The directors present the strategic report for the year ended 28 February 2026. The strategic report covers Lanca Flooring Limited ('the parent company') and the subsidiary UK Trade Furnishings Limited (together 'the Group').
During the year, the Group underwent a corporate reorganisation whereby the Company acquired the entire issued share capital of UK Trade Furnishings Limited by way of a share-for-share exchange, resulting in the formation of the Group's current structure. Merger accounting has been applied. The reorganisation had no impact on the underlying operations or activities of the business.
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 Group continued to focus on its environmental responsibility through marketing initiatives including planting a tree for every order, further reducing its plastic use and gained 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 Group's activities expose it to financial risks including credit risk, cash flow and liquidity risk.
Cash flow forecasts are prepared and reviewed regularly to ensure the Group can meet its financial commitments.
The Group used a mixture of secured and unsecured facilities to support its working capital requirements during the year.
The Group 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.
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.
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 Group 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 Group can meet its financial commitments.
Management use a range of performance measures to monitor and manage the business.
Key financial performance measures include cash flow, turnover, gross profit margin and overhead percentage. 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
£2,310,164 (2025 - £1,599,246, up £710,918)
Operating profit margin
6.4% (2025 - 6.0%, up 0.4%)
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 results for the year are set out on page 10.
Ordinary dividends were paid amounting to £643,400. 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:
As a predominantly e-commerce business the Group utilises both colleagues and subcontractors in increasing the functionality of the main Group website and improving the customer experience in line with the wider strategy.
There have been no other significant events affecting the Group or the parent company since the year end.
The directors remain confident that their strategy will continue to deliver growth and profitability. The Group 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
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 Group 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 global economic uncertainty continues.
The Group 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 Lanca Flooring Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2026 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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.
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 group and parent 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 group and parent 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 group and parent 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 group and parent 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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £612,019 (2025 - £8,659 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Lanca Flooring Limited (“the company”) is a private limited company limited by shares incorporated in England and Wales. The registered office is 1 Canal Place, Leeds, West Yorkshire, LS12 2DU.
The group consists of Lanca Flooring Limited and all of its subsidiaries.
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.
The 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 for parent company information presented within the consolidated financial statements:
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 consolidated group financial statements consist of the financial statements of the parent company Lanca Flooring Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 28 February 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Where a group reconstruction has been accounted for using merger accounting, the results and net assets of the combining entities are included as if the group structure had existed throughout the current and comparative periods presented.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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 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.
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.
The amortisation charge is included within administrative expenses in the statement of comprehensive income.
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 recognised in the profit and loss account.
The depreciation charge is included within administrative expenses in the statement of comprehensive income.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 group 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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
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 group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
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 group’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 if, and only if, there is 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.
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 leased 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.
All of the turnover of the group is attributable to the principal activity, as defined in the director's report.
All of the turnover of the group is generated in the UK.
The group is of medium-size and has thus claimed the exemption from disclosing the non-audit fees payable in these financial statements.
The average monthly number of persons (including directors) employed by the group and 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 - 25%).
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:
Details of the company's subsidiaries at 28 February 2026 are 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 group and 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 group 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 group 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 2027.
As at the year end, the group 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 group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the group made payments totalling £118,176 (2025 - £19,892) on behalf of companies which are related parties by virtue of common directorships. At the reporting date £122,778 was owed to (2025 - £7,917 owed to) the group by related parties.
During the year, the company became the parent of the group and has taken advantage of the exemption in FRS 102 Section 33 from disclosing transactions with other group entities.
During the year the group paid £nil (2025 - £4,204) in respect of employment services to other related parties.
During the year the group paid £341,071 (2025 - £308,171) in respect of key management compensation in addition to the directors' remuneration separately disclosed.
The group operates directors loan accounts on behalf of the directors. At the year-end the directors were owed £21,537 by the group (2025 - £21,006 to the group). During the year there were times when the directors loan accounts were overdrawn. The maximum level of indebtedness of the directors to the group in the year was £589,134 (2025 - £306,455).
During the year the group 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 £643,400 (2025: £695,000).