REGISTERED NUMBER: 03110319 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

RAJAPACK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

D Cohen

D Marcovici

SECRETARY:

D Cohen

REGISTERED OFFICE:

DC10 Unit 1

Salford Road

Brogborough

Bedford

MK43 0AR

REGISTERED NUMBER:

03110319 (England and Wales)

SENIOR STATUTORY AUDITOR:

Stephen Pocock FCCA

AUDITORS:

BSR Bespoke

Chartered Accountants & Statutory Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

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

Rajapack Ltd is a leading UK distributor of packaging solutions, supplying a broad range of standard and bespoke products to business customers across multiple sectors, including e-commerce, industrial, and distribution. The Company operates primarily through direct and digital channels, enabling it to efficiently serve customers of all sizes nationwide, with next-day delivery offered as standard.

REVIEW OF BUSINESS

The Company recorded turnover of £42.0m for the year ended 31 December 2025, representing growth of 1.2%. This performance was driven by continued expansion within the large customer segment, which partially offset a reduction in smaller customer accounts. The resilience of the Company's larger customer base, combined with ongoing investment in the external sales function, contributed to a strong second half performance in both revenue and gross margin.

Trading conditions remained challenging throughout the year, with persistent inflationary pressures, ongoing political uncertainty, and heightened price sensitivity across the market. These factors contributed to increased competition across all customer segments and sales channels.

Whilst revenue improved, gross margin decreased to 45.3% (2024: 46.8%). This reduction reflects continued cost inflation, the impact of the newly introduced Extended Producer Responsibility (EPR) legislation, and an evolving sales mix.

The Company maintained a disciplined approach to cost control, with overheads remaining tightly managed despite inflationary pressures. The year saw notable increases in uncontrollable costs, particularly within property-related expenses (£0.8m) and National Insurance contributions (£0.1m). These increases were partially offset through a sustained programme of cost management led by the Directors and senior management team, with a continued focus on operational efficiency, automation, and long-term value creation.

As a result, the Company reported an EBITDA loss of £0.2m (2024: profit of £0.6m)

PRINCIPAL RISKS AND UNCERTAINTIES

The directors regularly assess the key business risks of the company, which are considered to be:

Cost price volatility

The market volatility that is currently prevalent in the UK, especially raw materials and energy pricing, as a result of the ongoing war in the Middle East is mitigated by passing on purchase cost price changes (+/-) to our customers, as appropriate, and ensuring DIO (Days Inventory Outstanding) remain at an appropriate level.

Trade Receivables/Bad Debt

The Senior Leadership at the company believe the current volatility in business within the UK, will lead to more companies going into administration, and more companies defaulting on monies owed. To mitigate this risk, the Company regularly reviews the credit risk of major customers, receives payment in advance for 1st orders, and determines credit limits for all new customers.

Regulatory Change

The Company recognises the significant changes that are happening within the packaging industry and the potential impact regulatory bodies could have on the future direction of the business, especially relating to the environment and CSR. As a result, the company regularly reviews the likelihood and impact of potential changes, enabling quick and agile reactions to changes such as EPR.

Data Protection

The Company sees data as a key resource and understands the benefits that it can bring to the business. This however does bring potential risks around GDPR and potential large fines. This is mitigated by the Company, and the larger Group, by control measures, continuous review and internal control procedures.

Employees

The loss of key personnel by the Company could cause significant disruption. This is managed by annual remuneration benchmarking across all roles to ensure market competitiveness.

SECTION 172 STATEMENT

The Directors are committed to promoting the success of the Company for the benefit of its members as a whole and, in doing so, have had regard to the matters set out in section 172(1) of the Companies Act 2006.In discharging their duties during the year, the Directors considered the long?term consequences of decisions, the interests of employees, the need to foster strong relationships with customers and suppliers, the impact of the Company's operations on the community and the environment, and the desirability of maintaining high standards of business conduct.

The Board engaged regularly with key stakeholders through management reporting, employee communications, customer feedback, supplier relationships, and group governance processes. These interactions informed decision?making throughout the year, particularly in relation to strategic planning, investment priorities, operational efficiency, and sustainability considerations.

The Directors believe that the decisions taken during the year were consistent with the Company's strategy and values and support the continued long-term success and resilience of Rajapack Ltd.

The Company has 5 key value that it uses to ensure decisions are made in the best interests of the company and its stakeholders:

-

Customer: Our business is built on customer satisfaction and loyalty. We want our customers to love working with us, and actively recommend us to others.

-

Do the right thing: We are honest and open in our communication; we always respect our colleagues and customers. We have a reputation for valuing integrity.

-

Be accountable: We take personal responsibility for what's in our control and we are happy to be accountable for our results.

-

Succeed together: We achieve more when we work together towards common goals. We are open and challenging, whilst supporting each other.

-

Be the best: We always seek to be the best we can be. We strive to fulfil our potential and feel rewarded by doing a great job every day.

Engagement with employees is seen as critical by the Company following the ever-changing working environments post pandemic. This is managed by the Board through many channels including employee engagement surveys, quarterly business presentations and monthly team meetings.

The company engages with shareholders on a regular basis through the presentation of monthly financial reports.

The key decisions taken by the board in the year have been focussed on improving sales and service to our customers, cost control in a challenging environment, and continue to maintain a commercial focus across the business.

KEY PERFORMANCE INDICATORS (KPI'S)

As a company we are driven by turnover, gross margin and service ratios. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, those being turnover, gross margin, EBITDA, and debtor days (43.1 (2024: 41.8)).

EMPLOYEES

The heartbeat of RAJA UK is its employees. At the end of 2025 we had 155 FTEs.

We continue to invest in their development and well-being, and as a demonstration of our commitment, we:

-

Provided an average of 18.11 hours of training per employee (2,808 hours in total) across 2025

-

Utilise the apprenticeship framework to develop the technical skills of employees and have had 3 employees 'on programme' at any one time over 2025

-

Have 16 (2024: 22) employees trained as mental health first aiders in 2025.

The Company also has a diverse mix of employees with 38.7% identifying as female, 61.3% as male.

CSR

Corporate social responsibility remains integral to the values and long-term strategy of Rajapack UK, with a continued focus on environmental stewardship and community engagement. The Company is committed to building sustainable relationships with customers, suppliers, and stakeholders, underpinned by trust, collaboration, and responsible business practices.

Rajapack UK seeks to minimise its environmental footprint while delivering long-term value, recognising the importance of acting responsibly today to support a sustainable future.

During the year ended 31 December 2025, the Company continued to make strong progress against its CSR objectives, achieving the following:

-

Retention of EcoVadis Gold accreditation, placing the Company in the 96th percentile, with an overall score of 79/100.

-

Awarded Silver in the "Sustainable Packaging Company of the Year" category at the Environmental Packaging Awards.

-

Successful re-certification of ISO9001 (Quality Management), ISO14001 (Environmental Management), and ISO45001 (Health and Safety Management) standards.

-

Successful completion of the ISO27001 (Information Security) surveillance audit.

The Board remains committed to further enhancing the Company's environmental performance and social impact as part of its broader strategic priorities.

STREAMLINED ENERGY AND CARBON REPORTING

Rajapack UK work with GCi 2-yearly to measure GHG emissions. Rajapack Uk's GHG for 2024 was 20.8ktCO2e:

Scopes

Result

Scope 1: direct GHG emissions

454.68 tCO2e

Scope 2: indirect GHG emissions linked to energy

116.65 tCO2e

Scope 3: other indirect GHG emissions

20,199.34 tCO2e

Total: scopes 1-3 GHG emissions

20.8 ktCO2e

RESEARCH AND DEVELOPMENT

The Company embraces the use of technology and sees data, and automation as the key to providing our customers with a world class service, continued efficiency and cost control. The Company continues to look at ways to reduce their carbon footprint and embraces the challenge of helping our customers choose sustainable packaging options, especially with the RAM / EPR regulations becoming more embedded in 2026.

FUTURE DEVELOPMENTS

The Company embraces the use of technology and sees data, and automation as the key to providing our customers with a world class service, continued efficiency and cost control. The Company continues to look at ways to reduce their carbon footprint and embraces the challenge of helping our customers choose sustainable packaging options, especially with the EPR regulations, and subsequent Recyclability Assessment Methodology (RAM) coming into force in 2025.

ON BEHALF OF THE BOARD:

D Marcovici - Director

28 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 the supply of packaging materials.

DIVIDENDS

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

DIRECTORS

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

D Cohen

D Marcovici

Other changes in directors holding office are as follows:

A F J Charpy - resigned 20 June 2025

The directors' interests in the share capital of the parent company are disclosed in that company's accounts.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments, research and development, financial instruments, engagement with suppliers, customers and other in business relationship with the company and streamlined energy and carbon reporting.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

In preparing the financial statements the directors are required to state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

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

AUDITORS

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

ON BEHALF OF THE BOARD:

D Marcovici - Director

28 August 2026

Opinion

We have audited the financial statements of Rajapack Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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).

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 loss 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 six, 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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the client and determined that the most significant are:

-

the form and content of the financial statements, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006;

-

UK Employment Law and General Data Protection Regulation (GDPR), and

-

International Organisation for Standardization, including, ISO9001, ISO14001, ISO45001 and ISO27001.

We gathered an understanding of how the entity is complying with the above frameworks by enquiring and observing management and those charged with governance, ensuring there is a culture of honesty with an emphasis on fraud prevention which may reduce opportunities for fraud to occur as well as acting as a deterrent.

We assessed the susceptibility of the financial statements to material misstatement due to fraud, by making an assessment of the key fraud risks, the manner in which any such risks may materialise, our knowledge of the client and an assessment of the current business environment.

We designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed additional audit procedures to address each identified fraud risk to obtain reasonable assurance that the financial statements were free of fraud or error.

We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above, 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. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance.

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 Pocock FCCA (Senior Statutory Auditor)

for and on behalf of BSR Bespoke

Chartered Accountants & Statutory Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

22 September 2026

TURNOVER

3

41,952,455

41,469,782

Cost of sales

22,926,053

22,060,594

GROSS PROFIT

19,026,402

19,409,188

Distribution costs

2,684,432

2,574,431

Administrative expenses

18,448,475

18,510,758

21,132,907

21,085,189

(2,106,505

)

(1,676,001

)

Other operating income

978,767

1,033,748

OPERATING LOSS

5

(1,127,738

)

(642,253

)

Interest receivable and similar income

9,712

47,946

(1,118,026

)

(594,307

)

Interest payable and similar expenses

6

34,030

43,364

LOSS BEFORE TAXATION

(1,152,056

)

(637,671

)

Tax on loss

7

(251,313

)

(113,237

)

LOSS FOR THE FINANCIAL YEAR

(900,743

)

(524,434

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(900,743

)

(524,434

)

FIXED ASSETS

Intangible assets

8

60,001

124,233

Tangible assets

9

1,912,858

2,122,049

Investments

10

-

-

1,972,859

2,246,282

CURRENT ASSETS

Stocks

11

5,987,398

6,272,638

Debtors

12

7,364,338

6,804,568

Cash at bank

1,089,356

265,799

14,441,092

13,343,005

CREDITORS

Amounts falling due within one year

13

12,057,705

10,297,893

NET CURRENT ASSETS

2,383,387

3,045,112

TOTAL ASSETS LESS CURRENT LIABILITIES

4,356,246

5,291,394

PROVISIONS FOR LIABILITIES

16

283,432

317,837

NET ASSETS

4,072,814

4,973,557

CAPITAL AND RESERVES

Called up share capital

17

500,100

500,100

Retained earnings

3,572,714

4,473,457

SHAREHOLDERS' FUNDS

4,072,814

4,973,557

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

D Marcovici - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

500,100

4,997,891

5,497,991

Changes in equity

Total comprehensive income

-

(524,434

)

(524,434

)

Balance at 31 December 2024

500,100

4,473,457

4,973,557

Changes in equity

Total comprehensive income

-

(900,743

)

(900,743

)

Balance at 31 December 2025

500,100

3,572,714

4,072,814

Cash flows from operating activities

Cash generated from operations

1

1,218,040

(49,572

)

Interest paid

(34,030

)

(43,364

)

Tax paid

8,222

276,094

Net cash from operating activities

1,192,232

183,158

Cash flows from investing activities

Purchase of tangible fixed assets

(378,387

)

(192,185

)

Interest received

9,712

47,946

Net cash from investing activities

(368,675

)

(144,239

)

Increase in cash and cash equivalents

823,557

38,919

Cash and cash equivalents at beginning of year

2

265,799

226,880

Cash and cash equivalents at end of year

2

1,089,356

265,799

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

31.12.25

31.12.24

£

£

Loss before taxation

(1,152,056

)

(637,671

)

Depreciation charges

651,810

795,674

Increase/(Decrease) in group balances

362,769

(78,911

)

Finance costs

34,030

43,364

Finance income

(9,712

)

(47,946

)

(113,159

)

74,510

Decrease/(increase) in stocks

285,240

(666,057

)

(Increase)/decrease in trade and other debtors

(332,078

)

150,914

Increase in trade and other creditors

1,378,037

391,061

Cash generated from operations

1,218,040

(49,572

)

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 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

1,089,356

265,799

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

265,799

226,880

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

265,799

823,557

1,089,356

265,799

823,557

1,089,356

Debt

Debts falling due within 1 year

(1,008,527

)

-

(1,008,527

)

(1,008,527

)

-

(1,008,527

)

Total

(742,728

)

823,557

80,829

1.	STATUTORY INFORMATION

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

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

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.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

Turnover is recognised when it is probable that future economic benefits will flow to the company from the sale of goods and services and is measured as the fair value of consideration which the company expects to receive from those transactions.

Turnover from sales of goods is recognised at the point when the goods are despatched to the customer.

Turnover is recognised net of returns and of trade discounts and is shown exclusive of value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten 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. Any amortisation or impairment losses are included in administrative expenses in the statement of comprehensive income.

Website 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 - 5 or 10 years on cost or over the life of the lease if shorter.

Plant and machinery - 4, 5 or 10 years on cost.

Computer equipment - 4 or 5 years on cost

Stock

Stocks are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Overheads are charged to profit and loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

Financial instruments

The company enters into basic financial instruments that give rise to financial assets and financial liabilities including trade and other debtors, trade and other creditors, bank account balances, bank loans and other loans and borrowings and investments in certain non puttable and non convertible equity instruments.

Debt instruments which are not payable or receivable within one year are initially accounted for at the transaction price and are subsequently accounted for at amortised cost using the effective interest method. Debt instruments payable and receivable within one year are measured at their undiscounted cash amounts. Where the debt instruments are treated as a financing transaction, then the financial asset or liability is measured at the present value of future cash flows based on a market rate of interest. Debt instruments which are treated as financial assets and accounted for at amortised cost are also assessed for impairment.

Equity instruments are initially accounted for at transaction price. They are subsequently accounted for at cost unless they can be accounted for at fair value based on a readily available market price or fair value. Equity instruments which are treated as financial assets and accounted for at cost are also assessed for impairment.

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 as the amount of tax payable using the tax rates and laws that 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

The financial statements are presented in Sterling, which is also the functional currency of the Company. Transactions in currencies other than the functional currency of the Company are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated.

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. The assets of the scheme are held separately from those of the company and operated independently by Metlife.

Preparation of consolidated financial statements

The company has taken advantage of the exemption under S405 (2) of the Companies Act 2006 not to prepare consolidated accounts on the grounds that the inclusion of its subsidiary undertaking's results is not material for the purpose of giving a true and fair view. The financial statements present information about the company as an individual entity and not about its group.

Leased assets

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

3.

TURNOVER

Of the company's total turnover >99% (2024: >99%) is attributable to the UK market for the sale of goods and <1% (2024: <1%) to Non-UK markets. All turnover originated in the UK.

4.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

6,018,087

6,482,567

Social security costs

798,141

700,079

Other pension costs

609,192

659,546

7,425,420

7,842,192

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

31.12.25

31.12.24

Sales

42

46

Administration

57

66

Warehouse

60

63

159

175

31.12.25

31.12.24

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

The operating loss is stated after charging:

31.12.25

31.12.24

£

£

Depreciation - owned assets

587,578

710,167

Goodwill amortisation

40,000

40,000

Website amortisation

24,232

45,507

Auditors' remuneration

23,000

20,750

Taxation compliance services

750

1,000

Other non- audit services

5,333

6,000

Foreign exchange differences

13,662

200,522

Other operating leases

3,169,405

1,890,349

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Loan interest

34,030

43,364

7.

TAXATION

Analysis of the tax credit

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

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

(216,907

)

(28,185

)

Deferred tax:

Deferred tax

(21,740

)

(85,052

)

Prior year deferred tax

(12,666

)

-

Total deferred tax

(34,406

)

(85,052

)

Tax on loss

(251,313

)

(113,237

)

UK corporation tax was charged at 25%) in 2024.