Registered number: 13805528
FOR THE YEAR ENDED 31 DECEMBER 2025
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their Group Strategic Report for the year ended 31 December 2025.
The Group’s principal activity is to act as a family-owned investment holding and parent company for the Croxson family’s businesses in the glass packaging sector. With a heritage spanning seven generations in the wine and spirit trade, the Group’s ownership provides a long-term perspective and a commitment to responsible stewardship of its subsidiary operations and investments.
The turnover of The Apphia Group Limited for the year to 31 December 2025 was as follows:
Sales of glass containers and associated products: £33,202,242 (31 December 2024 - £41,994,946)
During the year ended 31 December 2025, the Group’s consolidated performance was affected by challenging trading conditions across its key markets. However, the Group’s diversified presence and prudent financial management helped ensure overall results remained resilient relative to the difficult environment. The Board’s strategy remains focused on supporting the operating subsidiaries and safeguarding the Group’s strong financial position, with an emphasis on sustainable long-term growth. The Board reports that turnover decreased by 20.8% on a like-for-like basis, reflecting both softer demand and a reduction in pricing across the market.
Margin performance has also come under pressure, reflecting a more competitive trading environment, with a reduction from 17.8% in the 2024 financial year to 16.0% for the 2025 financial year. In the UK, increased availability of imported glass, often from lower-cost regions, has intensified pricing dynamics across the sector. In addition, the continued rollout of Extended Producer Responsibility (EPR) legislation in the UK has also influenced packaging choices and highlighted inconsistencies in how obligations are applied and absorbed across the market. Where environmental and compliance costs are not fully reflected, this creates distortion in pricing dynamics. The Group remains fully compliant with all applicable regulations, maintaining a consistent approach to recognising environmental impact and associated costs across its operations and supply chain.
The Board believes that this disciplined approach, while challenging in the short term, positions the Group advantageously as regulatory expectations tighten and customers increasingly prioritise transparent and sustainable supply chains.
Notwithstanding these headwinds, the Group remains confident in the long-term fundamentals of glass as a sustainable packaging solution and in its ability to compete effectively through service, expertise and trusted relationships.
The Group’s UK operation remained resilient despite challenging domestic trading conditions, with persistently high inflation and rising cost pressures contributing to subdued demand and slow economic growth through 2025. The subsidiary’s disciplined management of operating costs and working capital, underpinned by strict regulatory compliance and a focus on high service standards, enabled it to maintain stability and continue supporting long-term customer relationships. The Directors are satisfied with the performance achieved given the environment and remain confident in the UK business’s future prospects.
The Group’s UK subsidiary achieved B Corporation certification in the reporting year, reflecting its commitment to high standards of social and environmental performance, accountability, and transparency. This certification is embedded within the Group’s operating model, informing decision-making across sourcing, supply chain management, and customer partnerships.
The turnover of The Apphia Group Limited for the year to 31 December 2025 was as follows:
Sales of glass containers and associated products: £33,202,242 (31 December 2024 - £41,994,946)
During the year ended 31 December 2025, the Group’s consolidated performance was affected by challenging trading conditions across its key markets. However, the Group’s diversified presence and prudent financial management helped ensure overall results remained resilient relative to the difficult environment. The Board’s strategy remains focused on supporting the operating subsidiaries and safeguarding the Group’s strong financial position, with an emphasis on sustainable long-term growth. The Board reports that turnover decreased by 20.8% on a like-for-like basis, reflecting both softer demand and a reduction in pricing across the market.
Margin performance has also come under pressure, reflecting a more competitive trading environment, with a reduction from 17.8% in the 2024 financial year to 16.0% for the 2025 financial year. In the UK, increased availability of imported glass, often from lower-cost regions, has intensified pricing dynamics across the sector. In addition, the continued rollout of Extended Producer Responsibility (EPR) legislation in the UK has also influenced packaging choices and highlighted inconsistencies in how obligations are applied and absorbed across the market. Where environmental and compliance costs are not fully reflected, this creates distortion in pricing dynamics. The Group remains fully compliant with all applicable regulations, maintaining a consistent approach to recognising environmental impact and associated costs across its operations and supply chain.
The Board believes that this disciplined approach, while challenging in the short term, positions the Group advantageously as regulatory expectations tighten and customers increasingly prioritise transparent and sustainable supply chains.
Notwithstanding these headwinds, the Group remains confident in the long-term fundamentals of glass as a sustainable packaging solution and in its ability to compete effectively through service, expertise and trusted relationships.
The Group’s UK operation remained resilient despite challenging domestic trading conditions, with persistently high inflation and rising cost pressures contributing to subdued demand and slow economic growth through 2025. The subsidiary’s disciplined management of operating costs and working capital, underpinned by strict regulatory compliance and a focus on high service standards, enabled it to maintain stability and continue supporting long-term customer relationships. The Directors are satisfied with the performance achieved given the environment and remain confident in the UK business’s future prospects.
The Group’s UK subsidiary achieved B Corporation certification in the reporting year, reflecting its commitment to high standards of social and environmental performance, accountability, and transparency. This certification is embedded within the Group’s operating model, informing decision-making across sourcing, supply chain management, and customer partnerships.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Group’s New Zealand operation continues to perform consistently despite ongoing challenging economic conditions, with persistent inflation, elevated interest rates and rising unemployment contributing to subdued consumer spending and weak economic growth through 2025. The subsidiary’s careful management of currency hedging and freight costs plus well-controlled stock and debtor levels has enabled it to remain in a healthy position and able to take advantage of market opportunities as they arise. The Directors are pleased with the results achieved in the circumstances and remain confident for the future.
The principal risks and uncertainties facing the Group’s businesses are broadly common to both the UK and New Zealand subsidiaries, reflecting the highly competitive and cost-sensitive nature of the global glass packaging market, general economic volatility and evolving regulatory requirements. These risks are managed under a consistent Group risk management framework to ensure coherent oversight and mitigation across all operations.
The Board remains focused on protecting gross margin while maintaining long-term customer relationships. Revenue performance is influenced by consumer behaviour, which directly impacts demand for our products, and is further shaped by external factors such as weather conditions and broader economic trends. Global political and economic uncertainty has continued during the period, with a number of key markets experiencing slowdown, resulting in more cautious consumer spending. Despite these conditions, the Group has maintained a resilient trading performance.
Overall, the Directors are encouraged by the health demonstrated across the Group’s operations in a year of significant external challenges. The Group’s long-term ownership structure and enduring family heritage underpin a strategic approach that prioritises steady growth, stakeholder relationships and sustainable business practices. This approach ensures a consistent focus on the Group’s core values and objectives and positions the Group to continue delivering value for its shareholders and partners in the years ahead.
The Board remains focused on protecting gross margin while maintaining long-term customer relationships. Revenue performance is influenced by consumer behaviour, which directly impacts demand for our products, and is further shaped by external factors such as weather conditions and broader economic trends. Global political and economic uncertainty has continued during the period, with a number of key markets experiencing slowdown, resulting in more cautious consumer spending. Despite these conditions, the Group has maintained a resilient trading performance.
Overall, the Directors are encouraged by the health demonstrated across the Group’s operations in a year of significant external challenges. The Group’s long-term ownership structure and enduring family heritage underpin a strategic approach that prioritises steady growth, stakeholder relationships and sustainable business practices. This approach ensures a consistent focus on the Group’s core values and objectives and positions the Group to continue delivering value for its shareholders and partners in the years ahead.
The Board employs a unified set of key performance indicators – including measures of sales revenue, profit margins and working capital efficiency – to monitor and compare each subsidiary’s performance and financial position, ensuring a consistent approach to evaluating progress across the Group.
As a primarily sales-driven organisation, the Group regards turnover and gross margin as its principal financial performance indicators. These are addressed in detail within the Business Review above. In addition, the Group closely monitors debtor and stock positions, using Days Sales Outstanding (DSO) as a key measure to assess credit control performance.
The Board has implemented a strengthened approach to credit control in recent years which has seen DSO levels reduced and then maintained at consistent and manageable levels. While maintaining our strong customer relationships, we continue to work collaboratively with clients to manage credit exposure responsibly, ensuring appropriate support for their growth alongside ours.
Stock levels are also monitored through a stock turnover ratio. During the year under review, the Group’s subsidiaries have carried significantly lower levels of absolute stock as a result of continued optimisation of elements of the supply chain; improvements in turnover rates also demonstrate greater efficiency in stock utilisation and an improved product mix within stock. The Directors are encouraged by the positive impact of strategic sales, sound decision-making, and strengthened processes, which have collectively contributed to improved performance in stock turnover. This positions the Group to respond effectively and flexibly to changing customer demand.
As a primarily sales-driven organisation, the Group regards turnover and gross margin as its principal financial performance indicators. These are addressed in detail within the Business Review above. In addition, the Group closely monitors debtor and stock positions, using Days Sales Outstanding (DSO) as a key measure to assess credit control performance.
The Board has implemented a strengthened approach to credit control in recent years which has seen DSO levels reduced and then maintained at consistent and manageable levels. While maintaining our strong customer relationships, we continue to work collaboratively with clients to manage credit exposure responsibly, ensuring appropriate support for their growth alongside ours.
Stock levels are also monitored through a stock turnover ratio. During the year under review, the Group’s subsidiaries have carried significantly lower levels of absolute stock as a result of continued optimisation of elements of the supply chain; improvements in turnover rates also demonstrate greater efficiency in stock utilisation and an improved product mix within stock. The Directors are encouraged by the positive impact of strategic sales, sound decision-making, and strengthened processes, which have collectively contributed to improved performance in stock turnover. This positions the Group to respond effectively and flexibly to changing customer demand.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Board recognises that financial performance alone does not define the success of the business. The glass industry is inherently energy intensive, and while it is not possible to address every aspect of sustainability, the Company is committed to taking practical and meaningful action.
The Group’s approach is underpinned by a simple principle: we cannot do everything, but we must do something.
This commitment is reflected in the Group’s broader mission to make a difference for its customers, its team, and the communities it serves. This philosophy is embedded within the Group’s strategy, aligning responsible business practices with long-term commercial success.
Throughout the period, the Group has continued to advance its sustainability agenda through established partnerships. This reflects a long-term commitment to responsible business, while also strengthening the Group’s position with customers who increasingly prioritise transparency and environmental accountability within their supply chains.
The Board also recognises the importance of this approach in attracting and retaining talented individuals who want to work for a business with clear values and purpose. The Board believes this alignment between sustainability, culture, and commercial strategy is an important contributor to long-term resilience and performance.
The Group has also expanded its charitable activity, supporting a greater number of organisations with increased levels of resource, with a continued focus on education and addressing poverty in Africa, the UK, and Europe. During the year, charitable donations amounted to 17.5% of Group operating profit, exceeding the Group’s formal commitment to donate at least 10%.
This commitment remains a core element of the Group’s purpose, shaping both its internal culture and its external impact. The Directors believe that this combination of commercial discipline and meaningful contribution strengthens stakeholder relationships, reinforces trust, and supports the Group’s position as a responsible and values-led partner.
The Group’s approach is underpinned by a simple principle: we cannot do everything, but we must do something.
This commitment is reflected in the Group’s broader mission to make a difference for its customers, its team, and the communities it serves. This philosophy is embedded within the Group’s strategy, aligning responsible business practices with long-term commercial success.
Throughout the period, the Group has continued to advance its sustainability agenda through established partnerships. This reflects a long-term commitment to responsible business, while also strengthening the Group’s position with customers who increasingly prioritise transparency and environmental accountability within their supply chains.
The Board also recognises the importance of this approach in attracting and retaining talented individuals who want to work for a business with clear values and purpose. The Board believes this alignment between sustainability, culture, and commercial strategy is an important contributor to long-term resilience and performance.
The Group has also expanded its charitable activity, supporting a greater number of organisations with increased levels of resource, with a continued focus on education and addressing poverty in Africa, the UK, and Europe. During the year, charitable donations amounted to 17.5% of Group operating profit, exceeding the Group’s formal commitment to donate at least 10%.
This commitment remains a core element of the Group’s purpose, shaping both its internal culture and its external impact. The Directors believe that this combination of commercial discipline and meaningful contribution strengthens stakeholder relationships, reinforces trust, and supports the Group’s position as a responsible and values-led partner.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their report and the financial statements for the year ended 31 December 2025.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,408,933 (2024 - £2,450,880).
The Directors declared dividends in the year of £252,428 (2024 - £677,428).
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The auditor, S&W Audit (a trading name of S&W Partners Audit Limited), will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED
Opinion
We have audited the financial statements of The Apphia Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated and Parent Company Balance Sheets, Consolidated and Parent Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and the 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
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 Group and Parent 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 Group 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED (CONTINUED)
Matters on which we are required to report by exception
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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the Parent Company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Directors’ remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors’ responsibilities statement set out on page 4, 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED (CONTINUED)
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 a general understanding of the Group and Parent Company's legal and regulatory framework through enquiry of management concerning: their understanding of relevant laws and regulations; the entity's policies and procedures regarding compliance; and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the Group and Parent Company's industry and regulation. In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Group and Parent Company's ability to conduct its business, and where failure to comply could result in material penalties. We identified the following laws and regulations as being of significance to the Group and Parent Company: FRS 102 (UK GAAP), the Companies Act 2006 and relevant UK taxation laws.
The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the Group and Parent Company's financial statements to material misstatements, including how fraud might occur. The areas identified in this discussion were:
The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the Group and Parent Company's financial statements to material misstatements, including how fraud might occur. The areas identified in this discussion were:
∙Revenue recognition, in particular cut-off and completeness, which is an inherent risk common to owner managed businesses.
∙Manipulation of the financial statements, especially transactions with directors and management override, via fraudulent journal entries, particularly as the size of the Group and Parent Company means that there is little opportunity for segregation of duties.
The procedures we carried out to gain evidence in the above areas included:
The procedures we carried out to gain evidence in the above areas included:
∙Challenging management regarding the nature and appropriateness of unexpected or unusual accounting adjustments;
∙Substantive testing on material areas affecting timing of and completeness of revenue postings;
∙Testing journal entries, focusing particularly on postings to unexpected or unusual accounts.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED (CONTINUED)
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.
for and on behalf of
Statutory Auditor
Brockbourne House
77 Mount Ephraim
Kent
TN4 8BS
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 31 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 31 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Apphia Group Limited is a private company limited by shares and incorporated in England and Wales. The Company is domiciled in the United Kingdom and its registered address is Unit 1, Brockbourne House, Mount Ephraim, Tunbridge Wells, Kent, TN4 8BS. The principal place of business is The Old Post Office, 19 Grove Road, Sutton, Surrey, SM1 1BB.
The Group's principal activities are the wholesale supply of glass bottles and jars and associated products to food and drinks manufacturers worldwide.
The Group's principal activities are the wholesale supply of glass bottles and jars and associated products to food and drinks manufacturers worldwide.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Revenue is recognised on despatch of goods as this is when the risks and rewards of ownership are considered to have transferred to the customer.
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, VAT and other sales taxes.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method for all assets other than office equipment, which is depreciated on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Basic financial liabilities
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
There are no estimates that are considered to be subject to significant estimation uncertainty.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
11.Taxation (continued)
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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All of the Group's investment property is held in the Parent Company.
The 2025 valuations were made by the Directors, on an open market value basis.
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Share premium account
Profit and loss account
Page 30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
23.Other financial commitments
The Group enters into forward currency contracts to mitigate the exchange risk for certain foreign currency liabilities. At 31 December 2025 the outstanding contracts mature within 1 year on average (2024 - 1 year) of the period-end. At the Balance Sheet date, the Group was committed to buying US$1,030,000 for £792,308 and selling €2,000,000 for £1,724,138 (2024 - €1,220,000 for £1,069,682 and US$400,000 for £317,460).
The forward currency contracts are recorded at fair value for the movement between quoted forward exchange rates and the spot rate at the Balance Sheet date; the fair value movement attributed to the forward contracts is not considered to be material and consequently has not been recognised in the financial statements.
The forward currency contracts are recorded at fair value for the movement between quoted forward exchange rates and the spot rate at the Balance Sheet date; the fair value movement attributed to the forward contracts is not considered to be material and consequently has not been recognised in the financial statements.
The ultimate controlling party is T J Croxson .
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