Registered number: 03495308

Supply Point Systems Limited

​​​​​

Annual Report and ​​Financial Statements

For the year ended 31 December 2025

​Directors

Daniel Bush
Craig Goble

Registered number

03495308​

Registered office

​​Unit B Swift Park​
Swift Valley Industrial Estate​
​
Rugby​
Warwickshire​
CV21 1DZ​

​Independent auditors

MHA​​​

Exchange Station​
Tithebarn Street​
​
Liverpool​
​
L2 2QP​

Introduction

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

Business review

The Company's principal activities are the manufacturing, sale and distribution of inventory management systems in Europe and Asia.

The Directors are not aware, at the date of this report, of any likely major changes to the Company's activities in the next year.

The statement of financial position shows the Company's financial position at the year ended 31 December 2025 and shows a small profit, with a significant improvement on prior year results.

Principal risks and uncertainties

Business risk

Over reliance on a relatively small number of large customers is an ongoing risk for the Company. The Company manages this risk by building and expanding upon its existing customer base, and entering agreements with customers to help ensure continued demand and maintain the Company's key supplier status. The Company continues to maintain strong relationships with its customers.

While the company is not immune to the cost increases and inflationary pressures seen globally, the company has a solid customer base and is well positioned to absorb cost pressures and mitigate these where possible. The company continues to display solid performance in the first half of 2026. Supply Point Systems continues to support its affiliated company, Supply Point Systems Inc, and other wider group companies with group transfer pricing and intercompany charging policies, which benefit the wider group position.

Foreign currency risk

The majority of sales and operating costs are denominated in Sterling. The Company also has sales and operating costs denominated in Euros, Chinese Renminbi and Indian Rupees, however on balance there are few significant exposures. The long term strategy is to achieve an overall balance in buying and selling currencies.

Credit risk

The Company's principal financial assets are cash, trade and other debtors and the Company's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debtors. The credit risk of liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Liquidity risk

In order to maintain liquidity to ensure sufficient funds are available for ongoing operations and future developments, the Company utilises short term borrowing and lending facilities from the ultimate parent undertaking, Touchpoint Inc. The Company manages this risk by ensuring cash is collected daily and purchases are paid weekly.

Financial key performance indicators

This report was approved by the board and signed on its behalf:

The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directorss to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directorss 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 for the Company's financial statements and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK 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.

The Directors present​​ their​ report and the financial statements for the year ended 31 December 2025.

The Company’s principal activities are the manufacturing, sale and distribution of inventory management systems in Europe and Asia.

Directors​​​​​

The Directors​ who served during the year:

Daniel Bush

Craig Goble

Qualifying third party indemnity provisions

For the full period and up to the date of the directors’ report being approved, a qualifying third party indemnity provision was in force during the financial year for the benefit of one or more of the directors of the company in accordance with the provisions of the Companies Act of 2006. 

Going Concern

Following a review of forecasts, income statement, statement of financial position, the board is satisfied the Company has considerable financial resources together with contracts with a number of customers across Europe and USA in many varied industries.

In addition to this the Company has access to a group revolving credit facility managed by the parent company, TouchPoint Inc. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully. In August 2022, the parent company amended and restated the credit facility to increase it to $400M and extend its expiration date to August 2027. The Directors have no concerns as to why this facility would not be renewed following this date. Written support from Touchpoint Inc is obtained to cover any shortfall in Supply Point's cash position and agreement not to recall any intra group debts in the succeeding 12 months from the date of signing of the financial statements.

As of 31 December 2025, the Company was in compliance with all related financial covenants. As a consequence, the Directors believe that the Company is well placed to continue on a going concern basis.

Results and dividends

The profit for the year, after taxation, amounted to £23,602 (2024 - loss £(828,277)). The dividends paid to the parent company in the year amount to Nil (2024 - £Nil). The Directors do not recommend payment of a dividend.

Future developments

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on appropriate development of new products, as well as continuing review of the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position.

Research and development

The company continues to pursue research and development opportunities where appropriate, in line with the strategic goals of the business.

Matters covered in the Strategic report

The company has chosen in accordance with the Companies Act 2006 s414C (11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, sch 7 to be contained in the directors' report. It has done so in respect of the review of the business, principal risks and uncertainties and key performance indicators.

A review of the business, principal risks and uncertainties and financial key performance indicators are included within the strategic report.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:

• so far as the Directors are aware, there is no relevant audit information of which the Company's auditors are unaware, and
• the Directorss have taken all the steps that ought to have been taken as Directorss in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Events since the balance sheet​ date

There have been no significant events affecting the Company since the year end.

Auditors

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf:

Date: 22 September 2026 

Opinion

We have audited the financial statements of Supply Point Systems Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including  significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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 United Kingdom, including the Financial Reporting Council'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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

Matters on which we are required to report by exception

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

• adequate accounting records have not been kept by, 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 Directors' responsibilities statement, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the 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.

Our 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 an auditors' report 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.

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

• Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
• Auditing the risk of fraud in revenue, including through the testing of the cut off of income at the year end and sales transaction testing to ensure revenue occurred in the financial statements and recognised in the correct accounting period;
• Enquiries with management about any known or suspected instances of fraud;
• Challenging assumptions and judgements made by management in their significant accounting estimates;
• Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls; and
• Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Company's shareholders, 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 shareholders those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than to the Company and the Company's shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Matthews BFP ACA FCCA

Senior Statutory Auditor
For and on behalf of MHA , Statutory Auditors
Liverpool, United Kingdom

Date:22 September 2026​

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

The notes on pages 15  to  34 form part of these financial statements. All amounts relate to continuing activities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf:

Date: 22 September 2026 

The notes on pages 15 to 34 form part of these financial statements.

The notes on pages 15 to 34 form part of these financial statements.

Supply Point Systems Limited is a private company limited by shares and is incorporated in England & Wales. The address of its registered office is Unit B Swift Park, Swift Valley Industrial Estate, Rugby, Warwickshire, CV21 1DZ.

The principal activity of the Company is the manufacturing, sale and distribution of inventory management systems. The entity is reporting for the year ended 31 December 2025.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently to all periods presented, unless otherwise stated.

The financial statements have been prepared under the historic cost convention unless otherwise specified within these accounting policies and in accordance with ​Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (FRS 102) and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's​ accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

The Company's functional and presentational currency is the Pound Sterling.

The Company has taken advantage of the following disclosure exemptions in preparing its 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 and paragraph 3.17(d).
• the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A as equivalent information is included in the consolidated financial statements of the group in which the Company is consolidated.
• the requirement of paragraph 33.7.

The company has taken advantage of the FRS 102 disclosure exemptions available to qualifying entities. On this basis, the company has taken advantage of the exemption, under paragraph 1.12(b), from preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company, TouchPoint Inc, includes the company’s cash flows in its consolidated financial statements.

The financial statements represent the results of the company and not the group it heads. The company is a wholly owned subsidiary of Touchpoint Inc (a Company incorporated in the USA). It is included in the consolidated financial statements of Touchpoint Inc, which are publicly available. The company is exempt by virtue of section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements. 

The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is TouchPoint Inc. The registered address of the ultimate parent undertaking is 2595 Interstate Dr., Ste. 103. Harrisburg, PA, 17110. The group accounts are filed with the UK Registrar of Companies in accordance with the requirements of the Companies Act.

After making enquiries, including the review of forecasts, statement of comprehensive income and statement of financial position, the board is satisfied that the Company has considerable financial resources together with contracts with a number of customers across Europe and the USA in many varied industries. These forecasts extend to December 2027, and have considered reasonable deteriorations in revenue, as well as costs shocks.

In addition to this the Company has access to a group revolving credit facility managed by the parent company, TouchPoint Inc. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully. In August 2022, the parent company amended and restated the credit facility to increase it to $400M and extend its expiration date to August 2027. The Directors have no concerns as to why this facility would not be renewed following this date. Written support from TouchPoint Inc is obtained to cover any shortfall in Supply Point's cash position and agreement not to recall any intra group debts for 12 months from date of signing of the financial statements. As of 31 December 2025, the Company was in compliance with all related financial covenants. As per company forecasts, it is expected that all covenants will be complied with for the 12 months from date of signing of the financial statements. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end, foreign currency monetary items are translated using the closing rate, non-monetary items measured on a historical cost basis are translated using the exchange rate at the date of the transaction, and non-monetary items measured at fair value in a foreign currency are translated using the rate at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition are recognised in profit or loss for the year. Gains and losses relating to borrowings and cash and cash equivalents are presented within 'other finance income or finance costs', with all other foreign exchange gains and losses presented in 'other operating income or expenses'.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

• the Company has transferred the significant risks and rewards of ownership to the buyer, almost always on dispatch of goods;
• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the transaction; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services in relation to the annual maintenance of equipment is recognised in the period in which the services are provided, generally on a straight line basis over 12 months, in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

•  The amount of revenue can be measured reliably;

•  It is probably that the company will receive the consideration due under the contract;

•  The stage of completion can be measured reliably; and,

•  The costs incurred and the costs to complete the contract can be measured reliably

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item recognised in other comprehensive income or directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:

• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Company's share of its identifiable assets and liabilities of the acquiree at the date of acquisition.

Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Income Statement over its 10 year useful economic life.

Intangible assets are initially recognised at cost. Subsequently, they are measured using the cost model. Under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the life must not exceed 10 years.

If factors such as a change in how an intangible asset is used, technological advancement, or changes in market prices indicate that the residual value or useful life of an asset has changed since the most recent balance sheet​ date, the Company​ reviews its previous estimates and, if current expectations differ, amends the residual value, amortisation method or useful life, accounting for this as a change in an accounting estimate.

Internally generated intangible assets are assessed to determine whether they meet the criteria for recognition. An internally generated intangible asset is only recognised if arising from a distinct development phase and the Company can demonstrate all of the following:

• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• its intention to complete the intangible asset and use or sell it;
• its ability to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits, including a demonstration of the existence of a market for the output of the asset or the asset itself, or if used internally, the usefulness of the intangible asset;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
• its ability to measure reliably the expenditure attributable to the intangible asset during its development.

Any expenditure incurred in the research phase, or where the research and development phases cannot be distinguished, or where the conditions described above are not met is recognised as an expense in profit or loss as it is incurred.

Tangible fixed assets are initially recognised at cost. Cost includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Subsequently, tangible fixed assets are measured using the cost model. Under the cost model, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

All tangible fixed assets are considered to have a finite useful life.

Depreciation is calculated to allocate the depreciable amount of tangible fixed assets to their residual values over their estimated useful lives on the following bases​:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Investments in subsidiaries are measured at cost less accumulated impairment.

Stocks are stated at their standard cost, being the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If an item of stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. The weighted average value is reassessed and set at the start of each financial period based on the results of the prior twelve months.

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. Bank overdrafts, where applicable, are shown within 'Creditors: amounts due within one year'.

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

The Company 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 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 the Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

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.

Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgement had a significant effect on the amounts recognised in the financial statements:

• Stock specific and general provision - an estimate is made by the directors of necessary stock specific and general provisions. Management reviews inventories at each reporting date to assess for obsolescence and to ensure that they are carried at no more than their net realisable value. This review involves judgement, particularly in forecasting future sales volumes, expected selling prices, and the estimated costs to sell. Where items are identified as obsolete, slow-moving, or selling below cost, a provision is made to write inventory down to its estimated net realisable value, where this is lower than its original cost.
• Inventory provisions are based on a detailed analysis of stock ageing, historical usage patterns, warranty claims and future demand forecasts. These estimates are subject to uncertainty, and actual outcomes may differ, potentially requiring material adjustments in future periods. Changes in assumptions used to estimate the provisions could have a significant impact on the carrying value of inventories.

An analysis of turnover by class of business is as follows:

An analysis of turnover by geographical market is as follows:

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

Staff costs, including Directors' remuneration, were as follows:

The average monthly number of employees, including the Directors, during the year was as follows:

During the year no retirement benefits were accruing to directors (2024 - 1) in respect of defined contribution pension schemes. The value of the company's contributions paid to a defined contribution pension scheme in respect of directors amounted to £Nil (2024 - £29,457).

No remuneration was paid to the directors by the company. The directors are remunerated through other companies within the wider group. The directors cover multiple entities across the group and as such their remuneration relating to the company, paid by other entities, is not practicable to ascertain.

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25.00%. The differences are explained below: