European Polythene Industries Limited Company accounts

COMPANY REGISTRATION NUMBER: 04244932

European Polythene Industries Limited

Financial Statements

31 March 2026

European Polythene Industries Limited

Financial Statements

Year ended 31 March 2026

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Statement of cash flows	13

Notes to the financial statements	14

European Polythene Industries Limited

Officers and Professional Advisers

The board of directors	Mrs J Wilkerson
	Mr G M Wilkerson

Registered office	Unit 3-4
	St Martins Way
	Bedford
	MK42 0LF

Auditor	Collett Hulance Accountants Limited
	Chartered Certified Accountants & statutory auditor
	40 Kimbolton Road
	Bedford
	MK40 2NR

European Polythene Industries Limited

Strategic Report

Year ended 31 March 2026

Principal activity The company trades as Melrose Packaging. The principal activity of the company is the supply of packaging products. Review of the company's business The company is a well-established, family-run business, specialising in all types of packaging products. The past year has been one of continued progress and transformation for European Polythene Industries Limited . As we close the financial year ending 31 March 2026, I am proud of how the team has navigated a challenging operating environment while continuing to deliver meaningful advances in sustainability, operational efficiency and customer value. Principal risks and uncertainties The principal business risks and uncertainties are: Inflation - the impact of increased costs for raw materials, energy, transport and labour has increased the cost of products, resulting in pressure on margins, which like many businesses we are having to absorb as far as possible. Customer dependency - our customer base includes the full spectrum of small independent to multinational businesses. All of our customers have access to the widest possible range of products and the best service and prices possible. The business has grown due to our success working with multinationals. This success has resulted in a degree of customer dependency, but the dependency works both ways and our business has become integral to those customers. The directors recognise the risk of reliance on a few significant customers and work very closely with all customers to ensure that service levels are consistently high. We are building a broader customer base and have gained 10 new significant customers in 2026. Financial review Last year saw another significant growth in turnover from £18.6m to £22.1m, a 19% increase. We continue to grow our customer base and now have strong relationships with the key third-party logistics businesses in the UK and Europe. Our gross margin remains consistent (14.4%) despite increased costs since January 2026. Our operating profit for this year is £132k, a great improvement on the previous year. This is after factoring charges of £81k and an exceptional cost of £116k for a write off of old warehouse costs from prior years. Our warehouse consolidation programme continues with £35k additional profit per month since August 2025. Termination of another warehouse lease in December 2026 will show further cost savings. Working capital is financed by an invoice finance facility. This is reviewed every 6 months to ensure that it is the best fit and best price for us. Key performance indicators The key performance indicators we consider to be turnover, gross and net profit. The company operates a budgetary system against which it monitors these indicators. Plans for future periods Turnover growth continues both from existing customers adding new sites and the gain of new customers. Our forecast profit for year ending March 2027 is in excess of £600k and is expected to double in the next year. We continue to focus on revenue and margin growth whilst ensuring our cost base is fit for purpose and managed appropriately.

This report was approved by the board of directors on 11 August 2026 and signed on behalf of the board by:

Mrs J Wilkerson

Director

Registered office:

Unit 3-4

St Martins Way

Bedford

MK42 0LF

European Polythene Industries Limited

Directors' Report

Year ended 31 March 2026

The directors present their report and the financial statements of the company for the year ended 31 March 2026 .

Directors

The directors who served the company during the year were as follows:

Mrs J Wilkerson
Mr G M Wilkerson

Dividends

The directors do not recommend the payment of a dividend.

Disclosure of information in the strategic report

The business review, principal risks and uncertainties and future developments are not shown in the directors' report because they are shown in the strategic report.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report 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 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 judgments 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 11 August 2026 and signed on behalf of the board by:

Mrs J Wilkerson

Director

Registered office:

Unit 3-4

St Martins Way

Bedford

MK42 0LF

European Polythene Industries Limited

Independent Auditor's Report to the Members of European Polythene Industries Limited

Year ended 31 March 2026

Opinion

We have audited the financial statements of European Polythene Industries Limited (the 'company') for the year ended 31 March 2026 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 March 2026 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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.

Material uncertainty related to going concern

We draw attention to note 3 in the financial statements, which indicates that the company incurred a loss after tax of £73,522 during the year ended 31 March 2026 and, as at that date, the company’s current liabilities exceeded its current assets by £1,092,186. As stated in note 3, these events or conditions, along with the other matters as set forth in note 3, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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.

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 directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor’s report 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested a sample of journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

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

Andrew Robert Upton

(Senior Statutory Auditor)

For and on behalf of

Collett Hulance Accountants Limited

Chartered Certified Accountants & statutory auditor

40 Kimbolton Road

Bedford

MK40 2NR

11 August 2026

European Polythene Industries Limited

Statement of Income and Retained Earnings

Year ended 31 March 2026

		2026	2025
Note		£	£
Turnover	4	22,133,077	18,598,997

Cost of sales	18,938,495	16,129,131
	-------------	-------------
Gross profit	3,194,582	2,469,866

Administrative expenses		3,113,211	2,886,824
Other operating income	5	50,759	43,968
		------------	------------
Operating profit/(loss)	6	132,130	( 372,990)

Other interest receivable and similar income	10	2,739	2,872
Interest payable and similar expenses	11	211,788	226,413
		------------	------------
Loss before taxation		( 76,919)	( 596,531)

Tax on loss	12	( 3,397)	( 1,533)
		--------	---------
Loss for the financial year and total comprehensive income		( 73,522)	( 594,998)
		--------	---------

Retained losses at the start of the year	( 682,449)	( 87,451)
	---------	---------
Retained losses at the end of the year	( 755,971)	( 682,449)
	---------	---------

All the activities of the company are from continuing operations.

European Polythene Industries Limited

Statement of Financial Position

31 March 2026

	2026	2025
Note	£	£

Fixed assets

Tangible assets	13	413,624	507,208

Current assets

Stocks	14	1,260,901	1,243,108
Debtors	15	4,682,729	4,023,662
Cash at bank and in hand		37,445	3,912
		------------	------------
		5,981,075	5,270,682

Creditors: amounts falling due within one year
Bank loans and overdrafts		99,384	111,135
Trade creditors		3,789,960	2,976,004
Other creditors including taxation and social security	16	3,042,273	3,031,683
Accruals and deferred income		141,644	115,860
		------------	------------
		7,073,261	6,234,682
		------------	------------
Net current liabilities		1,092,186	964,000
		------------	---------
Total assets less current liabilities		( 678,562)	( 456,792)

Creditors: amounts falling due after more than one year
Bank loans and overdrafts		–	99,384
Other creditors including taxation and social security	17	–	45,467
		----	---------
		–	144,851

Provisions	19	77,405	80,802
		---------	---------
Net liabilities		( 755,967)	( 682,445)
		---------	---------

European Polythene Industries Limited

Statement of Financial Position (continued)

31 March 2026

	2026	2025
Note	£	£

Capital and reserves

Called up share capital	22	1	1
Capital redemption reserve	23	3	3
Profit and loss account	23	( 755,971)	( 682,449)
		---------	---------
Shareholders deficit		( 755,967)	( 682,445)
		---------	---------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 11 August 2026 , and are signed on behalf of the board by:

Mrs J Wilkerson

Director

Company registration number: 04244932

European Polythene Industries Limited

Statement of Cash Flows

Year ended 31 March 2026

	2026	2025
	£	£

Cash flows from operating activities

Loss for the financial year	( 73,522)	( 594,998)

Adjustments for:
Depreciation of tangible assets	103,896	100,120
Other interest receivable and similar income	( 2,739)	( 2,872)
Interest payable and similar expenses	211,788	226,413
Loss on disposal of tangible assets	–	356
Tax on loss	( 3,397)	( 1,533)
Accrued expenses/(income)	25,784	( 27,925)

Changes in:
Stocks	( 17,793)	308,434
Trade and other debtors	( 659,067)	( 705,323)
Trade and other creditors	828,679	1,078,884
	---------	------------
Cash generated from operations	413,629	381,556

Interest paid	( 211,788)	( 226,413)
Interest received	2,739	2,872
Tax paid	–	( 30,014)
	---------	---------
Net cash from operating activities	204,580	128,001
	---------	---------

Cash flows from investing activities

Purchase of tangible assets	( 10,312)	( 30,762)
Proceeds from sale of tangible assets	–	1
	---------	---------
Net cash used in investing activities	( 10,312)	( 30,761)
	---------	---------

Cash flows from financing activities

Proceeds from borrowings	( 111,135)	( 101,591)
Payments of finance lease liabilities	( 49,600)	( 49,600)
	---------	---------
Net cash used in financing activities	( 160,735)	( 151,191)
	---------	---------

Net increase/(decrease) in cash and cash equivalents	33,533	( 53,951)
Cash and cash equivalents at beginning of year	3,912	57,863
	--------	--------
Cash and cash equivalents at end of year	37,445	3,912
	--------	--------

European Polythene Industries Limited

Notes to the Financial Statements

Year ended 31 March 2026

1. General information

The company is a private company limited by shares, registered in England. The address of the registered office is Unit 3-4, St Martins Way, Bedford, MK42 0LF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

Going concern

The company incurred a loss after tax of £73,522 for the year (2025: £594,998 loss). At 31 March 2026 the company had £1,092,186 net current liabilities (2025: £964,000) and £755,967 net liabilities (2025: £682,445). The company has prepared formal forecasts for the year to 31 March 2027, which has enabled it to project results for a period in excess of one year from the date of approval of these financial statements. In the year to 31 March 2027, revenue is currently forecast at £22m which is at a similar level to the past year. Although relationships and customers have increased, a significant part of our business has moved to storage and distribution of third party product. With this change our gross margin is forecast to increase from 14% to 20%. Forecast profit to 31 March 2027 is currently £600k and the directors regard all current revenue streams as reliable and consistent. The directors are confident that demand for the company's products and services will continue and therefore the accounts have been prepared on a going concern basis.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements There are no significant judgements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful economic lives of fixed assets The annual depreciation charge for fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic livers and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. Stock provisioning The company's products are packaging and other products for which the company believes there is customer demand. The demand for products is subject to changing customer trends. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability. Impairment of trade debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the credit rating of the debtor, the ageing profile of debtors and historical experience. Taxation Management judgement is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured 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.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Lease income is recognised in profit or loss on a straight line basis over the lease term.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold property improvements	-	10% straight line
Plant and machinery	-	20% straight line
Fixtures and fittings	-	10% straight line
Motor vehicles	-	33% straight line

	Office equipment	-	33% straight line

Depreciation is only charged once an asset is brought into use.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Turnover

Turnover arises from:

	2026	2025
	£	£
Sale of goods	22,133,077	18,598,997
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2026	2025
	£	£
Rental income	50,759	43,968
	--------	--------

6. Operating profit/(loss)

Operating profit or loss is stated after charging/crediting:

	2026	2025
	£	£
Depreciation of tangible assets	103,896	100,120
Loss on disposal of tangible assets	–	356
Impairment of trade debtors	813	80,581
Operating lease rentals	512,905	448,119
Foreign exchange differences	68,616	( 20,245)
	---------	---------

7. Auditor's remuneration

	2026	2025
	£	£
Fees payable for the audit of the financial statements	10,000	9,500
	--------	-------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2026	2025
	No.	No.
Production staff	20	20
Management staff	2	2
	----	----
	22	22
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2026	2025
	£	£
Wages and salaries	962,171	930,979
Social security costs	133,130	103,449
Other pension costs	16,796	30,307
	------------	------------
	1,112,097	1,064,735
	------------	------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2026	2025
	£	£
Remuneration	179,362	173,338
Company contributions to defined contribution pension plans	2,642	2,638
	---------	---------
	182,004	175,976
	---------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	2026	2025
	No.	No.
Defined contribution plans	2	2
	----	----

10. Other interest receivable and similar income

	2026	2025
	£	£
Interest on loans and receivables	2,739	2,872
	-------	-------

11. Interest payable and similar expenses

	2026	2025
	£	£
Interest on banks loans and overdrafts	13,124	22,668
Interest on obligations under finance leases and hire purchase contracts	4,908	4,908
Penalties & interest due to HMRC	17,166	15,921
Other interest payable and similar charges	176,590	182,916
	---------	---------
	211,788	226,413
	---------	---------

12. Tax on loss

Major components of tax income

	2026	2025
	£	£

Deferred tax:

Origination and reversal of timing differences	( 3,397)	( 1,533)
	-------	-------
Tax on loss	( 3,397)	( 1,533)
	-------	-------

Reconciliation of tax income

The tax assessed on the loss on ordinary activities for the year is higher than (2025: higher than) the standard rate of corporation tax in the UK of 19 % (2025: 19 %).

	2026	2025
	£	£
Loss on ordinary activities before taxation	( 76,919)	( 596,531)
	--------	---------
Loss on ordinary activities by rate of tax	( 14,615)	( 113,341)
Effect of expenses not deductible for tax purposes	18,387	16,530
Unused tax losses	( 7,169)	95,278
	--------	---------
Tax on loss	( 3,397)	( 1,533)
	--------	---------

13. Tangible assets

	Leasehold property improvements	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£	£
Cost
At 1 Apr 2025	253,663	490,505	41,334	29,490	42,858	857,850
Additions	1,900	1,615	–	–	6,797	10,312
	---------	---------	--------	--------	--------	---------
At 31 Mar 2026	255,563	492,120	41,334	29,490	49,655	868,162
	---------	---------	--------	--------	--------	---------
Depreciation
At 1 Apr 2025	97,805	186,075	18,092	11,528	37,142	350,642
Charge for the year	25,497	60,584	4,133	9,497	4,185	103,896
	---------	---------	--------	--------	--------	---------
At 31 Mar 2026	123,302	246,659	22,225	21,025	41,327	454,538
	---------	---------	--------	--------	--------	---------
Carrying amount
At 31 Mar 2026	132,261	245,461	19,109	8,465	8,328	413,624
	---------	---------	--------	--------	--------	---------
At 31 Mar 2025	155,858	304,430	23,242	17,962	5,716	507,208
	---------	---------	--------	--------	--------	---------

14. Stocks

	2026	2025
	£	£
Finished goods and goods for resale	1,260,901	1,243,108
	------------	------------

Stock is stated after an impairment provision of £858,903 (2025: £897,037). An impairment gain of £ 38,124 (2025: £264,930 loss) has been recognised in profit and loss.

15. Debtors

	2026	2025
	£	£
Trade debtors	4,229,103	3,574,065
Prepayments and accrued income	131,864	168,799
Directors loan account	98,739	54,518
Section 455 tax recoverable	30,014	30,014
Other debtors	193,009	196,266
	------------	------------
	4,682,729	4,023,662
	------------	------------

16. Other creditors including taxation and social security falling

due within one year

	2026	2025
	£	£
Social security and other taxes	764,744	520,858
Obligations under finance leases	45,467	49,600
Other creditors	2,232,062	2,461,225
	------------	------------
	3,042,273	3,031,683
	------------	------------

Obligations under finance leases are secured on the assets acquired. Other creditors includes an amount of £2,206,701 (2025: £2,423,286) which is secured by means of a fixed and floating charge over all the company's fixed and current assets.

17. Other creditors including taxation and social security falling

due after more than one year

	2026	2025
	£	£
Obligations under finance leases	–	45,467
	----	--------

Obligations under finance leases are secured on the assets acquired.

18. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2026	2025
	£	£
Not later than 1 year	45,467	49,600
Later than 1 year and not later than 5 years	–	45,467
	--------	--------
	45,467	95,067
	--------	--------

19. Provisions

	Deferred tax (note 20)
	£
At 1 April 2025	80,802
Unused amounts reversed	( 3,397)
	--------
At 31 March 2026	77,405
	--------

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2026	2025
	£	£
Included in provisions (note 19)	77,405	80,802
	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2026	2025
	£	£
Accelerated capital allowances	77,405	80,802
	--------	--------

21. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 16,796 (2025: £ 30,307 ).

22. Called up share capital

Issued, called up and fully paid

	2026		2025
	No.	£	No.	£
Ordinary 'A' shares of £ 0.01 each	100	1	100	1
Ordinary 'B' shares of £ 0.01 each	32	–	32	–
	----	----	----	----
	132	1	132	1
	----	----	----	----

Ordinary 'A' and Ordinary 'B' shares rank pari passu in all respects save that directors have discretion as to dividends payable in respect of each share class.

23. Reserves

Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.

24. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2026	2025
	£	£
Not later than 1 year	483,073	775,950
Later than 1 year and not later than 5 years	786,949	1,270,022
	------------	------------
	1,270,022	2,045,972
	------------	------------

25. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2026
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mrs J Wilkerson	40,110	35,376	( 110)	75,376
Mr G M Wilkerson	14,408	8,955	–	23,363
	--------	--------	----	--------
	54,518	44,331	( 110)	98,739
	--------	--------	----	--------

	2025
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mrs J Wilkerson	43,996	86,934	( 90,820)	40,110
Mr G M Wilkerson	33,074	40,608	( 59,274)	14,408
	--------	---------	---------	--------
	77,070	127,542	( 150,094)	54,518
	--------	---------	---------	--------

Interest is charged on directors' loans at commercial rates of interest.