REGISTERED NUMBER: 16326128 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the period

19th March 2025 to 31st March 2026

for

Aziz Group Holdings & Investments Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Company Cash Flow Statement

16

Notes to the Cash Flow Statements

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

F Aziz

Miss A Aziz

A Aziz

Mrs R Aziz

A Aziz

REGISTERED OFFICE:

Isaac Wholesale

Ivatt Way

Peterborough

Cambridgeshire

PE3 7PH

REGISTERED NUMBER:

16326128 (England and Wales)

AUDITORS:

Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

The directors present their strategic report of the company and the group for the period 19th March 2025 to 31st March 2026.

REVIEW OF BUSINESS

The key financial highlights are as follows:

2026

£

Revenue

19,309,006

Profit/(Loss) before tax

2,272,339

Profit before tax margin

11.77%

The Group's principal activity is the wholesale distribution of food and packaging products to the QSR (Quick Service Restaurant) market. Operating primarily as a delivery-first business, the company serves a diverse portfolio of QSR operators across multiple cuisines and formats.

The Group's operating structure is designed to facilitate scale, consistency and service reliability across its operations. This model supports the efficient fulfilment of customer requirements, whilst maintaining product quality and availability. It also enables the Group to respond effectively to the dynamic and time-sensitive demands of the food service sector.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group's key financial instruments consist of bank balances, trade receivables and trade payables. These instruments primarily serve to finance operations and manage liquidity.

Price Risk

The group is exposed to price fluctuations due to competitive pressures. This risk is mitigated by maintaining adequate stock levels and ongoing market monitoring.

Foreign Exchange Risk

The group does not engage in purchasing products in foreign currencies, thereby avoiding exposure to foreign exchange risk.

Credit Risk

The group regularly reviews customer accounts concerning outstanding balances and credit limits. Although some bad debts are experienced, the group believes it has effective systems in place to minimize this risk.

Liquidity Risk

Liquidity risk is managed by ensuring sufficient funds are available to meet payment obligations as they fall due. The group considers liquidity risk to be minimal.

Interest Rate and Cash Flow Risk

The group maintained a favourable cash balance throughout the year and does not consider interest rate or cash flow fluctuations to pose significant risks.

FUTURE DEVELOPMENTS

The Group aims to increase turnover whilst maintaining profit margins. The group understands the needs to implement strategic initiatives that drive sales and control costs.

During FY26, the Group secured a lease for the establishment of a new takeaway business, marking an expansion of operations. Looking ahead, future developments will centre on the refurbishment and modernisation of the premises to enhance both operational efficiency and overall customer experience. Planned works include renovations to internal layout to support a more streamlined workflow, upgrading equipment and improving front of house area to create a more attractive environment. These renovations activities are expected to continue into early FY27 with completion scheduled ahead of the commencement of trading, ensuring the business is well-positioned for a successful launch and sustainable growth.

ON BEHALF OF THE BOARD:

A Aziz - Director

14th September 2026

The directors present their report with the financial statements of the company and the group for the period 19th March 2025 to 31st March 2026.

INCORPORATION

The group was incorporated on 19th March 2025 and commenced trading on the same date.

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of

DIVIDENDS

No dividends will be distributed for the period ended 31st March 2026.

FUTURE DEVELOPMENTS

Details of the group's future developments have been provided in the strategic report.

DIRECTORS

The directors who have held office during the period from 19th March 2025 to the date of this report are as follows:

F Aziz - appointed 19th March 2025

H Aziz - appointed 19th March 2025 - resigned 2nd September 2025

Miss A Aziz - appointed 19th March 2025

A Aziz - appointed 19th March 2025

Mrs R Aziz - appointed 19th March 2025

A Aziz - appointed 4th April 2025

FINANCIAL INSTRUMENTS

The Group's primary financial reporting comprises the monthly production of detailed management accounts. These

accounts include a comprehensive profit and loss statement (P&L) and balance sheet, which provide the directors with an in-depth analysis of the Group's financial performance and position. The information presented facilitates ongoing monitoring of the Group's financial progress against both the current budget and the prior year's performance for the corresponding period.

The management accounts serve as a critical tool for the directors to assess the assess the achievement of strategic objectives in relation to the Group's long-term plans. The key performance indicators (KPIs) reported within the monthly management accounts include Revenue, Gross Profit, EBITDA, Stock Holdings, Debtors, Debtor Days and Liquidity.

FINANCIAL RISK MANAGEMENT

These details are provided in the Group's strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 company's website.

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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

A Aziz - Director

14th September 2026

Opinion

We have audited the financial statements of Aziz Group Holdings & Investments Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31st March 2026 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement and Notes to the Cash Flow Statements, 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 group's and of the parent company affairs as at 31st March 2026 and of the group's profit for the period 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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, 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 group's and the 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 the parent 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the food sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK taxation legislation, and data protection, anti-bribery, employment, environmental, and health and safety legislation, along with industry specific regulations and requirements;

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

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

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

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Paul Drant (Senior Statutory Auditor)

for and on behalf of Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

15th September 2026

TURNOVER

19,309,006

Cost of sales

16,426,397

GROSS PROFIT

2,882,609

Distribution costs

450,726

Administrative expenses

1,757,773

2,208,499

674,110

Other operating income

1,633,877

OPERATING PROFIT

4

2,307,987

Interest receivable and similar income

2,085

2,310,072

Interest payable and similar expenses

5

37,733

PROFIT BEFORE TAXATION

2,272,339

Tax on profit

6

180,410

PROFIT FOR THE FINANCIAL PERIOD

2,091,929

OTHER COMPREHENSIVE INCOME

Revaluation

100,000

Income tax relating to other comprehensive income

28,537

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

128,537

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,220,466

Profit attributable to:

Owners of the parent

2,091,929

Total comprehensive income attributable to:

Owners of the parent

2,220,466

FIXED ASSETS

Intangible assets

8

19,588

Tangible assets

9

3,989,334

Investments

10

-

4,008,922

CURRENT ASSETS

Stocks

11

1,379,633

Debtors

12

625,450

Cash at bank

141,524

2,146,607

CREDITORS

Amounts falling due within one year

13

2,745,557

NET CURRENT LIABILITIES

(598,950

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,409,972

CREDITORS

Amounts falling due after more than one year

14

(449,651

)

PROVISIONS FOR LIABILITIES

18

(739,755

)

NET ASSETS

2,220,566

CAPITAL AND RESERVES

Called up share capital

19

100

Revaluation reserve

20

(85,609

)

Retained earnings

20

2,306,075

SHAREHOLDERS' FUNDS

2,220,566

The financial statements were approved by the Board of Directors and authorised for issue on 14th September 2026 and were signed on its behalf by:

A Aziz - Director

FIXED ASSETS

Intangible assets

8

-

Tangible assets

9

-

Investments

10

2,115,458

2,115,458

CURRENT ASSETS

Debtors

12

92

CREDITORS

Amounts falling due within one year

13

1,344,893

NET CURRENT LIABILITIES

(1,344,801

)

TOTAL ASSETS LESS CURRENT LIABILITIES

770,657

CAPITAL AND RESERVES

Called up share capital

19

100

Retained earnings

20

770,557

SHAREHOLDERS' FUNDS

770,657

Company's profit for the financial year

770,557

The financial statements were approved by the Board of Directors and authorised for issue on 14th September 2026 and were signed on its behalf by:

A Aziz - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Issue of share capital

100

-

-

100

Total comprehensive income

-

2,091,929

128,537

2,220,466

Reserves transfer

-

214,146

(214,146

)

-

Balance at 31st March 2026

100

2,306,075

(85,609

)

2,220,566

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

770,557

770,557

Balance at 31st March 2026

100

770,557

770,657

Cash flows from operating activities

Cash generated from operations

1

586,136

Interest paid

(36,184

)

Interest element of hire purchase or finance lease rental payments paid

(1,549

)

Taxation refund

(74,267

)

Net cash from operating activities

474,136

Cash flows from investing activities

Purchase of intangible fixed assets

(20,987

)

Purchase of tangible fixed assets

(242,443

)

Sale of tangible fixed assets

25,500

Costs paid on purchase of subsidiary

(15,150

)

Cash acquired on purchase of subsidiary

102,348

Interest received

2,085

Net cash from investing activities

(148,647

)

Cash flows from financing activities

Loan repayments in year

(28,638

)

Capital repayments in year

(42,543

)

Amount withdrawn by directors

(112,784

)

Net cash from financing activities

(183,965

)

Increase in cash and cash equivalents

141,524

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

141,524

Cash flows from operating activities

Cash generated from operations

1

(1,360

)

Net cash from operating activities

(1,360

)

Cash flows from investing activities

Purchase of fixed asset investments

(15,125

)

Net cash from investing activities

(15,125

)

Cash flows from financing activities

Loans from group companies

16,485

Net cash from financing activities

16,485

Increase in cash and cash equivalents

-

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

-

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Group

£

Profit before taxation

2,272,339

Depreciation charges

156,393

Loss on disposal of fixed assets

78,570

Negative goodwill recognised in profit

(1,532,051

)

Finance costs

37,733

Finance income

(2,085

)

1,010,899

Increase in stocks

(86,429

)

Increase in trade and other debtors

(262,149

)

Decrease in trade and other creditors

(76,185

)

Cash generated from operations

586,136

Company

£

Profit before taxation

770,562

Finance income

(775,024

)

(4,462

)

Increase in trade and other creditors

3,102

Cash generated from operations

(1,360

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statements in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Group

Company

Period ended 31st March 2026

31/3/26

19/3/25

31/3/26

19/3/25

£

£

£

£

Cash and cash equivalents

141,524

-

-

-

3.	ANALYSIS OF CHANGES IN NET DEBT

Group

At 19/3/25

Cash flow

At 31/3/26

£

£

£

Net cash

Cash at bank

-

141,524

141,524

-

141,524

141,524

Debt

Debts falling due within 1 year

-

(32,487

)

(32,487

)

Debts falling due after 1 year

-

(449,651

)

(449,651

)

-

(482,138

)

(482,138

)

Total

-

(340,614

)

(340,614

)

Company

At 19/3/25

Cash flow

At 31/3/26

£

£

£

4.	ACQUISITION OF BUSINESS

See note 10 to the consolidated financial statements for details of the acquisition of Isaac Wholesale Limited.

1.	STATUTORY INFORMATION

Aziz Group Holdings & Investments Ltd 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Related party exemption

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. Estimates and judgements are

continuously evaluated and are based on historical experience and other factors, such as including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustments to the carrying value of the assets and liabilities within the next financial year are as follows:

Useful life and residual values

Estimations in residual values and useful lives of tangible and intangible assets are assessed annually. Judgement has been made in estimating the useful lives of the asset categories aligned to the company's depreciation and write-off policies.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2007, is being amortised evenly over its estimated useful life of thirteen years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on reducing balance

Improvements to property

-

10% on cost

Plant and machinery

-

15% on reducing balance, 15% on cost and 10% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance and 20% on reducing balance

Computer equipment

-

33% on cost and 33% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions on the instrument. Financial assets and liabilities are offset with the net amounts presented in the financial statements, where 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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

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

Foreign currencies

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

1,481,306

Social security costs

151,744

Other pension costs

5,207

1,638,257

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

Directors

5

Administration and Warehouse

26

Warehouse

11

Transport

11

53

£

Directors' remuneration

148,812

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

4.	OPERATING PROFIT

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

£

Other operating leases

134,603

Depreciation - owned assets

154,994

Loss on disposal of fixed assets

78,570

Patents and licences amortisation

1,399

Auditors' remuneration

20,550

Formation costs

606

Negative goodwill recognised in profit and loss

(1,532,051

)