Absolute Apparel Limited iXBRL

Absolute Apparel Limited

Reports and Financial Statements

for the financial year ended 31 December 2025

Absolute Apparel Limited

DIRECTORS AND OTHER INFORMATION


Directors	Mr Anil Jheinga
	Mrs Narinder Jheinga


Company Secretary	Mrs Narinder Jheinga


Company Registration Number	05219123


Registered Office and Business Address	Racecourse Road
	Wolverhampton
	West Midlands
	WV6 0QD
	England


Independent Auditors	Ian Richmond Limited
	Chartered Accountants and Registered Auditor
	Church Cottage
	Church Road
	Tettenhall
	Wolverhampton
	WV6 9AJ
	United Kingdom

Absolute Apparel Limited

STRATEGIC REPORT

for the financial year ended 31 December 2025

The directors present their strategic report on the company for the financial year ended 31 December 2025.

Review of the Company's Business

The results for 2025 highlight a contrast between challenging trading conditions and strong operational resilience. While turnover decreased, reflecting both a general economic downturn and an increasingly competitive marketplace, the Company successfully improved its margins. This margin expansion was driven by the focused development of its own-brand products and strategic enhancements to the supply chain.

The Company continues to develop its brands with development focused on quality and competitive pricing alongside responsible and sustainably sourced products.

The business model remains robust, and the Directors anticipate that the Company is in a good position moving forward.

Principal Risks and Uncertainties

The business continues to evaluate and manage the risks associated with the marketplace in which it operates. These primarily include its supply chain costs, market competition/pricing pressure and stock management risks. By working closely with it supply chain and customer base the company can take steps to minimise its risks and act swiftly to any changes in the market as and when required.

Financial Key Performance Indicators

The company tracks several measures in assessing its performance, including turnover and revenue growth, gross margin and operating profit.

Key Financial Indicators

The Key Financial Indicators during the financial year were as follows:


	2025	2024
	£	£
Turnover	22,942,589	25,572,045
Gross profit	5,028,889	4,375,150
Gross Profit %	22	17

Due diligence process

The company monitors it's exposure to risk by keeping track of issues that affect the smooth running of the business.

On behalf of the board




Mr Anil Jheinga	Mrs Narinder Jheinga
Director	Director

31 July 2026	31 July 2026

Absolute Apparel Limited

DIRECTORS' REPORT

for the financial year ended 31 December 2025

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

Principal Activity

The principal activity of the company is the wholesale of clothing and workwear.

Results and Dividends

The profit for the financial year after providing for depreciation and taxation amounted to £385,241 (2024 - £1,259,154).

The directors have paid an interim dividend amounting to £275,000 and they do not recommend payment of a final dividend.

Directors

The directors who served during the financial year are as follows:

Mr Anil Jheinga

Mrs Narinder Jheinga

There were no changes in shareholdings between 31 December 2025 and the date of signing the financial statements.

Future Developments

The company plans to continue its present activities and current trading levels. Employees are kept as fully informed as practicable about developments within the business.

Post-Balance Sheet Events

There have been no significant events affecting the company since the financial year-end.

Statement of Directors' Responsibilities

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) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. 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 of 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 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 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.

Disclosure of Information to Auditor

Each persons who are directors at the date of approval of this report confirms that:

In so far as the directors are aware:

-there is no relevant audit information (information needed by the company's auditor in connection with preparing the auditor's report) of which the company's auditor is unaware, and

-the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditors

The auditors, Ian Richmond Limited, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

On behalf of the board

Mr Anil Jheinga

Mrs Narinder Jheinga

Director

31 July 2026

INDEPENDENT AUDITOR'S REPORT

to the Shareholders of Absolute Apparel Limited

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Absolute Apparel Limited ('the company') for the financial year ended 31 December 2025 which comprise the Profit and Loss Account, the Balance Sheet, the Reconciliation of Shareholders' Funds, the Cash Flow Statement and the related notes to the financial statements, including significant accounting policies set out in note . 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 financial 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 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 the date 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 contained within the annual report. 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.

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 course of 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.

Opinion 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report and the Directors' Report.

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; 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 for the financial statements

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 they 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 has 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:

We obtained an understanding of the legal and regulatory frameworks applicable to the company, focusing on those specific to product imports and risks associated with potentially unethical or prohibited business practices. We evaluated the provisions of the Companies Act 2006 and ISAs (UK) to identify misstatements that could have a material effect on the financial statements. We also assessed management incentives regarding the fraudulent manipulation of the financial statements, including potential management bias within the judgements and assumptions applied to significant accounting estimates and one-off or unusual transactions. Our procedures included:

- Enquiry of management regarding suspected or known instances of non-compliance with laws and regulations.

- Substantive testing of material streams of income, expenditure, assets, and liabilities.

- Analytical review of management accounts to corroborate verbal representations with actual financial data.

- Detailed review and substantive testing of significant accounting estimates.

Inherent limitations exist within these audit procedures, particularly regarding events or transactions that are not reflected within the financial statements. Such instances, alongside fraud, carry a lower likelihood of detection. Fraud is inherently more difficult to detect than accidental error because it involves an intent to mislead and deliberate acts of concealment, whereas errors are generally unintentional.

A further description of our responsibilities for the audit of the financial statements is contained in the appendix to this report, located at page , which is to be read as an integral part of our report.

Use of our report

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

Ian Richmond (Senior Statutory Auditor)

for and on behalf of

IAN RICHMOND LIMITED

Chartered Accountants and Registered Auditor

Church Cottage

Church Road

Tettenhall

Wolverhampton

WV6 9AJ

United Kingdom

31 July 2026

Absolute Apparel Limited

APPENDIX TO THE INDEPENDENT AUDITOR'S REPORT

Further information regarding the scope of our responsibilities as auditor

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Absolute Apparel Limited

PROFIT AND LOSS ACCOUNT

for the financial year ended 31 December 2025

	2025	2024
Notes	£	£

Turnover	4	22,942,589	25,572,045

Cost of sales		(17,913,700)	(20,949,082)
		─────────	─────────
Gross profit		5,028,889	4,622,963

Administrative expenses		(3,978,964)	(3,695,389)
Other operating income		-	1,200,000
		─────────	─────────
Operating profit	5	1,049,925	2,127,574

Interest receivable and similar income	6	-	1,143
Interest payable and similar expenses	7	(530,613)	(449,072)
		─────────	─────────
Profit before taxation		519,312	1,679,645

Tax on profit	9	(134,071)	(420,491)
		─────────	─────────
Profit for the financial year		385,241	1,259,154
		─────────	─────────
Total comprehensive income		385,241	1,259,154
		═════════	═════════

Absolute Apparel Limited

Company Registration Number: 05219123

BALANCE SHEET

as at 31 December 2025

		2025	2024
	Notes	£	£

Fixed Assets

Intangible assets

21,667

31,667

Tangible assets

7,938,575

8,031,673

─────────

Fixed Assets

7,960,242

8,063,340

─────────

Current Assets

Stocks

17,203,992

16,340,167

Debtors

4,114,306

3,929,824

Cash at bank and in hand

125,252

65,541

─────────

21,443,550

20,335,532

─────────

Creditors: amounts falling due within one year

(13,003,821)

(11,800,733)

─────────

Net Current Assets

8,439,729

8,534,799

─────────

Total Assets less Current Liabilities

16,399,971

16,598,139

Creditors:

amounts falling due after more than one year

(4,340,250)

(4,634,750)

Provisions for liabilities

(33,341)

(47,250)

─────────

Net Assets

12,026,380

11,916,139

═════════

Capital and Reserves

Called up share capital

376

376

Retained earnings

12,026,004

11,915,763

─────────

Shareholders' Funds

12,026,380

11,916,139

═════════

Approved by the Board and authorised for issue on 31 July 2026 and signed on its behalf by




Mr Anil Jheinga			Mrs Narinder Jheinga
Director			Director

Absolute Apparel Limited

RECONCILIATION OF SHAREHOLDERS' FUNDS

as at 31 December 2025

	Called up	Retained	Total
	share	earnings
	capital
	£	£	£

At 1 January 2024	376	10,931,609	10,931,985
	─────────	─────────	─────────
Profit for the financial year	-	1,259,154	1,259,154
	─────────	─────────	─────────
Payment of dividends	-	(275,000)	(275,000)
	─────────	─────────	─────────
At 31 December 2024	376	11,915,763	11,916,139
	─────────	─────────	─────────
Profit for the financial year	-	385,241	385,241
	─────────	─────────	─────────
Payment of dividends	-	(275,000)	(275,000)
	─────────	─────────	─────────
At 31 December 2025	376	12,026,004	12,026,380
	═════════	═════════	═════════

Absolute Apparel Limited

CASH FLOW STATEMENT

for the financial year ended 31 December 2025

	2025	2024
Notes	£	£

Cash flows from operating activities

Profit for the financial year

385,241

1,259,154

Adjustments for:

Interest receivable and similar income

(1,143)

Interest payable and similar expenses

530,613

449,072

Tax on profit on ordinary activities

134,071

420,491

Depreciation

115,770

109,660

─────────

1,165,695

2,237,234

Movements in working capital:

Movement in stocks

(863,825)

(2,554,233)

Movement in debtors

(184,482)

60,028

Movement in creditors

(919,495)

1,843,515

─────────

Cash (used in)/generated from operations

(802,107)

1,586,544

Tax paid

(217,319)

(300,000)

─────────

Net cash (used in)/generated from operating activities

(1,019,426)

1,286,544

─────────

Cash flows from investing activities

Interest received

1,143

Payments to acquire tangible assets

(12,672)

(4,308,543)

─────────

Net cash used in investment activities

(12,672)

(4,307,400)

─────────

Cash flows from financing activities

New long term loan		-	3,074,927
New short term loan		8,406,128	6,283,116
Repayment of short term loan		(6,373,590)	(5,837,910)
Capital element of hire purchase contracts		(32,927)	7,734
Advances from related parties		(4,703)	4,704
Interest paid		(530,613)	(449,072)
Dividends paid		(275,000)	(275,000)
		─────────	─────────
Net cash generated from financing activities		1,189,295	2,808,499
		─────────	─────────

Net increase/(decrease) in cash and cash equivalents		157,197	(212,357)
Cash and cash equivalents at beginning of financial year		(31,945)	180,412
		─────────	─────────
Cash and cash equivalents at end of financial year	15	125,252	(31,945)
		═════════	═════════

Absolute Apparel Limited

NOTES TO THE FINANCIAL STATEMENTS

for the financial year ended 31 December 2025

General Information

Absolute Apparel Limited is a company limited by shares incorporated and registered in the England and Wales. The registered number of the company is 05219123. The registered office of the company is Racecourse Road, Wolverhampton, West Midlands, WV6 0QD, England which is also the principal place of business of the company. The nature of the company's operations and its principal activities are set out in the Directors' Report. The financial statements have been presented in Pound (£) which is also the functional currency of the company.

Summary of Significant Accounting Policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.

Statement of compliance

The financial statements of the company for the financial year ended 31 December 2025 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.

Basis of preparation

The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of Value Added Tax and trade discounts, for goods supplied by the company in the ordinary course of business.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, which is generally upon delivery.

Intangible assets

Acquired software code

Acquired software code is valued at cost less accumulated amortisation.

Amortisation is calculated to write off the cost in equal annual instalments over its estimated useful life of 5 years.

Tangible assets and depreciation

Tangible assets are stated at cost or at valuation, less accumulated depreciation. Cost comprises purchase price and other directly attributable costs. Freehold land is stated at cost and is not depreciated. The charge to depreciation is calculated to write off the original cost or valuation of tangible assets, less their estimated residual value, over their expected useful lives as follows:

Land and buildings freehold

0 - 10% straight line

Plant and machinery

25% reducing balance

Fixtures, fittings and equipment

25% reducing balance / 33% straight line

Motor vehicles

25% straight line

The company currently depreciates the cost of a temporary building on a 10% per annum straight-line basis.

No depreciation is provided on other freehold properties as the company's policy is to maintain them to such a standard that their estimated residual value is not less than their carrying amount. Consequently, any depreciation charge would be immaterial.

The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Leasing and hire purchases

Tangible assets held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Balance Sheet at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Profit and Loss Account.

Stocks

Stocks are valued at the lower of cost and net realisable value. Stocks are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Borrowing costs

Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Employee benefits

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The company also operates a defined benefit pension scheme for its employees providing benefits based on final pensionable pay. The assets of this scheme are also held separately from those of the company, being invested with pension fund managers.

Taxation and deferred taxation

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Profit and Loss Account.

Derivatives

Derivative financial instruments are initially measured at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.

Ordinary share capital

The ordinary share capital of the company is presented as equity.

Significant accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.

Significant Accounting Judgements

Depreciation of freehold properties: The directors have exercised judgement in determining that freehold properties should not be depreciated. The company's policy is to maintain these properties to such a high standard that their estimated residual value is equal to or greater than their carrying amount. Consequently, any depreciation charge is considered immaterial to the financial statements.

Recoverability of trade debtors: Judgement is exercised in assessing whether ongoing trading relationships and security held mitigate the risk of default on overdue balances.

Key sources of estimation uncertainty

Provision for bad and doubtful debts: The company reviews its bad debts on a regular basis. Debts within 90 days of invoice date are generally considered collectible based on historical trends. For debts beyond 90 days, management evaluates collectability on a case-by-case basis.

At 31 December 2025 there was a specific overdue trade debt of £944K (2024 £1,149K) that was beyond 90 days old. The company continues to trade with this customer, has secured a charge over assets to partially mitigate risk, and has made a specific provision based on estimated recovery. The net carrying amount of this balance is £590,103 (2024 - £488,920). Changes in the customer's financial standing or future cash flows could impact the required provision.

Turnover

The turnover for the financial year is analysed as follows:

2025

2024

By Category:

Sale of goods

22,942,589

25,572,045

─────────

22,942,589

25,572,045

═════════

By Geographical market:

United Kingdom

22,436,762

25,572,045

Europe

5,465

Rest of the World

500,362

─────────

22,942,589

25,572,045

═════════

Turnover attributable to geographical markets outside the United Kingdom amounted to 2% for the financial year.


5.	Operating profit	2025	2024
		£	£
	Operating profit is stated after charging/(crediting):
	Amortisation of intangible assets	10,000	10,000
	Depreciation of tangible assets	105,770	99,660
	Profit on foreign currencies	(8,326)	(7,408)
	Auditor's remuneration
	- audit services	6,775	6,500
		═════════	═════════


6.	Interest receivable and similar income	2025	2024
		£	£

	Bank interest	-	1,143
		═════════	═════════


7.	Interest payable and similar expenses	2025	2024
		£	£

	On bank loans and overdrafts	461,997	396,005
	Hire purchase interest	26,834	19,054
	Factoring interest	36,478	34,013
	Interest on overdue tax	5,304	-
		─────────	─────────
		530,613	449,072
		═════════	═════════

Employees and remuneration

Number of employees

The average number of persons employed (including executive directors) during the financial year was as follows:

2025

2024

Number

Number

Administration and support

Sales, marketing and distribution

─────────

═════════

The staff costs (inclusive of directors' salaries) comprise:

2025

2024

Wages and salaries

1,517,322

1,478,888

Social security costs

171,438

139,635

Pension costs

29,289

29,129

Private health insurance

17,151

16,731

─────────

1,735,200

1,664,383

═════════

Tax on profit

2025

2024

(a) Analysis of charge in the financial year

Current tax:

Corporation tax at 25.00% (2024 - 25.00%)

147,178

411,000

Under/over provision in prior financial year

802

(2,759)

─────────

Total current tax

147,980

408,241

─────────

Deferred tax:

Origination and reversal of timing differences

(13,909)

12,250

─────────

Total deferred tax

(13,909)

12,250

═════════

Tax on profit (Note 9 (b))

134,071

420,491

═════════

(b) Factors affecting tax charge for the financial year

The tax assessed for the financial year differs from the standard rate of corporation tax in United Kingdom 25.00% (2024 - 25.00%). The differences are explained below:

2025

2024

Profit taxable at 25.00%

519,312

1,679,645

═════════

Profit before tax

multiplied by the standard rate of corporation tax

in United Kingdom at 25.00% (2024 - 25.00%)

129,828

419,911

Effects of:

Expenses not deductible for tax purposes

143

Depreciation in excess of capital allowances for period

17,350

(9,054)

Deferred tax

(13,909)

12,250

Adjustment to tax charge in respect of previous periods

802

(2,759)

─────────

Total tax charge for the financial year (Note 9 (a))

134,071

420,491

═════════


10.	Dividends	2025	2024
		£	£
	Dividends on equity shares:

	Ordinary - Interim paid	275,000	275,000
		═════════	═════════


11.	Intangible assets
		Acquired software code
			Total
		£	£
	Cost
	At 1 January 2025	50,000	50,000
		─────────	─────────

	At 31 December 2025	50,000	50,000
		─────────	─────────
	Amortisation
	At 1 January 2025	18,333	18,333
	Charge for financial year	10,000	10,000
		─────────	─────────
	At 31 December 2025	28,333	28,333
		─────────	─────────
	Net book value
	At 31 December 2025	21,667	21,667
		═════════	═════════
	At 31 December 2024	31,667	31,667
		═════════	═════════


12.	Tangible assets
		Land and	Plant and	Fixtures,	Motor	Total
		buildings	machinery	fittings and	vehicles
		freehold		equipment
		£	£	£	£	£
	Cost
	At 1 January 2025	7,756,060	295,675	129,943	247,898	8,429,576
	Additions	-	6,690	5,982	-	12,672
		─────────	─────────	─────────	─────────	─────────
	At 31 December 2025	7,756,060	302,365	135,925	247,898	8,442,248
		─────────	─────────	─────────	─────────	─────────
	Depreciation
	At 1 January 2025	68,808	157,358	116,135	55,602	397,903
	Charge for the financial year	13,762	35,389	8,545	48,074	105,770
		─────────	─────────	─────────	─────────	─────────
	At 31 December 2025	82,570	192,747	124,680	103,676	503,673
		─────────	─────────	─────────	─────────	─────────
	Net book value
	At 31 December 2025	7,673,490	109,618	11,245	144,222	7,938,575
		═════════	═════════	═════════	═════════	═════════
	At 31 December 2024	7,687,252	138,317	13,808	192,296	8,031,673
		═════════	═════════	═════════	═════════	═════════

12.1.

Tangible assets continued

Included above are assets held under finance leases or hire purchase contracts as follows:

2025

2024

Net

Depreciation

Net

Depreciation

book value

charge

book value

charge

Plant and machinery

19,500

6,500

26,000

Motor vehicles

144,222

48,074

192,296

53,169

─────────

163,722

54,574

218,296

53,169

═════════


13.	Stocks	2025	2024
		£	£

	Finished goods and goods for resale	17,203,992	16,340,167
		═════════	═════════


14.	Debtors	2025	2024
		£	£

	Trade debtors	3,592,369	3,708,010
	Other debtors	227,190	-
	Prepayments and accrued income	294,747	221,814
		─────────	─────────
		4,114,306	3,929,824
		═════════	═════════


15.	Cash and cash equivalents	2025	2024
		£	£

	Cash and bank balances	117,991	3,280
	Cash equivalents	7,261	62,261
		─────────	─────────
		125,252	65,541
	Bank overdrafts	-	(97,486)
		─────────	─────────
		125,252	(31,945)
		═════════	═════════


16.	Creditors	2025	2024
	Amounts falling due within one year	£	£

	Bank overdrafts	-	97,486
	Bank loan	6,271,492	3,888,647
	Invoice finance creditor	2,367,963	2,459,386
	Net obligations under finance leases
	and hire purchase contracts	35,316	32,627
	Trade creditors	2,460,940	3,637,997
	Amounts owed to related parties (Note 24)	801	5,504
	Taxation (Note 18)	1,276,969	1,036,707
	Directors' current accounts (Note 23)	497,502	560,967
	Derivative liability	63,377	-
	Other creditors	-	25,170
	Accruals	29,461	56,242
		─────────	─────────
		13,003,821	11,800,733
		═════════	═════════


17.	Creditors	2025	2024
	Amounts falling due after more than one year	£	£

	Bank loan	4,168,479	4,427,363
	Finance leases and hire purchase contracts	171,771	207,387
		─────────	─────────
		4,340,250	4,634,750
		═════════	═════════

	Loans
	Repayable in one year or less, or on demand (Note 16)	8,639,455	6,445,519
	Repayable between one and two years	213,189	234,845
	Repayable between two and five years	399,372	476,492
	Repayable in five years or more	3,555,918	3,716,026
		─────────	─────────
		12,807,934	10,872,882
		═════════	═════════


	Net obligations under finance leases
	and hire purchase contracts
	Repayable within one year	35,316	32,627
	Repayable between one and five years	171,771	207,387
		─────────	─────────
		207,087	240,014
		═════════	═════════


18.	Taxation	2025	2024
		£	£

	Creditors:
	VAT	794,314	496,370
	Corporation tax	430,543	499,882
	PAYE / NI	52,112	40,455
		─────────	─────────
		1,276,969	1,036,707
		═════════	═════════


19.	Details of creditors	2025	2024
		£	£
	Debts falling due for repayment after the end of five years

	Creditors repayable by instalments:
	Loan 1 is denominated in sterling with a nominal interest rate of 3.25%, and the final instalment is due on 14 October 2041. The loan is secured by a charge over the company's freehold land and buildings. The loan was for an initial amount of £1,000,000 and is repayable by 300 monthly instalments commencing October 2016.	535,068	575,436
	Loan 2 is denominated in Sterling with a nominal interest rate of 3.27%, and the final instalment is due on 14 November 2041. The loan is secured by a charge over the company's freehold land and buildings The loan was for an intitial amount of £861,920 and is repayable by 300 monthly instalments commencing October 2016.	461,699	496,488
	Loan 3 is denominated in Sterling with a nominal interest rate of 4.75%, and the final instalment is due on 30 September 2050. The loan is secured by a charge over the company's freehold land & buildings	2,559,151	2,644,102
		─────────	─────────
		3,555,918	3,716,026
		═════════	═════════

20.

Provisions for liabilities

The amounts provided for deferred taxation are analysed below:

Capital

Total

Total

allowances

2025

2024

At financial year start

47,250

47,250

35,000

Charged to profit and loss

(13,909)

(13,909)

12,250

─────────

At financial year end

33,341

47,250

═════════


21.	Share capital			2025	2024
				£	£
	Description	Number of shares	Value of units

	Allotted, called up and fully paid
	Ordinary	1	£1.00 each	1	1
	A Ordinary	374	£1.00 each	374	374
	B Ordinary	1	£1.00 each	1	1

				─────────	─────────
				376	376
				═════════	═════════

22.

Capital commitments

The company had no material capital commitments at the financial year-ended 31 December 2025.


23.	Directors' remuneration and transactions	2025	2024
		£	£

	Remuneration	95,992	95,000
		═════════	═════════


The following amounts are repayable to the directors:
	2025	2024
	£	£

Mr Anil Jheinga	497,502	560,967
	═════════	═════════


24.	Related party transactions

		2025	2024
		£	£

	Finance amounts owed to related parties	801	5,504
		═════════	═════════

25.

Post-Balance Sheet Events

There have been no significant events affecting the company since the financial year-end.


26	Reconciliation of Net Cash Flow to Movement in Net Debt
		Opening	Cash	Other	Closing
		balance	flows	changes	balance

		£	£	£	£

	Long-term borrowings	(4,427,363)	-	258,884	(4,168,479)
	Short-term borrowings	(6,348,033)	(2,032,538)	(258,884)	(8,639,455)
	Finance lease and hire purchase	(240,014)	32,927	-	(207,087)
		─────────	─────────	─────────	─────────
	Total liabilities from financing activities	(11,015,410)	(1,999,611)	-	(13,015,021)
		═════════	═════════	═════════	─────────
	Total Cash at bank and in hand (Note 15)				125,252
					─────────
	Total net debt				(12,889,769)
					═════════