REGISTERED NUMBER: 02516423 (England and Wales)

UNITED FILLINGS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

to

24

DIRECTORS:

S T Prue

J M Prue

REGISTERED OFFICE:

Falcon Mill

27 Vine Street

Billingborough

Lincolnshire

NG34 0QE

REGISTERED NUMBER:

02516423 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

5 Resolution Close

Endeavour Park

Boston

Lincolnshire

PE21 7TT

BANKERS:

National Westminster Bank

51 Market Place

Long Eaton

Nottinghamshire

NG10 1JP

SOLICITORS:

Geldards LLP

The Arc

Enterprise Way

Nottingham

NG2 1EN

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

REVIEW OF BUSINESS

The results of the company for the year are as shown in the annexed financial statements and show a pre-tax loss of (£724,105) for the year 2025 compared to profit for 2024 profit £466,591.

The loss made in the year was a result of current trading conditions. The market has decreased since the boom during Covid which has resulted in several small businesses going bust. Three large customers have also gone into administration in the year due to a change in retailer buying patterns creating exceptional bad debts. The business previously undertaken with these customers has been taken on by smaller business and so some of the turnover will be maintained.

The company has reduced costs by making redundancies and undertaking cost cutting exercises. The business is now in a stronger financial position with reduced overheads.

A refinancing programme took place post year end and plans to move work between sites to further reduce costs is a continuing exercise.

Post year end, a large bad debt in 2026 has halted the company's turnover progression in the first half of the year. However, the business has developed a key product for the market which is started marketing at the end of 2025. A new customer base is expected with the launch of the new product and both existing and new customers are expected to increase turnover in the second half of 2026.

The board feel 2026 will be a difficult year as they restructure the company manufacturing facilities and finances but remain positive for the outlook of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The execution of the company's strategy is subject to a number of risks.

Key business risks and uncertainties affecting the company are related to the far east oil price increases as this brings rising cost of materials which then incorporates prices rises having to be passed onto customers causing a possible market slowdown.

The rising cost of minimum wage causes cheaper products to be unprofitable. As a result further price rises, reductions in staff and reductions in supply are required.

Rising costs of borrowing is also a risk to business.

KEY PERFORMANCE INDICATORS ("KPI'S")

Given the straightforward nature of the business, the company's directors are of the opinion that a detailed analysis using KPIs is not necessary for an understanding of the development, performance or position of the business. The company uses gross profit % and EBITDA as its primary measures.

Key financial results

2025

2024

Turnover (£'000)

8,364

10,646

Gross (loss)/profit(£'000)

(1,657

)

2,574

Gross profit margin

19.8%

24.2%

(Loss)/profit after tax (£'000)

(467

)

346

EBITDA (£'000)

(598

)

604

EBITDA excluding exceptional (£'000)

(247

)

604

Net assets (£'000)

7,275

7,757

ON BEHALF OF THE BOARD:

S T Prue - Director

17 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of quality cushion products for the furniture industry.

DIVIDENDS

The total distribution of dividends for the year ended 31 July 2025 was £16,000.

RESEARCH AND DEVELOPMENT

New products are continually being developed to cope with the increasing demand of customers looking for alternative and unique products. Includes developing products for other markets.

FUTURE DEVELOPMENTS

Going forwards, the business has been reducing cost by redundancies on shop floor and managerial staff, further cost reductions have also taken place.

New markets are being explored where products can be bought and sold without manufacturing costs.

The business is continuing to evaluate a strategy to consolidate factories to save future costs.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2024 to the date of this report.

S T Prue

J M Prue

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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). 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.

ON BEHALF OF THE BOARD:

S T Prue - Director

17 July 2026

Opinion

We have audited the financial statements of United Fillings Limited (the 'company') for the year ended 31 July 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 July 2025 and of its 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 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 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 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:

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

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation and residual values, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome post year-end.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect:

• Health and Safety regulations;

• Employment law; and

• Quality standards for products.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included discussions with senior management around whether any incidents occurred in the year, a review of Health & Safety policies in place and a review of legal and professional fees for evidence of non-compliance. Throughout these procedures, if we became aware of any non-compliance, we consider the impact on the procedures performed on the related financial statement items.

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

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

Use of our report

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

Sally-Anne Hurn FCA (Senior Statutory Auditor)

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

5 Resolution Close

Endeavour Park

Boston

Lincolnshire

PE21 7TT

17 July 2026

TURNOVER

3

8,364,127

10,646,301

Cost of sales

6,707,483

8,072,160

GROSS PROFIT

1,656,644

2,574,141

Distribution costs

956,125

1,106,177

Administrative expenses

1,404,543

989,054

2,360,668

2,095,231

(704,024

)

478,910

Other operating income

6,634

16,688

OPERATING (LOSS)/PROFIT

5

(697,390

)

495,598

Interest receivable and similar income

1,816

-

(695,574

)

495,598

Interest payable and similar expenses

7

28,531

29,007

(LOSS)/PROFIT BEFORE TAXATION

(724,105

)

466,591

Tax on (loss)/profit

8

(257,418

)

120,449

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(466,687

)

346,142

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(466,687

)

346,142

FIXED ASSETS

Tangible assets

10

941,725

1,000,995

CURRENT ASSETS

Stocks

11

270,583

339,357

Debtors

12

7,442,895

7,681,858

Cash at bank and in hand

24,959

28,374

7,738,437

8,049,589

CREDITORS

Amounts falling due within one year

13

1,362,991

1,166,577

NET CURRENT ASSETS

6,375,446

6,883,012

TOTAL ASSETS LESS CURRENT LIABILITIES

7,317,171

7,884,007

PROVISIONS FOR LIABILITIES

17

42,349

126,498

NET ASSETS

7,274,822

7,757,509

CAPITAL AND RESERVES

Called up share capital

18

44,118

44,118

Share premium

19

135,432

135,432

Revaluation reserve

19

325,044

331,424

Capital redemption reserve

19

64,705

64,705

Retained earnings

19

6,705,523

7,181,830

SHAREHOLDERS' FUNDS

7,274,822

7,757,509

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2026 and were signed on its behalf by:

S T Prue - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 August 2023

44,118

6,911,308

135,432

Changes in equity

Total comprehensive income

-

346,142

-

Dividends

-

(82,000

)

-

Transfer from revaluation reserve

-

6,380

-

Balance at 31 July 2024

44,118

7,181,830

135,432

Changes in equity

Total comprehensive income

-

(466,687

)

-

Dividends

-

(16,000

)

-

Transfer from revaluation reserve

-

6,380

-

Balance at 31 July 2025

44,118

6,705,523

135,432

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 August 2023

337,804

64,705

7,493,367

Changes in equity

Total comprehensive income

-

-

346,142

Dividends

-

-

(82,000

)

Transfer from revaluation reserve

(6,380

)

-

-

Balance at 31 July 2024

331,424

64,705

7,757,509

Changes in equity

Total comprehensive income

-

-

(466,687

)

Dividends

-

-

(16,000

)

Transfer from revaluation reserve

(6,380

)

-

-

Balance at 31 July 2025

325,044

64,705

7,274,822

1.	STATUTORY INFORMATION

United Fillings 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 as modified by the revaluation of certain assets.

The company's accounting reference date is 31 July. These financial statements are for the period 3 August 2024 to 1 August 2025. The comparative figures are for the period 29 July 2023 to 2 August 2024..

The company continues to be impacted by a fall in the market since Covid. Three large businesses went into administration in the year due to changes in retailer buying patterns. The trade from these businesses has moved into smaller businesses, allowing for some turnover to be maintained.

The company has reduced costs by making redundancies and cutting overheads, with plans to move work between sites to further reduce costs a continuing exercise. A refinancing programme also started in November 2025.

Post year end, the business has developed a key product for the market and started marketing this at the end of 2025 and beginning of 2026. New customer base is expected with the launch of the new product and extra sales are expected within the present customer base. This will develop turnover levels during the last half of the year.

The board feel 2026 will be a difficult year as they restructure the company manufacturing facilities and finances. This is further impacted by a large bad debt in 2026 which has halted the company's turnover progression in the first half of the year.

The board of directors are comfortable the business is viable based on the plans it has in place in developing fresh markets and controls of reducing exposure to debt as accounts are restricted.

The directors regard the preparation of the financial statements on a going concern basis as appropriate.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.

The company is a subsidiary of United Fillings Holdings Limited. Consolidated financial statements of the ultimate parent company (United Fillings Group Limited) can be obtained from Falcon Mill, 27 Vine Street, Billingborough, Lincolnshire, NG34 0QE.

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.

Significant judgements and estimates

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

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

There are currently no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sales of goods are recognised upon delivery to the customer, or upon collection by the customer, when title has passed.

Tangible fixed assets

Tangible fixed assets are held at cost less accumulated depreciation and impairment losses.

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

Freehold property

- 2% on cost/valuation

Short leasehold

- over the term of the lease

Plant and machinery

- at varying rates on cost

Fixtures and fittings

- at varying rates on cost

Motor vehicles

- at varying rates on cost

Computer equipment

- at varying rates on cost

The part of the annual depreciation charge on revalued assets which relates to the surplus is transferred from the revaluation reserve to the income statement.

Revaluation of properties:-

Previous valuations were adopted as deemed cost on transition to FRS102.

Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow moving stock. Cost is determined on a first in first out basis, and includes all direct costs incurred.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks, other third parties and 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 income statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the financial reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is as 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Leasing commitments

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

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 the income statement in the period to which they relate.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, and impairment loss is recognised in the income statement unless the asset is carried at a revalued amount where the impairment loss is recognised in the revaluation reserve.

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

8,364,127

10,641,681

Other

-

4,620

8,364,127

10,646,301

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,655,734

2,873,780

Social security costs

252,305

232,612

Other pension costs

67,434

74,263

2,975,473

3,180,655

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

2025

2024

Production

80

88

Sales and distribution

11

12

Administration

13

16

104

116

2025

2024

£

£

Directors' remuneration

122,277

126,529

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

Money purchase schemes

2

2

5.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging:

2025

2024

£

£

Hire of plant and machinery

172,348

150,868

Other operating leases

127,800

126,053

Depreciation - owned assets

98,987

104,178

Loss on disposal of fixed assets

-

4,150

Auditors' remuneration

18,500

17,500

Auditors' remuneration for non audit work

27,830

27,468

6.	EXCEPTIONAL ITEMS

2025

2024

£

£

Exceptional items

(351,332

)

-

As noted in the strategic report, three large bad debts were incurred in the year as a result of exceptional trading conditions.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

26,522

29,007

HMRC interest

2,009

-

28,531

29,007

8.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

(89,892

)

125,438

Adjustment re previous years

(83,377

)

(9

)

Total current tax

(173,269

)

125,429

Deferred tax

(84,149

)

(4,980

)

Tax on (loss)/profit

(257,418

)

120,449

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

(Loss)/profit before tax

(724,105

)

466,591

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(181,026

)

116,648

Effects of:

Expenses not deductible for tax purposes

3,123

3,810

Adjustments to tax charge in respect of previous periods

(79,515

)

(9

)

allowances claimed

Total tax (credit)/charge

(257,418

)

120,449

Factors that may affect future tax charges

The statutory UK corporation tax rate is currently 25%, with a small profits rate of 19%.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised, based on tax law and the corporation tax rates that have been enacted, or substantially enacted, at the year end date.

9.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

16,000

82,000