Introduction
The directors present their strategic report for the year ended 31 December 2025.
The group continues to strengthen its position as a leading British manufacturer of innovative water management solutions. With a heritage dating back to 1964, the group has consistently delivered high-performance GRP filament-wound tank systems across a wide range of applications, including stormwater, foul water treatment, and pollution control.
Today, the group stands at the forefront of the industry, particularly in off-site built and tested SuDS treatment solutions—an area of growing importance across the UK, Europe, and the Middle East.
Operating within a buoyant construction market, the business has benefited from favourable supply chain conditions, enabling competitive pricing, reliable lead times, and consistent product quality. Strategic investment in recruitment—particularly within production—has further strengthened the group’s ability to meet increasing demand and capitalise on market opportunities.
The group's success is driven by a strong and clearly defined culture: Always Quality. Always Team. Always Impeccable Customer Experience. Always Give 100%. Always Positive.
This culture underpins a focused growth strategy supported by robust KPIs and a commitment to continuous improvement across all areas of the business.
The results delivered in 2025 reflect not only strong execution during the year but also the cumulative impact of sustained investment in previous periods. Sales and marketing have performed exceptionally well, expanding market reach, strengthening customer relationships, and further elevating the SPEL brand as a trusted industry leader.
Operationally, the business has demonstrated its ability to scale effectively. Continuous improvements in processes, productivity, and coordination have enabled the operations team to support increasing volumes while maintaining high standards of quality and service.
The business has previously faced capacity constraints at its Shrewsbury site. During the year, additional premises were secured, providing increased operational flexibility and supporting the group’s growth trajectory.
The focus moving forward is on effectively utilising this enhanced capacity to support demand while maintaining operational efficiency and quality standards.
The group's ISO 9001 accreditation continues to provide a robust operational framework, ensuring rigorous quality control and consistency as the business grows.
Looking ahead, the group is well positioned to capitalise on several key opportunities:
Innovation-led growth through continued investment in research and development
Expansion of product offerings, including solutions less dependent on core manufacturing capacity
Ongoing operational improvements to support scalability and efficiency
Growing demand for sustainable water management solutions, particularly within SuDS
The main financial KPIs for the business are as follows: turnover growth, ROCE and a sustainable balance sheet.
| 2025 | 2024 |
Turnover growth | £11,327,700 (25.41%) | £9,032,796 (2.28%) |
ROCE | 24% | 32% |
At the year end the group had shareholders funds of £8,342,514 (2024 - £7,500,798). The directors believe the group's position to be sustainable, especially as the group's current assets exceed its current liabilities by £5,609,554 (2024 - £5,567,782), resulting in a strong current ratio, at the end of the year, of 3.2 (2024 - 3.9).
In addition to financial metrics, the group closely monitors:
Daily order intake
Lead times
Despatch volumes
On-time delivery performance
These indicators ensure the group remains agile, responsive, and aligned with customer expectations.
Future developments
The group enters the next financial year with strong momentum and a solid operational platform to support continued growth.
Demand for sustainable and high-performance water management solutions continues to increase, and the group is well positioned to meet this demand through its innovative product range, operational capability, and customer-focused approach.
The group will continue to focus on driving efficiency, enhancing capacity utilisation, and investing in people, processes, and product development to support long-term, sustainable growth.
The group remains confident in its ability to deliver consistent performance and further strengthen its position as a market leader.
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 £468,757. 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 group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
During the year SPEL Holdings acquired additional land and buildings. After the reporting date the directors decided in principle to demolish the existing building on the land acquired and to construct a new facility on the site.
The total estimated cost of the demolition and redevelopment project is approximately £4 million. The project is expected to be financed from the group's existing cash resources.
As at the date of approval of these financial statements, no construction contracts have been entered into and no significant redevelopment expenditure has been committed.
Details of future developments are given in the Strategic Report.
Donations
During the year the group made charitable donations totalling £117,351 (2024 - £130,354).
The auditor, Benee Consulting Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of SPEL Holdings (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
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 group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.
Extent to which the audit was considered capable of detecting irregularities, including fraud;
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 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.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £729,932 (2024 - £370,229 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
SPEL Holdings (company number 08233395) is a private unlimited company, incorporated in England and Wales and domiciled in the United Kingdom. Its registered office and principal place of business is: Lancaster Road, Harlescott, Shrewsbury, SY1 3NQ.
The group consists of SPEL Holdings and all of its subsidiaries.
The principal activity of the group continued to be that of the development and sale of quality products and systems for the storage, attenuation, monitoring, treatment and utilisation of surface water.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company SPEL Holdings together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Freehold land is not depreciated.
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
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.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
FRS 102 revisions
In September 2024, The Financial Reporting Council issued a revised edition of FRS102, effective for accounting periods beginning on or after 1 January 2026. The company has not early adopted the revised standard. The directors are assessing the impact of the revised requirements, particularly in relation to revenue recognition and lease accounting. At the date of approval of these financial statements, it is not practicable to quantify the effect of the changes.
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.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Raw materials cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads including processing costs. Management use compaction factors specific to stock items held, which include some element of estimation, as part of the stock valuation method. The carrying value of stock is £806,162 (2024: £729,564).
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Deferred tax of £11,467 is expected to reverse in the next year as accelerated capital allowances reduce (see note 21).
Factors that may affect future tax charges
The group expects capital allowances available for tax purposes to be similar to, or lower than, the depreciation charged in the financial statements in future years. As depreciation is not deductible for tax purposes, this difference may lead to higher taxable profits and, consequently, a higher corporation tax charge.
However, the group undertakes qualifying research and development activities and intends to continue claiming R&D tax relief. These claims are expected to reduce taxable profits and may give rise to enhanced deductions. As a result, the group anticipates that future corporation tax liabilities will be lower than would otherwise be expected based solely on accounting profits.
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
During the year company acquired land and buildings, which are currently being used for storage purposes by the company's trading subsidiary. The property is situated in a prime location directly opposite the subsidiary's existing trading premises and was acquired for its strategic importance to the group's long-term expansion plans.
The land and buildings have been reviewed for indicators of impairment in accordance with Section 27 of FRS 102. Independent valuation evidence indicated a recoverable amount materially below cost and as detailed above an impairment loss has been recognised in administrative expenses within the profit and loss account.
The recoverable amount of the asset at the reporting date was determined to be £1,550,000 being the higher of fair value less costs to sell and value in use. The valuation was performed by an RICS-qualified valuer using a market-based capitalisation approach. Key assumptions included annual rental income of £85,500, market capitalisation yields for comparable commercial properties, and the market value of surplus storage land for comparable commercial properties in the local area. No allowance has been made for future redevelopment by the company, as recoverable amount must reflect the asset in its current condition.
More information on impairment movements in the year is given in note 11.
Details of the company's subsidiaries at 31 December 2025 are as follows:
The group's policy for accounting for financial instruments is detailed in note 1.12.
The carrying amount of financial assets include debt instruments measured at amortised cost totalling £1,415,092 (2024 - £2,006,945). The group has no financial assets measured at fair value through profit or loss.
Financial assets include trade debtors of £1,126,341 (2024 - £959,224), and interest free loans to related parties of £288,751 (2024 - £1,047,721).
The carrying amount of financial liabilities measured at amortised cost is £1,794,441 (2024 - £1,439,122). The group has no financial liabilities measured at fair value through profit or loss.
Financial liabilities include trade creditors of £885,154 (2024 - £564,410), customer deposits of £550,978 (2024 - £503,137), and interest bearing loans from related parties of £358,309 (2024 - £371,575).
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments.
The differences between purchase and replacement cost are not material.
The amount of stocks recognised as an expense during the year was £4,792,187 (2024 - £3,629,286). This includes raw materials, carriage inward, and other related direct costs allocated to goods sold during the period.
Other debtors includes loans to directors totalling £288,751 (2024 - £1,047,721). Further information is provided in the related party note (note 27).
Included in creditors due after more than one year are unsecured loans from family members of the directors. The total amount outstanding at the balance sheet date is £316,203 (2024: £271,354). A commercial rate of interest is paid on the loans and further details of these related party transactions are provided in note 26.
The following are the major deferred tax liabilities and assets recognised by the group and company:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The pension expense represents contributions payable by the group to the scheme and amounted to £80,978 (2024: £351,607). Contributions totalling £15,193 (2024: £15,428) were payable to the scheme at the balance sheet date and are included in creditors.
The company has multiple classes of ordinary shares. Each ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up.
The profit and loss reserve represents accumulated profits generated since incorporation less distributions made to shareholders.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year SPEL Holdings acquired additional land and buildings. After the reporting date the directors decided in principle to demolish the existing building on the land acquired and to construct a new facility on the site.
The total estimated cost of the demolition and redevelopment project is approximately £4 million. The project is expected to be financed from the group's existing cash resources.
As at the date of approval of these financial statements, no construction contracts have been entered into and no significant redevelopment expenditure has been committed.
Included within other creditors due within one year are unsecured loans from from directors totalling £42,106 (2024: £100,221). A market rate of interest is paid on the loans.
Also, included within other creditors due within one year are amounts due to shareholders totalling £26,140 (2024: £Nil). The liabilities are unsecured, interest free and repayable on demand.
Included in creditors due after more than one year are unsecured loans from family members of the directors. The total amount outstanding at the balance sheet date is £316,203 (2024: £271,354). A market rate of interest is paid on the loans.
On the 20 February 2025, a portion of the group's freehold property was sold to a connected party for £542,000, compared to a carrying value of £640,169. The sale was supported by an open market valuation. The group has continued to occupy and operate from the property under an operating lease agreement.
Ultimate controlling party
The ultimate controlling party is Mr B Pocock.
Included within other debtors due within one year are unsecured loans to a director totalling £288,751 (2024 - £1,047,721). The balance comprises two separate arrangements with the same director, as follows:
Director's current account - overdrawn by £93,765 at the year end (2024: £92,127). The maximum amount outstanding during the year was £418,559.
Loan account - a new loan advanced in the prior year of £1,075,594, of which £194,986 (2024: £955,594) remained outstanding at the year end after partial repayment. The maximum amount outstanding during the year was £955,594.
Both balances are unsecured, interest free, and repayable on demand. No amounts were written off or waived during the year.