REGISTERED NUMBER: 04108585 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

FILIPPO BERIO UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

W Zanre

Y Zhao

G M Laviola

SECRETARY:

W Zanre

REGISTERED OFFICE:

2 Leman Street

London

United Kingdom

E1W 9US

REGISTERED NUMBER:

04108585 (England and Wales)

AUDITORS:

Belluzzo Audit Limited

Chartered Accountants and Statutory Auditors

38 Craven Street

London

WC2N 5NG

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

The purpose of this report is to inform members and help them to assess how the directors have performed their duty under section 172 of the Companies Act 2006 to promote the success of the Company.

FAIR REVIEW OF THE BUSINESS

Sales revenue increased by 16% year on year, while volumes increased by 37%.

This performance was driven by significant deflation in the cost of olive oil. An improved 2024/25 harvest in Spain, increased raw material availability which resulted in a reduction in the cost of olive oil. These lower costs have been passed onto our customers, who in turn have reduced their supermarket shelf prices, which has simulated consumption and increased volumes.

By using a combination of tactical promotional activity and strategic marketing we have strengthened our market share during 2025 and ended the year with a very positive sales trend which bodes well for 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of its strategy are subject to a number of risks. The following outlines the principal risks that could impact the Company's operating and financial performance.

Macroeconomic environment

The macroeconomic environment remains challenging, placing continued pressure on household budgets. However, we see this as an opportunity, as consumers may choose to eat at home rather than dine out, which is expected to drive increased consumption of staple food products. Our strategy is to continue investing in marketing to support the brand and increase household penetration.

Commodity price risk

The Company is exposed to fluctuations in raw material prices. These are closely monitored to mitigate risk, and where necessary, increased costs are passed on to customers.

Competition/Customers

Ongoing investment in brand support and advertising is aimed at retaining key customers. The Company continues to monitor competitor activity and developments within the UK grocery market.

Technology

The Company continues to invest in technology to support its operations. There is continuous program of development to help managers better analyse costs and investments, to improve efficiency and returns.

Legal

The Company operates within a framework of UK and EU regulatory requirements. It takes its responsibilities seriously and ensures that policies, systems, and procedures are regularly reviewed and updated to maintain compliance across all areas of operation.

Other performance indicators

2025 2024

Revenue 96,881,659 83,584,927

Cost of sales 87,366,296 76,275,103

Gross Profit as a percentage of revenue (%) 9.82 8.75

Number of employees 15 15

Employees (average) 15 15

SECTION 172(1) STATEMENT

We continue to make significant investments in marketing to promote our brand and the continued success of the company.

The investment in marketing has strengthened our brand equity and raised awareness with consumers, which protects our stakeholder’s long-term interests.

We have invested in new software to improve the running of the business. This will provide more detailed and punctual information to our management and stakeholders.

In the medium and long term this investment will make the business more efficient and deliver the regular management information our stakeholders require.

We have invested in specific training to help develop our employee’s skills to assist them in being better able to execute their functions.

The Company adopts a policy of transparency with all suppliers, customers, and other business contacts. This results in excellent working relationships and a long-term association.

The Company takes very seriously its role impact on society and endeavors to support the local community. At all times we comply with all regulations relating to product safety and environmental impact. There is an ongoing program of work, evaluating how to reduce our environmental impact.

At all times, the Company and its representatives conduct business in a transparent and ethical manner to ensure we maintain the highest standards of business conduct.

The Company is an equal opportunities employer, does not tolerate any discrimination in the workplace and treats all its employees equally and fairly.

ON BEHALF OF THE BOARD:

W Zanre - Director

21 July 2026

The directors present their report with the financial statements of the Company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company is the import and distribution of olive oil.

DIVIDENDS

The results for the year are set out on page 8.

Interim dividends paid during the year amounted to £2,009,549 (2024 - Nil).

Final dividends were paid amounting to Nil (2024 - £1,700,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

W Zanre

Y Zhao

Other changes in directors holding office are as follows:

M Francini - resigned 14 January 2025

G M Laviola - appointed 14 January 2025

FINANCIAL INSTRUMENTS

Foreign currency risk

The company has no operations outside the UK but it buys most goods from Europe so prices are determinate on the Euro exchange rate. As a result the value of the company's assets and liabilities can be affected by movements between Sterling and the Euro.

Credit risk

The risk of financial loss due to third parties failing to honour their obligations arises principally where the company sells goods to customers. The company has implemented policies to minimise such losses, and they require that terms are only granted to customers who meet the internal requirements for having suitable payment history and adequate creditworthiness.

Future developments

The directors aim to maintain the management policies which have resulted in the company's growth in sales volumes in recent years.

DONATIONS AND EXPENDITURE

The company made donations amounting to £2,019.

ENGAGEMENT WITH EMPLOYEES

The company is aware of its obligations as an employer with regards to equal opportunities and health and safety. It is also aware that staff development benefits both the group and the employee and actively encourages training where necessary.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The company prioritises strong relationships with suppliers, customers, and other stakeholders, which are integral to its operations and strategic decision-making. The directors have focused on long-term supplier partnerships to ensure product quality, sustainability, and compliance with industry standards, while also addressing logistical and ethical sourcing challenges. Customer engagement has driven network expansion, product diversification, and packaging improvements in response to market demands. Beyond this, the company collaborates with regulatory bodies, logistics providers, and employees to uphold ethical practices, fair trade compliance, and environmental sustainability. These efforts have influenced key business decisions, including supplier diversification, investment in sustainable packaging, and expansion of distribution channels, ensuring operational resilience and long-term growth.

STREAMLINED ENERGY AND CARBON REPORTING

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

Belluzzo Audit Limited were appointed auditors during the year. Belluzzo Audit Limited, will be proposed for reappointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

W Zanre - Director

21 July 2026

Opinion

We have audited the financial statements of Filippo Berio Uk Limited (the 'Company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the Company's affairs as at 31 December 2025 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

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 sector;

- 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 Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK tax legislation.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

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;

- 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;

-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;

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Tony Castagnetti (Senior Statutory Auditor)

for and on behalf of Belluzzo Audit Limited

Chartered Accountants and Statutory Auditors

38 Craven Street

London

WC2N 5NG

21 July 2026

TURNOVER

4

96,881,659

83,584,927

Cost of sales

(87,366,296

)

(76,275,103

)

GROSS PROFIT

9,515,363

7,309,824

Distribution costs

(1,254,238

)

(920,628

)

Administrative expenses

(3,595,771

)

(2,386,312

)

OPERATING PROFIT

7

4,665,354

4,002,884

Interest receivable and similar income

-

1,015

4,665,354

4,003,899

Interest payable and similar expenses

9

(307,682

)

(649,959

)

PROFIT BEFORE TAXATION

4,357,672

3,353,940

Tax on profit

10

(1,097,806

)

(842,004

)

PROFIT FOR THE FINANCIAL YEAR

3,259,866

2,511,936

FIXED ASSETS

Tangible assets

12

2,316

12,242

CURRENT ASSETS

Stocks

13

9,102,696

10,696,536

Debtors

14

17,139,457

15,566,094

Cash at bank and in hand

1,515,886

2,694,888

27,758,039

28,957,518

CREDITORS

Amounts falling due within one year

15

(19,895,192

)

(22,354,914

)

NET CURRENT ASSETS

7,862,847

6,602,604

TOTAL ASSETS LESS CURRENT LIABILITIES

7,865,163

6,614,846

CAPITAL AND RESERVES

Called up share capital

18

30,000

30,000

Retained earnings

19

7,835,163

6,584,846

SHAREHOLDERS' FUNDS

7,865,163

6,614,846

The financial statements were approved by the Board of Directors and authorised for issue on 21 July 2026 and were signed on its behalf by:

W Zanre - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

30,000

5,772,910

5,802,910

Changes in equity

Dividends

-

(1,700,000

)

(1,700,000

)

Total comprehensive income

-

2,511,936

2,511,936

Balance at 31 December 2024

30,000

6,584,846

6,614,846

Changes in equity

Dividends

-

(2,009,549

)

(2,009,549

)

Total comprehensive income

-

3,259,866

3,259,866

Balance at 31 December 2025

30,000

7,835,163

7,865,163

Cash flows from operating activities

Cash generated from operations

22

2,083,229

2,335,843

Interest paid

(307,682

)

(649,959

)

Income taxes paid

(945,000

)

(841,000

)

Net cash from operating activities

830,547

844,884

Cash flows from investing activities

Purchase of tangible fixed assets

-

(3,626

)

Interest received

-

1,015

Net cash from investing activities

-

(2,611

)

Cash flows from financing activities

Dividends paid

(2,009,549

)

(1,700,000

)

Net cash from financing activities

(2,009,549

)

(1,700,000

)

Decrease in cash and cash equivalents

(1,179,002

)

(857,727

)

Cash and cash equivalents at beginning of year

23

2,694,888

3,552,615

Cash and cash equivalents at end of year

23

1,515,886

2,694,888

1.	STATUTORY INFORMATION

Filippo Berio UK Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. The company's principal place of business is Premiere House, Elstree Way, Borehamwood, Hertfordshire, WD6 1JH.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has 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.

Turnover

Turnover represents amounts receivable for goods net of VAT and trade discounts.

Turnover on the sale of goods is recognised when the risks and rewards of ownership are substantially transferred to the customer. Typically this is when the goods are dispatched.

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.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Land and buildings Leasehold 33.33% straight line

Plant and machinery 33.33% straight line

Fixtures, fittings & equipment 25% straight line

Motor vehicles 25% reducing balance

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.

Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

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 statement of financial position 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

Basic financial assets, which include trade and other receivables 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

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.

Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and loans from fellow group companies, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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 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 company after deducting all of its liabilities.

Derecognition of financial liabilities

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

Equity instruments

Equity instruments issued by the company 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 company.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3.	JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Promotional accruals

Accruals are accounted for using carefully considered sales. Inevitably, there is an element of judgement, however, the directors aim to achieve a fair balance to be presented in the financial statements.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

Depreciation is an estimation of the value of the assets which are being utilised within the company. These are calculated using set percentages which the directors have agreed are appropriate.

Stock Provision

The directors consider the value of the stock provision to be appropriate. They are able to draw on many years of experience when arriving at the value.

Provision for Bad and Doubtful Debts

Trade debtors are reviewed and any bad debts are written off when it is apparent that the debtor is not recoverable. This directors consider this to be appropriate, given the nature of the trade debtors.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the Company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of goods

95,993,735

82,864,852

Commissions receivable

887,924

720,075

96,881,659

83,584,927

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

96,153,729

83,149,938

Europe

727,930

434,989

96,881,659

83,584,927

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,385,221

1,133,435

Social security costs

179,585

154,691

Other pension costs

36,893

35,037

1,601,699

1,323,163

The average number of employees during the year was as follows:

2025

2024

Administration

6

6

Sales and marketing

9

9

15

15

6.	DIRECTORS' REMUNERATION

2025

2024

£

£

Directors' remuneration

422,020

366,958

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

422,020

366,958

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Other operating leases

151,713

141,318

Depreciation - owned assets

9,926

10,418

Foreign exchange differences

(10,902

)

9,821

8.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements

20,000

20,000

Auditors' remuneration for non audit work

3,000

3,000

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest payable

57,125

96,544

Interest payable to group

undertakings

250,557

553,415

307,682

649,959

10.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

Corporation tax

1,099,522

846,840

Deferred tax

(1,716

)

(4,836

)

Tax on profit

1,097,806

842,004

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

4,357,672

3,353,940

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

1,089,418

838,485

Effects of:

Expenses not deductible for tax purposes

8,388

7,590

Depreciation in excess of capital allowances

1,716

765

Change in unrecognised deferred tax assets

(1,716

)

(4,836

)

Total tax charge

1,097,806

842,004