REGISTERED NUMBER: 06717696 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

WHITE STORES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

J J Whiteley

J Oxley

V A Grant

S C Mclaren

L Foucher

A Foucher

REGISTERED OFFICE:

Unit 8 Capitol Industrial Estate

Fulmar Way

Wickford

Essex

SS11 8YW

REGISTERED NUMBER:

06717696 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

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

REVIEW OF BUSINESS

White Stores has continued to strengthen its position as one of the UK's leading outdoor living retailers. With over twenty years of trading, an experienced management team and a growing national presence, the business has built a differentiated position through its combination of ecommerce, physical showrooms, direct sourcing and end-to-end logistics.

This integrated omnichannel model is a significant competitive advantage. Customers can research online, visit destination showrooms, draw on knowledgeable sales teams and receive delivery through the Company's own logistics network - a combination still uncommon in the sector, and one that continues to support customer acquisition, retention and brand development.

During 2025, the Company continued to position itself as a broad outdoor living brand rather than a traditional garden furniture retailer. Recent years have seen expansion into complementary categories including pergolas, outdoor heating and accessories, with further opportunities in development.

The Directors remain confident in the Company's ability to deliver continued margin growth. Ongoing improvements in sourcing, supplier relationships, inventory management, stock forecasting, pricing discipline and operational efficiency are expected to support sustainable gains.

The Company also continued to invest in its people. Better employee retention, stronger leadership and greater organisational stability have reduced reliance on external recruitment, and the Directors regard the experience and commitment of the Company's employees as central to its continued success.

Looking ahead, the Directors remain confident in the long-term prospects of the business. A recognised brand, strong customer reputation, deep digital expertise, a growing retail estate, investment in AI and an experienced management team together provide a robust platform for growth. Mindful of wider economic conditions, the Company moving forward is in a strong position, and expects recent investment to support continued improvements in revenue quality, margin, operational efficiency and profitability.

PRINCIPAL RISKS AND UNCERTAINTIES

The management and execution of the company's strategy are influenced by several key risks. Principal risks and uncertainties include competition from both national and independent retailers, employee retention, product availability, and cost inflation.

Despite these challenges, the business is well-positioned to adapt and compete effectively. Our strong industry reputation, robust stock holding, and dynamic marketing and incentive strategies provide us with the flexibility to respond to adverse weather and competitive pricing pressures. Employee retention remains a critical focus, and the establishment of our People, Talent Acquisition, and Culture Department has been pivotal in fostering a supportive and engaging workplace environment.

Our exclusive supply chains with Far East factories and solid relationships within the freight industry ensure quick and reliable product availability at competitive prices.

SECTION 172(1) STATEMENT

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In this respect the Directors have had regard, amongst other matters, to the:

- Likely consequences of any decisions in the long-term;

- Interests of the Company's employees;

- Need to foster the Company's business relationships with suppliers, customers and others;

- Impact of the Company's operations on the community and environment;

- Desirability of the Company maintaining a reputation for high standards of business conduct;

and

- Need to act fairly as between members of the Company.

The Directors seek to ensure that their decision making process not only takes into account the Company's purpose, vision and values, together with its strategic priorities, but also reflects, as far as practical and possible, the interests of all stakeholders.

KEY PERFORMANCE INDICATORS

The company manages the business by reference to key performance indicators. Competent management reporting tools are in place to provide essential current, timely reporting in a clear and precise manner

Key Performance Indicators are year on year turnover growth, gross profit margin %, and operating profit margin % as set out below:

2025

2024

Growth of turnover/(decline)%

2%

(6%)

Gross profit margin %

39%

32%

Operating profit margin %

2%

2%

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's operations expose it to various financial risks, including price risk, credit risk, liquidity risk, and interest rate cash flow risk. To mitigate the potentially adverse effects of these risks on the company's financial performance, the directors have established comprehensive policies and procedures.

Price risk

Operating within a competitive market, the company faces price risk from both suppliers and competitors. However, the company effectively manages this risk through strategic supplier agreements, leveraging its operational scale.

Credit risk

While most of the company's sales are not credit-based, appropriate credit checks are conducted for those that are. Each customer's credit exposure is subject to limits, and overall risk is managed through rigorous credit control procedures and a diverse customer base.

Liquidity risk

Liquidity risk, the risk of encountering difficulty in meeting financial obligations, is mitigated by the company's substantial cash resources and access to additional bank facilities.

Brexit

The company continuously monitors the impact of Brexit. Despite no sales outside the UK, all employees and suppliers are UK-based or from Far East stock suppliers, ensuring minimal disruption.

Foreign exchange risk

Purchasing in US dollars exposes the company to foreign currency risk. To mitigate this, the company utilises forward exchange contracts, ensuring predictable future cash flows.

STREAMLINED ENERGY AND CARBON REPORTING

2025

2024

UK energy use kWh

kWh's

kWh's

Electricity purchased - total kWh taken from electricity bills

295,669

181,492

Transport Fuel - a total estimated 8,329 litres

83,696

57,951

379,365

239,443

Associated Greenhouse gas emissions tC02e

tCO2e

tCO2e

Emissions from purchased electricity

66.5

40.8

Emissions from combustion of transport fuel

19.8

13.7

86.3

54.5

Intensity ratio

Sales revenue £1m

38.3

37.6

Tonnes CO2e Equivalent

86.3

54.5

Tonnes of CO2e per total £1m sales revenue

2.3

1.4

Approved conversion factors have been applied to calculate CO2 emissions from kWh usage.

FUTURE DEVELOPMENTS

The company remains committed to its strategic vision of becoming the UK's leading outdoor living eCommerce business, supported by its strategically located showrooms in the south of England. The business has ambitions to continue expanding it's physical presence in the UK with the opening of new strategically placed Showrooms in the coming years.

ON BEHALF OF THE BOARD:

J J Whiteley - Director

5 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of online sales of various garden furniture.

DIVIDENDS

Total dividends amounted to £nil (2024: £nil)

DIRECTORS

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

J J Whiteley

J Oxley

V A Grant

S C Mclaren

L Foucher

A Foucher

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report)

Regulations 2013 certain information required by schedule 7 of the Large and Medium sized Companies and

Groups (Accounts and Reports) Regulations 2008 is set out in the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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 company's auditors are aware of that information.

AUDITORS

The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J J Whiteley - Director

5 August 2026

Opinion

We have audited the financial statements of White Stores Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Audit procedures performed by the engagement team to detect irregularities, including fraud from instances of non-compliance with laws and regulations included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Reading key correspondence from regulatory bodies;

- Challenging assumptions and judgements made by management in it's significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

- Consideration of recent correspondence with the companies legal advisors to ensure that it aligned with the

conclusions drawn on obligations recognised in respect of uncertain legal matters;

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or those posted by unexpected users; and

- Testing transactions entered into that are outside of the normal course of the Company's business

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

A further description of our responsibilities 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.

Stephen James Moore (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

5 August 2026

TURNOVER

38,397,123

37,643,880

Cost of sales

(23,377,574

)

(25,749,407

)

GROSS PROFIT

15,019,549

11,894,473

Distribution costs

(4,411,455

)

(4,119,744

)

Administrative expenses

(9,857,341

)

(7,036,208

)

750,753

738,521

Other operating income

184,150

94,944

OPERATING PROFIT

5

934,903

833,465

Interest receivable and similar income

8,793

33,256

943,696

866,721

Interest payable and similar expenses

7

(910,076

)

(667,150

)

PROFIT BEFORE TAXATION

33,620

199,571

Tax on profit

8

96,301

274,645

PROFIT FOR THE FINANCIAL YEAR

129,921

474,216

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

129,921

474,216

FIXED ASSETS

Intangible assets

9

291,343

399,078

Tangible assets

10

934,780

1,344,570

1,226,123

1,743,648

CURRENT ASSETS

Stocks

11

13,277,697

13,295,059

Debtors

12

9,560,634

9,809,572

Cash at bank and in hand

2,112,678

2,402,200

24,951,009

25,506,831

CREDITORS

Amounts falling due within one year

13

(14,411,560

)

(14,669,255

)

NET CURRENT ASSETS

10,539,449

10,837,576

TOTAL ASSETS LESS CURRENT LIABILITIES

11,765,572

12,581,224

CREDITORS

Amounts falling due after more than one year

14

(1,374,166

)

(2,236,084

)

PROVISIONS FOR LIABILITIES

19

(559,120

)

(642,775

)

NET ASSETS

9,832,286

9,702,365

CAPITAL AND RESERVES

Called up share capital

20

1,056

1,056

Share premium

21

8,062

8,062

Retained earnings

21

9,823,168

9,693,247

SHAREHOLDERS' FUNDS

9,832,286

9,702,365

The financial statements were approved by the Board of Directors and authorised for issue on 5 August 2026 and were signed on its behalf by:

J J Whiteley - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

1,056

9,219,031

8,062

9,228,149

Changes in equity

Total comprehensive income

-

474,216

-

474,216

Balance at 31 December 2024

1,056

9,693,247

8,062

9,702,365

Changes in equity

Total comprehensive income

-

129,921

-

129,921

Balance at 31 December 2025

1,056

9,823,168

8,062

9,832,286

1.	STATUTORY INFORMATION

White Stores Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

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.

Turnover

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

The company recognises revenue when the significant risks and rewards of ownership have been

transferred to the buyer; the company retains no continuing involvement or control over the goods; the

amount of revenue can be measured reliably; and when it is probable that future economic benefits will

flow to the entity.

Intangible assets

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

Investments in Cryptocurrencies

Cryptocurrencies are valued at cost less accumulated impairments. The directors consider the market value of each investment at the end of the reporting period for objective evidence of impairment. If objective evidence is found, an impairment loss is recognised in profit or loss.

Development Costs

Development costs are being amortised evenly over their 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.

Short leasehold

-

20% on cost

Improvements to property

-

25% on cost

Plant and machinery

-

33% on cost, 20% on cost and 10% on cost

Motor vehicles

-

25% on cost and 25% on reducing balance

Computer equipment

-

25% on cost

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated

impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the

asset to its working condition for its intended use, dismantling and restoration costs.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Stocks

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

Cost is calculated on a weighted average basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is based on estimated selling price less costs to complete and sell.

At the end of each reporting period stocks are assessed for impairment. If any stock is impaired, it is reduced to its net realisable value and an impairment charge is recognised in the income statement. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the income statement.

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only 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.

Derivative Financial Instruments

The company enters into forward currency contract and options to mitigate the exchange risk for certain foreign currency payables.

The forward currency contracts and options are measured at fair value which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates for GBP:USD.

The company does not apply hedge accounting in respect of forward contracts or options held to manage cash flow exposure of forecast transactions denominated in foreign currencies.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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

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

Investments in precious metals

Investments in precious metals are initially measured at cost. After initial recognition, investments are measured at cost less any accumulated impairments. The directors consider the market value of each investment at the end of the reporting period for objective evidence of impairment. If objective evidence is found, an impairment loss is recognised in profit or loss.

Investments in Equity instruments

Investments in equity instruments 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.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,096,727

824,958

Social security costs

111,908

78,674

Other pension costs

31,120

17,859

1,239,755

921,491

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

2025

2024

Directors

1

1

Admin

15

11

Direct

19

13

35

25

2025

2024

£

£

Directors' remuneration

80,072

77,994

Directors' pension contributions to money purchase schemes

8,734

7,035

5.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

902,627

585,962

Depreciation - owned assets

413,717

608,684

Profit on disposal of fixed assets

(32,581

)

(245,375

)

Development costs amortisation

91,847

341,450

Auditors' remuneration

75,532

44,587

Foreign exchange differences

197,917

(356,247

)

6.	MATERIAL ITEMS

Included within finance costs are fair value losses on derivative foreign exchange contracts, amounting to £499,651 (2024 - £200,000).

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

410,425

467,150

Derivative FV Gain or Loss

499,651

200,000

910,076

667,150

8.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

28,922

-

Prior year tax

-

(83,881

)

Total current tax

28,922

(83,881

)

Deferred tax

(125,223

)

(190,764

)

Tax on profit

(96,301

)

(274,645

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

33,620

199,571

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

8,405

49,893

Effects of:

Expenses not deductible for tax purposes

333

56

Depreciation in excess of capital allowances

116,172

135,311

Utilisation of tax losses

-

(21,421

)

Deferred tax expense relating to the origination and reversal of timing differences

(125,223

)

(190,764

)

Group Relief

(87,843

)

(173,597

)

Profit on disposal of assets

(8,145

)

9,758

Prior year taxation

-

(83,881

)

Total tax credit

(96,301

)

(274,645

)

9.	INTANGIBLE FIXED ASSETS

Investment

in

Development

cryptocurrencies

costs

Totals

£

£

£

COST

At 1 January 2025

15,888

450,670

466,558

Additions

309,406

-

309,406

Disposals

(325,294

)

-

(325,294

)

At 31 December 2025

-

450,670

450,670

AMORTISATION

At 1 January 2025

-

67,480

67,480

Amortisation for year

-

91,847

91,847

At 31 December 2025

-

159,327

159,327

NET BOOK VALUE

At 31 December 2025

-

291,343

291,343

At 31 December 2024

15,888

383,190

399,078

10.	TANGIBLE FIXED ASSETS

Improvements

Short

to

Plant and

leasehold

property

machinery

£

£

£

COST

At 1 January 2025

22,763

1,225,579

1,403,314

Additions

-

1,709

2,218

Disposals

-

-

-

At 31 December 2025

22,763

1,227,288

1,405,532

DEPRECIATION

At 1 January 2025

6,125

887,543

538,456

Charge for year

3,863

177,030

151,225

Eliminated on disposal

-

-

-

At 31 December 2025

9,988

1,064,573

689,681

NET BOOK VALUE

At 31 December 2025

12,775

162,715

715,851

At 31 December 2024

16,638

338,036

864,858