REGISTERED NUMBER: 01121605 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 29TH JULY 2024 TO 27TH JULY 2025

FOR

VIRANI FOOD PRODUCTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

Mr N D Shah

Mr M N Shah

Mr T J Shah

Mr M Russell

SECRETARY:

Mr A Chhag

REGISTERED OFFICE:

4-5 Midland Business Units

Finedon Road

Wellingborough

Northamptonshire

NN8 4AD

REGISTERED NUMBER:

01121605 (England and Wales)

AUDITORS:

PSJ Alexander & Co

Chartered Accountants & Statutory Auditors

1 Doughty Street

London

WC1N 2PH

BANKERS:

HSBC Bank plc

South Midlands Corporate Banking Centre

Quadra, 500 Pavilion Drive

Northampton Business Park

Northampton

NN4 7YJ

SOLICITORS:

Shoosmiths

The Lakes

Bedford Road

Northampton

NN4 7SH

The directors present their strategic report for the period 29th July 2024 to 27th July 2025.

REVIEW OF BUSINESS

The company has generally maintained its margin through the period against an enduring tough grocery trading environment and significant supply chain disruption. It continues to put particular effort into its compliance with food safety regulation and holds globally recognised best practice accreditations. The year has seen yet more efforts towards tighter supply chain risk management and closer supplier partnerships.

During the year, the company has continued operating from two sites.

Over the period, the company has worked in partnership with its customers on a pipeline of high-profile retail product launches. The company's herbs, spices and seasonings feature as ingredients in products ranging from ambient sauces to chilled and frozen ready meals.

Results:

2025

2024

£

£

Turnover

23,444,702

21,398,468

Gross Profit

5,883,479

5,712,198

Profit/(loss) after tax

(1,237,434

)

(388,472

)

Revenue increased by almost 10% to £23.4 million during the period, reflecting continued customer demand. The increased loss after tax was principally driven by a degree of margin erosion, adverse foreign exchange movements, higher bank and finance costs, increased payroll expenditure and a prudent stock provision charge. The board has strengthened its focus on inventory management, with stock provisions now more targeted and closely controlled, while ongoing investment in the business is expected to support future growth and operational efficiency.

PRINCIPAL RISKS AND UNCERTAINTIES

The nature of the company's business is to manage global supply chain risk, within defined boundaries, on behalf of its food industry clientèle. Established systems and controls are in place to mitigate such risks and a comprehensive suite of insurance cover, reviewed periodically, transfers much of the remaining liability.

The company is pro-active in managing the several financial risks it faces. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. A dedicated full-time credit controller is in place, working within tight management systems. The working capital cycle is designed to minimise trade creditors liquidity risk. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the funding requirements to support operational and other activities and the banking facilities available. This activity is supported by regular short-term cash projections and considering the level of liquid assets in relation thereto. Treasury risks, primarily foreign exchange and interest rate risks, are managed by appropriate hedging instruments.

STREAMLINED ENERGY AND CARBON REPORTING

For the past few years, the Company has prioritised sustainability and energy efficiency as a key part of its business ethos, committing to investing in the necessary resources to help achieve a reduction of our carbon footprint across all parts of our business. The business is focused on continuing to carry out an energy reduction programme that will include purchasing electricity from renewable sources and other measures.

ON BEHALF OF THE BOARD:

Mr M Russell - Director

30th July 2026

The directors present their report with the financial statements of the company for the period 29th July 2024 to 27th July 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of processing spices and milling flour.

DIVIDENDS

Dividend of £70,000 (£0.07 per share) was paid during the year.

FUTURE DEVELOPMENTS

The Board expects sales of herbs, spices, seasonings and pastes to remain steady in the near future, supported by the Company's established product range and customer base.

During 2026, the Company sold its pulse and speciality crop stocks and related packaging to Legumology Limited in accordance with the business sale agreement. The Company will therefore focus on its core herbs, spices, seasonings and pastes business. The Company also intends to continue improving operational efficiencies and maintaining high standards of hygiene.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 29th July 2024 to the date of this report.

Mr N D Shah

Mr M N Shah

Mr T J Shah

Mr M Russell

GOING CONCERN

The Directors note that for the period ended at the balance sheet date, the Company reported a loss before tax of £1,258,572, while reporting net current assets of £2,529,049 and net assets of £3,110,236.

Unaudited management accounts to 31st May 2026 indicate a substantial reduction in the continuing loss before tax. These losses in the current financial period (2025/26) are primarily attributable to two causes:

-

a reduction in total turnover and the associated contribution as the company has reviewed lower margin activity; and

-

the extra cost of tightening technical controls for allergen risk management within the company's supply chain to some of highest standards in the ingredients sector.

Management is continuing to take further steps to bring the company back to a breakeven position during the forthcoming financial year. The new position of business development manager has been created to focus on the new sales pipeline that will deliver future growth. At the same time, the programme of cost efficiencies has reached the stage of organisational restructuring and savings have already been delivered. In addition, having further separated out the pulses business activity, the Company is now entirely focused on herbs, spices and seasonings.

With respect to the additional costs of tightened technical controls, management believes that these are largely strategic in nature and expects that, as comparable investment in allergen risk management becomes more widespread across the sector, improved market pricing and gross margins will enable these costs to be recovered over time.

The Company has continued to maintain high levels of customer service and order fulfilment throughout the period, supporting the Board's expectation that its customer relationships and underlying business remain resilient.

The Company also utilises bank loans and other banking facilities, which are repayable on demand and are subject to annual renewal by the lender. The Directors have considered the Company's longstanding banking relationship, its history of meeting all interest and capital repayment obligations, and its continued compliance with the terms of its banking facilities. Based on these factors, the Directors have a reasonable expectation that the existing facilities will continue to be available for the foreseeable future.

The Board notes that approximately three quarters of the Company's stock purchases are denominated in foreign currencies, primarily US Dollars and Euros. This significant foreign currency exposure presents additional challenges to the Company, as Sterling can experience volatility against both currencies. Unfavourable exchange rate movements can materially impact the Company's cost base and contribute to margin pressure. To mitigate the inherent risks associated with the significant foreign currency exposure, the Company has established a hedging strategy centered around forward foreign exchange contracts.

In addition, subsequent to the year end, the Company strengthened its financial position through the issue of new shares in June 2026, providing additional equity funding to support future operations and working capital requirements.

The Directors have prepared cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements. Having considered the forecast trading performance, including sensitivity analyses under various scenarios, available banking facilities, the additional capital raised, and the other matters described above, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future.

This assessment is based on:

-

the Company's substantial net asset position of £3,110,236 as at the balance sheet date;

-

cash flow projections indicating good cash generation to the end of the 2026/27 financial year;

-

the continuing excellent levels of service fulfilment;

-

early indicators of improved margins in the latest unaudited management accounts;

-

the Company's strong relationship with its banking partner;

-

the injection of fresh equity capital during 2026;

-

continued support from key suppliers.

Despite the recent challenges, the Directors believe that the fundamentals of the business remain sound and that the corrective actions being implemented will return the Company to profitability. The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

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:

Mr M Russell - Director

30th July 2026

Opinion

We have audited the financial statements of Virani Food Products Limited (the 'company') for the period ended 27th July 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 27th July 2025 and of its loss for the period 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

We draw attention to Note 3 of the financial statements, which indicates that the company incurred losses before tax of £1,258,572 for the period ended at the balance sheet date, while reporting net current assets of £2,529,049 and net assets of £3,110,236. As further indicated in Note 3, the Company's unaudited management accounts to May 2026 indicate a substantial reduction in the continuing loss before tax. The Company's ability to continue as a going concern is dependent on management being able to successfully implement measures to address the continuing losses and to improve liquidity, as well as on the continued availability of bank support and banking facilities.

Our opinion is not modified in respect of this matter.

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 reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations that have a direct effect on the financial statements;

-

we enquired with the management team concerning actual and potential litigation and claims, including compliance with anti-bribery legislation;

-

we reviewed the recent FSA Report and other food and hygiene audit reports and enquired with management regarding compliance with applicable food and hygiene standards;

-

we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

we read minutes of meetings of those charged with governance and of the audit committee;

-

we obtained an understanding of any provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions/assets; and

-

we addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

Manesh Shah (Senior Statutory Auditor)

for and on behalf of PSJ Alexander & Co

Chartered Accountants & Statutory Auditors

1 Doughty Street

London

WC1N 2PH

30th July 2026

TURNOVER

4

23,444,702

21,398,468

Cost of sales

17,561,223

15,686,270

GROSS PROFIT

5,883,479

5,712,198

Administrative expenses

6,992,768

5,904,458

(1,109,289

)

(192,260

)

Other operating income

137,787

12,000

OPERATING LOSS

6

(971,502

)

(180,260

)

Interest payable and similar expenses

7

287,070

168,212

LOSS BEFORE TAXATION

(1,258,572

)

(348,472

)

Tax on loss

8

(21,138

)

40,000

LOSS FOR THE FINANCIAL PERIOD

(1,237,434

)

(388,472

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(1,237,434

)

(388,472

)

FIXED ASSETS

Tangible assets

10

711,187

859,600

CURRENT ASSETS

Stocks

11

5,790,429

6,163,197

Debtors

12

3,767,654

4,120,614

Cash at bank

145,567

119,661

9,703,650

10,403,472

CREDITORS

Amounts falling due within one year

13

7,174,601

6,700,402

NET CURRENT ASSETS

2,529,049

3,703,070

TOTAL ASSETS LESS CURRENT LIABILITIES

3,240,236

4,562,670

PROVISIONS FOR LIABILITIES

17

130,000

145,000

NET ASSETS

3,110,236

4,417,670

CAPITAL AND RESERVES

Called up share capital

18

1,000,000

1,000,000

Share premium

19

380,250

380,250

Capital reserve

19

40,021

40,021

Retained earnings

19

1,689,965

2,997,399

SHAREHOLDERS' FUNDS

3,110,236

4,417,670

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

Mr M Russell - Director

Called up

share

Retained

Share

Capital

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 31st July 2023

1,000,000

3,445,871

380,250

40,021

4,866,142

Changes in equity

Dividends

-

(60,000

)

-

-

(60,000

)

Total comprehensive income

-

(388,472

)

-

-

(388,472

)

Balance at 28th July 2024

1,000,000

2,997,399

380,250

40,021

4,417,670

Changes in equity

Dividends

-

(70,000

)

-

-

(70,000

)

Total comprehensive income

-

(1,237,434

)

-

-

(1,237,434

)

Balance at 27th July 2025

1,000,000

1,689,965

380,250

40,021

3,110,236

Cash flows from operating activities

Cash generated from operations

27

(1,206,746

)

(535,087

)

Interest paid

(257,820

)

(168,212

)

Finance costs paid

(29,250

)

-

Tax paid

251,813

-

Net cash from operating activities

(1,242,003

)

(703,299

)

Cash flows from investing activities

Purchase of tangible fixed assets

(76,725

)

(178,193

)

Sale of tangible fixed assets

13,224

-

Net cash from investing activities

(63,501

)

(178,193

)

Cash flows from financing activities

New loans in year

1,402,239

450,918

Capital repayments of HP/FL in year

(829

)

(1,077

)

Equity dividends paid

(70,000

)

(60,000

)

Net cash from financing activities

1,331,410

389,841

Increase/(decrease) in cash and cash equivalents

25,906

(491,651

)

Cash and cash equivalents at beginning of period

28

119,661

611,312

Cash and cash equivalents at end of period

28

145,567

119,661

1.	STATUTORY INFORMATION

Virani Food Products 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.

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 as modified by the revaluation of certain assets.

Going Concern

The financial statements have been prepared on a going concern basis, which assumes that the Company will continue in operational existence for the foreseeable future and will be able to realise its assets and discharge its liabilities in the normal course of business.

For the financial year ended at the balance sheet date, the Company reported a loss before tax of £1,258,572, while reporting net current assets of £2,529,049 and net assets of £3,110,236.

Unaudited management accounts to 31st May 2026 indicate a substantial reduction in the continuing loss before tax. These loss in the current financial period (2025/26) is primarily attributable to two causes:

-

a reduction in total turnover and the associated contribution as the company has reviewed lower margin activity; and

-

the extra cost of tightening technical controls for allergen risk management within the company's supply chain to some of highest standards in the ingredients sector.

Management is continuing to take further steps to bring the company back to a breakeven position during the forthcoming financial year. The new position of business development manager has been created to focus on the new sales pipeline that will deliver future growth. At the same time, the programme of cost efficiencies has reached the stage of organisational restructuring and savings have,already been delivered. In addition, having further separated out the pulses business activity, the Company is now entirely focused on herbs, spices and seasonings.

With respect to the additional costs of tightened technical controls, management believes that these are largely strategic in nature and expects that, as comparable investment in allergen risk management becomes more widespread across the sector, improved market pricing and gross margins will enable these costs to be recovered over time.

The Company has continued to maintain high levels of customer service and order fulfilment throughout the period, supporting the Board's expectation that its customer relationships and underlying business remain resilient.

The Company also utilises bank loans and other banking facilities, which are repayable on demand and are subject to annual renewal by the lender. The Directors have considered the Company's longstanding banking relationship, its history of meeting all interest and capital repayment obligations, and its continued compliance with the terms of its banking facilities. Based on these factors, the Directors have a reasonable expectation that the existing facilities will continue to be available for the foreseeable future

In addition, subsequent to the year-end, the Company strengthened its financial position through the issue of new shares in June 2026, providing additional equity funding to support future operations and working capital requirements.

The Directors have prepared cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements. Having considered the forecast trading performance, available banking facilities, the additional capital raised, and the other matters described above, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future.

Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements. The financial statements do not include any adjustments that would be necessary if the Company were unable to continue as a going concern.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as on the date of the financial statements. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Information about estimation uncertainties that may have a significant risk of resulting in a material adjustment within the next financial year are:

Tangible fixed assets - the residual values of the fixed assets (excluding land) are reviewed annually after considering the remaining life of the asset and projected disposal values. The estimation of the useful lives is based on historic performance as well as expectation about future use and, therefore, requires a degree of judgement to be applied. The depreciation rates represent management's current best estimate of the useful lives of the assets. A material change in these estimates may significantly impact the carrying values of these assets.

Turnover

Revenue for sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, there is no continuing involvement with the goods, and the amount of revenue can be measured reliably, which can be on the date of shipment or the date of receipt by the customer. Transfer of risks and rewards varies depending on the individual terms of the contract of sale, including the delivery conditions, agreed with the customers.

Revenue is recorded net of trade promotion and discounts, which is recognised as incurred, generally at the time of the sale. Accruals for expected promotion and discount payouts to customer are included as accruals in the Balance Sheet. Revenue is also recorded net of Value Added Tax.

Tangible fixed assets

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.

Property improvement - 10% on cost

Plant and machinery - 15% on cost

Fixtures and fittings - 25% on cost and 15% on cost

Land and assets under construction are not depreciated

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value, after making allowance for obsolete and slow- moving items. Cost is calculated by using the weighted average cost basis, over a 12-month period.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Taxation

Taxation for the period 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 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 period 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account 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. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the scheme.

Forward exchange contracts

Forward exchange contracts are used to hedge foreign currency purchases of goods from overseas suppliers at some time in the future.

Derivative financial instruments are initially measured at fair value on the contract date and are subsequently remeasured to fair value at each reporting date. Changes in the fair value of these derivatives financial instruments are recorded in the profit and loss account.

Fixed assets investments

Fixed assets investments are stated at cost less provision for any permanent diminution in value.

Trade finance

The company has trade receivables financing facilities that are with full recourse. Advances received by the company under the facility with full recourse are shown as bank loans under current liabilities.

4.

TURNOVER

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

An analysis of turnover by geographical market is given below:

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

United Kingdom

22,961,238

21,134,716

Europe

444,686

250,815

Rest of the world

38,778

12,937

23,444,702

21,398,468

5.	EMPLOYEES AND DIRECTORS

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Wages and salaries

3,226,207

2,878,332

Social security costs

365,302

300,404

Other pension costs

111,897

91,163

3,703,406

3,269,899

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

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

Production/Maintenance

34

33

Quality/Hygiene

13

14

Warehouse/Distribution

11

8

Administrative

29

27

87

82

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Directors' remuneration

433,978

382,436

Directors' pension contributions to money purchase schemes

11,266

6,059

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Emoluments etc

121,649

117,141

6.	OPERATING LOSS

The operating loss is stated after charging:

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Depreciation - owned assets

210,809

218,849

Depreciation - assets on finance leases

789

599

Loss on disposal of fixed assets

316

-

Auditors remuneration

71,080

57,575

Foreign exchange differences

287,199

72,984

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Bank interest

257,820

168,212

Other Interest

29,250

-

287,070

168,212

8.

TAXATION

Analysis of the tax (credit)/charge

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

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Current tax:

UK corporation tax

(6,138

)

-

Deferred taxation

(15,000

)

40,000

Tax on loss

(21,138

)

40,000

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

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

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Loss before tax

(1,258,572

)

(348,472

)

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

(314,643

)

(87,118

)

Effects of:

Expenses not deductible for tax purposes

1,488

901

Depreciation in excess of capital allowances

31,555

8,086

Adjustments to tax charge in respect of previous periods

(6,154

)

-

R&D enhanced claims

-

(46,154

)

Tax losses carried forward

266,639

124,285

Deferred tax provision

(15,000

)

40,000

R&D Tax Credit

14,977

-

Total tax (credit)/charge

(21,138

)

40,000

Carried Forward Tax Losses

At the reporting date, the company has unutilised tax losses of £1,788,017 (2024:£672,936) available to be utilised against future taxable profits. Given the inherent uncertainty in the timing and level of future taxable profits, the directors do not consider that the recognition criteria for a deferred tax asset have been met. Accordingly, no deferred tax asset has been recognised in respect of these losses.

Had the deferred tax asset been recognised, it would have been measured at a tax rate of 25%, resulting in a potential deferred tax asset of £447,004. The company will continue to assess the recoverability of these losses in future periods.

9.

DIVIDENDS

Period

Period

29/7/24

31/7/23

to

to

27/7/25

28/7/24

£

£

Ordinary shares of £1 each

Final

70,000

60,000