The directors present the strategic report for the year ended 31 December 2025.
The business made measured progress in 2025, with prior-year investments beginning to deliver operational benefits. Core markets remained stable overall, although some softening was observed during the year. The OEM segment increased in significance and contributed positively to overall activity levels. New products achieved initial commercial sales, with customer feedback broadly in line with expectations. Operational performance remained consistent, with no significant issues reported in quality, delivery, or service. This reflects continued focus on operational control and execution.
During the year, the group incorporated a wholly owned subsidiary in Australia to undertake a strategic research and development project for the wider group. Australia was selected due to the availability of specialist expertise in the relevant field. The project has the potential to support the future global commercialisation of a new product. The Directors consider the subsidiary's contribution to the group's results and net assets for the year to be insignificant.
Key performance indicators
The company's key performance indicators during the period were as follows:
| 2025 | 2024 |
| £ | £ |
Turnover | 7,330,363 | 7,318,986 |
Cost of Sales | (2,897,536) | (3,068,481) |
Gross profit | 4,432,827 | 4,250,505 |
Gross profit margin | 60% | 58% |
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In addition to the financial measures above, the directors monitor non-financial indicators including on-time delivery performance, product quality and non-conformance rates, and regulatory compliance, all of which remained at above satisfactory levels throughout the year.
The primary focus in 2025 was the utilisation of existing capacity and recent investments. Expanded production space and cleanroom facilities became fully operational during the year and supported both OEM activity and new product introduction. Research and development activity continued, with a number of projects progressing towards commercialisation, although most had not yet reached full revenue contribution. Investment in personnel, equipment, and processes continued in line with operational requirements, supporting business continuity and future scalability.
The group returned to profitability in 2025, recording an operating profit of £700,771 (2024: operating loss of £176,852) and a profit after tax of £245,036 (2024: loss of £270,356). Turnover of £7,330,363 was broadly in line with the prior year (2024: £7,318,986), with a reduction in core business volumes, primarily attributable to customer overstocking, offset by increased OEM activity and growing revenues from newly launched products, which saw a higher level of activity in the final quarter. Gross margin improved to 60% (2024: 58%), reflecting the changing sales mix and continued operational discipline.
The improvement in profitability was driven principally by two factors. First, with effect from 1 January 2025 the group changed its accounting policy in respect of development expenditure, capitalising qualifying costs as intangible assets. Development expenditure of £507,883 was capitalised in the year (2024: £nil, all such costs having previously been expensed as incurred). Secondly, the prior year included a one-off payment to a director of approximately £0.5 million which was not repeated in the current year; total directors’ remuneration in 2025 accordingly returned to a normalised level of £204,923 (2024: £714,856). Administrative expenses accordingly reduced to £3,530,602 (2024: £4,173,797). Other operating income also increased to £214,156 (2024: £94,464), and interest costs reduced to £302,701 (2024: £386,976).
The directors have identified the following principal risks and uncertainties:
Reliance on key customer relationships – a significant proportion of the group’s revenue is derived from a small number of key accounts, including OEM customers. The loss of, or a material reduction in demand from, a key account could have a significant impact on results. The business mitigates this risk through long-standing relationships, high service levels, quality performance and supply agreements where appropriate, and by broadening its customer base and product range to reduce concentration over time.
Growth strategy and new product commercialisation – the company is investing in the development and launch of new products, which remain at an early stage of commercialisation. There is a risk that revenues from these products develop more slowly, or require greater investment, than anticipated. The directors mitigate this risk through phased investment decisions, regular review of development programmes against milestones, and close engagement with customers and distribution partners during product introduction..
Supply chain and key personnel – the business is dependent on certain suppliers of raw materials and components. These risks are mitigated through dual sourcing and safety stock where practicable, supplier quality management.
The group's long-term strategy remains focused on continuing to develop and grow its position within its target markets through a combination of organic growth, including new product development.
Financial risk management
Foreign exchange risk
The company is exposed to movements in foreign exchange as a result of transactions with a number of foreign suppliers and customers. The company has no formal policy in place in respect of the use of foreign exchange contracts. For any significant exposures, the directors would consider on a case-by-case basis whether the use of any financial instruments is warranted.
Credit risk
The company is exposed to credit risk from customer non-payment. The company maintains robust credit control procedures to monitor its exposure and will act quickly where required to minimise this exposure.
Liquidity risk
The company is profitable and has limited borrowings as illustrated in the notes to the accounts. The business has previously been funded through related party loans and external borrowers specifically to fund the expansion of the business' property arrangements. The company maintains good relations with these parties. The company pays interest on external borrowings. No financial instruments were used by the company to manage interest rate costs.
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 9.
Ordinary dividends were paid amounting to £25,000 (2024 - £Nil). 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:
The company invests in research and development activities related to the expansion of the product offering. Total expenditure incurred during the year was £613,180 (2024: £38,490) of which £507,883 (2024: £nil) was capitalised.
The directors have assessed the company's ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements. Management has prepared detailed budgets and forecasts, including sensitivity analyses, which indicate that the company will remain cash generative and operate within its available resources under both base case and reasonably possible downside scenarios. The directors have also considered potential external risks, including geopolitical uncertainties and economic conditions, and do not consider these to have a material impact on the company's ability to continue as a going concern based on current information.
In making this assessment the directors have had particular regard to the financing position. During the year, the company received funding from a related party on a non-recourse basis to support investment in its property portfolio, demonstrating the directors' continued commitment to the company's long-term growth and development. The company also has business bank loan, which is secured over the group’s freehold property, is repayable in monthly instalments over a fifteen-year term with £2,503,549 not falling due until after more than one year, and the group was in compliance with the financial covenants under the facility at the year end and throughout 2025, with substantial headroom. Together with cash reserves the directors consider that the group has adequate financial resources and committed facilities to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements.
Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and the financial statements have been prepared on a going concern basis.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Apacor 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, the company 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our audit approach was developed by obtaining an understanding of the company’s activities, the key functions undertaken on behalf of the Board by management and by service organisations, and the overall control environment. Based on this understanding we assessed those aspects of the company’s transactions and balances which were most likely to give rise to a material misstatement and were most susceptible to irregularities including fraud or error. Specifically, we identified what we considered to be key audit risks and planned our audit approach accordingly.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006, FRS 102, and tax compliance regulations.
We designed audit procedures to respond to the risk, 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.
We focused on the laws and regulations that could give rise to a material misstatement in the company's financial statements. Our tests included, but were not limited to:
• Agreement of the financial statement disclosures to underlying supporting documentation;
• Enquires of management;
• Reviews of tax computations and returns;
• Considering the effectiveness of control environment in monitoring compliance with laws and regulations.
As with all of our audits, we addressed the risk of management override of controls. Our procedures included testing manual journal entries and assessing whether there was any evidence of management bias that could give rise to a material misstatement in the financial statements due to fraud. In addition, the group audit engagement team identified non-compliance with bank covenants and revenue recognition (cut-off) as the areas most susceptible to material misstatement due to fraud. Audit procedures performed included reviewing correspondence with lenders, examining covenant calculations and compliance assessments, and testing a sample of revenue transactions recorded around the year end to ensure that revenue had been recognised in the appropriate accounting period.
There are inherent limitations in the audit procedures described above 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 would become aware of it.
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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the 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 £327,608 (2024 - £270,355 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Apacor Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 5 The Sapphire Centre, Fishponds Road, Wokingham, Berkshire, RG41 2QL.
The group consists of Apacor Limited and it's subsidiary.
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 consolidated group financial statements consist of the financial statements of the parent company Apacor Limited together with all entities controlled by the parent company (its subsidiaries).
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 assessed the company's ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements. Management has prepared detailed budgets and forecasts, including sensitivity analyses, which indicate that the company will remain cash generative and operate within its available resources under both base case and reasonably possible downside scenarios. The directors have also considered potential external risks, including geopolitical uncertainties and economic conditions, and do not consider these to have a material impact on the company's ability to continue as a going concern based on current information.
In making this assessment the directors have had particular regard to the financing position. During the year, the company received funding from a related party on a non-recourse basis to support investment in its property portfolio, demonstrating the directors' continued commitment to the company's long-term growth and development. The company also has business bank loan, which is secured over the group’s freehold property, is repayable in monthly instalments over a fifteen-year term with £2,503,549 not falling due until after more than one year, and the group was in compliance with the financial covenants under the facility at the year end and throughout 2025, with substantial headroom. Together with cash reserves the directors consider that the group has adequate financial resources and committed facilities to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements.
Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and the financial statements have been prepared on a going concern basis.
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.
The company recognises revenue solely from the sale of goods. Revenue from the sale of goods is recognised when the company has transferred all the significant risks and rewards of ownership to the buyer. The timing of this transfer depends on the terms of the individual customer contracts and applicable shipping terms, but is typically either on dispatch of the goods or upon delivery to the location specified in the contract.
Revenue is recognised only when the amount can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company, 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.
Minority equity investments in are classified as financial assets and are initially recognised at transaction price, including directly attributable transaction costs. Listed investments are subsequently measured at fair value, with changes in fair value recognised in profit or loss. Fair value is determined by reference to quoted market prices at the reporting date whilst unlisted equity investments are subsequently measured at cost.
Impairment is recognised where there is objective evidence that the investment’s recoverable amount has fallen below its carrying value.
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.
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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
During the year, the company voluntarily changed its accounting policy in respect of development expenditure, having previously expensed such costs in the profit and loss account as incurred. Under the revised policy, as set out in note 1 to these financial statements, development expenditure is capitalised as an intangible asset where the recognition criteria in Section 18 of FRS 102 are met. Development expenditure that does not meet these criteria continues to be expensed as incurred.
The directors consider that the revised policy provides more relevant, reliable and transparent financial information by recognising qualifying development expenditure as an asset where it is expected to generate probable future economic benefits, rather than expensing such costs as incurred. This approach better reflects the underlying economics of the company’s investment in product development by matching costs to the periods in which the related benefits are realised. In applying this policy, the directors have assessed the duration of the product development lifecycle, which typically lasts several years, and have concluded that capitalising and amortising these costs results in a more appropriate and consistent representation of financial performance.
The change in accounting policy has been applied prospectively from 1 January 2025. Retrospective application has not been undertaken as it is impracticable to determine reliably the amount of development expenditure incurred in prior periods that would have met the criteria for capitalisation under FRS 102. Accordingly, no adjustment has been made to comparative information.
The effect of the change in the current year was to increase intangible fixed assets by £507,883, increase profit before taxation by £507,883, and increase net assets at 31 December 2025 by £507,883.
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.
The Company capitalises development costs relating to product development in accordance with FRS 102 Section 18. Management exercises judgement in determining whether costs meet the recognition criteria and are therefore eligible for capitalisation. Significant areas of judgement include assessing technical feasibility, the recoverability of costs incurred, the economic viability of the product, and the stage within the development process at which these criteria have been satisfied.
Where products are already in use, management also applies judgement in determining whether subsequent development expenditure enhances the future economic benefits of the asset and therefore qualifies for capitalisation, or whether such expenditure should be recognised as an expense in the income statement as incurred.
Management also makes significant estimates in determining the costs attributable to each development project, particularly in respect of staff time allocation. These estimates are based on management’s best assessment of the time spent by employees on specific projects, taking into account project plans, progress reports and internal time tracking where available. Changes in these estimates could have a material impact on the amount of costs capitalised in the period.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Total directors' remuneration amounted to £156,164 (2024: £714,856). In the prior year, remuneration paid to the highest paid director amounted to £529,157.
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Total accumulated depreciation on owned assets held under finance leases as at 31 December 2025 was £496,716 (2024: £379,643).
Details of the company's subsidiaries at 31 December 2025 are as follows:
Included within other borrowings is a loan of £1,500,000 which had a maturity date of 15 December 2025, however, on 12 May 2025 the maturity date was extended to 15 July 2027.
Bank loans are secured by fixed and floating charges over 1-3 and 5 The Sapphire Centre. The loan is repayable in instalments through to 2038 with payments being split between principal and interest at the annual rate of 3.46% plus the Bank of England base rate.
Loans from related parties are unsecured and accrue interest at the Bank of England base rate plus 0.5%.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 1.3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The amount of deferred tax liability set out above expected to reverse within the next 12 months totals £147,785 (2024: £149,519) and relates to the unwinding of accelerated capital allowances.
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. There were outstanding contributions payable at year end amounting to £13,533 (2024: £16,658).
Ordinary shares have proportional voting shares, are available for dividends, and are non-redeemable.
Other reserves comprise amounts received from connected parties for which there is no obligation to repay and for which no shares have been issued. These amounts are treated as capital contributions and recognised directly in equity.
This includes all current period retained profits and losses.
Subsequent to the year end, the group acquired additional land and buildings near its existing trading premises for £2,024,027 to increase operational capacity. No amounts had been committed at the year end in respect of the property acquisition.
During the year, the group entered into transactions with companies under common directorship amounting to £68 (2024: £94,418). At the reporting date, there were no amounts due to or from these related parties.
During the year, the group entered into transactions with close family members of the directors amounting to £132,487 (2024: £118,551). At the reporting date, there were no outstanding balances payable to these related parties.
During the year, the group received capital contributions from connected parties totalling £2,085,000 (2024: £nil). These contributions were made as part of the wider group's strategy to support the growth of the entity. The contributions are non-interest bearing, contain no repayment terms, and were received in full during the year.
Loans from entities controlled by the directors, amounting to £1,500,000 (2024: £1,500,000), are unsecured. During the year, interest charged on the balance amounted to £72,493. As at the reporting date, the principal balance of £1,500,000 remained outstanding and repayable in full, together with total accrued interest of £259,510.
The key management personnel of the group comprise the directors. Details of directors' remuneration and other transactions with the directors are disclosed in Note 7.