REGISTERED NUMBER: 05825476 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Kohlico Brands UK Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other 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:

Mr K S Kohli

Mrs B K Kohli

REGISTERED OFFICE:

5 Stanmore Hill

Stanmore

Middlesex

HA7 3DP

REGISTERED NUMBER:

05825476 (England and Wales)

AUDITORS:

Shaw Wallace Limited

43 Manchester Street

London

W1U 7LP

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

REVIEW OF BUSINESS

Turnover for the year decreased by 10.8% to £12,347,622 (2024: £13,846,326). The reduction reflects a deliberate decision by the directors to reduce stockholding and purchasing levels in order to release working capital, following a period in the prior year during which higher stock levels were carried in order to protect availability.

Notwithstanding the reduction in turnover, gross profit margin improved to 21.0% (2024: 20.0%), assisted by lower freight and shipping costs as a proportion of sales. Operating profit decreased to £621,749 (2024: £935,311), principally as a result of increased investment in advertising and exhibitions, higher travel costs and increased expenditure on repairs and renewals.

The company's balance sheet strengthened during the year. Stock reduced to £2,168,227 (2024: £3,030,606), cash at bank increased to £127,185 (2024: £79,817) and net assets increased to £2,666,017 (2024: £2,615,827).

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces a number of business risks and uncertainties due to prevailing challenging global market conditions. In view of this the directors are looking carefully at both existing and potential markets and to cater to a wider audience which will further strengthen the business.

Financial instruments

The company's purchases are predominantly denominated in US dollars. The directors manage the resulting exposure principally by matching the timing of currency purchases to supplier payment obligations, and hold foreign currency bank accounts for this purpose. No forward foreign currency contracts were outstanding at the reporting date.

Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. To minimise

this risk the directors regularly monitor liquidity and ongoing working capital requirements.

Interest rate risk

The business is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company does not use interest rate derivatives to manage the mix of fixed and variable rate debts but does closely monitor its interest cover ratio.

Credit risk

Trade debtors are monitored on an ongoing basis and provision is made for doubful debts where necessary. Credit

checks are conducted on new and existing customers to mitigate credit risk.

DEVELOPMENT AND PERFORMANCE

The directors anticipate the business environment will continue to 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 continuing careful focus on appropriate diversification and development of new products, as well as timely 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.

Key performance indicators

2025

2024

Turnover (£'000)

12,348

13,846

Gross profit margin (%)

21.02

19.96

Operating profit (£'000)

622

935

Net assets (£'000)

2,666

2,616

Turnover decreased to £12.348m in 2025 from £13.846m in 2024. Gross profit decreased to £2.595m (2024: £2.763m), although the gross profit margin improved by 1.1 percentage points.

ON BEHALF OF THE BOARD:

Mr K S Kohli - Director

14 September 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 wholesale of food.

DIVIDENDS

Interim dividends of £300 per Ordinary Class B share were declared and paid during the year, amounting to £300,000 (2024: £303,000). No dividends were paid on the Ordinary shares and the directors do not recommend the payment of a final dividend.

DIRECTORS

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

Mr K S Kohli

Mrs B K Kohli

CHARITABLE AND POLITICAL DONATIONS

During the year the company made charitable donations of £3,557 including £3,250 to Guru Nanak Charitable Trust, a registered charity in the United Kingdom (charity number 276512). No political donations were made and no political expenditure was incurred during the year (2024: £nil).

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.

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

Shaw Wallace Limited were appointed as auditors of the company on 1 May 2025 and have expressed their willingness to continue in office.

ON BEHALF OF THE BOARD:

Mr K S Kohli - Director

14 September 2026

Opinion

We have audited the financial statements of Kohlico Brands UK Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other 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 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the food wholesale sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, and health and safety legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

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

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims; and reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

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

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

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

Use of our report

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

Hitesh Gadhia (Senior Statutory Auditor)

for and on behalf of Shaw Wallace Limited

43 Manchester Street

London

W1U 7LP

14 September 2026

TURNOVER

12,347,622

13,846,326

Cost of sales

(9,752,436

)

(11,083,033

)

GROSS PROFIT

2,595,186

2,763,293

Administrative expenses

(1,973,437

)

(1,827,982

)

OPERATING PROFIT

4

621,749

935,311

Interest payable and similar expenses

5

(155,775

)

(153,096

)

PROFIT BEFORE TAXATION

465,974

782,215

Tax on profit

6

(115,784

)

(213,878

)

PROFIT FOR THE FINANCIAL YEAR

350,190

568,337

PROFIT FOR THE YEAR

350,190

568,337

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

350,190

568,337

FIXED ASSETS

Tangible assets

8

779,110

774,985

CURRENT ASSETS

Stocks

9

2,168,227

3,030,606

Debtors

10

2,057,694

2,035,883

Cash at bank and in hand

127,185

79,817

4,353,106

5,146,306

CREDITORS

Amounts falling due within one year

11

(2,269,519

)

(3,216,033

)

NET CURRENT ASSETS

2,083,587

1,930,273

TOTAL ASSETS LESS CURRENT LIABILITIES

2,862,697

2,705,258

CREDITORS

Amounts falling due after more than one year

12

(196,680

)

(89,431

)

NET ASSETS

2,666,017

2,615,827

CAPITAL AND RESERVES

Called up share capital

15

2,000

2,000

Retained earnings

16

2,664,017

2,613,827

SHAREHOLDERS' FUNDS

2,666,017

2,615,827

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

Mr K S Kohli - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

2,000

2,348,490

2,350,490

Changes in equity

Dividends

-

(303,000

)

(303,000

)

Total comprehensive income

-

568,337

568,337

Balance at 31 December 2024

2,000

2,613,827

2,615,827

Changes in equity

Dividends

-

(300,000

)

(300,000

)

Total comprehensive income

-

350,190

350,190

Balance at 31 December 2025

2,000

2,664,017

2,666,017

Cash flows from operating activities

Cash generated from operations

1

1,154,418

898,422

Interest paid

(154,593

)

(151,700

)

Interest element of hire purchase payments paid

(1,182

)

(1,396

)

Tax paid

(451,374

)

(177,361

)

Net cash from operating activities

547,269

567,965

Cash flows from investing activities

Purchase of tangible fixed assets

(42,146

)

(3,060

)

Sale of tangible fixed assets

-

39,000

Net cash from investing activities

(42,146

)

35,940

Cash flows from financing activities

Capital repayments in year

(133,643

)

(203,250

)

Amount introduced by directors

250,000

112

Amount withdrawn by directors

(274,112

)

(100,000

)

Equity dividends paid

(300,000

)

(303,000

)

Net cash from financing activities

(457,755

)

(606,138

)

Increase/(decrease) in cash and cash equivalents

47,368

(2,233

)

Cash and cash equivalents at beginning of year

2

79,817

82,050

Cash and cash equivalents at end of year

2

127,185

79,817

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

31.12.25

31.12.24

£

£

Profit before taxation

465,974

782,215

Depreciation charges

38,019

36,785

Finance costs

155,775

153,096

659,768

972,096

Decrease/(increase) in stocks

862,379

(691,938

)

Decrease in trade and other debtors

94,664

4,151

(Decrease)/increase in trade and other creditors

(462,393

)

614,113

Cash generated from operations

1,154,418

898,422

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

127,185

79,817

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

79,817

82,050

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

79,817

47,368

127,185

79,817

47,368

127,185

Debt

Finance leases

(54,013

)

21,995

(32,018

)

Debts falling due within 1 year

(331,900

)

238,422

(93,478

)

Debts falling due after 1 year

(69,908

)

(126,772

)

(196,680

)

(455,821

)

133,645

(322,176

)

Total

(376,004

)

181,013

(194,991

)

1.	STATUTORY INFORMATION

Kohlico Brands UK 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.

The financial statements are prepared in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The financial statements have been prepared on the going concern basis.

In forming their assessment, the directors have prepared cash flow forecasts covering the period to twelve months from the date of approval of these financial statements. The company is profitable, has net assets of £2,666,017 and net current assets of £2,083,587 at the reporting date, and generated £1,154,418 of cash from operations during the year.

The company finances its working capital principally through an invoice finance facility provided by Lloyds Bank Commercial Finance Limited, under which £1,095,777 was drawn at the reporting date. The facility has no fixed expiry date and is not subject to a periodic review date; it is uncommitted and repayable on demand, and the amount available under it varies with the level of eligible trade debtors assigned. The facility has been in place since 2016, and the directors have received no indication that it will not continue to be available. In preparing their forecasts the directors have considered the level of headroom available under the facility and the extent to which amounts drawn are covered by the trade debtors assigned to the provider.

The directors have also considered the position that would arise were the facility to be withdrawn and have concluded that collections from the trade debtors assigned, together with the company's other resources, would be sufficient to meet the amounts outstanding under it.

Having considered the forecasts, the availability of the company's financing facilities and the sensitivities applied to them, 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 financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both the current and future periods.

Critical judgements and key sources of estimation uncertainty

In preparing these financial statements the directors have made the following judgements and estimates which have the most significant effect on the amounts recognised.

Provision against the carrying value of stock

Stock is stated at the lower of cost and net realisable value. The company's products are foodstuffs carrying stated expiry dates, and a provision is made against the gross carrying value in respect of damaged, slow-moving and short-dated lines. The provision is determined by applying a general rate of 5% to gross stock, reflecting the directors' experience of the company's product range, trading patterns and the historical incidence of damaged and discounted stock. At the reporting date the provision amounted to £114,117 (2024: £159,505 ) against gross stock of £2,282,341 (2024: £ 3,190,111).

Stock with expiry dates falling during the following financial year amounted to £985,411 at the reporting date. The directors do not consider this to be indicative of impairment, as the products concerned are expected to be sold in the ordinary course of trade before expiry. Actual sell-through rates may differ from those expected, and a change in the provisioning rate of one percentage point would change the carrying value of stock by approximately £23,000.

Overrider provision

The company's arrangements with certain customers provide for retrospective rebates calculated by reference to sales volumes. A provision is recognised for amounts expected to be payable which had not been invoiced at the reporting date, calculated by applying the agreed customer-specific percentages to sales for the period and deducting amounts already settled. The provision at the reporting date was £7,973 (2024: £58,267).

Recoverability of amounts owed by directors and other related parties

Amounts owed by directors and other related parties of £274,000 are included within debtors. The directors have assessed these balances as fully recoverable having regard to the repayment profile since the reporting date. No provision has been made against them.

Turnover

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

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliabley, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Certain customer arrangements provide for retrospective volume rebates, commonly described as overriders. Amounts expected to become payable under these arrangements are recognised as a deduction from turnover in the period in which the related sales are recognised, and a provision is carried for amounts not settled at the reporting date. Movements in the provision arising from revisions to previous estimates are recognised in turnover in the period in which they arise.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Fixed assets are measured at cost less accumulated depreciation. At each balance sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined on a first-in, first-out basis and comprises the purchase price of goods together with import duty, freight and other costs incurred in bringing the stock to its present location and condition.

At each reporting date stocks are assessed for impairment. Provision is made against damaged, obsolete, slow-moving and short-dated lines, and any impairment loss is recognised immediately in profit or loss.

Financial instruments

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

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, include trade and other payables, are initially recognised at transaction prices, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If they are not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Invoice finance

The company has an invoice finance facility under which amounts are advanced against trade debtors assigned to the provider. The company retains the credit risk attaching to the assigned debtors and accordingly the debtors concerned continue to be recognised in full within trade debtors, with the amounts advanced recognised as a liability within creditors. Charges arising under the facility are recognised within interest payable and similar expenses in the period to which they relate.

Taxation

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

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.

3.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

1,051,365

1,036,861

Other pension costs

13,638

18,666

1,065,003

1,055,527

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

31.12.25

31.12.24

Administrative and finance

3

6

Sales, distribution & marketing

12

7

15

13

31.12.25

31.12.24

£

£

Directors' remuneration

328,583

318,019

Information regarding the highest paid director is as follows:

31.12.25

31.12.24

£

£

Emoluments etc

164,292

162,602

Contributions payable to the company's defined contribution pension scheme outstanding at the reporting date and included within creditors amounted to £701 (2024: £216).

The number of directors to whom retirement benefits were accruing under money purchase pension schemes was 1 (2024:1).

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.2025

31.12.2024

£

£

Depreciation - owned assets

38,021

36,784

Auditors' remuneration - audit of the financial statements

10,000

15,000

Foreign exchange losses/ (gains)

3,754

(6,836

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Loan interest & factoring chgs

154,593

151,700

Hire purchase

1,182

1,396

155,775

153,096

6.

TAXATION

Analysis of the tax charge

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

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

115,784

213,878

Tax on profit

115,784

213,878