REGISTERED NUMBER: 02374363 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

DURHAM BOX COMPANY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

D C Morris

D J Richardson

D J McConnell

REGISTERED OFFICE:

2 Franks Road

Bardon Hill

Coalville

LE67 1TT

REGISTERED NUMBER:

02374363 (England and Wales)

AUDITORS:

Mitchells Grievson Limited

Kensington House

3 Kensington

Bishop Auckland

Co. Durham

DL14 6HX

BANKERS:

National Westminster Bank plc

28 Market Place

Barnard Castle

Co. Durham

DL12 8NB

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

It summarises the company's strategic priorities, operational performance, financial position, principal risks and outlook, and is intended to support informed oversight of the business by the Board.

The company's principal activity remained the manufacture of corrugated cardboard packaging. During the period, the Board continued to focus on strengthening Durham Box Company Limited's market position through disciplined commercial execution, operational efficiency, product quality, and responsive customer service.

STRATEGIC PRIORITIES

A key strategic priority has been to improve utilisation of the company's manufacturing and print capability in order to support growth, maintain service standards, and protect margins in a competitive trading environment. Investment in operational capability continues to differentiate the business and supports its ability to meet changing customer requirements with speed and consistency.

The Board also recognises the importance of route to market, customer retention and value proposition. The company therefore continues to balance digital and process improvements with the personal service, technical support and account management that remain central to its customer offering.

From a governance perspective, the Board's priorities remain clear: to drive sustainable revenue growth, preserve profitability, maintain a strong balance sheet, invest selectively in productivity-enhancing initiatives, and ensure the business remains agile in response to market change.

The Board continues to regard customer relationships, reputation for reliability, and the quality of the company's commercial and operational teams as important competitive strengths that support long-term value creation.

The Board considers the health, safety and wellbeing of employees to be fundamental to sustainable performance. Continued attention has therefore been given to workplace safety, capability development and operational resilience across the business.

The company also recognises its environmental responsibilities. As part of the wider Logson Group, the business is continuing to assess opportunities to reduce environmental impact through improved energy efficiency, waste reduction, responsible resource use and the adoption of more sustainable operating practices where commercially appropriate.

FINANCIAL PERFORMANCE

The company delivered a profit before tax of £1,621,319 for the period ended 31 December 2025, (period to 31st December 2024 £2,717,605), representing a margin of 7.7% on sales revenue of £21.0 million. In the context of a demanding external market, this represented a resilient financial performance.

Sales revenue increased by 1.8% during the year, while the volume of packaging sold increased by 4.3%. This indicates continued demand for the company's offering, albeit alongside pricing pressure in parts of the market.

Although margin pressure increased as the year progressed, this trend had been anticipated within the Board's planning assumptions, but overall profitability fell slightly short of budget, reflecting the challenging trading environment.

Net assets reduced to £9,162,990 from £10,482,956 in the prior year. While movements in working capital contributed, the principal driver of the reduction was lower cash following dividend payments.

Return on capital employed for the period was 17.4% (year ended 31 December 2024: 25.9%). The Board continues to monitor returns closely and remains focused on capital discipline and value generating investment.

BUSINESS ENVIRONMENT & OUTLOOK

Trading conditions remained challenging throughout the year reflecting broader weakness in the external operating environment.

Looking ahead, the Board expects market conditions in 2026 to remain competitive and potentially subdued. Current plans assume modest revenue growth, supported by customer retention, selective new business wins and continued operational focus, although pressure on margins is expected to persist.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal strategic risk facing the company remains a weaker macroeconomic environment, with lower business confidence and reduced demand in manufacturing-related sectors. Reduced market demand may lead to lower volumes, increased competition and further pressure on selling margins.

The business also remains exposed to volatility in energy markets and broader geopolitical factors that may affect operating costs, supply conditions and customer demand.

Although inflationary pressure has eased relative to prior periods, the company remains exposed to increases in paper, labour, energy and other input costs. The Board continues to monitor the recoverability of cost increases through pricing and operational efficiency measures.

In addition, the Board continues to monitor legislative, taxation and employment cost changes that may increase the cost base across the business.

The Directors consider that the company is appropriately positioned to manage these risks through close performance monitoring, prudent financial management and timely operational response.

FINANCIAL RISK MANAGEMENT

The company's operations expose it to a range of financial risks, principally input cost inflation, customer credit risk and liquidity risk. The Board reviews these exposures regularly and applies appropriate controls and monitoring processes.

Changes in price

The company's largest area of input cost exposure relates to corrugated sheet, the cost of which is influenced by global paper markets and wider sector conditions. Significant movements in these input costs can affect product margins if not recovered through pricing, productivity gains or product mix management.

The Board continues to track input market conditions closely and to assess the timing and extent of any cost recovery actions required.

The company's established supplier relationships and commercial discipline provide a degree of resilience, although sustained input cost inflation remains an area of active management attention.

Rising costs (non-paper)

Beyond paper costs, the company is exposed to wage inflation, energy costs and other overhead increases. The Board continues to review opportunities to improve energy efficiency and operational productivity to mitigate pressure on the cost base over time.

Competition

Competitive pressure remains a persistent risk within the packaging industry. In softer markets, the risk of customer loss and margin compression increases, requiring continued focus on service, quality, responsiveness and commercial discipline.

Cyber Crime

Cyber risk continues to increase in significance. The company therefore maintains ongoing attention to information security, system resilience and the strengthening of controls designed to reduce the risk of malicious activity and operational disruption.

Credit exposure

Credit exposure is mitigated through credit insurance, appropriate credit checks, ongoing monitoring of customer payment performance and a diversified customer base. No single customer represents a level of concentration that the Board considers excessive.

Liquidity

Liquidity risk is managed through careful cash flow monitoring, prudent capital expenditure control and the maintenance of accessible banking facilities.

The Board reviews management information regularly and continues to monitor liquidity closely to maintain appropriate financial flexibility.

ON BEHALF OF THE BOARD:

D C Morris - Director

28 May 2026

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

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary A £1 shares

£1,125

- 1 July 2025

Ordinary C £1 shares

£1,125

- 1 July 2025

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2025 will be £ 2,250,000 .

DIRECTORS

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

D C Morris

D J Richardson

D J McConnell

LAND AND BUILDINGS

The freehold property shown in the accounts have, in the opinion of the Directors, a market value of approximately £3,450,000.

GOING CONCERN

The financial statements have been prepared on a going concern basis. In making this assessment, the Directors have considered the company's current trading performance, liquidity position, available facilities, forecast cash flows and the principal risks facing the business over a period of at least 12 months from the expected date of approval of the financial statements.

The Directors monitor performance through regular reporting and remain satisfied that the business is operating from a position that supports the continued adoption of the going concern basis.

Having considered the uncertainties affecting the wider economy and the company's current financial resilience, the Directors believe that the company remains well placed to continue in operational existence for the foreseeable future.

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;

-	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

The auditors, Mitchells Grievson Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D C Morris - Director

28 May 2026

Opinion

We have audited the financial statements of Durham Box Company Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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:

-Enquiries of management and those charged with governance around actual and potential litigation and claims.

-Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

-Enquiries of management and staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

-Reviewing minutes of board meetings of those charged with governance.

-Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

-Auditing the risk of management override of controls, including identifying and testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

-Reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal and HR advisors.

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.

Nigel Rea (Senior Statutory Auditor)

for and on behalf of Mitchells Grievson Limited

Kensington House

3 Kensington

Bishop Auckland

Co. Durham

DL14 6HX

3 June 2026

TURNOVER

21,000,135

20,629,289

Other operating income

42,000

42,000

21,042,135

20,671,289

Raw materials and consumables

11,174,141

10,696,778

Other external expenses

236,937

235,544

11,411,078

10,932,322

9,631,057

9,738,967

Staff costs

4

4,620,152

4,259,058

Depreciation

825,681

743,895

Other operating expenses

2,490,816

2,095,268

7,936,649

7,098,221

OPERATING PROFIT

5

1,694,408

2,640,746

Interest receivable and similar income

73,104

168,050

1,767,512

2,808,796

Interest payable and similar expenses

6

146,193

91,191

PROFIT BEFORE TAXATION

1,621,319

2,717,605

Tax on profit

7

691,285

458,598

PROFIT FOR THE FINANCIAL YEAR

930,034

2,259,007

PROFIT FOR THE YEAR

930,034

2,259,007

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

Deferred tax on revaluation movement

-

(5,570

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(5,570

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

930,034

2,253,437

FIXED ASSETS

Tangible assets

9

8,967,948

9,338,772

CURRENT ASSETS

Stocks

10

866,152

843,832

Debtors

11

5,867,706

5,799,216

Cash at bank and in hand

1,619,049

2,284,589

8,352,907

8,927,637

CREDITORS

Amounts falling due within one year

12

5,162,013

3,776,553

NET CURRENT ASSETS

3,190,894

5,151,084

TOTAL ASSETS LESS CURRENT LIABILITIES

12,158,842

14,489,856

CREDITORS

Amounts falling due after more than one year

13

(1,177,873

)

(2,125,801

)

PROVISIONS FOR LIABILITIES

17

(1,814,079

)

(1,835,199

)

ACCRUALS AND DEFERRED INCOME

18

(3,900

)

(45,900

)

NET ASSETS

9,162,990

10,482,956

CAPITAL AND RESERVES

Called up share capital

19

2,000

2,000

Revaluation reserve

20

965,138

1,037,766

Capital redemption reserve

20

2,000

2,000

Retained earnings

20

8,193,852

9,441,190

SHAREHOLDERS' FUNDS

9,162,990

10,482,956

The financial statements were approved by the Board of Directors and authorised for issue on 28 May 2026 and were signed on its behalf by:

D C Morris - Director

D J McConnell - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

2,000

10,110,224

1,115,295

2,000

11,229,519

Changes in equity

Dividends

-

(3,000,000

)

-

-

(3,000,000

)

Total comprehensive income

-

2,330,966

(77,529

)

-

2,253,437

Balance at 31 December 2024

2,000

9,441,190

1,037,766

2,000

10,482,956

Changes in equity

Dividends

-

(2,250,000

)

-

-

(2,250,000

)

Total comprehensive income

-

1,002,662

(72,628

)

-

930,034

Balance at 31 December 2025

2,000

8,193,852

965,138

2,000

9,162,990

1.	STATUTORY INFORMATION

Durham Box Company 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 presentation currency of the financial statements is the Pound Sterling (£).

The principal activity of the company during the year under review was the design and manufacture of corrugated cardboard packaging.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis 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 judgement in applying the company's accounting policies.

The following principal accounting policies have been consistently applied unless otherwise stated:

Going concern

The company meets its day-to-day working capital requirements through its bank facilities. Demand for the company's products has been, and continues to, increasing as the company grows. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company will be able to operate well within the level of its current facilities. The company maintains a strong balance sheet and working capital facilities. The directors have a strong expectation that the company will continue in operation and meet its liabilities as they fall due for a period of at least 12 months from the date of this report and have therefore continued to adopt the going concern basis in preparing the financial statements.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover 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 turnover 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.

Sale of goods are recognised on sale to customer which is upon receipt of goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

4% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on cost

Freehold property is held under the revaluation model.

All other tangible assets held 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.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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 the Statement of comprehensive income.

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 the Income Statement.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

i. Financial assets

Basic financial assets, including trade debtors, cash at bank and in hand and amounts owed by group undertakings, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of comprehensive income.

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 the Statement of comprehensive income.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

ii. Financial liabilities

Basic financial liabilities, including trade creditors, other creditors and amounts owed to group undertakings 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

iii. Offsetting

Financial assets and liabilities are offset and the net amounts are 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.

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Balance sheet date.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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 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 the Statement of comprehensive income within "other operating income".

Exceptional administrative expenses

Exceptional administrative expenses are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

Operating leases: lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the period of the lease.

Employee benefits

The company provides a range of benefits to employees, including paid holiday arrangements and a defined contribution pension plan.

(i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii) Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which th company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the Balance sheet. The assets of the plan are held separately from the company in an independently administered fund.

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

Finance costs

Finance costs are charged to the Statement of comprehensive income 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.

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.

Cash at bank and in hand

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.

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.

Borrowing costs

All borrowing costs are recognised in the Statement of comprehensive income in the period in which they are incurred.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from proceeds.

Critical judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations on future events that are believed to be under the circumstances.

a) Critical judgements in applying the company's accounting policies.

There are no critical judgements in applying the company's accounting policies.

b) Key accounting estimates and assumptions.

There are no critical accounting estimates and assumptions.

4.	EMPLOYEES AND DIRECTORS

31/12/25

31/12/24

£

£

Wages and salaries

4,037,190

3,792,479

Social security costs

498,344

391,041

Other pension costs

84,618

75,538

4,620,152

4,259,058

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

31/12/25

31/12/24

Directors

1

1

Office administration and management

30

30

Factory and warehouse

73

74

104

105

31/12/25

31/12/24

£

£

Directors' remuneration

172,594

148,270