REGISTERED NUMBER: SC307418 (Scotland)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 31 August 2025

for

PDK Shellfish Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

16

DIRECTOR:

P D Knight

REGISTERED OFFICE:

2 South Pier

Gallanach Road

Oban

PA34 4LS

REGISTERED NUMBER:

SC307418 (Scotland)

AUDITORS:

McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

The director presents his strategic report of the company and the group for the year ended 31 August 2025.

PRINCIPAL ACTIVITIES

The group is engaged in the sourcing, processing, sale and distribution of shellfish. PDK Shellfish Limited trades principally in live shellfish, supplying customers in the United Kingdom and continental Europe. Orkney Crab Limited processes crab and other shellfish products at its facilities in Orkney and supplies customers in the United Kingdom and export markets. The activities of the group are complementary, combining access to shellfish supply, processing capability and established routes to market.

BUSINESS REVIEW

the group operates in seasonal markets in which performance is influenced by the availability, quality and cost of shellfish, the timing and level of customer demand and prevailing conditions in its principal markets. The live-shellfish business is also affected by the risks and costs associated with transporting live product over significant distances, while the processing business is dependent upon maintaining reliable supplies of suitable raw material and managing production and stock levels in line with demand.

During the year the group continued to develop its trading and processing activities and to invest in the operational asset base required to support the business. Management remained focused on product quality, customer service, the effective use of processing and transport capacity and the maintenance of established customer and supplier relationships.

Working-capital management remains an important feature of the business. Requirements vary during the year according to purchasing patterns, stockholding, customer-payment cycles and the seasonality of trading. The director monitors cash requirements, available facilities and the timing of investment to ensure that the group's operations are supported by appropriate funding arrangements.

FINANCIAL REVIEW

The group's financial performance and position for the year are summarised below:

Key indicator

2025

2024

Revenue

£20,750,497

£18,514,997

Gross profit

£2,668,413

£2,430,203

Gross margin

12.86%

13.13%

Profit/(loss) before taxation

(£12,973)

£178,154

Net assets

£2,952,073

£1,945,988

KEY PERFORMANCE INDICATORS

The director reviews the performance and financial position of the group using measures that include revenue, gross margin, operating profitability, stock levels, customer balances, cash generation, borrowings and available funding. Operational performance is also assessed by reference to product availability and quality, production requirements, logistics performance and service to customers.

The availability, quality and purchase price of shellfish can vary as a result of seasonality, weather, fishing conditions and wider market demand. The group manages these risks through its supplier relationships, purchasing decisions, quality controls and the close monitoring of stock and customer requirements.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is exposed to changes in demand in the United Kingdom and export markets, customer concentration and the risk of delayed or irrecoverable customer balances. Management monitors sales, margins, customer exposures and payment performance and seeks to maintain a diversified customer base across its principal markets.

The handling, processing and transportation of shellfish require appropriate facilities, equipment, temperature control and operational procedures. Disruption to transport, equipment or processing capacity could affect product quality and the group's ability to meet customer requirements. The group maintains and invests in its operational assets and monitors the performance of its processing and distribution activities.

The group is subject to food-safety, traceability, environmental, employment and export requirements. Failure to comply could affect the group's ability to trade and damage customer confidence. Management seeks to maintain appropriate controls, operating procedures and oversight of the relevant requirements.

Seasonal purchasing, stockholding and customer-payment cycles can create significant fluctuations in working-capital requirements. The director monitors cash flow, facility utilisation and funding headroom and maintains regular contact with the group's funding providers.

FUTURE DEVELOPMENTS

The group's priorities are to maintain the quality and reliability of its supply and processing operations, support established customer relationships, develop opportunities in its principal markets and improve operational efficiency. Investment and funding decisions will continue to be considered in the context of trading requirements, available resources and the seasonal working-capital cycle.

ON BEHALF OF THE BOARD:

P D Knight - Director

31 August 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 August 2025.

DIVIDENDS

The total distribution of dividends for the year ended 31 August 2025 will be £129,123.

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.

DIRECTOR

P D Knight held office during the whole of the period from 1 September 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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:

P D Knight - Director

31 August 2026

Opinion

We have audited the financial statements of PDK Shellfish Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the Consolidated Statement of 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 Consolidated Cash Flow Statement, 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 August 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other matters

The financial statements for the year ended 31 August 2024 were unaudited as the group was entitled to, and availed of, the exemption from audit under sections 477 and 479 of the Companies Act 2006 relating to small companies. Accordingly, the corresponding figures for the prior period were not subject to audit. Our opinion is not modified in respect of this matter.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and

non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks and irregularities;

- any matters we identified having reviewed the group's internal controls established to mitigate risks of fraud or

noncompliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We obtained an understanding of the legal and regulatory framework that the group operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's ability to operate. These included health and safety, GDPR and employment laws. Auditing standards limit the required audit procedures to identify non - compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. These limited procedures did not identify actual or suspected non-compliance.

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.

Fiona Russell (Senior Statutory Auditor)

for and on behalf of McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

31 August 2026

TURNOVER

20,750,497

18,514,997

Cost of sales

(18,082,084

)

(16,084,794

)

GROSS PROFIT

2,668,413

2,430,203

Administrative expenses

(2,765,529

)

(2,149,211

)

(97,116

)

280,992

Other operating income

28,059

26,751

OPERATING (LOSS)/PROFIT

4

(69,057

)

307,743

Loan from lender impaired

5

18,060

-

(50,997

)

307,743

Interest receivable and similar income

17

-

(50,980

)

307,743

Interest payable and similar expenses

6

38,007

(129,589

)

(LOSS)/PROFIT BEFORE TAXATION

(12,973

)

178,154

Tax on (loss)/profit

7

(74,319

)

60,641

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(87,292

)

238,795

OTHER COMPREHENSIVE INCOME

Revaluation of property

1,630,000

-

Income tax relating to other comprehensive income

(407,500

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,222,500

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,135,208

238,795

(Loss)/profit attributable to:

Owners of the parent

(87,292

)

238,795

Total comprehensive income attributable to:

Owners of the parent

1,135,208

238,795

FIXED ASSETS

Intangible assets

10

148,089

158,929

Tangible assets

11

3,553,682

1,577,055

Investments

12

Interest in associate

49

49

3,701,820

1,736,033

CURRENT ASSETS

Stocks

13

1,000,019

813,508

Debtors

14

2,537,543

2,007,964

Cash at bank and in hand

314,106

246,860

3,851,668

3,068,332

CREDITORS

Amounts falling due within one year

15

(3,117,397

)

(2,272,893

)

NET CURRENT ASSETS

734,271

795,439

TOTAL ASSETS LESS CURRENT LIABILITIES

4,436,091

2,531,472

CREDITORS

Amounts falling due after more than one year

16

(792,406

)

(375,691

)

PROVISIONS FOR LIABILITIES

20

(691,612

)

(209,793

)

NET ASSETS

2,952,073

1,945,988

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Revaluation reserve

22

1,222,500

-

Retained earnings

22

1,728,573

1,944,988

SHAREHOLDERS' FUNDS

2,952,073

1,945,988

The financial statements were approved by the director and authorised for issue on 31 August 2026 and were signed by:

P D Knight - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

3,042,229

1,171,014

Investments

12

50

50

3,042,279

1,171,064

CURRENT ASSETS

Debtors

14

2,052,743

2,903,210

Cash at bank

313,060

184,674

2,365,803

3,087,884

CREDITORS

Amounts falling due within one year

15

(1,532,475

)

(1,189,221

)

NET CURRENT ASSETS

833,328

1,898,663

TOTAL ASSETS LESS CURRENT LIABILITIES

3,875,607

3,069,727

CREDITORS

Amounts falling due after more than one year

16

(616,674

)

(375,691

)

PROVISIONS FOR LIABILITIES

20

(249,856

)

(209,793

)

NET ASSETS

3,009,077

2,484,243

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Retained earnings

22

3,008,077

2,483,243

SHAREHOLDERS' FUNDS

3,009,077

2,484,243

Company's profit for the financial year

653,957

491,854

The financial statements were approved by the director and authorised for issue on 31 August 2026 and were signed by:

P D Knight - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 September 2023

1,000

2,106,193

-

2,107,193

Changes in equity

Dividends

-

(400,000

)

-

(400,000

)

Total comprehensive income

-

238,795

-

238,795

Balance at 31 August 2024

1,000

1,944,988

-

1,945,988

Changes in equity

Dividends

-

(129,123

)

-

(129,123

)

Total comprehensive income

-

(87,292

)

1,222,500

1,135,208

Balance at 31 August 2025

1,000

1,728,573

1,222,500

2,952,073

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

1,000

2,391,389

2,392,389

Changes in equity

Dividends

-

(400,000

)

(400,000

)

Total comprehensive income

-

491,854

491,854

Balance at 31 August 2024

1,000

2,483,243

2,484,243

Changes in equity

Dividends

-

(129,123

)

(129,123

)

Total comprehensive income

-

653,957

653,957

Balance at 31 August 2025

1,000

3,008,077

3,009,077

Cash flows from operating activities

Cash generated from operations

1

583,460

(25,779

)

Interest paid

(61,726

)

(102,540

)

Interest element of hire purchase payments paid

(43,738

)

(27,049

)

Tax paid

(14,024

)

(44,799

)

Net cash from operating activities

463,972

(200,167

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(173,382

)

Purchase of tangible fixed assets

(35,577

)

(866,820

)

Sale of tangible fixed assets

257,078

378,921

Interest received

17

-

Net cash from investing activities

221,518

(661,281

)

Cash flows from financing activities

New loans in year

500,000

873,300

Loan repayments in year

(417,715

)

(348,885

)

Capital repayments in year

(610,327

)

(322,094

)

Amount introduced by directors

129,123

645,546

Amount withdrawn by directors

(90,202

)

(39,066

)

Equity dividends paid

(129,123

)

(400,000

)

Net cash from financing activities

(618,244

)

408,801

Increase/(decrease) in cash and cash equivalents

67,246

(452,647

)

Cash and cash equivalents at beginning of year

2

246,860

699,507

Cash and cash equivalents at end of year

2

314,106

246,860

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.8.25

31.8.24

£

£

(Loss)/profit before taxation

(12,973

)

178,154

Depreciation charges

567,629

500,216

Profit on disposal of fixed assets

(131,123

)

(105,548

)

Finance costs

(38,007

)

129,589

Finance income

(17

)

-

385,509

702,411

Increase in stocks

(186,511

)

(813,508

)

Increase in trade and other debtors

(568,500

)

(289,433

)

Increase in trade and other creditors

952,962

374,751

Cash generated from operations

583,460

(25,779

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2025

31.8.25

1.9.24

£

£

Cash and cash equivalents

314,106

246,860

Year ended 31 August 2024

31.8.24

1.9.23

£

£

Cash and cash equivalents

246,860

703,523

Bank overdrafts

-

(4,016

)

246,860

699,507

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.9.24

Cash flow

changes

At 31.8.25

£

£

£

£

Net cash

Cash at bank

and in hand

246,860

67,246

314,106

246,860

67,246

314,106

Debt

Finance leases

(399,154

)

610,327

(993,794

)

(782,621

)

Debts falling due

within 1 year

(436,921

)

(300,773

)

-

(737,694

)

Debts falling due

after 1 year

(299,688

)

(166,145

)

-

(465,833

)

(1,135,763

)

143,409

(993,794

)

(1,986,148

)

Total

(888,903

)

210,655

(993,794

)

(1,672,042

)

1.	STATUTORY INFORMATION

PDK Shellfish Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The group financial statements incorporate PDK Shellfish Limited and its subsidiaries made up to 31 August 2025.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Knights Offshore Support Ltd (Company number SC456329) is exempt from the requirements of the Companies Act 2006 relating to the audit of their accounts under Section 479A of the Companies Act 2006. PDK Shellfish Limited guarantees this subsidiary under Section 479C of the Companies Act 2006 in respect of the year ended 31 August 2025.

The group financial statements do not incorporate the group's share of the results of associates. Their loss exceeds the investment value and in line with FRS102, the deficit does not need to be recognised as there is no constructive obligation to meet these liabilities.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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), the amount of revenue 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.

Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of

net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less

accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful

life and is amortised on a systematic basis over its expected life, which was 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

1.5% on reducing balance

Plant and machinery

-

20% on reducing balance and 15% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

20% on cost and 20% on reducing balance

The company's policy is to review the remaining useful lives and residual value of all tangible fixed assets on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine if there is any indication that those assets have suffered an impairment loss.

Government grants

Government grants are recognised when there is reasonable assurance that the company will comply with the conditions attaching to the grant and the grant will be received.

Government grants received specifically to meet hire purchase instalments are recognised in the profit and loss account on a systematic basis over the periods in which the related hire purchase finance costs to which the grant relates are recognised.

Investments in associates

Fixed asset investments are stated at cost less provision for diminution in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost

comprises direct materials and, where applicable, direct labour costs and those overheads that have been

incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement

cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks

over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or

loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

Debtors

Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired.

Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash in hand and bank overdrafts. In the balance sheet bank overdrafts are shown in creditors amounts falling due within one year.

Creditors

Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due.