Lochcarron of Scotland Limited Company accounts

COMPANY REGISTRATION NUMBER: SC025944

Lochcarron of Scotland Limited

Financial Statements

For the year ended

31 December 2025

Lochcarron of Scotland Limited

Financial Statements

Year ended 31 December 2025

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	5

Independent auditor's report to the member	7

Statement of income and retained earnings	11

Statement of financial position	12

Notes to the financial statements	13

Lochcarron of Scotland Limited

Officers and Professional Advisers

The board of directors	J Y Kim
	D Robson-Bell
	L Robertson
	J Y Jang

Company secretary	S Jones

Registered office	Waverley Mill
	Rogers Road
	Selkirk
	Scottish Borders
	TD7 5DX

Auditor	Streets Audit LLP
	Chartered accountants & statutory auditor
	Enterprise House
	38 Tyndall Court
	Commerce Road
	Lynch Wood
	Peterborough
	Cambridgeshire
	PE2 6LR

Bankers	Clydesdale Bank Plc
	Business and Private Bank
	Carlisle Business and Private Banking Centre
	239 Kingstown Industrial Estate
	Carlise
	CA3 OBQ

Lochcarron of Scotland Limited

Strategic Report

Year ended 31 December 2025

Principal Activity The principal activity of the company in the year under review was that of manufacture, wholesale and retail of exclusive fabrics and accessories as well as all products relating to Highland Wear. Business Review Turnover for the year was £8.8m compared to £8.2m in 2024. The operating profit for the year was £1.2m compared to an operating profit of £1.1m in 2024. The profit before taxation for the year was £1.3m compared to a profit of £1.2m in 2024. Closing shareholders' funds is £7.7m compared to £6.6m in 2024. The growth in sales turnover during 2025 was largely due to organic growth in our traditional wholesale and fashion design business. We also saw continuing growth in direct-to-consumer sales via the Lochcarron website, which had a landmark year reaching over £1m in sales for the first time. We continued to see the benefit of investments made in recent years to increase manufacturing efficiency, and made further investments in manufacturing machinery during the year to ensure that manufacturing output keeps up with increasing demand. This improvement in sales growth and operational efficiencies resulted in the steady improvement of the operating profit and margins of the company during the year. The company wishes to thank Mr Craig Murray for his contributions, following his retirement from the position of Director on 31st December 2025. He was replaced on the Board of Directors by the appointment of Mr Kim Jong Yun effective 1st January 2026. Future Developments The company remains focused on the long-term growth of manufacturing, retail and wholesale businesses as well as improving operating efficiency. At the end of 2024, the company installed solar panels on the roof of the warehouse at our Selkirk facility. In 2025 the solar array provided 29% of our total electricity usage, delivering both cost savings, and a significant contribution towards Lochcarron's Net Zero initiative. The company will continue to invest in the Lochcarron of Scotland brand as an important part of the growth of the business. Director Mrs Dawn Robson-Bell stepped down to a Non-Executive director position on 28th February 2026. Miss Leah Robertson (previously Lochcarron's Marketing and Retail Sales Manager) was appointed as Managing Director effective 1st March 2026. Corporate and Social Responsibility The company carries out regular risk assessments to guarantee the wellbeing of staff and visitors, in accordance with Health and Safety legislation. The company actively manages its reputation, and drives best practice, through the application of ethical sales and purchasing policies. The company is an equal opportunities employer which promotes diversity and does not differentiate on gender, ethnicity, religion, sexual orientation or physical ability. Lochcarron is a certified Real Living Wage employer. Principal Risks and Uncertainties The key business risks affecting the company continue to come from fluctuations in the UK Economy, the post-Brexit landscape for international trade, and the risk of alternative suppliers importing from territories with lower labour costs. The current economic conditions create uncertainty particularly over the level of demand for the company's products. The company seeks to manage this risk by diversifying and updating its product ranges where possible. Recent developments in global trade, in particular the changing tariff landscape in the United States, present a challenge. Lochcarron will continue to respond to these changes, balancing the need to reduce our exposure to additional customs and export costs while maintaining support for affected customers. Financial Risk Management Objectives and Policies The company's activities expose it to a number of financial risks including credit risk, interest rate risk, currency risk and liquidity risk. Credit risk The company seek to manage its credit risk by dealing with established customers or otherwise checking the credit-worthiness of new customers, establishing clear contractual relationships with those customers and by identifying and addressing any credit issues arising in a timely manner. Interest rate risk The company has no interest-bearing borrowings. Exposure to market risk for the changes in interest rates relates primarily to its bank deposits. The company seeks to manage this risk by the use of a combination of variable and fixed rate deposits. Currency risk The company minimises its risk to foreign currency fluctuations by invoicing and purchasing in Sterling where possible and where not by balancing as far as possible sales and purchases in matching foreign currency. Liquidity risk The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. At present, cash reserves are sufficient to fund all foreseeable future operational and investment needs, and parent company support can be called upon if necessary. This gives the company the necessary financial backing to carry out its intended plans and properly finance the ongoing operations of the business. Considering the current level of liquidity, the company intends to close its Invoice Finance facility during 2026, as access to flexible credit is not anticipated to be required in the foreseeable future.

This report was approved by the board of directors on 18 August 2026 and signed on behalf of the board by:

J Y Kim

Director

Registered office:

Waverley Mill

Rogers Road

Selkirk

Scottish Borders

TD7 5DX

Lochcarron of Scotland Limited

Directors' Report

Year ended 31 December 2025

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

Directors

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

C Murray
D Robson-Bell
J Y Jang

On 1 January 2026, C Murray resigned as director and J Y Kim was appointed as director. On 1 March 2026, L Robertson was appointed as director.

Dividends

The directors do not recommend the payment of a dividend.

Disclosure of information in the strategic report

The company has chosen to set out in the strategic report information about the future developments of the company and the financial instruments.

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 18 August 2026 and signed on behalf of the board by:

J Y Kim

Director

Registered office:

Waverley Mill

Rogers Road

Selkirk

Scottish Borders

TD7 5DX

Lochcarron of Scotland Limited

Independent Auditor's Report to the Member of Lochcarron of Scotland Limited

Year ended 31 December 2025

Opinion

We have audited the financial statements of Lochcarron of Scotland Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of income and retained earnings, statement of financial position 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 December 2025 and of its profit 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.

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 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - 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, and from our commercial knowledge and experience of the company and sector in which it operates; - 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, data protection, 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 journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 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; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 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 auditor’s report. Use of our report

This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Day

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered accountants & statutory auditor

Enterprise House

38 Tyndall Court

Commerce Road

Lynch Wood

Peterborough

Cambridgeshire

PE2 6LR

20 August 2026

Lochcarron of Scotland Limited

Statement of Income and Retained Earnings

Year ended 31 December 2025

		2025	2024
Note		£	£
Turnover	4	8,835,796	8,179,841

Cost of sales	3,865,508	3,539,203
	-------------	-------------
Gross profit	4,970,288	4,640,638

Distribution costs		680,994	647,439
Administrative expenses		3,050,256	2,884,129
Other operating income	5	2,500	2,567
		-------------	-------------
Operating profit	6	1,241,538	1,111,637

Other interest receivable and similar income	10	77,786	54,158
		-------------	-------------
Profit before taxation		1,319,324	1,165,795

Tax on profit	11	194,288	58,779
		-------------	-------------
Profit for the financial year and total comprehensive income		1,125,036	1,107,016
		-------------	-------------

Retained earnings at the start of the year	2,755,186	1,648,170
	-------------	-------------
Retained earnings at the end of the year	3,880,222	2,755,186
	-------------	-------------

All the activities of the company are from continuing operations.

Lochcarron of Scotland Limited

Statement of Financial Position

31 December 2025

	2025		2024
Note	£	£	£

Fixed assets

Tangible assets	12		1,843,428	1,836,872

Current assets

Stocks	14	2,658,400	2,554,557
Debtors	15	1,754,090	1,523,205
Cash at bank and in hand		2,570,450	1,520,911
		-------------	-------------
		6,982,940	5,598,673

Creditors: amounts falling due within one year	16	1,132,591		866,804
		-------------		-------------
Net current assets			5,850,349	4,731,869
			-------------	-------------
Total assets less current liabilities			7,693,777	6,568,741
			-------------	-------------
Net assets			7,693,777	6,568,741
			-------------	-------------

Capital and reserves

Called up share capital	19	3,813,555	3,813,555
Profit and loss account	20	3,880,222	2,755,186
		-------------	-------------
Shareholder funds		7,693,777	6,568,741
		-------------	-------------

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 18 August 2026 , and are signed on behalf of the board by:

C Murray Director

Company registration number: SC025944

Lochcarron of Scotland Limited

Notes to the Financial Statements

Year ended 31 December 2025

1. General information

Lochcarron of Scotland Limited is a company incorporated in Scotland. The address of the registered office is Waverley Mill, Rogers Road, Selkirk, Scottish Borders, TD7 5DX. The nature of the company's operations and its principal activities are the manufacture, wholesale and retail of exclusive fabrics and accessories as well as all products relating to Highland Wear.

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. The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Eland World Limited. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

As permitted by section 401 of Companies Act 2006, the company has not prepared consolidated financial statements as it is a wholly owned subsidiary undertaking of Euro E-Land Company Plc, a company registered in England and Wales. Euro E-Land Company Plc is a subsidiary of ELand World Limited, a company registered in South Korea which prepares consolidated financial statements that include the results of the company. These financial statements therefore present information about the company as an an individual undertaking and not about the group.

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 The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Depreciation Tangible assets are recognised at cost, less accumulated depreciation and impairments. Depreciation take place over the estimated useful life, down to the assets residual value. The carrying amount of the company's fixed assets is tested as soon as changed conditions show that a need for impairment has arisen. Stock obsolescence provision The company's stock values have been assessed at the reporting date for slow moving stock whereby the future value of the stock may be reduced below current valuations due to stock obsolescence. An allowance has therefore been made for slow moving stock in the accounts by creating a reserve against stock values. 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. There are no material balances in the financial statements which involve a significant degree of estimation by management. As such no key sources of estimation uncertainty are disclosed.

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.

Income tax

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 material 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 profit and loss.

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.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and 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	-	over the life of the lease
Plant and machinery	-	straight line over 4 - 20 years
Motor vehicles	-	4 - 6 years straight line
Office equipment	-	2 - 6 years straight line

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.

Financial instruments

The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Defined contribution pension plans

Contributions to defined contribution pension plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	8,835,796	8,179,841
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2025	2024
	£	£
United Kingdom	6,142,424	5,771,262
Overseas	2,693,372	2,408,579
	-------------	-------------
	8,835,796	8,179,841
	-------------	-------------

5. Other operating income

	2025	2024
	£	£
Other operating income	2,500	2,567
	-------	-------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	229,523	196,728
Gains on disposal of tangible assets	–	( 7,976)
Impairment of stocks	22,718	19,398
Impairment of trade debtors	(17,436)	308
Operating lease rentals	8,327	7,000
Foreign exchange differences	15,527	18,234
	----------	----------

7. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	12,900	12,250
	---------	---------

Fees payable to the company's auditor and its associates for other services:

Taxation advisory services	2,600	2,550
	---------	---------

8. Staff costs

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

	2025	2024
	No.	No.
Manufacturing	39	37
Warehouse and retail	17	17
Administration	28	24
	----	----
	84	78
	----	----

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

	2025	2024
	£	£
Wages and salaries	2,577,430	2,314,591
Social security costs	115,080	111,176
Other pension costs	86,281	112,830
	-------------	-------------
	2,778,791	2,538,597
	-------------	-------------

9. Directors' remuneration

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

	2025	2024
	£	£
Remuneration	183,545	129,356
Company contributions to defined contribution pension plans	13,468	20,245
	----------	----------
	197,013	149,601
	----------	----------

10. Other interest receivable and similar income

	2025	2024
	£	£
Interest from group undertakings	77,786	54,158
	---------	---------

11. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	194,288	–

Deferred tax:

Origination and reversal of timing differences	–	58,779
	----------	---------
Tax on profit	194,288	58,779
	----------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2024: lower than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	1,319,324	1,165,795
	-------------	-------------
Profit on ordinary activities by rate of tax	329,831	291,449
Effect of expenses not deductible for tax purposes	183	982
Effect of capital allowances and depreciation	76	( 12,530)
Utilisation of tax losses	( 193,803)	301,105
Unused tax losses	–	( 288,574)
Deferred tax not recognised on losses, capital allowances and short term differences	(136,287)	(233,653)
Paid for group losses	194,288	–
	-------------	-------------
Tax on profit	194,288	58,779
	-------------	-------------

12. Tangible assets

	Land and buildings, leasehold and leasehold improvements	Plant and machinery	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2025	511,588	2,954,021	149,717	511,955	4,127,281
Additions	32,034	183,040	–	21,005	236,079
	----------	-------------	----------	----------	-------------
At 31 December 2025	543,622	3,137,061	149,717	532,960	4,363,360
	----------	-------------	----------	----------	-------------
Depreciation
At 1 January 2025	247,120	1,646,663	57,296	339,330	2,290,409
Charge for the year	40,141	119,833	23,177	46,372	229,523
	----------	-------------	----------	----------	-------------
At 31 December 2025	287,261	1,766,496	80,473	385,702	2,519,932
	----------	-------------	----------	----------	-------------
Carrying amount
At 31 December 2025	256,361	1,370,565	69,244	147,258	1,843,428
	----------	-------------	----------	----------	-------------
At 31 December 2024	264,468	1,307,358	92,421	172,625	1,836,872
	----------	-------------	----------	----------	-------------

13. Investments

	Shares in group undertakings
	£
Cost
At 1 January 2025 and 31 December 2025	30,302
	---------
Impairment
At 1 January 2025 and 31 December 2025	30,302
	---------

Carrying amount
At 31 December 2025	–
	---------
At 31 December 2024	–
	---------

Subsidiaries, associates and other investments

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
Lochcarron of Scotland Inc.	P.O. Box 5, 90 Odell Hill Rd, Center Conway NH 03813	Ordinary	100

14. Stocks

	2025	2024
	£	£
Raw materials and consumables	644,724	478,548
Work in progress	273,897	265,133
Finished goods and goods for resale	1,739,779	1,810,876
	-------------	-------------
	2,658,400	2,554,557
	-------------	-------------

15. Debtors

	2025	2024
	£	£
Trade debtors	532,902	475,308
Amounts owed by group undertakings	1,069,015	910,735
Prepayments and accrued income	152,173	137,162
	-------------	-------------
	1,754,090	1,523,205
	-------------	-------------

Trade debtors are subject to an invoice discounting arrangement. At the end of the current and previous year, this facility was a debtor balance included within cash at bank.

16. Creditors: amounts falling due within one year

	2025	2024
	£	£
Trade creditors	808,989	564,666
Accruals and deferred income	192,785	197,856
Social security and other taxes	130,817	104,282
	-------------	----------
	1,132,591	866,804
	-------------	----------

Clydesdale Bank Plc hold a fixed and floating charge over the assets and undertakings of the company.

17. Deferred tax

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

	2025	2024
	£	£
Accelerated capital allowances	378,611	366,830
Unused tax losses	–	( 124,505)
Group relief	(378,611)	(242,325)
	----------	----------
	–	–
	----------	----------

As at the year end date the company has unprovided deferred tax liability of £378,601 in relation to fixed asset timing differences which have been offset against group losses. Deferred tax has been calculated at 25% (2024 - 25%).

18. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 86,281 (2024: £ 112,830 ).

19. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	3,813,555	3,813,555	3,813,555	3,813,555
	-------------	-------------	-------------	-------------

20. Reserves

Profit and loss account - this reserve records retained earnings and accumulated losses.

21. Operating leases

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

	2025	2024
	£	£
Not later than 1 year	189,929	192,689
Later than 1 year and not later than 5 years	42,240	250,112
Later than 5 years	129,649	140,209
	----------	----------
	361,818	583,010
	----------	----------

22. Related party transactions

The company has taken advantage of the exemptions available under FRS102 relating to the disclosure of related party transactions with other members of the ELand World Limited group.

23. Parent company

The directors regard ELand World Limited, which is incorporated in Korea, as the ultimate parent undertaking of Lochcarron of Scotland Limited . The group financial statements of this company are publicly available and can be obtained from the company's registered office. The group's controlling party is Song Park. The immediate parent undertaking is Euro E-Land Company Plc. The financial statements for this company can be obtained from Companies House.