Shareholders' equity

£3,902,547

£3,120,371

In the year ending 31 December 2025, turnover has increased by 9.42%. The gross profit margin has increased in the current year and profit before tax has been decreased which is in line with the management's expectations.

In addition, the company continues to maintain a healthy balance of reserves and cash to meet its current and long-term liabilities as they fall due.

ON BEHALF OF THE BOARD:

G A Moreno Carrillo - Director

22 July 2026

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

PRINCIPAL ACTIVITY

The Company's principal activities during the year were continued to be the sale and purchase of second hand technological and entertainment products.

DIVIDENDS

The total dividends declared and paid for the year ended 31 December 2025 were £662,350 (2024: £1,174,851).

FUTURE DEVELOPMENTS

The company continues to focus on presence at prime high street location as the means of sustaining high turnover levels and improving operational efficiencies. The directors are always looking to enhance the value of the business through forward planning, investing in human resources and expansion programmes.

The company is actively managing its capital and cash requirements. The directors are confident that the company will continue to meet all future capital requirements.

DIRECTORS

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

G A Moreno Carrillo

M P Graves

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank borrowings.. The main purpose of these instruments is to raise funds for company's operations and to finance company's trading activities.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding.

Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring funds are available to meet amounts due within agreed terms.

Interest rate risk - The Company borrows from its bankers using term loans whose tenure depends on the nature of the asset and management's view of the future direction on interest rate.

In respect of loans due to related parties, these are interest-free and repayable on demand. This allows the company to maintain sufficient funds to meet its payment to creditors.

ENGAGEMENT WITH EMPLOYEES

Information Provision & Consultation

The Company maintains a systematic policy of providing employees with information on matters of concern to them as employees. Information regarding the financial and economic factors affecting the performance of the Company is regularly shared through internal communication channels, team meetings, and regular operational briefings.

Employee Consultation & Feedback

The Company regularly consults employees or their representatives so that their views can be taken into account in making decisions which are likely to affect their interests. This is achieved through formal employee surveys, feedback forums, and open-door management practices, ensuring employee alignment with the Company’s strategic goals and operational changes.

Financial and Performance Participation

The Company encourages the involvement of employees in its performance. Employee performance is incentivised and rewarded through structured performance-related bonus schemes, commission structures linked to store KPIs, and employee recognition programmes, thereby aligning staff interests with the commercial success of the Company.

Employment of Disabled Persons

Full and fair consideration is given to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the Company continues and that appropriate training and adjustments are arranged. It is the policy of the Company that the training, career development, and promotion of disabled persons should, as far as possible, be identical to that of other employees.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

G A Moreno Carrillo - Director

22 July 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The client partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations.

1) We identified the laws and regulations applicable to the company through discussions with directors, key management personnel and from our commercial knowledge and experience.

2) We focused on specific laws and regulations which we considered may have a direct effect on financial statements or the operations of the company including Companies Act 2006, current taxation legislation, data protection, anti-bribery and money laundering, food safety, employment and health and safety legislation.

3) We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

4) Identified laws and regulations were communicated with the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by;

1) Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud and

2) Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

1) Performed analytical procedures to identify any unusual and unexpected relationships,

2) Tested journal entries to identify unusual transactions,

3) Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

1) Agreeing financial statements disclosures to underlying supporting documentation.

2) Enquiring of management as to actual and potential litigation and claims and

3) Reviewing correspondence with HMRC, enquiring of management over health and safety, laws relating to electrical appliances.

There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Abdul Hafeez, ACA, FCCA (Senior Statutory Auditor)

for and on behalf of RA Audit Services Limited (Statutory Auditor)

2nd Floor

Grove House

55 Lowlands Road

Harrow

Middlesex

HA1 3AW

22 July 2026

TURNOVER

4

26,738,012

24,436,098

Cost of sales

14,982,270

13,934,975

GROSS PROFIT

11,755,742

10,501,123

Administrative expenses

10,323,483

8,705,296

1,432,259

1,795,827

Other operating income

5

230,769

394,257

OPERATING PROFIT

7

1,663,028

2,190,084

Interest receivable and similar income

22,521

20,552

1,685,549

2,210,636

Interest payable and similar expenses

8

61,046

14,140

PROFIT BEFORE TAXATION

1,624,503

2,196,496

Tax on profit

9

179,977

446,075

PROFIT FOR THE FINANCIAL YEAR

1,444,526

1,750,421

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,444,526

1,750,421

FIXED ASSETS

Intangible assets

11

339,879

427,443

Tangible assets

12

1,531,804

1,434,908

1,871,683

1,862,351

CURRENT ASSETS

Stocks

13

2,392,026

2,129,332

Debtors

14

595,089

675,679

Cash at bank and in hand

1,882,001

1,475,271

4,869,116

4,280,282

CREDITORS

Amounts falling due within one year

15

2,249,798

2,280,334

NET CURRENT ASSETS

2,619,318

1,999,948

TOTAL ASSETS LESS CURRENT LIABILITIES

4,491,001

3,862,299

CREDITORS

Amounts falling due after more than one year

16

(341,862

)

(437,088

)

PROVISIONS FOR LIABILITIES

19

(246,592

)

(304,840

)

NET ASSETS

3,902,547

3,120,371

CAPITAL AND RESERVES

Called up share capital

20

800

800

Retained earnings

3,901,747

3,119,571

SHAREHOLDERS' FUNDS

3,902,547

3,120,371

The financial statements were approved by the Board of Directors and authorised for issue on 22 July 2026 and were signed on its behalf by:

G A Moreno Carrillo - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

800

2,544,001

2,544,801

Changes in equity

Dividends

-

(1,174,851

)

(1,174,851

)

Total comprehensive income

-

1,750,421

1,750,421

Balance at 31 December 2024

800

3,119,571

3,120,371

Changes in equity

Dividends

-

(662,350

)

(662,350

)

Total comprehensive income

-

1,444,526

1,444,526

Balance at 31 December 2025

800

3,901,747

3,902,547

Cash flows from operating activities

Cash generated from operations

1

2,148,330

2,111,482

Interest paid

(61,046

)

(14,140

)

Tax paid

(469,966

)

(279,102

)

Net cash from operating activities

1,617,318

1,818,240

Cash flows from investing activities

Purchase of intangible fixed assets

-

(57,000

)

Purchase of tangible fixed assets

(491,313

)

(365,198

)

Sale of tangible fixed assets

12,122

-

Interest received

22,521

20,552

Net cash from investing activities

(456,670

)

(401,646

)

Cash flows from financing activities

New loans in year

-

525,000

Loan repayments in year

(91,568

)

-

Equity dividends paid

(662,350

)

(1,174,851

)

Net cash from financing activities

(753,918

)

(649,851

)

Increase in cash and cash equivalents

406,730

766,743

Cash and cash equivalents at beginning of year

2

1,475,271

708,528

Cash and cash equivalents at end of year

2

1,882,001

1,475,271

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

31.12.25

31.12.24

£

£

Profit before taxation

1,624,503

2,196,496

Depreciation charges

464,946

412,405

Loss on disposal of fixed assets

4,913

-

Finance costs

61,046

14,140

Finance income

(22,521

)

(20,552

)

2,132,887

2,602,489

Increase in stocks

(262,694

)

(399,855

)

Decrease/(increase) in trade and other debtors

127,938

(215,206

)

Increase in trade and other creditors

150,199

124,054

Cash generated from operations

2,148,330

2,111,482

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

1,882,001

1,475,271

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,475,271

708,532

Bank overdrafts

-

(4

)

1,475,271

708,528

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

1,475,271

406,730

1,882,001

1,475,271

406,730

1,882,001

Debt

Debts falling due within 1 year

(87,912

)

(3,657

)

(91,569

)

Debts falling due after 1 year

(437,088

)

95,226

(341,862

)

(525,000

)

91,569

(433,431

)

Total

950,271

498,299

1,448,570

1.	STATUTORY INFORMATION

GDMP Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	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.

GDMP Limited is a wholly owned subsidiary of GDMP Investments Limited and the results of GDMP Limited are included in the consolidated financial statements of GDMP Investments Limited which are available from 70 Heathwood Road, Bournemouth, England, BH9 2JZ.

Going concern

Management has considered the post balance sheet events, budgets, forecasts and other conditions, and it has determined that they do not create a material uncertainty that casts significant doubt upon the entity's ability to continue as a going concern. Improving operating results and financial position after the balance sheet date indicates the going concern assumption is still appropriate.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows :

Sales of goods

Turnover from sale of goods is recognised when significant risk and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the Company and the cost incurred or to be incurred in respect of the transaction can be measured reliably. This is usually when goods are processed through the Company's outlet till and handed over to the customers or processed through internet and goods are dispatched. Sales are recognised in the accounts at the point of sale.

Intangible assets - goodwill

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Goodwill, being the amount paid in connection with the acquisition of businesses is being amortised evenly over its estimated useful life of 10 years.

Intangible assets - patents and licences

Patents and licences are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised over their estimated useful life of 5 - 10 years.

Tangible fixed assets

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

Short leasehold

-

10% on reducing balance

Improvements to property

-

20% on cost

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently at cost net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first our basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price is recognised as an impairment loss in profit or loss.

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.

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, loans from fellow group companies 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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.

Taxation

Taxation for the year comprises current and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Exchange liabilities

The Company purchases second hand electronic goods from the general public for a non-cash consideration by issuing 'Exchange Voucher'. The exchange vouchers are redeemable in exchange for other goods from any shop operated by the Franchisor but can not be redeemed for cash. The vouchers have no expiry date. Exchange liability vouchers are recognised at transaction price.

Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks and bank overdraft. Bank overdrafts are shown within borrowings in current liabilities.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they no longer at the discretion of the company.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAIN

In the application of the company's accounting policies, the directors are required to make judgments estimates and assumptions about the carrying amount of the assets and liabilities that are not readily apparent from other are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key Sources of estimation uncertainty

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Useful lives of intangible fixed assets

Intangible fixed assets consist of goodwill and franchisee fees. The annual amortisation charge depends on estimated useful economic life of the asset. The directors regularly review the remaining useful life of these assets. Changes in asset's useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies.

Useful lives of tangible fixed assets

The costs of tangible fixed assets less their residual value is depreciated over their estimated useful economic lives which are estimated by the director. Changes in the expected level of usage and technological developments could impact on the useful economic lives of these assets; therefore, further depreciation charges could be revised.

Exchange liabilities

The Company purchases second-hand electronic goods from members of the general public in exchange for non-cash consideration issued in the form of ‘Exchange Vouchers’. These vouchers do not have an expiry date. Based on industry knowledge, historical trends, analysis of redemption patterns, and the Company’s experience of voucher utilisation by customers, the Company retains exchange liabilities relating to vouchers issued during the previous four years as amounts payable within one year. Any remaining unredeemed balance thereafter is written back to the profit and loss account.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.25

31.12.24

£

£

United Kingdom

26,738,012

24,436,098

26,738,012

24,436,098

5.	OTHER OPERATING INCOME

31.12.25

31.12.24

£

£

Rents received

33,550

19,350

Miscellaneous income

197,219

374,907

230,769

394,257

Miscellaneous income includes management recharges, insurance claims, exchange liabilities adjustments, commission income and VAT refund.

6.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

4,406,707

3,712,129

Social security costs

397,920

236,615

Other pension costs

59,852

51,370

4,864,479

4,000,114

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

31.12.25

31.12.24

Management

5

5

Engineer

7

6

Store assistant

241

223

253

234

31.12.25

31.12.24

£

£

Directors' remuneration

7,985

12,527

Directors' excess retirement benefits

59,975

51,370

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

Money purchase schemes

1

1