The directors present the strategic report for the year ended 31 December 2025.
The Group supplies products to the window and door market, primarily serving fabricators who manufacture door sets and bi-fold doors. We also support small to medium-sized customers by providing door blanks prepared for locks, hinges, and hardware, with a variety of colours and glazing options available.
During 2025, net sales decreased by £1.28m compared with the previous year, primarily due to a reduction in Door Warehouse sales. Despite the reduction in revenue, the Group improved its underlying operational performance, improving gross margin from 20.38% to 23.54% through stronger cost control, lower customer credits and improved manufacturing contribution margins.
A focus on working capital management reduced inventory holdings by 22 days whilst maintaining strong service levels. These actions contributed to debt reduction of £1.46 million, strengthening the balance sheet and reducing financial leverage.
Cost of goods sold and administrative expenses remained relatively stable compared with the previous year with continued improvements in cost control contributing to an improved EBITDA.
Capital investments were deployed during the year to significantly increase production capacity within the door preparation operation while improving manufacturing efficiency.
The Group continues to invest in product development, operational improvement and customer service to meet evolving market requirements. ODL Inc., headquartered in Michigan, USA, continues to support the Group’s growth and development in the UK market.
The Group continues to place strong emphasis on employee engagement and maintaining a positive workplace culture. Employee feedback is obtained through confidential annual surveys and ODL again achieved certification as a Great Place to Work during the year.
The Senior Leadership Team reviews and updates the formal business plan annually to set clear objectives that guide the Group’s ongoing development and future success. Additionally, the Team closely monitors and refines financial and non-financial key performance indicators (KPIs) to assess progress against the Group’s strategic objectives. In addition to financial targets such as EBITDA, turnover, and operating profit, non-financial measures including employee engagement and health and safety are prioritised to support customer satisfaction and a safe, productive workplace.
The Group remains exposed to several principal risks, including:
· Market trends and the cost-of-living environment.
· Economic and political uncertainty.
· Supply chain pricing and reliability.
· Labour availability; and
· Competitor activity.
The Group values strong commercial relationships with key customers and suppliers, which are essential to its trading performance. These relationships are supported through open communication, collaboration, and mutual trust with suppliers, customers, and employees, helping to enhance customer satisfaction and maintain a safe and productive work environment.
The Group remains focused on profitable revenue growth, operational efficiency, customer satisfaction, product quality and effective working capital management. The Group will continue to invest in its people, processes and products to support long-term sustainable growth.
The Group's key performance indicators are Turnover, Gross Profit and EBITDA.
|
| 2025 | 2024 |
|
| £ | £ |
Turnover (£) | 16,105,049 | 17,386,307 | |
Gross profit (£) | 3,790,947 | 3,544,142 | |
Gross profit (%) | 23.54% | 20.38% | |
EBITDA (£) |
| 376,315 | (26,681) |
EBITDA (%) Adjusted* EBITDA (£) Adjusted EBITDA (%)
| 2.34% 376,315 2.34% | (0.15%) 185,692 1.1%
| |
* Adjusted EBITDA adjusts for exceptional bad debt write-offs in the year
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and principal risks and uncertainties.
We have audited the financial statements of ODL Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquiries with management about any known or suspected instances of fraud within the business;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Auditing the risk of management override of controls, including thorough testing of journal entries and other adjustments for appropriateness;
Reviewing minutes of meetings of those charged with governance and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries; and,
Auditing risk of fraud in revenue, including through the testing of sales transactions and revenue cut off to ensure revenue has occurred in the financial statements and recognised in the correct accounting period.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The notes on pages 14 to 32 form part of these financial statements.
The notes on pages 14 to 32 form part of these financial statements.
The notes on pages 14 to 32 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £139,825 (2024 - £0 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The notes on pages 14 to 32 form part of these financial statements.
The notes on pages 14 to 32 form part of these financial statements.
The notes on pages 14 to 32 form part of these financial statements.
ODL Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Brook Road, Bootle, L20 4XP.
The group consists of ODL Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The parent company is a qualifying entity for the purposes of FRS 102, being a parent of a group that prepares publicly available consolidated financial statements, 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 the reduced disclosure framework as a qualifying entity under FRS102 1.12 and has elected to apply the exemptions from the following disclosure requirements:
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.
The consolidated group financial statements consist of the financial statements of the parent company ODL Holdings 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The Directors have considered current trading performance and forecasts for a period of at least twelve months from the date of signing the 2025 financial statements.
The Directors have carried out a thorough review of the Group's trade activities, profitability and cashflows. For the year ended 31 December 2025 the company has seen decreased revenues by £1,281,258 however have improved gross profit by £247k (a 5.0% increase on the prior year). Overheads have remained in a similar position to the previous year.
Based on the forecasts and cash flow projections prepared by management, the Group is expected to generate sufficient positive cash flows from its own operations and to have adequate working capital resources to meet its obligations as they fall due throughout the assessment period.
The Group has no external bank debt and is fully funded by its ultimate parent undertaking, ODL Inc, a company registered in the United States of America. ODL Inc has provided a letter confirming its financial support for at least 12 months from the approval of these financial statements. The Directors have received sufficient evidence to show that ODL Inc have the means to support the Group if necessary. Whilst the Directors do not anticipate that such support will be necessary based on the Group's current forecasts, it provides additional financial flexibility should trading performance differ from expectations.
After making detailed enquiries, forecasting and sensitising such forecasts, the directors have formed a judgment, at the time of approving the financial statements, that there is a strong expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 despatch 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.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
All of the Group's assets are considered basic financial assets.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. 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.
All of the Group's liabilities are considered basic financial liabilities.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable 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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock is valued at the lower of cost and net realisable value based upon a standard costing set at the start of every year. Where necessary, provisions for slow moving and obsolete stock are made. Calculation of these provisions requires judgements to be made using the professional expertise of management and their knowledge of the company and the industry as a whole. Provisions take into account both the age of stock of doors and frames, the sales and purchases of these items over the year and anticipated sales pipeline for the subsequent year. Certain stock lines that have not been purchased in over 12 months are provided for at 50% of their book value and where this is greater than 24 months, these are provided for at 100% of their book value. Where these stock lines have sold in the year, an estimate is made to use the last 12 months sales quantities as an estimate for demand in the next 12 months. This demand is deducted from the stock provision at the year end and is deemed an accurate reflection by the directors of the final stock provision.
The useful economic life of tangible fixed assets is judged at the point of purchase and reviewed at each financial reporting date. The group depreciates its tangible assets over their estimated useful lives. The estimates of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied.
The Directors assess the carrying value of investments for indicators of impairment at each reporting date. Where impairment indicators exist, the recoverable amount is estimated using a valuation model based on expected future earnings and relevant market valuation multiples.
The impairment assessment requires the Directors to make significant estimates and assumptions, particularly in relation to future trading performance, the achievability of forecast earnings, expected operational improvements and the selection of appropriate market multiples.The Directors have performed sensitivity analysis around the key assumptions used and concluded that the carrying value of the investment remains supportable.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The company has no employees other than its directors who are directly employed by other entities in the group and through the ultimate worldwide parent company.
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
Deferred tax is not recognised in respect of tax losses of £5,405,591 (2024: £5,192,653) as it is not probable that they will be recovered in full against the reversal of deferred tax liabilities or future taxable profits. The directors continue to monitor this situation annually and will recognise a deferred tax asset on unutilised losses as soon as the period in which future taxable profits can be measured with more certainty.
Details of the company's subsidiaries at 31 December 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
At the year end, provisions for obsolete stock were £817,929 (2024: £576,385).
At the year end, a total of £42,195 (2024: £185,387) of trade debtors were provided against in the form of a bad debt provision, as detailed in note 2.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand. Other borrowings relate to formalised group loans owed to the parent company which are detailed within note 16 of the financial statements.
On 4th March 2022 the Group received a loan from ODL Incorporated for the sum of $3,350,000. At the year end the outstanding balance was £2,013,325 (2024 - £2,032,815) the loan is unsecured and repayable on demand. There is no set repayment date and interest is charged on the first date of each applicable period and adjusted monthly on the first business date of each period hereafter at note rate plus 2% per annum, with note rate being SOFR plus 1%.
On 25 March 2024, the Group received a further loan from ODL Incorporated of $1,250,000. At the year end the outstanding balance was £152,731 (2024: £994,170) the loan is unsecured and repayable on demand. There is no set repayment date and interest is charged at a fixed rate of 5.5% per annum.
On 13 May 2024, the Group entered into an agreement with ODL Incorporated for a total credit facility of $1,250,000. On the 31st May 2024 the company drew down $400,000 of this loan, leaving an unutilised facility of $850,000, at the year end the outstanding balance was £nil (2024: £318,135). Interest was charged at a fixed rate of 5.5% per annum.
Total interest charged on the above loans amounted to £191,310 (2024 - £171,210). This interest is accrued and has been applied to the loan balance.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Deferred tax assets in relation to losses and other deductions in the year exceed the value of deferred tax liabilities in relation to accelerated capital allowances. The period in which these balances are expected to reverse is unpredictable and as such there are sufficient tax losses provided for to offset the liabilities due, but no further losses recognised as a deferred tax asset. Where there remains a deferred tax asset balance in excess of the liability, this balance will be provided for in future when the reversing of these losses against future profits can be predicted with more certainty.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The group and company ordinary shares, which carry no right to fixed income, each carry the right to vote at the general meeting of the company.
Amounts contracted for but not provided in the financial statements:
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the group entered into the following transactions with related parties:
Purchase of goods from ODL Building Materials Manufacturing Corp of Suzhou China, amounting to £240,469 (2024: £256,687). At the year end £34,602 (2024: £6,137) was owed to ODL Building Materials Manufacturing Corp of Suzhou. This can be found within amounts owed to group undertakings, creditors due within one year of the financial statements, note 14 of the financial statements.
Purchase of goods from ODL Incorporated (a company incorporated in the United States of America) amounting to £119,059 (2024: £250,967) respectively. At the year end £Nil (2024: £26,461) was owed to ODL Incorporated regarding trade balances, which is included within other borrowings note 15 and 16 of the financial statements.
Included within other borrowings, notes 15 and 16 of the financial statements are the following formalised loans received from the ultimate parent undertaking:
On 4th March 2022 the Group received a loan from ODL Incorporated for the sum of $3,350,000. At the year end the outstanding balance was £2,013,325 (2024 - £2,032,815) the loan is unsecured and repayable on demand. There is no set repayment date and interest is charged on the first date of each applicable period and adjusted monthly on the first business date of each period hereafter at note rate plus 2% per annum, with note rate being SOFR plus 1%.
On 25 March 2024, the Group received a loan from ODL Incorporated of $1,250,000. At the year end the outstanding balance was £152,731 (2024: £994,170) the loan is unsecured and repayable on demand. Interest is charged at 5.5% per annum.
On 13 May 2024, the Group entered into an agreement with ODL Incorporated for a total credit facility of $1,250,000. At the year end the outstanding balance was £Nil (2024: £318,135). The balance is repayable on demand and interest is charged at 5.5% per annum.
Total interest charged by ODL Incorporated on the above loans amounted to £191,310 (2024: £171,210). This interest is accrued and has been applied to the loan balances above.
Nature of error
During the year, the directors reassessed the accounting treatment applied to transactions with a third-party manufacturer. Following this review, it was concluded that the company acts as principal in these arrangements and, accordingly, the related transactions should be presented on a gross basis within turnover and cost of sales. In prior periods, these transactions were presented on a net basis.