ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: 00895822

LUSO ELECTRONIC PRODUCTS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

LUSO ELECTRONIC PRODUCTS LIMITED

COMPANY INFORMATION

Directors	David Zelkha
	Keith Zelkha


Registered number	00895822


Registered office	595 Salisbury House
	London Wall
	London
	EC2M 5QQ


Independent auditors	Pers & Co London LLP
	Chartered Accountants and Statutory Auditor
	3 The Shrubberies
	George Lane
	London
	E18 1BG


Bankers	Barclays Bank Plc
	Level 27
	1 Churchill Place
	London
	E14 5QQ

LUSO ELECTRONIC PRODUCTS LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 7
Statement of comprehensive income	8
Balance sheet	9
Statement of changes in equity	10
Statement of cash flows	11
Analysis of net debt	12
Notes to the financial statements	13 - 24

LUSO ELECTRONIC PRODUCTS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

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

Business review

The directors are pleased to report further progress in growing the business and increasing margins. The Microwave Division, which had a very disappointing 2024, continued to improve in 2025 and the directors were looking forward to further progress in 2026. Unfortunately, at the end of April 2026, Andy Trusler, our microwave specialist, unexpectedly passed away. This has led to the directors having to reassess their strategy for the division.

Principal risks and uncertainties

The last few years have thrown up unexpected challenges and economic shocks to the global economy and global supply chains. Since the election of Donald Trump as President of the USA there has been a decoupling in global supply chains caused by tariffs. The unexpected Iranian war, which still continues. has again led to a huge increase in transport costs and a surge in inflation. These will have short to medium term impacts on the company but at the same time present opportunities to grow due to our flexibility.

Towards the end of 2025 the company started to be impacted by the rise in memory chip prices caused by the growth of AI and the construction of data centres. Chip prices continue to increase, in some cases more than doubling in the space of three months. It is hard to say what the overall impact of all this will be, but the directors will continue to monitor and try and keep a tight control on expenses and overall margins.

The company has also started developing its own AI programmes to help its performance and ability to react speedily to changes in customer demands.

Financial key performance indicators

During 2025 turnover increased by 4.33% to £18,547,795 and profit after tax increased by 28% to £508,280. The company went into 2026 with a strong order book and its turnover in the first quarter grew compared to 2025. The Microwave Division will need restructuring and will by the end of 2026 move to new premises nearer our main warehouse at Milton Keynes. There will be a cost to this, but the directors are confident that there will not be any major impact to overall profitability in 2026.

The directors thank all company staff for their continued support and commitment.

Other key performance indicators

The directors are committed to promoting the health, safety and welfare of their staff and continue to ensure appropriate measures are undertaken in this regard.

The directors are mindful of environmental issues and have sought to minimise the impact of the company's activities on the environment.

This report was approved by the board on 8 September 2026 and signed on its behalf.

David Zelkha

Director

Page 1

LUSO ELECTRONIC PRODUCTS LIMITED

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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £508,280 (2024 - £397,162).

Dividends were paid during the year amounting to £400,000 (2024: £150,000).

Directors

The directors who served during the year were:

David Zelkha

Keith Zelkha

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

LUSO ELECTRONIC PRODUCTS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Auditors

The auditors, Pers & Co London LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 September 2026 and signed on its behalf.

David Zelkha

Director

Page 3

LUSO ELECTRONIC PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED

Opinion

We have audited the financial statements of Luso Electronic Products Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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 United Kingdom, including the Financial Reporting Council'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.

Page 4

LUSO ELECTRONIC PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.

Page 5

LUSO ELECTRONIC PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)

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 an Auditors' 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:

- the engagement partner ensured sufficient appropriate competence, skills and capabilities in audit team to identify or recognise non-compliance with applicable laws and regulations;
- we identified applicable laws and regulations to the company through discussions with the director and other management, and from our commercial knowledge and experience;
- we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety legislation; and
- we assessed the extent of compliance with the law and regulations identified above through making enquires of management and inspecting applicable legal correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding 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 law 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; reviewed journals and nominal ledger
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigate the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including Health and Safety Executive, and the company's legal advisors.

We were appointed auditors after the year end and therefore did not attend the year end stocktake. However we were able to carry our alternative audit procedures, including accessing and relying on stocktake attendances by the former auditors to obtain sufficient audit evidence in this area.

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 Auditors' report.

Page 6

LUSO ELECTRONIC PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS 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 Auditors' 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.

Pers Aswani (Senior statutory auditor)

for and on behalf of

Pers & Co London LLP

Chartered Accountants and Statutory Auditor

3 The Shrubberies

George Lane

London

E18 1BG

8 September 2026

Page 7

LUSO ELECTRONIC PRODUCTS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	3	18,547,795	17,777,613
Cost of sales		(15,491,158)	(15,120,953)
Gross profit		3,056,637	2,656,660
Distribution costs		(133,608)	(92,404)
Administrative expenses		(2,203,265)	(1,886,159)
Operating profit	4	719,764	678,097
Interest receivable and similar income	8	1,812	1,151
Interest payable and similar expenses	9	(20,304)	(141,751)
Profit before tax		701,272	537,497
Tax on profit	10	(192,992)	(140,335)
Profit for the financial year		508,280	397,162

Other comprehensive income for the year
Total comprehensive income for the year		508,280	397,162

The notes on pages 13 to 24 form part of these financial statements.

Page 8

LUSO ELECTRONIC PRODUCTS LIMITED

REGISTERED NUMBER: 00895822

BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	12		26,442		29,906
			26,442		29,906
Current assets
Stocks	13	2,768,902		2,202,548
Debtors: amounts falling due within one year	14	6,407,082		6,556,166
Cash at bank and in hand	15	861,230		603,803
		10,037,214		9,362,517
Creditors: amounts falling due within one year	16	(2,608,063)		(2,511,221)
Net current assets			7,429,151		6,851,296
Total assets less current liabilities			7,455,593		6,881,202
Creditors: amounts falling due after more than one year	17		(1,383,751)		(917,640)

Net assets			6,071,842		5,963,562

Capital and reserves
Called up share capital	19	2,000	2,000
Profit and loss account	20	6,069,842	5,961,562
		6,071,842	5,963,562

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 September 2026.

David Zelkha

Director

The notes on pages 13 to 24 form part of these financial statements.

Page 9

LUSO ELECTRONIC PRODUCTS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2024	2,000	5,714,400	5,716,400
Comprehensive income for the year
Profit for the year	-	397,162	397,162
Total comprehensive income for the year	-	397,162	397,162
Contributions by and distributions to owners
Dividends: Equity capital	-	(150,000)	(150,000)
Total transactions with owners	-	(150,000)	(150,000)

At 1 January 2025	2,000	5,961,562	5,963,562
Comprehensive income for the year
Profit for the year	-	508,280	508,280
Total comprehensive income for the year	-	508,280	508,280
Contributions by and distributions to owners
Dividends: Equity capital	-	(400,000)	(400,000)
Total transactions with owners	-	(400,000)	(400,000)
At 31 December 2025	2,000	6,069,842	6,071,842

The notes on pages 13 to 24 form part of these financial statements.

Page 10

LUSO ELECTRONIC PRODUCTS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	508,280	397,162
Adjustments for:
Depreciation of tangible assets	8,814	9,969
Interest paid	20,304	141,751
Interest received	(1,812)	(1,151)
Taxation charge	192,992	140,335
(Increase)/decrease in stocks	(566,354)	23,612
Decrease/(increase) in debtors	151,902	(44,802)
Increase/(decrease) in creditors	1,358,139	(897,871)
Corporation tax (paid)	(143,153)	(143,401)
Net cash generated from operating activities	1,529,112	(374,396)

Cash flows from investing activities
Purchase of tangible fixed assets	(5,350)	-
Interest received	1,812	1,151
Net cash from investing activities	(3,538)	1,151
Cash flows from financing activities
Repayment of loans	(461,141)	210,043
Dividends paid	(400,000)	(150,000)
Interest paid	(20,304)	(141,751)
Net cash used in financing activities	(881,445)	(81,708)
Net increase/(decrease) in cash and cash equivalents	644,129	(454,953)
Cash and cash equivalents at beginning of year	215,601	670,554
Cash and cash equivalents at the end of year	859,730	215,601

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	861,230	603,803
Bank overdrafts	(1,500)	(388,202)
	859,730	215,601

The notes on pages 13 to 24 form part of these financial statements.

Page 11

LUSO ELECTRONIC PRODUCTS LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2025


At 1 January 2025	Cash flows	At 31 December 2025
£	£	£

Cash at bank and in hand	603,803	257,427	861,230
Bank overdrafts	(388,202)	386,702	(1,500)
Debt due within 1 year	(668,241)	461,141	(207,100)
	(452,640)	1,105,270	652,630

The notes on pages 13 to 24 form part of these financial statements.

Page 12

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Luso Electronic Products Limited is a private company limited by shares and incorporated in England and Wales. The registered office is 595 Salisbury House, London Wall, London EC2M 5QQ..

2.Accounting policies

2.1

Basis of preparation of financial statements

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 management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

2.2

Going concern

The company has continued to grow, trade well and generate cash and the directors have reviewed the 12 month forecast. The company has healthy cash reserves at the year end date and has a good relationship with its bank which is expected to continue. In the view of this information, the directors have a reasonable expectation that the company will continue in operational existance for the foreseeable future hence the accounts should continue to be prepared on a going concern basis.

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

2.11

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, using the straight-line method.

Depreciation is provided on the following basis:

				Plant and machinery	-	25%	Straight Line
				Motor vehicles	-	25%	Straight Line

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.

Page 15

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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 Company'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

Page 16

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.16

Financial instruments (continued)

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.

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans 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.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 17

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Turnover

					2025	2024
					£	£

Turnover	18,547,795	17,777,613
	18,547,795	17,777,613

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	6,102,675	5,688,836
Rest of Europe	8,974,465	8,888,807
Rest of the world	3,470,655	3,199,970
	18,547,795	17,777,613

	Exchange differences	(90,140)	(159,914)
	Other operating lease rentals	120,426	131,091

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

15,000

14,000

Page 18

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Wages and salaries	1,426,233	1,338,912
Social security costs	109,083	105,029
Cost of defined contribution scheme	166,266	17,845
	1,701,582	1,461,786

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Administration	15	14
Sales	11	10

	26	24

7.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	121,066	196,966
	121,066	196,966

8.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	1,812	1,151
		1,812	1,151

Page 19

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

9.	Interest payable and similar expenses
		2025	2024
		£	£

	Bank interest payable	20,304	141,751
		20,304	141,751

Corporation tax
Current tax on profits for the year	192,992	140,335
	192,992	140,335

Total current tax	192,992	140,335

	Deferred tax
	Total deferred tax	-	-


		192,992	140,335

Profit on ordinary activities before tax

701,272

537,497

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	175,318	134,374
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	17,674	5,961
Total tax charge for the year	192,992	140,335

Page 20

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.Taxation (continued)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

11.	Dividends
		2025	2024
		£	£

	Dividends	400,000	150,000
		400,000	150,000

12.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Total
	£	£	£
Cost or valuation
At 1 January 2025	492,939	16,991	509,930
Additions	5,350	-	5,350
At 31 December 2025	498,289	16,991	515,280
Depreciation
At 1 January 2025	463,033	16,991	480,024
Charge for the year on owned assets	8,814	-	8,814
At 31 December 2025	471,847	16,991	488,838
Net book value
At 31 December 2025	26,442	-	26,442
At 31 December 2024	29,906	-	29,906

Page 21

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Stocks
		2025	2024
		£	£

Finished goods and goods for resale	2,768,902	2,202,548
	2,768,902	2,202,548

14.

Debtors

					2025	2024
					£	£


Trade debtors	6,186,722	6,343,902
Other debtors	175,295	172,477
Prepayments and accrued income	45,065	39,787
	6,407,082	6,556,166

15.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	861,230	603,803
Less: bank overdrafts	(1,500)	(388,202)
	859,730	215,601

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

Bank overdrafts	1,500	388,202
Bank loans	207,100	668,241
Trade creditors	1,659,102	926,446
Corporation tax	192,992	140,335
Other taxation and social security	48,762	50,884
Accruals and deferred income	498,607	337,113
	2,608,063	2,511,221

Page 22

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

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

Other creditors	1,383,751	917,640
	1,383,751	917,640

18.	Financial instruments
		2025	2024
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	7,047,952	6,947,705

	Financial assets measured at fair value through profit or loss comprise cash at bank and trade debtors.
	Ffinancial liabilities measured at fair value through profit or loss comprise trade creditors, taxation and other taxes and amounted to £1,900,856 (2024: £1,093,665).

19.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

2,000 (2024 - 2,000) Ordinary shares of £1.00 each	2,000	2,000

20.

Reserves

Profit and loss account

The movement in retained profit comprises retained profit of the year, after dividends, amounting to £349,187.

21.	Pension commitments

Contributions to defined contribution plans are expensed to the period in which they relate.

Page 23

LUSO ELECTRONIC PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

	Not later than 1 year	120,426	43,840
		120,426	43,840

23.	Related party transactions
	The ultimate controlling party is Mr David Zelkha. Included in other creditors more than one year is an amount of £1,383,751 (2024: £917,640) due to a director with no interest.

24.	Post balance sheet events

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

Page 24