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

2025 carried on the pattern we saw in the previous year with the overall market remaining stagnant in terms of growth. This again reflected the picture seen in the wider UK economy, with very little consumer confidence causing limited growth opportunities. Consequently the 2025 turnover was similar to that seen in 2024.

Overall, we did see a better performance from our retailer network in the North of the UK and Ireland, compared to that seen in the South and Southeast of the country.

A mixture of higher-than-expected inflation, combined with a general slowdown in the UK housing market resulted in a slowing of demand from our core end user customer base, the professional decorators and contractors.

We saw several of the large builders’ merchants’ groups and National decorating store chains rationalising down their branch networks and head office teams to cut costs.

The company undertook and investment programme during 2025 to develop a new “Concept” range of brushes specifically for the UK market. This involved expenditure on third part agencies to develop the new brand look as well as development and sampling costs. This will allow the business to attack the market harder in 2026. There was also further investment in recruitment to bolster the sales team and increase the sales activity programme for the start of 2026.

Overall, the business results for the year are, in the opinion of the directors, a true representation of the overall difficult market conditions and the result of a targeted investment programme to improve the product offering in the market and also grow the sales presence in this market.

The efficiency and cost control programmes within the company are working effectively to control expenditure and minimise risk where possible.

Alongside the investment the directors have put in place a strategy to focus on margin growth and development. This includes both from the sales side as well as the raw material supplier base.

There were also several new product lines introduced to the larger customers that will facilitate increased turnover and greater returns for the business in 2026.

The UK marketplace is expected to show little natural growth in 2026; however, the introduction of the new brush concept range will allow us to win market share from our competitors. This will be further enhanced by the roll out during 2026 of the 'Concept' approach throughout our other product groups. The forecasts for 2026 shows an uplift in turnover and margin improvement which is further enhanced by a customer wide price increase and active programme to reduce product purchase costs through rationalisation and supplier base changes.

Operating a global supplier base for our product supply chain means that we are always exposed to changes in raw material and global freight costs. We act to mitigate this by maintaining good stock levels in our UK warehouse and reacting quickly to increase the costs our selling out prices when required.

The current volatility in global trade means that we should be robust in monitoring and adjusting our foreign currency exchanges and purchases. This is managed by a process of daily monitoring, limiting our exposure at any one time, plus a Group wide insurance policy to protect against any large fluctuations in currency valuations.

The increased use of Group owned factories for the supply of goods facilitates a more consistent pricing structure and the ability to switch between the European and Far East factories creates a more consistent and robust supply of products.

The continued support and investment from the Group and their wish to grow market share in the UK, means that the business is able to optimise and enhance its position, in what will be a generally weak UK economy for 2026.

The company remains well supported and invested in by the Storch Ciret Group parent business and the UK remains a key strategic and growth potential market for the organisation. The investments made in 2025 will continue throughout 2026.

The financial results for the year show a position affected greatly by the stagnating UK market in the construction and building sector as well as a weak overall economy. The focus on profitability from a weaker sales input, resulted in the Gross margin decreasing to 33.25% from 34.14%.

Liquidity within the business remains good with a ratio of 2.90, a slight decrease from 3.16 the previous year.

The businesses balance sheet remains strong.

The directors of the company have acted in accordance with their statutory duties, in particular their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, having regards to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.

Iissues, factors and stakeholders which the Directors considered to be of strategic importance when discharging their duty under section 172(1) are detailed below.

The likely consequences of any decision in the long term

The Directors carefully consider the impact of all decisions on the long-term success of the company. Key areas in decision making are formulated in adherence to formal policies communicated to all staff members and capturing key areas such as supply chain management, customer conduct, human resources and environmental, social and governance (ESG) matters.

The interest of the company’s employees

The company recognises its responsibilities to all employees and is committed to effective engagement with them. The company recognises the importance of good communications and relations with staff and uses a number of methods to keep staff informed of performance and developments within the business.

Regular meetings are held between management and the workforce through a designated discussion forum and all new staff members are given a formal induction programme. There is currently increased resource being channelled into mental, social and general wellbeing welfare with all employees being made aware of external resource support available if required.

Regular meetings are held between management and the workforce through a designated discussion forum and all new staff members are given a formal induction programme. There is currently increased resource being channelled into mental, social and general wellbeing welfare with all employees being made aware of external resource support available if required.

The need to foster the company’s business relationships with suppliers, customers and others

The Board recognise the importance of taking the customers viewpoints into account as part of its decision-making process, and consequently employs specifically defined practices developed to ensure that the customers’ needs are properly addressed. Strategies and performance in this respect are carefully managed at senior level.

Communication and management of the company’s supply chain is integral to the future success of the Company and substantial resource is made available to ensure that such relationships are maintained in accordance with company objectives. Suppliers are carefully monitored from a performance perspective and are subject to the appropriate ethical and quality audits when required.

The impact of the company’s operations on the community and the environment

The company is committed to doing what it can to minimise its impact on the environment. The company is also engaged with both suppliers and customers regarding all future policies relating to environmental and social governance matters (ESG).

The Directors and staff recognise our social responsibilities and continue to support worthwhile causes throughout the year. The company sets aside a budget for local charities, and staff members organise fund raising activities for local charities throughout the year. The Company also supports fund raising activities communicated by customers.

The desirability of the company maintaining a reputation for high standards of business conduct

The Directors and management operate the business in a responsible manner with the aim of ensuring the company maintains a reputation for high standards of business conduct and good governance. All company policies and employee guidance publications are reviewed and updated where required on a regular basis and are properly communicated. All staff members are aware of the high standards of professional and ethical behaviour expected of them and of the company’s objective of safeguarding its reputation for high standards of conduct.

The need to act fairly between members of the company

The Directors recognise the success of the business depends on its ability to engage effectively, work together constructively, and to take all stakeholder views into account in order to operate sustainably in the long term. The Board routinely considers the interests of all stakeholders in the decision-making process to ensure that they are aligned with the Company’s practices, values and behaviours.

On behalf of the board

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

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The company's operations expose it to a variety of financial risk that include the effects of changes in commodity prices, foreign exchange risk and liquidity risk. The company has in place a risk management programme that seeks to limit the adverse effect if these risks on the financial performance of the company.

The activities of the business expose it primarily to the financial risks of changes in foreign currency exchange rates.

The principal financial instrument s of the business comprise bank balances, trade debtors, trade creditors and finance lease agreements. The main purpose of these instruments is to finance the operations of the business.

In respect of bank balances ,the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates on interest. All of the cash balances of the business are held in such a way that achieves a competitive rate of interest. The business makes use of money markets facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net allowances for doubtful debtors.

Trade creditor's liquidity risk is managed by ensuring sufficient funds are available to meet amounts as they fall due.

The company has interest bearing non-current liabilities. Loans with other group companies are taken out on a fixed interest basis which minimises the level of interest rate risk.

The business is a lessee in respect of finance leased assets, The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

HJS Accountants Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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

After making enquiries, the directors' have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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

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

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

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

We have audited the financial statements of Ciret Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of noncompliance with laws and regulations related to breaches of UK regulatory principles, such as import regulations and the Sale of Goods Act. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements.

Audit procedures performed by the audit engagement team included:

• Discussions with senior management, including consideration of known or suspected instances of noncompliance with laws and regulation or instances of fraud;

• Identifying and testing journal entries based on risk criteria;

• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;

• Testing transactions entered into outside of the normal course of the company's business;

• Reviewing any potential litigation or claims against the entity which indicate any potential noncompliance issues.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and obligations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Ciret Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fulflood Road, Havant, Hampshire, England, PO9 5AX.

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

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

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

Atruet 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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The company recognises revenue from the following major sources:

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The company has concluded that it is the principal in its revenue arrangements as it typically controls the goods or services before transferring them to the customer

Revenue from the sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods. The normal credit term given is 30-90 days upon delivery. The company considers whether there are other promises in the contract that are separate performance obligations to which a proportion of the transaction price needs to be allocated. The company also considers the effects of variable consideration, including rebates and discounts, and the existence of any significant financing components.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which shall not exceed ten years if a realisable estimate of the useful life cannot be made.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

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

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

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

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets. A provision is made for any impairment loss and taken to the profit and loss account.

Stocks are stated at the lower of cost and net realisable value on an average cost basis, after due regard for obsolete and slow moving stocks. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the loss is recognised immediately in the profit and loss.

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.

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

The company only enters into Basic financial instrument transactions.

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

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

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

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

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

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

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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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

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

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

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.

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

The current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

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

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

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 fixed 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.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee services in the current and prior periods

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. If contribution payments exceed the contributions due for service, the excess is recognised as a prepayment.

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

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

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

The company's financial statements are presented in sterling, which is the company's functional currency.

Transactions in foreign currencies are initially recorded in the entity's functional currency by applying the spot exchange rate ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date.

All differences are taken to the income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the date when fair value was determined.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In the application of the Group's accounting policies, the stock provision is determined by the stock turn of each product:

2-3 years          - 25%

3-4 years          - 50%

Greater than 4 years     - 100%

Stock impairment is carried out to value the goods at the lower of cost or current purchase price.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The aggregate amount of research and development expenditure recognised as an expense during the period is £nil (2024: £nil).

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

The loan from the parent company is repayable by 31 December 2027 with interest accruing on a daily basis at 3.5% per annum. Interest is paid on a quarterly basis.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions amounting to £7,917 (2024: £8,192) were payable to the scheme at the year end and are included in creditors.

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions

Full voting rights

NatWest Bank Plc have a debenture over the company, covering all assets held by the company.

The remuneration of key management personnel is as follows.

Summary of transactions with parent

Storch-Ciret GmbH    Management Charges

Summary of transactions with entities under common control

Normal commercial trading

During the year the company entered into the following transactions with related parties:

The company's immediate parent is Storch-Ciret Holdings GmbH, incorporated in Germany.

The ultimate parent is MWZ Stiftung Storch-Ciret, incorporated in Germany.

The most senior parent entity producing publicly available financial statements is Storch-Ciret Holdings GmbH. These financial statements are available upon request from German Company Register database www.unternehmensregister.de.

The ultimate controlling party is Horst-Werner Rogusch.