REGISTERED NUMBER: 07199677 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

BURBIDGE HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

B J Burbidge

B Keeling

SECRETARY:

E J Burbidge

REGISTERED OFFICE:

Burnsall Road

Canley

Coventry

CV5 6BS

REGISTERED NUMBER:

07199677 (England and Wales)

AUDITORS:

Dafferns Audit Limited

Chartered Accountants

Statutory Auditor

One Eastwood

Harry Weston Road

Binley Business Park

Coventry

CV3 2UB

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

REVIEW OF BUSINESS

The annual results and financial position of the Group are as shown in the annexed financial statements.

As a manufacturer and distributor of furniture, the Group continues to make and sell products produced within our own facilities as well as purchasing items for distribution.

During the 2025 financial year the Group generated a turnover of £6,743,649 compared to the £7,219,667 achieved in the previous financial year.

KEY PERFORMANCE INDICATORS

The Burbidge Group monitor the following key performance indicators as a measure of financial performance and strength of the Group as a whole:

- Turnover - which generated revenue of £6,743,649 (2024 : £7,219,667).

- Gross profit % - which stood at 32.7% in 2025 (2024 : 37.0%).

- Operating loss (before exceptional items) of £754,399 (2024 : loss of £456,483).

- EBITDA - negative £458,933 (2024 : negative £196,988).

- Total comprehensive income - loss of £2,356,171 (2024 : profit of £430,654).

- Net assets - which stood at £3,007,812 (2024 : £5,363,983).

BALANCE SHEET AND FUNDING

At 31 December 2025, Burbidge Holdings decreased its net asset position to £3.0m (2024: £5.4m) despite the ongoing operating challenges and wider economic uncertainties. The increase in net assets was partially due to revaluing part of the Burnsall Road site, as under FRS 102 accounting standards this premises now meets the definition of a mixed-use property with part of the property being leased out to a third party.

Burbidge Holdings has maintained a good working capital position. The Group continues to make sure it has sufficient liquidity whilst consumer confidence returns to the market.

PRINCIPLE RISKS AND UNCERTAINTIES

As for many medium sized entities, the business environment in which Burbidge Holdings operates continues to be uncertain in the current UK economy, being reliant on household spending power, consumers' overall market confidence and activity within the housing market.

Throughout 2025, persistent inflation, elevated borrowing costs and a subdued housing market continued to weigh on consumer confidence and discretionary spending on home improvement. Whilst the Bank of England reduced the base rate progressively during the year, the pace of reduction was slower than the market had anticipated, and mortgage affordability remained a constraint on housing transactions. In addition, the increases to employer National Insurance contributions and the National Living Wage effective from April 2025 added materially to the Company's cost base, a pressure felt across the sector.

In response, the Group has continued to invest in its commercial infrastructure and to drive efficiencies within its cost base, positioning the business to maximise profitability as market conditions recover. The directors expect trading conditions to improve gradually through 2026 as interest rates continue to ease and confidence returns to the housing market. Given these conditions, the directors are satisfied with the strategic progress of the Group during the year.

FUTURE DEVELOPMENTS

Continuous development remains a key focus within a highly competitive market. The Group continues to invest significant time and resources into the ongoing development of both Burbidge Kitchen and Bathroom Furniture ranges.

OUTLOOK

The directors believe that the Group is in a sound position for the future and is well placed to make progress within its markets through continued development of new and existing product lines. The outlook for the coming year is one of growth.

ON BEHALF OF THE BOARD:

B J Burbidge - Director

21 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the Group in the year under review was that of manufacturing and distributing quality furniture for domestic kitchen and bathrooms installations.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

RESEARCH AND DEVELOPMENT

Research and development work is undertaken to provide the best product designs and materials. This plays a vital role in providing innovative products to satisfy the continuing change in customer requirements in a fashion-led market.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

B J Burbidge has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

B Keeling - appointed 18 June 2025

G Heaven ceased to be a director after 31 December 2025 but prior to the date of this report.

GOING CONCERN

The directors have considered the working capital requirements of the Group and believe that the resources available to them are sufficient and appropriate for the ongoing trading needs of the business. As a result of this assessment, the going concern assumption continues to be adopted in the preparation of these financial statements.

EMPLOYEES

The directors place considerable value on the involvement and participation of employees in the Group's activities through the policy of providing employees with information about the Group, both through notices and regular meetings with management.

The Group gives every consideration to applications for employment from disabled persons who have the necessary aptitudes and abilities. If an existing employee becomes disabled, the Group endeavours to continue his/her employment if this is practicable, and if appropriate, to provide any special training required.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

B J Burbidge - Director

21 July 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the 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 the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-

Enquiry of management and those charged with governance around actual and potential litigation and claims;

-

Reviewing minutes of meetings of those charged with governance;

-

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 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 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Lucy Hatton FCCA (Senior Statutory Auditor)

for and on behalf of Dafferns Audit Limited

Chartered Accountants

Statutory Auditor

One Eastwood

Harry Weston Road

Binley Business Park

Coventry

CV3 2UB

21 July 2026

TURNOVER

4

6,743,649

7,219,667

Cost of sales

4,536,410

4,550,039

GROSS PROFIT

2,207,239

2,669,628

Distribution costs

2,079,138

2,329,916

Administrative expenses

998,460

913,550

3,077,598

3,243,466

(870,359

)

(573,838

)

Other operating income

5

115,960

117,355

OPERATING LOSS

7

(754,399

)

(456,483

)

Reorganisation costs

8

-

73,956

(754,399

)

(530,439

)

Interest receivable and similar income

1,224

1,813

Other finance income

24

73,000

34,000

74,224

35,813

(680,175

)

(494,626

)

Interest payable and similar expenses

9

162,996

173,396

LOSS BEFORE TAXATION

(843,171

)

(668,022

)

Tax on loss

10

598,000

(95,888

)

LOSS FOR THE FINANCIAL YEAR

(1,441,171

)

(572,134

)

Loss attributable to:

Owners of the parent

(1,441,171

)

(572,134

)

LOSS FOR THE YEAR

(1,441,171

)

(572,134

)

OTHER COMPREHENSIVE INCOME

Actuarial gains

(1,220,000

)

739,000

Revaluation of property

-

448,788

Income tax relating to components of other comprehensive income

305,000

(185,000

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(915,000

)

1,002,788

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,356,171

)

430,654

Total comprehensive income attributable to:

Owners of the parent

(2,356,171

)

430,654

FIXED ASSETS

Intangible assets

12

546,694

667,844

Tangible assets

13

2,394,697

2,557,791

Investments

14

-

-

Investment property

15

1,000,000

1,000,000

3,941,391

4,225,635

CURRENT ASSETS

Stocks

16

1,795,941

1,629,154

Debtors

17

873,058

1,404,519

Cash at bank

206,538

198,226

2,875,537

3,231,899

CREDITORS

Amounts falling due within one year

18

3,277,617

1,519,990

NET CURRENT (LIABILITIES)/ASSETS

(402,080

)

1,711,909

TOTAL ASSETS LESS CURRENT LIABILITIES

3,539,311

5,937,544

CREDITORS

Amounts falling due after more than one year

19

(631,499

)

(1,649,677

)

PENSION ASSET

25

100,000

1,076,116

NET ASSETS

3,007,812

5,363,983

CAPITAL AND RESERVES

Called up share capital

23

3,975,000

3,975,000

Revaluation reserve

24

1,605,133

1,605,133

Merger reserve

24

2,840,046

2,840,046

Retained earnings

24

(5,412,367

)

(3,056,196

)

SHAREHOLDERS' FUNDS

3,007,812

5,363,983

The financial statements were approved by the Board of Directors and authorised for issue on 21 July 2026 and were signed on its behalf by:

B J Burbidge - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

5,223,709

6,769,551

Investment property

15

-

-

5,223,709

6,769,551

CURRENT ASSETS

Debtors

17

91

91

Cash at bank

161

161

252

252

CREDITORS

Amounts falling due within one year

18

1

1

NET CURRENT ASSETS

251

251

TOTAL ASSETS LESS CURRENT LIABILITIES

5,223,960

6,769,802

CAPITAL AND RESERVES

Called up share capital

23

3,975,000

3,975,000

Retained earnings

24

1,248,960

2,794,802

SHAREHOLDERS' FUNDS

5,223,960

6,769,802

Company's loss for the financial year

(1,545,842

)

-

The financial statements were approved by the Board of Directors and authorised for issue on 21 July 2026 and were signed on its behalf by:

B J Burbidge - Director

Called up

share

Retained

Revaluation

Merger

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

3,975,000

(3,041,754

)

1,160,037

2,840,046

4,933,329

Changes in equity

Total comprehensive income

-

(14,442

)

445,096

-

430,654

Balance at 31 December 2024

3,975,000

(3,056,196

)

1,605,133

2,840,046

5,363,983

Changes in equity

Total comprehensive income

-

(2,356,171

)

-

-

(2,356,171

)

Balance at 31 December 2025

3,975,000

(5,412,367

)

1,605,133

2,840,046

3,007,812

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

3,975,000

2,794,802

6,769,802

Changes in equity

Balance at 31 December 2024

3,975,000

2,794,802

6,769,802

Changes in equity

Total comprehensive income

-

(1,545,842

)

(1,545,842

)

Balance at 31 December 2025

3,975,000

1,248,960

5,223,960

Cash flows from operating activities

Cash generated from operations

30

(165,209

)

(194,497

)

Interest paid

(162,996

)

(173,396

)

Tax paid

13,774

27,243

Net cash from operating activities

(314,431

)

(340,650

)

Cash flows from investing activities

Purchase of tangible fixed assets

(11,222

)

(28,043

)

Interest received

1,224

1,723

Net cash from investing activities

(9,998

)

(26,320

)

Cash flows from financing activities

New loans in year

-

1,200,000

Loan repayments in year

(54,806

)

(764,450

)

Lease repayments in year

(2,270

)

(13,228

)

Introduced by director / related party

350,000

100,000

Net cash from financing activities

292,924

522,322

(Decrease)/increase in cash and cash equivalents

(31,505

)

155,352

Cash and cash equivalents at beginning of year

31

(259,227

)

(414,579

)

Cash and cash equivalents at end of year

31

(290,732

)

(259,227

)

1.	STATUTORY INFORMATION

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

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

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated financial statements include the results of the parent company and its subsidiaries. The financial statements of subsidiaries are included in the consolidated financial statements from the point control commences to the point that control ceases. Burbidge Holdings Limited had control over its subsidiaries Burbidge & Son Limited and BSL Pension Trustee Limited throughout the current and prior period.

Revenue recognition

Revenue is recognised to the extent that the Group obtains the right to consideration in exchange for its performance. Revenue 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, excluding discounts and value added tax.

Goodwill

Goodwill is recognised at cost and subsequently measured under the historical cost model, being cost less accumulated amortisation and any accumulated impairment losses.

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of twenty years, as in the opinion of the directors, this represents the period over which the goodwill is expected to give rise to economic benefits.

Intangible assets

Intangible fixed assets are recognised at cost and subsequently measured under the historical cost

model, being cost less accumulated amortisation and any accumulated impairment losses.

Amortisation is provided at an appropriate rate in order to write off the cost of each asset over its estimated useful life, commencing at the point that the asset is readily available for use.

Development costs

- 5 years

Goodwill

- 20 years

Tangible fixed assets

During the year ended 2016, as permitted by FRS 102 paragraph 35.10 (c), the Group adopted the transitional provisions to retain the book value of land and buildings which were re-valued in July 2015 and has not adopted a policy of annual revaluations in the future. However, these values are subject to annual impairment reviews as set out in FRS 102 Section 27 'Impairment of Assets'. Transfers are being made to retained earnings each year in order to amortise the revaluation surplus over the remaining useful lives of the properties.

With the exception of land and buildings, all other classes of tangible fixed assets are recognised at cost and subsequently measured under the historical cost model, being cost less accumulated depreciation and impairments losses.

Depreciation is provided at the following annual rates in order to write off the cost of each asset over its

estimated useful life.

Freehold property

- 50 years

Plant and machinery

- 10 years

Motor vehicles

- 4 years

Fixtures and fittings

- 3 to 5 years

No depreciation is charged on freehold land.

Repairs and maintenance costs are charged to the Income Statement in the period in which they are incurred.

Investment property

Property that is held for generating rental yields or for capital appreciation or both, is classified as an investment property.

When a property is being held with a mixed-use, the property is apportioned between 'freehold property' as a tangible fixed asset used in the principal activity of the Group, and an 'investment property' held for generating rental yields or for capital appreciation, or both.

The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Subsequent expenditure is capitalised as part of the property carrying amount, only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost can be reliably measured. Repairs and maintenance costs are expensed in the period in which they are incurred.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of raw materials includes all costs in bringing the product to its current location and condition, whilst the cost of finished goods incudes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Stocks are maintained on a first in, first out basis.

As stocks are sold, the carrying amount of those stocks is recognised as an expense in the year in which the related revenue is recognised.

At each reporting date, stocks are assessed for impairment and due allowances are made for obsolete and slow-moving items to reduce the carrying amount of these goods to their estimated selling price less costs to complete and sell. The amount of any write-down is recognised as an expense in the year that the write-down occurs. The reversal of any previous write-down is recognised as a reduction in the amount of stock expensed in the year that the reversal occurs.

Financial instruments

Basic financial instruments in debtors and creditors with no stated interest rate, and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Income Statement in other administrative expenses.

Other financial assets and liabilities, such as loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The Group operates a defined contribution pension scheme for the provision of pension benefits to its employees as well as administering a defined benefit scheme which is closed to new members with benefits ceasing to accrue from the the date of closure.

In respect of the defined benefit scheme, the cost of providing benefits is determined using the projected unit credit method. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting asset or liability, net of deferred tax, is presented separately after other net assets on the face of the balance sheet.

The rate used to discount the benefit obligations is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations. The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised in the Income Statement as incurred.

Net interest on the net defined benefit liability is recognised in the Income Statement and comprises the interest cost on the defined benefit obligation and interest income on the plan assets, calculated by multiplying the fair value of the plan assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the plan assets and the actual return on the plan assets is recognised in Other Comprehensive Income.

Actuarial gains and losses are recognised in Other Comprehensive Income.

For defined contribution schemes the amount charged to the Income Statement is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives as ownership of the asset will be obtained by the Group at the end of the lease.

The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid and received under operating leases are recognised in the Income Statement on a straight line basis over the period of the lease.

4.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

5,951,978

6,672,197

Europe

766,320

547,470

Rest of World

25,351

-

6,743,649

7,219,667

5.	OTHER OPERATING INCOME

2025

2024

£

£

Rental income

108,333

45,228

Sundry income

-

64,500

Capital grants

7,627

7,627

115,960

117,355

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,809,953

1,904,960

Social security costs

237,955

207,345

Other pension costs

296,295

325,140

2,344,203

2,437,445

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

2025

2024

Production

21

23

Sales and administration

28

30

49

53

During the year, the Group incurred £Nil (2024: £15,470) of redundancy costs, which has been reflected in exceptional items (note 8).

2025

2024

£

£

Directors' remuneration

422,006

385,571

Directors' pension contributions to money purchase schemes

31,624

25,374

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

2

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

93,483

101,291

Key management are considered to be the directors across the Group and their compensation paid or payable is shown above.