REGISTERED NUMBER: 04108870 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 March 2025

for

Ancient Wisdom Marketing Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Mr T Belan

Ms K Buchy

Mr J L Dawson

Mr D L Hardy

REGISTERED OFFICE:

Affinity Park

Europa Drive

Sheffield

South Yorkshire

S9 1XT

REGISTERED NUMBER:

04108870 (England and Wales)

AUDITORS:

SMH Group Audit

Statutory Auditors

5 Westbrook Court

Sharrow Vale Road

Sheffield

South Yorkshire

S11 8YZ

The directors present their strategic report for the year ended 31st March 2025 for the Ancient Wisdom Group, comprising Ancient Wisdom Marketing Ltd, AW Aromatics Ltd, Ancient Wisdom s.r.o. and AW Artisan Spain.

The Group operates as a business-to-business wholesale supplier specialising in giftware, home fragrance, wellness and lifestyle products across the United Kingdom and Europe. The Group continues to focus on product innovation, ethical sourcing, customer service and investment in technology to support long-term sustainable growth across multiple European markets.

The directors place significant importance on maintaining long-term relationships with suppliers and manufacturing partners across Asia and Europe. The Group believes that stable partnerships, ethical sourcing practices and direct engagement with producers are important foundations for maintaining product quality, continuity of supply and sustainable long-term growth.

The current financial year also represents the Group's first full statutory group audit process, reflecting the continued growth and development of the business across multiple territories.

REVIEW OF BUSINESS

The Group delivered modest sales growth during the year, with turnover increasing by 6.9%. Trading conditions across the retail and wholesale sectors remained challenging, particularly within the United Kingdom where sales remained broadly flat. However, the Group's European operations continued to perform positively, supported by expansion into new EU markets through the Group's Slovakian entity.

Gross margins remained consistent at 46.1% (2024: 46.9%). International shipping rates and foreign exchange movements became more favourable compared to previous periods. These improvements were partially offset by increases in labour costs, taxation and occupational expenses across the Group.

The directors continue to monitor the impact of increasing competition from international low-cost online marketplaces and cross-border direct-to-consumer platforms, which continue to place pressure on traditional retail sectors throughout Europe. In response, the Group has continued to invest in differentiated product development, branding and customer-focused wholesale services. The directors believe this strategy is beginning to strengthen the Group's market position and resilience.

Significant progress has also been made in the ongoing development of the Group's technology infrastructure. Continued investment in the AIKU operating system is expected to improve stock management, operational efficiency, forecasting capability and inventory availability during the 2025/26 financial year. The Group has also continued development of its dropshipping platforms and ecommerce integrations, including API connectivity with Shopify and eBay, which the directors believe will support future growth opportunities and improve access to independent retailers across Europe.

The Group continues to monitor cashflow carefully in light of ongoing global economic uncertainty. During the year, net cash reserves reduced while overall investment in stock holdings and working capital increased in order to support future sales growth, improve product availability and strengthen customer service levels.

The principal financial and operational key performance indicators monitored by the directors during the year included:

- Sales growth

- Gross margin performance

- Customer retention levels

- Average order value

- Website traffic and online order activity

- Inventory availability and stock performance

The directors are encouraged by continued improvements in gross margins, customer retention and online traffic performance, while inventory availability remains an operational focus area for the Group.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group operates within a highly competitive international trading environment and is subject to a number of risks and uncertainties which could have an impact on future performance.

The principal risks identified by the directors include global shipping volatility, geopolitical instability, inflationary pressures and dependence on international supply chains. Disruption within global freight markets or sourcing regions may impact product availability, lead times and operating costs.

The Group is also exposed to increasing regulatory and compliance requirements across multiple territories, including product compliance, customs regulations and ecommerce trading standards. The directors continue to monitor these requirements closely and work with suppliers and partners to maintain appropriate standards and procedures.

Cyber security and IT resilience remain important operational priorities as the Group continues to expand its digital infrastructure, ecommerce platforms and internal systems. Investment continues in systems development and security controls to help mitigate operational and data risks.

The directors also recognise the growing impact of international low-cost online marketplaces operating cross-border direct-to-consumer models. The Group's strategy to mitigate this risk includes continued investment in branding, product design, wholesale service levels, customer relationships and operational technology.

The Group's broad supplier network and international operational structure help to reduce dependence on any single market or sourcing region. The directors continue to work closely with long-standing suppliers and logistics partners to improve supply chain resilience and flexibility.

OUTLOOK

While the wider retail and consumer environment remains uncertain, the directors remain optimistic regarding the Group's future prospects. The business continues to evolve from a traditional wholesale model towards a more technology-enabled and brand-led international operation.

The directors believe that continued investment in systems, branding, product development and ecommerce infrastructure will position the Group strongly for future growth. The expansion of the Group's dropshipping capabilities, API integrations and European operations is expected to create new opportunities and improve market reach during the coming financial year.

The Group also believes that independent retailers across Europe increasingly value originality, service, authenticity and reliable supply partnerships in response to the continued growth of mass-market online platforms. The directors remain confident that the Group's long-term approach to ethical sourcing, product innovation and customer relationships provides a strong foundation for sustainable future growth.

ON BEHALF OF THE BOARD:

Mr D L Hardy - Director

18 September 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a wholesale supplier specialising in giftware, home fragrance, wellness and lifestyle products.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

Mr T Belan

Ms K Buchy

Mr D L Hardy

Other changes in directors holding office are as follows:

Mr J L Dawson - appointed 23 May 2024

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.

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, SMH Group Audit, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D L Hardy - Director

18 September 2026

Disclaimer of Opinion

We were engaged to audit the financial statements of Ancient Wisdom Marketing Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 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 and Notes to the Consolidated Cash Flow Statement, 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).

We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion

We were appointed as auditor of the group after 31 March 2025 and did not observe the counting of physical stock at 31 March 2024 and 31 March 2025. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 1 April 2024 and 31 March 2025, which are carried in the Consolidated Statement of Financial Position at £7,229,712 (2024: £5,660,889) and the Company Statement of Financial Position at £2,810,968 (2024: £2,200,096). Since these stock balances enter into the determination of financial performance, we were unable to determine whether adjustments were necessary in respect of the profit for the year reported in the Consolidated Statement of Comprehensive Income.

Additionally, during our audit, we identified non-compliance with applicable UK Law and UK Accounting Standards (FRS 102) within the subsidiary companies Ancient Wisdom S.R.O. and AW Artisan S.L.

Due to unavailable accounting records and internal control deficiencies, we were unable to quantify the full monetary effect of the following matters. The possible effects are considered to be both material and pervasive to the financial statements:

- Fixed Assets: Property, plant, and equipment are not recognised in the subsidiary's financial statements. Asset registers are not maintained; consequently, we were unable to determine the required adjustments to fixed assets, depreciation, or opening and closing reserves.

- Cut-off and Expenditure: Purchase invoices may be recognised in incorrect accounting periods due to local accounting practices and a lack of cut off procedures. Ledger details are not available to quantify potential misstatements to stock, cost of sales, trade payables, and reserves.

- System Migration: Unit cost prices for stock within AW Artisan S.L. were migrated into the accounting system without adequate control verification or reporting data. As a result, we could not determine whether stock valuations are materially misstated.

- Bank and Cash Balances: Bank balances contain unresolved discrepancies. We were unable to obtain sufficient appropriate audit evidence to verify whether material differences stem from currency translation errors, nor could we quantify their impact on profit.

Specifically, cash and bank balances are overstated by £244,000.

Furthermore, supporting documentation was not provided for an additional cash balance of £61,000.

Conclusions relating to going concern

We were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. As such we provide no conclusions relating to going concern.

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.

Opinions on other matters prescribed by the Companies Act 2006

Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether 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

Notwithstanding our disclaimer of an opinion on the financial statements, 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, performed subject to the pervasive limitation described above we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

Arising from the limitation of our work referred to above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

- we were unable to determine whether adequate accounting records have been kept.

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:

- 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 responsibility is to conduct an audit of the company's financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor's report. However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. 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.

Other matters - comparatives

The financial statements of Ancient Wisdom Marketing Limited were unaudited for the year ended 31 March 2024 as the Company was eligible for small company audit exemption. Accordingly the comparative information has not been subject to audit.

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.

James Salim FCCA (Senior Statutory Auditor)

for and on behalf of SMH Group Audit

Statutory Auditors

5 Westbrook Court

Sharrow Vale Road

Sheffield

South Yorkshire

S11 8YZ

18 September 2026

TURNOVER

3

14,592,130

13,647,508

Cost of sales

7,863,805

7,242,676

GROSS PROFIT

6,728,325

6,404,832

Administrative expenses

5,247,389

4,841,474

1,480,936

1,563,358

Other operating income

4,513

8,467

OPERATING PROFIT

5

1,485,449

1,571,825

Interest receivable and similar income

6

94,292

2,121

1,579,741

1,573,946

Interest payable and similar expenses

7

-

39

PROFIT BEFORE TAXATION

1,579,741

1,573,907

Tax on profit

8

386,917

366,540

PROFIT FOR THE FINANCIAL YEAR

1,192,824

1,207,367

OTHER COMPREHENSIVE INCOME

Currency translation differences

(115,294

)

(87,616

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(115,294

)

(87,616

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,077,530

1,119,751

Profit attributable to:

Owners of the parent

1,192,824

1,207,367

Total comprehensive income attributable to:

Owners of the parent

1,077,530

1,119,751

FIXED ASSETS

Intangible assets

12

16,000

-

Tangible assets

13

451,539

478,134

Investments

14

-

-

467,539

478,134

CURRENT ASSETS

Stocks

15

7,229,712

5,660,889

Debtors

16

2,163,551

1,763,698

Cash at bank and in hand

1,661,831

1,950,022

11,055,094

9,374,609

CREDITORS

Amounts falling due within one year

17

1,901,050

1,298,716

NET CURRENT ASSETS

9,154,044

8,075,893

TOTAL ASSETS LESS CURRENT LIABILITIES

9,621,583

8,554,027

PROVISIONS FOR LIABILITIES

20

73,690

83,664

NET ASSETS

9,547,893

8,470,363

CAPITAL AND RESERVES

Called up share capital

21

100

100

Capital redemption reserve

22

10

10

Retained earnings

22

9,547,783

8,470,253

SHAREHOLDERS' FUNDS

9,547,893

8,470,363

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2026 and were signed on its behalf by:

Mr D L Hardy - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

307,646

335,372

Investments

14

6,897

6,897

314,543

342,269

CURRENT ASSETS

Stocks

15

2,810,968

2,200,096

Debtors

16

2,546,264

2,458,811

Cash at bank

258,058

718,943

5,615,290

5,377,850

CREDITORS

Amounts falling due within one year

17

918,112

992,562

NET CURRENT ASSETS

4,697,178

4,385,288

TOTAL ASSETS LESS CURRENT LIABILITIES

5,011,721

4,727,557

PROVISIONS FOR LIABILITIES

20

73,690

83,664

NET ASSETS

4,938,031

4,643,893

CAPITAL AND RESERVES

Called up share capital

21

100

100

Capital redemption reserve

22

10

10

Retained earnings

22

4,937,921

4,643,783

SHAREHOLDERS' FUNDS

4,938,031

4,643,893

Company's profit for the financial year

294,138

231,214

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2026 and were signed on its behalf by:

Mr D L Hardy - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

7,350,502

10

7,350,612

Changes in equity

Total comprehensive income

-

1,119,751

-

1,119,751

Balance at 31 March 2024

100

8,470,253

10

8,470,363

Changes in equity

Total comprehensive income

-

1,077,530

-

1,077,530

Balance at 31 March 2025

100

9,547,783

10

9,547,893

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

4,412,569

10

4,412,679

Changes in equity

Total comprehensive income

-

231,214

-

231,214

Balance at 31 March 2024

100

4,643,783

10

4,643,893

Changes in equity

Total comprehensive income

-

294,138

-

294,138

Balance at 31 March 2025

100

4,937,921

10

4,938,031

Cash flows from operating activities

Cash generated from operations

1

271,608

1,165,745

Interest paid

-

(39

)

Tax paid

(468,527

)

(462,655

)

Net cash from operating activities

(196,919

)

703,051

Cash flows from investing activities

Purchase of intangible fixed assets

(20,000

)

-

Purchase of tangible fixed assets

(64,730

)

(19,177

)

Interest received

94,292

2,121

Net cash from investing activities

9,562

(17,056

)

Cash flows from financing activities

Amount withdrawn by directors

(68,768

)

(24,544

)

Net cash from financing activities

(68,768

)

(24,544

)

(Decrease)/increase in cash and cash equivalents

(256,125

)

661,451

Cash and cash equivalents at beginning of year

2

1,950,022

1,310,278

Effect of foreign exchange rate changes

(32,066

)

(21,707

)

Cash and cash equivalents at end of year

2

1,661,831

1,950,022

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

2025

2024

£

£

Profit before taxation

1,579,741

1,573,907

Depreciation charges

93,869

96,506

Exchange differences of fixed assets

1,456

2,162

Currency translation differences

(83,228

)

(65,909

)

Finance costs

-

39

Finance income

(94,292

)

(2,121

)

1,497,546

1,604,584

Increase in stocks

(1,568,823

)

(503,736

)

(Increase)/decrease in trade and other debtors

(362,545

)

1,711,325

Increase/(decrease) in trade and other creditors

705,430

(1,646,428

)

Cash generated from operations

271,608

1,165,745

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

1,661,831

1,950,022

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

1,950,022

1,310,278

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

1,950,022

(288,191

)

1,661,831

1,950,022

(288,191

)

1,661,831

Total

1,950,022

(288,191

)

1,661,831

1.	STATUTORY INFORMATION

Ancient Wisdom Marketing 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 General Information page.

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.

The consolidated financial statements are presented in Pounds Sterling which is the Group's and Company's functional currency.

There are two group undertakings with functional currency of the Euro.

Basis of consolidation

The financial statements incorporate the financial statements of the company and all group undertakings made up to 31 March 2025, with the exception of the subsidiary undertaking AW Artisan S.L. whose financial statements are made up to 31 December 2024 for the current period and 31 December 2023 for the comparative, both of which are within 3 months of the reporting date of the group. Where necessary, adjustments are made to the financial statements of group undertakings to bring the accounting policies used into line with those used by other members of the group.

A group undertaking is an entity controlled by the company. Control exists where the company has power, directly or indirectly, to govern the operating policies of the entity so as to derive benefits from its activities.

All intra-group transactions, balances and unrealised gains on transactions between group undertakings are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred.

Where the functional currency of a group undertaking differs to the presentational currency of the group the functional currency is translated using official average exchange rates for the statement of comprehensive income for the period, and for the balance sheet the closing market exchange rate at the date of that balance sheet is used.

All group undertakings were incorporated by the entity and so share capital was acquired at nominal value. No group undertakings were acquired through a business combination.

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

Preparation of the financial statements requires management to make significant judgements and estimates in the application of the Company's accounting policies. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant.

In preparing these financial statements, there are no critical accounting estimates or judgements requiring disclosure in addition to the accounting policies described.

Turnover

Turnover comprises the invoiced value of goods and services supplied during the year, net of value added tax, trade discounts and rebates. Revenue from the sale of goods is recognised when control passes to the customer, usually on delivery. Revenue from services is recognised as the services are provided. Income received in advance is deferred and recognised over the period to which it relates.

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.

Goodwill is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

Straight line over 3 years

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 only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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 year 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 year 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.

Foreign currencies

For the company 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.

For the group there are two subsidiary undertakings with a functional currency of the Euro. These subsidiaries are consolidated after translating using official average exchange rates for the statement of comprehensive income for the period, and for the balance sheet the closing market exchange rate at the date of that balance sheet is used.

This is considered appropriate as the exchange rate does not fluctuate significantly and it would be impractical to translate income and expenses at the date of each transaction.

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.

Going concern

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.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

6,030,280

5,600,959

Europe

8,561,850

8,046,549

14,592,130

13,647,508