The Directors present the strategic report for UK Trade Furnishings Limited (hereafter 'the Company') for the year ended 28 February 2026.

The business continues its strong performance, achieving a turnover of £36.3m (2025 - £27.0m).

The Directors have continued to focus business strategy around the development and strengthening of the Luxury Flooring online brand by offering a balanced product catalogue of solid and engineered wood, laminate, and vinyl flooring, whilst providing a first class customer experience both through the website and our dedicated telephone sales team.

During the year the business added experienced members to its senior management team, and continued to invest in its digital offering including improvements to its website functionality.

Whilst online customer direct sales continued to be the principal activity of the business, the Directors continue to seek and maintain a competitive edge by introducing quality new products, refining their product offering and reacting to customer trends.

Throughout the year the Company continued to focus on its environmental responsibility through marketing initiatives including planting a tree for every order, further reducing its plastic use and maintained its FSC and PEFC certifications. Management have reviewed and communicated the business’ carbon footprint and through offsetting carbon neutral status was achieved on Scope 1 and Scope 2 once again.

The company continued its close relationship with a dedicated charity partner and have undertaken a number of fundraising initiatives to raise money for worthwhile causes.

The Company’s activities expose it to financial risks. The management of these risks is now outlined.

Currency risks - are managed through forward contracts and continued review of product margins.

Price risk - is managed by maintaining and developing a range of suppliers across different locations providing options for different sourcing as required.

Credit risk - is managed by ensuring the majority of orders are paid in full before delivery. Where this is not the case, all customer debts are insured and subject to verified credit levels.

Liquidity risk – the Company manages its cash and borrowings based on forecasting and within the facilities provided by existing lenders.

Cash flow risk – Cash flow forecasts are prepared and reviewed on a regular basis to ensure the Company can meet its financial commitments.

Global trading risk - The Company sources products from a global market. Global economic uncertainty, rising interest rates, fluctuating currency movements and logistical challenges therefore present a risk to the business activities. Securing extra unsecured funding has improved working capital flexibility.

Interest rate risk - The Board has reviewed the future impact of rising interest rates and are satisfied that based on the trading of the business in recent months that the business has sufficient resources to support its continued trading. As an online retailer the company has a low fixed cost base making it adaptable to changing market conditions.

Additionally, the Company uses a mixture of secured and unsecured facilities to support its working capital requirements during the year.

Management use a range of performance measures to monitor and manage the business.

Key financial performance measures include turnover, gross profit margin and operating profit margin. These KPIs are regularly reviewed at board and management meetings to monitor the performance of the business.

Turnover     

£36,263,248 (2025 - £27,036,630, up £9,226,618)     

Gross profit    

£11,395,700 (2025 - £8,918,933, up £2,476,767)

Gross profit margin

31.4% (2025 - 33.0%, down 1.6%)

Operating profit    

£2,307,613 (2025 - £1,599,246, up £708,367)

Operating profit margin

6.4% (2025 - 5.9%, up 0.5%)

Key non-financial performance measures include website visits, samples orders and sales conversion rates however it is not deemed commercially appropriate to disclose these.

On behalf of the board

The directors present their annual report and financial statements for the year ended 28 February 2026.

The principal activity of the company continued to be that of online sales of flooring and accessories.

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £610,000 (2025 - £695,000). The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

As a predominantly e-commerce business the Company utilises both colleagues and subcontractors in increasing the functionality of the main Company website and improving the customer experience in line with the wider strategy.

There have been no other significant events affecting the Company since the year end.

The directors remain confident that their strategy will continue to deliver growth and profitability. The Company remains focused on delivering the highest levels of service and quality to its customers whilst ensuring continued improvements in processes and investment in the team. Since the year end there has been significant investment in key IT development pieces improving the customer journey.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

• make judgements and accounting estimates that are reasonable and prudent; and

• 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The financial statements have been prepared on a going concern basis.

Robust cash flow reporting, strong internal controls and accurate timely management information enables the company to be reactive to changes within the market ensuring sales are generated at an acceptable margin to the Directors.

The current strong margins and low fixed cost base provides the Company flexibility in the market as the current global economic uncertainty continues.

The Company has the continued support and regular communication with its bankers and other providers of funds and the Directors believe that the company is in a good position to manage its business risk successfully through the utilisation of existing borrowing and trade finance facilities.

The Directors consider that the going concern basis of accounting remains appropriate.

We have audited the financial statements of UK Trade Furnishings Limited (the 'company') for the year ended 28 February 2026 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 28 February 2026 and of its profit 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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.

Opinions on other matters prescribed by the Companies Act 2006

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Description of the auditor's responsibility for the audit of the financial statements

As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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 of 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's 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.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 27 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

UK Trade Furnishings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Canal Place, Leeds, West Yorkshire, LS12 2DU.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Lanca Flooring Limited. These consolidated financial statements are available from its registered office.

The financial statements have been prepared on a going concern basis.true

Robust cash flow reporting, strong internal controls and accurate timely management information enables the company to be reactive to changes within the market ensuring sales are generated at an acceptable margin to the Directors.

The current strong margins and low fixed cost base will give us flexibility in the market as the current cost of living crisis continues.

The Company has the continued support and regular communication with its bankers and other providers of funds and the Directors believe that the company is in a good position to manage its business risk successfully through the utilisation of existing borrowing and trade finance facilities.

The Directors consider that the going concern basis of accounting remains appropriate.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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 despatch 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.

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The amortisation charge is included within administrative expenses in the statement of comprehensive income.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

The depreciation charge is included within administrative expenses in the statement of comprehensive income.

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.

The stock balance includes stock on water when it has deemed that the rights and responsibilities of stock in transit have been transferred to the Company.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The judgements and estimates with the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

(i) Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit rating, previous experience of recoverability and where applicable the ability of the asset to be operated as planned.

(ii) Determining residual values and useful economic lives of tangible fixed assets

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectation about future use and thus requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a wide variety of factors including technological innovation, product life cycles and maintenance programmes to plant and machinery.

Judgement is also applied when determining the residual values for fixed assets. When determining the residual value the directors have assessed the amount that the company would currently obtain for the disposal of the asset if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.

(iii) Determining the future demand of stock items to calculate a stock provision

The Company has access to historic sales data per stock line and estimates future demand for stock lines using a variety of internal and external sources of information including any seasonality in the historic sales data, market trends, the ability to sell the product through other channels and changes to the market caused by macroeconomic conditions. With this information the company can identify stock lines where the predicted demand is low when compared to the stockholding and contemplate these stock lines when calculating the stock provision. The Company adjusts its considerations for new product lines where there is no historic sales data.

(iv) Determining the value of the dilapidations provision

The valuation of the dilapidation provision requires management to make significant estimates regarding the future costs of restoring leased properties to the condition required under the lease agreement.

The provision is based on the best estimate if the expenditure expected to be incurred taking into account, the terms of the leases and expected timing of settlement. Actual costs may differ due to changes in the scope of required works, market conditions or other unforeseen circumstances and the provision is renewed at each reporting date and updated as appropriate.

The whole of the turnover is attributable to the principal activity, as defined in the director's report, of the company.

The Company is of medium size and thus claimed the exemption from disclosing in these financial statements the non-audit fees payable to the auditor.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The tax charge for the year is lower than (2025 - higher than) the standard rate of corporation tax in the United Kingdom of 25% (2025 - 24.5%).

There are no known matters which will affect the tax charge in the future.

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

The bank loan provided by Santander UK PLC is secured by a debenture by way of first legal mortgage on all properties, fixtures and fittings, first fixed charges in respect of insurance policies, benefits from hedging instruments, rental income and all plant and machinery, investments, intellectual property, book debts and goodwill. There is a first floating charge over all other property, assets and rights, both present and future dated 15 March 2021.

Amounts due under finance leases represent hire purchase agreements for certain items of motor vehicles. The amounts held under finance leases are secured on the assets to which they relate.

The bank loan provided by Santander UK PLC is secured by a debenture by way of first legal mortgage on all properties, fixtures and fittings, first fixed charges in respect of insurance policies, benefits from hedging instruments, rental income and all plant and machinery, investments, intellectual property, book debts and goodwill. There is a first floating charge over all other property, assets and rights, both present and future dated 15 March 2021.

Amounts due under finance leases represent hire purchase agreements for certain items of motor vehicles. The amounts held under finance leases are secured on the assets to which they relate.

Finance lease payments represent rentals payable by the company for certain items of motor vehicles. The average lease term is four years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The following are the major deferred tax liabilities and assets recognised by the company:

The deferred tax liability is expected to reverse over the useful lives of the assets to which the accelerated capital allowances relate. The deferred tax asset associated to short term timing differences is expected to reverse on cash payment of defined contribution pension scheme obligations.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. There were contributions payable to the fund at the date of the Statement of Financial Position of £10,775 (2025 - £8,831).

Each ordinary share is entitled to one vote, with residual interest, equal rights to dividends and no option to redeem.

As at the year end, the Company had committed to open forward contract currency contracts totalling 9,049,297 (2025 - 9,416,329) Chinese Yuan with maturity dates ranging from March 2026 to July 2026.

As at the year end, the Company had committed to open forward contract currency contracts totalling USD 10,129,206 (2025 - 5,864,346) with maturity dates ranging from March 2026 to February 2027.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

There have been no other significant events affecting the Company since the year end.

During the year the Company made payments totalling £128,303 (2025 - £19,892) on behalf of companies which are related parties by virtue of common directorships. At the reporting date £126,092 was owed to (2025 - £7,917 owed to) the Company by related parties which is included within other debtors.

During the year, the Company became a wholly owned subsidiary and has taken advantage of the exemption in FRS 102 Section 33 from disclosing transactions with other group entities. Dividends were declared to the parent company totalling £610,000.

During the year the Company paid £nil (2025 - £4,204) in respect of employment services to other related parties.

During the year the company paid £341,071 (2025 - £308,171) in respect of key management compensation in addition to the directors' remuneration separately disclosed.

The Company operates directors loan accounts on behalf of the directors. At the year-end the directors were owed £30,237 by the company (2025 - £13,094 to the company). During the year there were times when the directors loan accounts were overdrawn. The maximum level of indebtedness of the directors to the company in the year was £579,799 (2025 - £306,455).

During the year the Company incurred £200,000 (2025 - £150,000) in respect of consultancy services payable to the directors. There were no amounts outstanding in respect of these transactions at either the current or prior year-end.

During the year, dividends were declared to directors totalling £nil (2025: £695,000).