The directors present the strategic report for the year ended 31 May 2026.
The year represented an important stage in the Group's strategic development. Despite continued economic uncertainty, inflationary pressures and challenging consumer conditions across the retail sector, the Group continued to invest in the long-term capability of the business whilst maintaining its focus on sustainable growth.
Turnover for the year amounted to £63,705,919 (2025: £49,994,980) with profit before taxation of £3,040,071 (2025: £1,141,385).
Management remained focused on strengthening operational resilience, improving customer experience and investing in infrastructure capable of supporting the next phase of growth.
A significant achievement during the year was the transformation of the Group's logistics infrastructure. Following a strategic review of its fulfilment arrangements, the Board approved the consolidation of warehouse operations with a single logistics partner across the UK and Europe. This programme included the migration of both business-to-business ("B2B") and direct-to-consumer ("D2C") stock into integrated warehouse facilities supported by a common warehouse management system.
The consolidation of warehouse operations represents a significant strategic investment in the Group's future capability. It has improved inventory visibility, increased stock accuracy, simplified operational management and enhanced fulfilment capability across all sales channels.
The enhanced infrastructure also provides greater operational flexibility, including improved fulfilment capability, extended order processing capacity and improved customer service standards. The Directors believe these improvements provide a stronger platform for future growth.
Alongside the logistics transformation, the Group continued to integrate and modernise its operational systems across purchasing, inventory management, finance, sales and customer service. These improvements have streamlined internal processes, reduced manual intervention and enhanced the quality and accessibility of business information.
Operational Transformation
During the year, the Group undertook a significant operational transformation programme designed to improve scalability, efficiency and control across its activities.
The migration to a consolidated warehouse network has created a more efficient operating model, enabling the Group to manage stock more effectively across multiple sales channels. A single view of inventory allows improved forecasting, more efficient replenishment and better decision-making regarding purchasing and merchandising.
The Directors believe this transformation will deliver long-term benefits through improved inventory utilisation, reduced operational complexity and enhanced customer experience.
Technology and Digital Transformation
The Group has commenced a significant digital transformation programme designed to modernise its technology infrastructure and strengthen control over its growing multi-channel operations.
These systems will establish a single source of truth for operational, product and customer data across the business, replacing fragmented processes with an integrated technology platform.
The Directors believe these investments will materially improve operational efficiency through increased automation, enhanced reporting capabilities and improved decision-making whilst supporting future scalability.
The Group also recognises that the ability to identify and adopt appropriate artificial intelligence ("AI") technologies will become increasingly important to maintaining operational efficiency and competitiveness in the future. Management intends to continue evaluating opportunities to invest in AI across support functions, with particular focus on automating manual, repetitive and labour-intensive processes. The objective is to improve efficiency, reduce administrative burden, enhance the speed and quality of decision-making and enable employees to focus on higher-value activities, whilst ensuring that any implementation is appropriately controlled and aligned with the Group's wider technology and operational strategy.
The Group has also brought management of its online marketplace operations in-house, enabling direct commercial relationships with marketplace partners. This provides greater control over trading performance, merchandising, product content and customer experience whilst reducing reliance on third-party intermediaries.
Strategy
The Directors remain focused on delivering sustainable long-term growth through investment in technology, operational excellence and customer engagement.
The Group's strategic priorities are set out below.
Strengthening the Direct-to-Consumer Model
The Group's primary focus remains the continued growth of its direct-to-consumer business. Developing stronger direct relationships with customers provides greater control over the customer journey, improves profitability and generates valuable customer insight that supports informed commercial decision-making.
Whilst marketplace sales continue to form an important part of the Group's overall sales strategy, investment remains focused on increasing direct customer acquisition, improving retention and enhancing customer lifetime value.
Marketplace Growth Strategy
The Group continues to pursue a disciplined marketplace expansion strategy to complement the growth of its direct-to-consumer business.
Investment in integrated marketplace technology reduces the operational complexity associated with launching new sales channels and enables the Group to connect with additional domestic and international marketplaces more efficiently.
Whilst the United Kingdom remains the Company's core market, the Directors recognise the significant growth opportunities available within international markets. The Group has continued to invest in its European marketplace presence, where early trading performance has been encouraging.
The Board believes that the scalable technology infrastructure being implemented provides the foundation for measured expansion across additional European marketplaces whilst maintaining operational control and customer service standards.
Data Enrichment and Customer Insight
A key strategic objective is to establish a single source of truth for customer and operational data.
The Group's technology investments will consolidate customer interactions across all channels, allowing the business to build richer customer profiles and generate enhanced commercial insight.
These capabilities will support increasingly personalised marketing activity, improved merchandising decisions and more targeted product development, ultimately enhancing customer satisfaction and strengthening long-term customer relationships.
Operational Excellence
The combination of warehouse consolidation, technology investment and increased automation provides a significantly stronger operational platform for future expansion.
Management will continue to optimise stock management, purchasing processes and fulfilment operations to improve efficiency whilst maintaining high service standards.
The Directors believe these investments reduce operational risk and provide the capability required to support profitable long-term growth.
Consumer Spending
Demand within the fashion sector continues to be influenced by economic conditions, inflation and consumer confidence.
The Group mitigates this risk through careful inventory planning, flexible sourcing arrangements and maintaining a differentiated product offering.
Supply Chain
Global supply chain disruption, freight costs and geopolitical uncertainty continue to present operational risks.
The Group maintains strong supplier relationships, diversified sourcing arrangements and ongoing monitoring of stock requirements to minimise disruption.
Technology
As the business becomes increasingly technology driven, maintaining reliable, secure and resilient systems remains critical.
The Group continues to invest in cyber security, business continuity planning and robust technology infrastructure.
Stock Management
Effective stock management remains fundamental to profitability.
The Group's integrated warehouse model and enhanced systems capability significantly strengthen stock control, forecasting accuracy and operational efficiency.
Competitive Market
The online fashion market remains highly competitive.
The Group continues to differentiate itself through product quality, customer service, operational excellence and investment in technology that enhances the customer experience.
Future Outlook
The Directors believe the investments undertaken during the year represent a transformational step in the Group's development.
The combination of consolidated warehouse operations, integrated technology platforms, direct marketplace relationships and enhanced customer data capabilities provides a significantly stronger operational foundation than has previously existed.
During the coming year, management's priorities will include completing the implementation of the new ERP platform, maximising the benefits of warehouse consolidation and further strengthening the Group's direct-to-consumer proposition.
Particular emphasis will be placed on improving customer insight through enhanced data capabilities, enabling more personalised customer engagement and supporting better commercial decision-making.
The Directors expect these investments to improve inventory utilisation, accelerate stock turn, strengthen cash generation, enhance customer experience and support sustainable profitable growth over the medium term.
Whilst recognising the continuing challenges within the retail environment, the Board remains confident that the infrastructure established during the year positions the Group well to scale efficiently, respond quickly to changing customer demand and continue strengthening its position within both the UK and international fashion markets.
The Directors have acted in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole whilst having regard to the interests of employees, customers, suppliers and other stakeholders.
During the year the Board continued to invest significantly in infrastructure, technology and operational capability. The warehouse consolidation programme, systems integration initiatives and implementation of the Group's new ERP platform demonstrate the Directors' commitment to building a resilient, scalable business capable of delivering sustainable long-term value.
The Board continues to engage regularly with employees, suppliers and customers to ensure decisions support the Group's long-term strategic objectives whilst maintaining high standards of service, product quality and operational excellence.
The Directors believe these investments position the Group strongly for continued growth whilst enhancing customer experience and strengthening relationships with all stakeholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 May 2026.
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
DJH Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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 United Kingdom 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 group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
We have audited the financial statements of A.M. London Fashion Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2026 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
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 group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
We considered the nature of the industry and sector in which the group operates; the control environment and business performance including key drivers for director's remuneration, bonus levels and performance targets.
We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the group.
Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
We considered the legal and regulatory framework in which the group operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pension and tax legislation, or those which had a fundamental effect on the operations of the group, including General Data Protection requirements, Anti-bribery and Corruption.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular, the estimation of the useful economic life of fixed assets, the level of provision required for impairment of stock, the level of provision required for bad and doubtful debts and categorising leases as finance or operating leases.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entity's ability to continue in operation.
Testing key turnover lines, in particular cut-off and walk-through, for evidence of management bias.
Performing a physical verification of key assets.
Obtaining third-party confirmation of material bank balances.
Documenting and verifying all significant intercompany balances and transactions.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,000,204 (2025 - £873,932 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
A.M. London Fashion Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4th Floor Talbot Road, Old Trafford, Manchester, England, M16 0PQ.
The group consists of A.M. London Fashion Ltd and all of its subsidiaries.
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.
The consolidated group financial statements consist of the financial statements of the parent company A.M. London Fashion Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 May 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have 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 to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliable measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes with all turnover wholly undertaken in England and Wales. 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 Group has transferred the significant risks and rewards of ownership to the buyer:
the Group 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 Group 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.
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 recognised in the profit and loss account.
The residual values, estimated useful lives and depreciation method of tangible fixed assers are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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. Financial assets classified as receivable within one year are not amortised.
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 group 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 group 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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 group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 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.
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administrated funds.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’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.
Estimating the useful economic life of an asset and the anticipated residual value are considered the key judgement in calculating an appropriate depreciation charge.
Making judgement based on historical experience on the level of provision required for impairment of stock.
Estimating the recoverability of trade receivables is considered key in calculating the bad debt provision at the year end.
In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the England and Wales.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 May 2026 are as follows:
The principle activity of A.M. London BV is to design, source and sell quality clothing in the fashion sector at a competitive price through wholesale.
Invoice discounting facilities are secured on the trade debts to which they relate.
Bank facilities, including overdrafts, are secured by way of a fixed and floating charge over the Group's assets.
Trade credit facility is secured against the stock to which it relates.
The bank loan was obtained under the Coronavirus Business Interruption Loan scheme, secured by the Government. The loan is for a 6 year term and carries interest at a rate of 3.99% per annum over the Bank of England Base Rate.
The bank loan was obtained under the Coronavirus Business Interruption Loan scheme, secured by the Government. The loan is for a 6 year term and carries interest at a rate of 3.99% per annum over the Bank of England Base Rate.
Details, terms and security of the loan is disclosed in notes 16 and 17.
The following are the major deferred tax liabilities and assets recognised by the group and company:
Included within creditors due within one year is a balance of £41,625 (2025: 28,358) in respect of contributions collected but not yet paid over to the pension scheme.
Foreign exchange reserve
The foreign exchange reserve relates to retranslation gains or losses on the consolidation of foreign subsidiaries.
Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.
At the year end, letters of credit are in place for goods that have not yet been shipped at the year end totalling £2,272,429 (2025: £2,942,942).
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Directors' advances
Included within other creditors due within one year is a loan due from a director, amounting to £427,675 (2025: £3,169,809 debtor). Net amounts repaid during the year totalled £3,597,485. There are no terms and conditions associated with this balance. The maximum amount outstanding during the year was £3,342,484.
Related Companies
During the period, the Group incurred costs totalling £249,527 (2025: £249,527) with companies under common control.
Included within other creditors are amounts due from the Group to a company under common control of £1,000,000 (2025: £1,000,000). Included within other debtors are amounts due to the Group from companies under common control of £29,456 (2025: £7,409).
All of the above transactions have been performed on an arm's length basis.
Included within other debtors is a loan totaling £245,206 to a company under common control. There are no terms and conditions associated with this loan.
The directors have chosen not to disclose transactions entered into with other companies wholly owned within the group as permitted under FRS 102 paragraph 33.1A.