REGISTERED NUMBER: 11823574 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2025

for

MS Pet Food Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Independent Auditors' Report

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Mr S D Owen

Mr M G Robinson

REGISTERED OFFICE:

2 Clayton Wood Court

Leeds

West Yorkshire

LS16 6QW

REGISTERED NUMBER:

11823574 (England and Wales)

AUDITORS:

Harris & Co Limited

Chartered Accountants & Statutory Auditor

Marland House

13 Huddersfield Road

Barnsley

South Yorkshire

S70 2LW

The directors present their strategic report of the Company and the Group for the year ended 31 December 2025.

REVIEW OF BUSINESS

The directors continued with their strategy of reducing reliance on the historic high volume, low margin business on which the Group has historically relied. Continued development of the processing and manufacturing site brought continued stability which the directors believe will assist the business to continue to grow and prosper in the coming years.

The Group operates within a sector which is subject to economic forces and legislative requirements within the United Kingdom, Europe and further afield. Whilst this poses certain challenges, the directors also believe opportunities exist within the market that the business can exploit given its strengths and market knowledge.

Turnover increased by 1.1% to £22,589,762 (2024: £22,338,209). However, the gross profit margin has declined to 20.9% (2024: 21.4%), resulting in a reduction in gross profit to £4,710,547 for the year (2024: £4,771,436). Profit before tax also fell during the year to £1,020,018 (2024: £1,677,015).

The directors are confident that the business is in a strong position in its chosen markets to enable it to prosper in the future. The business remains well capitalised and in a strong position from which to continue with the overriding strategy of improving the quality of turnover and margins returned by the business. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The group operates within a sector which is subject to economic forces within the United Kingdom, Europe and further afield.

Raw material costs fluctuate depending on availability and exchange rates. The directors have built knowledge of the industry over many years and, where possible seek to use such fluctuations to the advantage of the business.

FINANCIAL RISK MANAGEMENT

The Group’s operations expose it to a variety of financial risks that include the effects of changes in commodity prices, credit risk, cash flow risk, liquidity risk, and foreign exchange risk. The Group seeks to limit the adverse effects on it's financial performance by monitoring the impact of these and addressing them accordingly.

Price Risk

The Group carries out research into sales prices charged in the market for similar products and incorporates this information into its business plans.

Foreign currency risk

Where the Group has transactions denominated in foreign currency and so is exposed to exchange rate risk, it manages this risk by keeping under review the need for forward contracts in the appropriate foreign currency as required.

Credit risk

The Group has implemented policies that require appropriate credit checks on potential customers before credit sales are made.

Cash flow risk

Management regularly reviews cash expectations and actual cash performance against forecasts.

Liquidity risk

The Group has no long-term bank borrowings or deposits.

FUTURE DEVELOPMENTS

Given the progress made and despite the uncertainties referred to above, the directors remain confident that the group is in a strong position to rise to such challenges and continue to grow and prosper.

KEY PERFORMANCE INDICATORS

We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and EBITDA.

ON BEHALF OF THE BOARD:

Mr M G Robinson - Director

27 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the Group in the year under review was that of ingredient manufacturing and wholesale supply to the petfood industry.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £50,000.

DIRECTORS

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

Mr S D Owen

Mr M G Robinson

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information.

AUDITORS

The auditors, Harris & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M G Robinson - Director

27 May 2026

Opinion

We have audited the financial statements of MS Pet Food Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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 December 2025 and of the Group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Auditors' Report 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 four, 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 an Auditors' 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:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

Enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to:

-

Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

The internal controls established to mitigate risk related to fraud or non-compliance with laws & regulations;

-

Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key legal and regulatory frameworks that we determined were the most significant are those that relate to the reporting framework FRS 102, the Companies Act 2006 and the relevant UK tax compliance regulations. In addition, the Company has to comply with laws and regulations relating to its operations, including health and safety, pet food safety, employees, data protection and anti-bribery.

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 Auditors' Report.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

-

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

Enquiring of management concerning actual and potential litigation and claims;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; and

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing the judgements used in accounting estimates to assess whether these may be indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of 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.

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 Auditors' 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.

Tom Garner CA CTA (Senior Statutory Auditor)

for and on behalf of Harris & Co Limited

Chartered Accountants & Statutory Auditor

Marland House

13 Huddersfield Road

Barnsley

South Yorkshire

S70 2LW

27 May 2026

TURNOVER

4

22,589,762

22,338,209

Cost of sales

17,879,215

17,566,773

GROSS PROFIT

4,710,547

4,771,436

Distribution costs

980,184

798,338

Administrative expenses

2,719,901

2,305,436

3,700,085

3,103,774

OPERATING PROFIT

6

1,010,462

1,667,662

Interest receivable and similar income

9,556

9,353

PROFIT BEFORE TAXATION

1,020,018

1,677,015

Tax on profit

7

189,798

440,019

PROFIT FOR THE FINANCIAL YEAR

830,220

1,236,996

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

830,220

1,236,996

Profit attributable to:

Owners of the parent

830,220

1,236,996

Total comprehensive income attributable to:

Owners of the parent

830,220

1,236,996

FIXED ASSETS

Tangible assets

10

353,390

285,471

Investments

11

-

-

353,390

285,471

CURRENT ASSETS

Stocks

12

1,164,576

1,324,302

Debtors

13

3,315,854

2,368,915

Cash at bank and in hand

3,125,526

2,867,822

7,605,956

6,561,039

CREDITORS

Amounts falling due within one year

14

2,693,752

2,378,116

NET CURRENT ASSETS

4,912,204

4,182,923

TOTAL ASSETS LESS CURRENT LIABILITIES

5,265,594

4,468,394

PROVISIONS FOR LIABILITIES

16

88,348

71,368

NET ASSETS

5,177,246

4,397,026

CAPITAL AND RESERVES

Called up share capital

17

100,000

100,000

Retained earnings

18

5,077,246

4,297,026

SHAREHOLDERS' FUNDS

5,177,246

4,397,026

The financial statements were approved by the Board of Directors and authorised for issue on 27 May 2026 and were signed on its behalf by:

Mr M G Robinson - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

100,000

100,000

100,000

100,000

CURRENT ASSETS

Debtors

13

50,000

50,000

CREDITORS

Amounts falling due within one year

14

50,000

50,000

NET CURRENT LIABILITIES

-

-

TOTAL ASSETS LESS CURRENT LIABILITIES

100,000

100,000

CAPITAL AND RESERVES

Called up share capital

17

100,000

100,000

SHAREHOLDERS' FUNDS

100,000

100,000

Company's profit for the financial year

50,000

50,000

The financial statements were approved by the Board of Directors and authorised for issue on 27 May 2026 and were signed on its behalf by:

Mr M G Robinson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

105,002

3,110,030

3,215,032

Changes in equity

Issue of share capital

(5,002

)

-

(5,002

)

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

1,236,996

1,236,996

Balance at 31 December 2024

100,000

4,297,026

4,397,026

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

830,220

830,220

Balance at 31 December 2025

100,000

5,077,246

5,177,246

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100,000

-

100,000

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

50,000

50,000

Balance at 31 December 2024

100,000

-

100,000

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

50,000

50,000

Balance at 31 December 2025

100,000

-

100,000

Cash flows from operating activities

Cash generated from operations

1

900,742

1,162,632

Tax paid

(416,840

)

(468,836

)

Net cash from operating activities

483,902

693,796

Cash flows from investing activities

Purchase of tangible fixed assets

(186,254

)

(62,744

)

Sale of tangible fixed assets

500

-

Interest received

9,556

9,353

Net cash from investing activities

(176,198

)

(53,391

)

Cash flows from financing activities

Equity dividends paid

(50,000

)

(50,000

)

Net cash from financing activities

(50,000

)

(50,000

)

Increase in cash and cash equivalents

257,704

590,405

Cash and cash equivalents at beginning of year

2

2,867,822

2,277,417

Cash and cash equivalents at end of year

2

3,125,526

2,867,822

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

2025

2024

£

£

Profit before taxation

1,020,018

1,677,015

Depreciation charges

118,335

106,111

Profit on disposal of fixed assets

(500

)

-

Finance income

(9,556

)

(9,353

)

1,128,297

1,773,773

Decrease in stocks

159,726

107,279

Increase in trade and other debtors

(884,047

)

(477,573

)

Increase/(decrease) in trade and other creditors

496,766

(240,847

)

Cash generated from operations

900,742

1,162,632

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

3,125,526

2,867,822

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

2,867,822

2,277,417

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

2,867,822

257,704

3,125,526

2,867,822

257,704

3,125,526

Total

2,867,822

257,704

3,125,526

1.	STATUTORY INFORMATION

MS Pet Food 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.

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

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

At the time of approving the financial statements, the directors have prepared forecasts and considered other events, and have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

-

Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

-

Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

-

Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company MS Pet Food Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Related party exemption

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

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

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates that affect the amounts reported for assets and liabilities as the balance sheet date and amounts reported for revenues and expenses during the year.

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

Useful economic lives and residual values of tangible fixed assets

The directors regularly review the useful economic lives and residual values of tangible fixed assets based in their assessment of appropriate lives for similar asset classes, and estimated residual values at the end of their economic lives.

Stock provision

Provision is made for obsolete stock. This requires management's best estimate of the expected future use of stock.

Turnover

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

straight line over 3 years

Motor vehicles

-

straight line over 3 years

All fixed assets are initially recorded at cost.

Stocks

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over and above its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss. Reversals of impairment are also recorded in the profit and loss. Cost is valued using the weighted average cost method and includes all purchase, transport and handling costs bringing stocks to their present location and condition.

Financial instruments

The group has adopted the provisions set out in sections 11 and 12 of FRS 102 in the recognition and measurement of financial instruments. All financial instruments are initially measured at the original transaction price, less associated costs. For subsequent measurement, basic financial instruments are measured at amortised cost in accordance with section 11 of FRS 102. Other financial instruments that are not considered basic and that are material to the financial statements are measured at fair value through profit or loss in accordance with section 12 of FRS 102.

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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

4.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

22,457,943

22,236,133

Europe

131,819

102,076

22,589,762

22,338,209

Turnover represents amounts earned on goods and services provided during the year and derives from the provision of goods falling within the company's ordinary activities. In the opinion of the directors, there are no different class of turnover. All turnover is derived from sales made within the UK and the EU.

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,710,978

1,520,822

Social security costs

195,784

152,743

Other pension costs

37,963

28,422

1,944,725

1,701,987

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

2025

2024

Production

28

27

Administrative

15

13

43

40

2025

2024

£

£

Directors' remuneration

351,908

373,044

Directors' pension contributions to money purchase schemes

10,534

5,941

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

Money purchase schemes

4

5

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

104,996

103,747

Pension contributions to money purchase schemes

1,321

1,321

6.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

490,440

296,880

Depreciation - owned assets

118,335

106,111

Profit on disposal of fixed assets

(500

)

-

Auditors' remuneration

16,000

15,750

Auditors' remuneration for non audit work

3,030

3,016

Foreign exchange differences

48,907

9,142