REGISTERED NUMBER: 03092987 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

UNIVERSAL FLEXIBLE PACKAGING

LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr M Durrani

Mrs US Durrani

Mrs N Durrani

SECRETARY:

Mr M Durrani

REGISTERED OFFICE:

61 Lunsford Road

Leicester

Leicestershire

LE5 0HJ

REGISTERED NUMBER:

03092987 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr P Bott FCA

AUDITORS:

Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

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

Universal Flexible Packaging (UFP) is a family-run business that opened in 1993. We started as a packaging firm supplier, but since then we have grown to become an industry leader in flexible packaging. We have since expanded into contract packaging, added cardboard packaging to the portfolio and can now receive, pack, label, store and deliver almost anything.

REVIEW OF BUSINESS

The financial year ended 2025 represented a significant period of strategic investment for Universal Flexible Packaging Ltd, laying the foundations for the Company's long-term growth, operational resilience and future profitability.

During the year, the Company invested substantially in the development of its new storage and distribution facility at Sunningdale Road. This purpose-built site has been designed to support the business's future expansion and forms a key part of the Company's long-term logistics and supply chain strategy.

The initial investment of approximately £350k covered the acquisition and preparation of the facility, infrastructure works and the installation of pallet racking with an initial capacity of approximately 2.5k pallet locations, increasing around 3.5k pallet locations when fully completed.

Whilst the investment commenced during the 2025 financial year, the associated operational overheads were incurred from October 2025 onwards. These investment costs will continue throughout 2026 as the site is progressively developed and brought towards full operational capacity. The Directors anticipate that these costs will be recovered over time as warehouse occupancy increases and the facility becomes fully utilised.

In addition, the Company remains committed to an existing third-party storage contract, which continues until November 2026. Consequently, during this transition period, the business is carrying the cost of both the new in-house warehousing operation and the legacy external storage arrangement. Although this has resulted in a temporary increase in operating costs, it forms part of a carefully planned transition designed to strengthen the Company's long-term operational infrastructure and improve customer service.

Alongside this investment, the Company has committed capital expenditure of just under three quarters of a million pounds towards expanding and enhancing its contract packing operations at the Lunsford Road manufacturing facility. These investments are intended to increase production capacity, improve operational efficiencies and support the future growth of both existing and new customer programmes.

The Company has also continued to invest significantly in its commercial capabilities by expanding its senior management and sales functions. In September 2026, a Sales Director will join the business to lead the next phase of commercial growth, strengthening customer relationships, developing new markets, and supporting increased utilisation of the Company's expanded manufacturing and warehousing infrastructure.

REVIEW OF BUSINESS (CONTINUED)

The strategic investment programme extends well beyond facilities and equipment. During 2025 and 2026, the Company has invested heavily in strengthening its operational and financial infrastructure by implementing a new Warehouse Management System and migrating to the Intact financial management platform. Combined investment in these technology projects in the year was around £50k, with further acquisition and implementation costs of £150k expected in 2026. These platforms will provide enhanced operational control, improved financial reporting and greater visibility across the business.

Following the appointment of the Sales Director, the Company will also implement Salesforce as its customer relationship management platform, further strengthening the commercial infrastructure by improving customer engagement, sales forecasting, pipeline management and business intelligence.

The Directors have also invested in external advisory support to ensure the business continues to develop robust governance, strategic planning and sustainable long-term growth. These investments reflect the Directors' commitment to building a stronger organisation capable of supporting continued expansion over the coming years.

As the Company entered 2026, the broader flexible packaging industry faced additional challenges stemming from geopolitical instability in the Gulf region. Given that flexible packaging is heavily dependent on petrochemical-based raw materials, volatility in global oil and polymer markets has affected pricing, supply chain planning and material availability across the sector.

Despite these external market conditions, the Directors remain confident in the resilience of Universal Flexible Packaging Ltd. Having successfully operated for over 30 years, the Company has established a strong reputation, a diversified customer portfolio, long-standing supplier relationships and a robust operational platform. These strengths have enabled the business to navigate market volatility while continuing to invest confidently in its future.

The Directors recognise that the financial performance for the period has been influenced by this deliberate investment programme rather than by short-term profit maximisation. The increased operating costs associated with new facilities, personnel, technology and infrastructure represent planned expenditure designed to generate sustainable long-term returns.

The Directors expect 2026 to remain a year of controlled investment as these projects become fully embedded within the business. The benefits of these investments are anticipated to begin materialising during the fourth quarter of 2026, with more significant returns expected throughout 2027 and beyond as warehouse utilisation increases, operational efficiencies are realised, and commercial growth accelerates.

The Directors remain confident in the financial stability of the Company. Long-term borrowings remain appropriately managed, liquidity continues to be maintained at prudent levels, and the investments undertaken over the past two years have created a strong platform for future growth.

Overall, the Directors believe that the investments made throughout 2025 and 2026, in facilities, manufacturing capability, technology, people and governance-will deliver significant long-term value for the Company, its customers and its stakeholders. Having laid these foundations, the business is now well positioned to move from a period of substantial investment into one of operational stability, improved profitability and sustainable growth over the coming years.

PERFORMANCE OF THE BUSINESS AND OUTLOOK

Turnover has increased by £304k (2.25%) on 2024, in line with budgeted figure. The increase in turnover is largely due an increase in contract packaging sales within the year.

Our KPI's for the year show what we have achieved this year:

KPI's £

2025

2024

Turnover

13,814

13,510

Gross Profit

4,066

3,522

Gross Profit %

29.43%

26.07%

Operating Profit

50

266

Operating Profit %

0.36%

1.97%

Net Profit/(Loss)

(14

)

454

Net Assets

8,476

8,489

The company has a budgeting system in place whereby actual performance is measured against budget on a monthly basis.

Our experienced management team and strong financial position enable us to be well positioned to continue the successful development of the company.

The directors are responsible for the maintenance of the company's website www.uniflex.co.uk.

PRINCIPAL RISKS AND UNCERTAINTIES

The company manages liquidity risk by ensuring that there are sufficient funds to meet amounts due to trade creditors and loan repayments. Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding in terms of time and credit limits.

ON BEHALF OF THE BOARD:

Mr M Durrani - Secretary

20 July 2026

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

DIVIDENDS

There were no dividends paid in the year or prior year.

DIRECTORS

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

Mr M Durrani

Mrs US Durrani

Mrs N Durrani

DONATIONS

The company made charitable donations of £85,845 in the year to 31 December 2025 (2024: £117,028).

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

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M Durrani - Secretary

20 July 2026

Opinion

We have audited the financial statements of Universal Flexible Packaging Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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:

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.

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA's (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the company and industry in which it operates through our general commercial experience. We determined that the following laws and regulations were most significant: FRS 102, Companies Act 2006 and the relevant tax compliance regulations in the UK. In addition, we concluded that there are certain laws and regulations that may have an effect in the determination of the amounts and disclosures in the financial statements such as health and safety and employee related matters.

We enquired of management concerning the company's policies and procedures relating to:

-the identification and compliance with laws and regulations;

-the detection and response to the risks of fraud;

-the internal controls inherent within the company to mitigate fraud risk and non-compliance to laws and regulations

.

We enquired of management, whether they were aware of any instance of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud.

We communicated relevant laws and regulations and potential areas of fraud to all audit team members including the potential for fraud in revenue recognition. We remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, stock valuation and significant one-off or unusual transactions.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

- A review of a sample of stock lines to ensure the valuation of stock is at the lower of cost and net realisable value along with attendance at stocktake to sample the stock count of stock lines.

- A review of a sample of orders received in the year to ensure these were correctly recorded in revenue and detailed cut off testing around the year end to ensure revenue is correctly recognised.

- A review of laws and regulations the company is subject to, being specifically food and hygiene and health and safety, followed by compliance checks and discussion with management to ensure no instances of non compliance.

- Addressing the risks of fraud through management override of controls by performing journal entry test.

We did not identify any matters during the course of our work that indicated non-compliance with laws and regulations or relating to fraud.

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.

Mr P Bott FCA (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

10 August 2026

TURNOVER

5

13,813,969

13,509,698

Cost of sales

9,747,617

9,987,234

GROSS PROFIT

4,066,352

3,522,464

Administrative expenses

4,016,209

3,440,000

50,143

82,464

Other operating income

6

-

183,162

OPERATING PROFIT

8

50,143

265,626

Profit on sale of assets

9

-

302,341

50,143

567,967

Interest receivable and similar income

178,436

153,529

228,579

721,496

Interest payable and similar expenses

10

167,374

287,239

PROFIT BEFORE TAXATION

61,205

434,257

Tax on profit

11

74,895

(19,402

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(13,690

)

453,659

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(13,690

)

453,659

FIXED ASSETS

Intangible assets

12

13,200

15,400

Tangible assets

13

2,597,167

2,147,489

2,610,367

2,162,889

CURRENT ASSETS

Stocks

14

1,010,807

1,328,704

Debtors

15

7,263,932

4,781,943

Cash at bank

3,607,869

6,023,395

11,882,608

12,134,042

CREDITORS

Amounts falling due within one year

16

5,534,094

5,300,610

NET CURRENT ASSETS

6,348,514

6,833,432

TOTAL ASSETS LESS CURRENT LIABILITIES

8,958,881

8,996,321

CREDITORS

Amounts falling due after more than one year

17

(11,662

)

(138,066

)

PROVISIONS FOR LIABILITIES

20

(471,679

)

(369,025

)

NET ASSETS

8,475,540

8,489,230

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Retained earnings

22

8,474,540

8,488,230

SHAREHOLDERS' FUNDS

8,475,540

8,489,230

The financial statements were approved by the Board of Directors and authorised for issue on 20 July 2026 and were signed on its behalf by:

Mr M Durrani - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

1,000

4,133,973

3,900,598

8,035,571

Changes in equity

Profit for the year

-

453,659

-

453,659

Transfer between reserves

-

3,900,598

(3,900,598

)

-

Total comprehensive income

-

4,354,257

(3,900,598

)

453,659

Balance at 31 December 2024

1,000

8,488,230

-

8,489,230

Changes in equity

Deficit for the year

-

(13,690

)

-

(13,690

)

Total comprehensive income

-

(13,690

)

-

(13,690

)

Balance at 31 December 2025

1,000

8,474,540

-

8,475,540

1.	COMPANY INFORMATION

The principal activity of Universal Flexible Packaging Limited is that of packaging specialists for the food industry.

2.	STATUTORY INFORMATION

Universal Flexible Packaging Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

3.	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.

4.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Significant judgements and estimates

There were no areas in which the preparation of the financial statements required to make significant judgements or estimates.

Turnover

Revenue comprises the fair value for the sale of goods excluding value added taxes and represents net invoice value. The company supplies products to customers from its manufacturing sites and warehouses, under standard terms and conditions. In all cases revenue is recognised when the risks and rewards of ownership are transferred and this is defined to be on dispatch of the goods.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

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.

Improvements to property

-

10% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on cost

Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation decrease. All other impairment losses are recognised in profit and loss.

Stocks

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

Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

A deferred tax liability or asset is recognised for the additional tax that will be paid or avoided in respect of assets and liabilities that are recognised in a business combination.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Deferred tax liabilities are presented within provisions for liabilities and deferred assets within debtors. Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity which intends to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at transaction price, less any impairment. Other financial liabilities, including bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently, where material, at amortised cost using the effective interest method, less any impairment.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

5.

TURNOVER

Turnover was derived from the company's principal activity which was carried out exclusively in the UK.

6.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

-

125,418

Management charge

-

57,744

-

183,162

7.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,861,395

4,578,720

Social security costs

584,038

418,214

Other pension costs

255,957

139,655

5,701,390

5,136,589

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

2025

2024

Production

113

108

Administration

41

41

154

149

2025

2024

£

£

Directors' remuneration

513,980

408,655

Directors' pension contributions to money purchase schemes

198,000

82,000

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:

2025

2024

£

£

Emoluments etc

175,000

175,875

Pension contributions to money purchase schemes

99,000

81,000

8.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

135,220

124,413

Other operating leases

381,682

296,000

Depreciation - owned assets

298,315

254,207

Depreciation - assets on hire purchase contracts

80,116

126,565

Loss on disposal of fixed assets

26,746

-

Patents and licences amortisation

2,200

2,200

Auditors remuneration

11,450

10,900

Foreign exchange differences

780

(70,773

)

9.	PROFIT ON SALE OF ASSETS

2025

2024

£

£

Profit on sale of assets

-

302,341

During 2024, the company sold its investment property valued at £13,000,000 at a profit of £302,341.

10.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

-

84,871

Factoring charges and interest

152,751

169,111

Other interest

-

10,683

Hire purchase interest

14,623

22,574

167,374

287,239

11.

TAXATION

Analysis of the tax charge/(credit)

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

2025

2024

£

£

Current tax:

UK corporation tax

-

1,254,565

Prior year

UK corporation tax

(27,759

)

-

Total current tax

(27,759

)

1,254,565

Deferred taxation

102,654

(1,273,967

)

Tax on profit

74,895

(19,402

)

UK corporation tax has been charged at 25% (2024 - 25%).

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

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

2025

2024

£

£

Profit before tax

61,205

434,257

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

15,301

108,564

Effects of:

Expenses not deductible for tax purposes

36,693

4,876

Capital allowances in excess of depreciation

-

(175,109

)

Depreciation in excess of capital allowances

49,796

-

Adjustments to tax charge in respect of previous periods

(27,758

)

-

Non-qualifying depreciation

-

43,495

Other timing differences

863

(1,228

)

Total tax charge/(credit)

74,895

(19,402

)