The directors present the strategic report for the year ended 31 December 2025.
Principal activities
The group is principally engaged in the manufacture and distribution of instant light barbecues, barbecue fuel, non-woven textiles, PVC, and related products. There were no significant changes in activity during the financial year.
Performance review
The barbecue business had an encouraging year from a sales perspective showing growth of 10.5% although this does reflect some price increases which have passed through the supply chain so overall volumes were relatively stable.
The business continued its diversification into the winter fuels market and online sales, particularly of barbecues and accessories. These are competitive markets and it will be necessary to apply further resources in these areas to achieve the desired level of market penetration.
The barbecue business relies heavily on its key supply partners, particularly in southern Africa. The management of the supply chain and the logistics to ensure the availability of stock as and when demanded continues to be a major challenge and focus. Future regulatory changes will require continued attention in this area, in particular the Carriage of Dangerous Goods legislation has impacted the cost and availability of transport partners in 2026.
The gross profit margin was maintained during the year but there continue to be significant price pressures to manage both from our customers and in the supply chain.
The business continues to ensure that, wherever possible, suppliers are fully FSC accredited and products are from sustainable sources, and pursues a programme of education and information in respect of the safe use of its products.
The non-barbecue businesses sales were stable and profitability has shown a small improvement as a result of an improvement in the gross profit margin. The management continue to seek new product and sales opportunities within this business.
The group continues to develop its internal operations both in terms of people and IT which the Directors consider is key to positioning the group for continued growth and profitability. Significant efforts have also been made to improve market and consumer intelligence and it is anticipated that this will have a positive impact in future negotiations with key customers.
The board monitors performance by reference to various financial key performance indicators, with particular focus on turnover, gross profit margin and EBITDA:
| 2025 | 2024 | 2023 | 2022 |
|
|
|
|
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Increase/(decrease) in turnover | 9.3% | (5.5%) | (4.5%) | (11.1%) |
Gross profit margin | 25.1% | 25.6% | 28.5% | 25.8% |
EBITDA as a percentage of sales | 7.8% | 8.2% | 12.1% | 10.9% |
EBITDA | £2,223k | £2,128k | £3,335k | £3,062k |
The board also monitors a number of non-financial performance indicators by way of employee surveys and monitoring of health and safety statistics and are pleased to report continued positive progress in these areas.
The directors are pleased with the overall result for the year and are grateful to the whole team for their commitment and support. The board believe that the group is well positioned to face the future and to navigate the uncertain economic conditions which continue to prevail.
Future developments
The temporary ban on the sale of disposable barbecues in August 2026 has created some uncertainty around the final outturn for 2026 but the directors anticipate that turnover will be maintained and a profitable outcome achieved.
The management team monitors the on-going operational and financial performance as a main agenda item at monthly business review meetings and believes that the major risks and uncertainties are being addressed adequately as and when they arise.
The principal risks and uncertainties impacting the group along with the procedures in place to mitigate these risks and uncertainties are described below:
Adverse economic or weather conditions
Diversity of product portfolio and operations
Long term agreements with customers
Diversification of customer base
Changes in industry standards and legislation
A programme of education in the safe use of the company’s products
Long term distribution agreements with market leading suppliers
In-house quality and product development teams
Proactive management of stocking levels
Failure of a major supplier
Detailed financial and quality audit reviews of key suppliers
Regular review of key suppliers’ contingency plans
Multi sourcing arrangements in place to counter key supply chain deficiencies including sourcing from different geographical areas
Stock loss due to fire
Stock held in several locations
Integrated fire suppression systems at key warehouses
Insurance cover to support the additional cost of supplying customer requirements
Reliance on and retention of key personnel
Active encouragement of promotion within the group
Continued vocational training and personal development
Continuous staff appraisal systems across all areas
Competitive remuneration and benefits packages
The move to employee ownership
Working capital requirement
Due to the seasonal nature of the group’s products, the business is subject to significant fluctuations in its working capital requirements. The directors have put in place additional facilities during the periods of peak cash requirement and these are supported by continuous negotiations throughout the supply chain and robust credit control procedures to ensure that resources are available to support and develop trading activities. The directors continue to monitor, forecast and review working capital with a view to identifying and addressing any future requirements well in advance.
Research and development
The group is committed to research and development and has a team of people who work throughout the supply chain to ensure their products are at the forefront of an extremely competitive market.
Environmental Impact
The group has continued to review of the environmental impact of the business with a view to controlling its overall carbon footprint. This includes investigating both alternative uses for and alternative sourcing of the company’s products.
Employee Ownership Trust (EOT)
In 2021 the group moved to employee ownership. Having considered various options for the future structure of the business at the time the Directors concluded that this was the most beneficial way forward for all stakeholders. It was also considered to be a way of rewarding and engaging employees who have been loyal to the business and contributed to its success.
Business decisions are made in the context of the employee ownership structure with the employees’ position being at the heart of the decision-making process. This is in contrast to other potential succession strategies which provided no guarantees that the business would be able to retain its culture, ethos, locations and employees. The directors consider that this has been a positive move for the business and continue to build employee engagement throughout all areas of operation.
Human resources
In the recruitment of staff and their future career development, individuals are considered having regard to their aptitudes and abilities, irrespective of sex, race, marital status or disability.
Health and safety
The group seeks to comply with all relevant health and safety legislation to ensure, as far as reasonably practicable, that safe working rules are established, maintained and adhered to in order to secure the safety of employees, contractors and visitors within all aspects of its operations.
All employees are educated in aspects of health and safety within their environment and beyond, with suitable procedures in place to cover incidents should they arise.
On behalf of the board
The directors present their annual report and group financial statements for the year ended 31 December 2025.
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were:
In accordance with the company's articles, a resolution proposing that Royce Peeling Green Limited be reappointed as auditor of the group will be put at a General Meeting.
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 Risks, Future Developments and Research and Development.
Company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Tellar Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, 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).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
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 group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.
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.
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £864,353 (2024 - £858,224 loss).
Tellar Holdings Limited (“the company”) is a private limited company incorporated in England and Wales. The registered office is The Copper Room, Deva City Office Park, Trinity Way, Manchester, M3 7BG. The group's principal place of business is Bancroft Road, Burnley, Lancashire, BB10 2TP.
The group consists of Tellar Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent undertaking prepares publicly available consolidated financial statements that include the Company and are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group.
The company has therefore taken advantage of the exemptions available to qualifying entities under FRS 102 from certain disclosure requirements for parent company information presented within the consolidated financial statements:
• Section 7 'Statement of Cash Flows' – the requirement to present a statement of cash flows and related notes;
• Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' – certain financial instrument disclosures and
• Section 33 'Related Party Disclosures' – the requirement to disclose transactions between wholly owned members of the group.
The consolidated group financial statements consist of the financial statements of the parent company Tellar Holdings Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
In accordance with section 408 of the companies act 2006, the company is exempt from the requirement to present its own profit and loss account.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods 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 (usually on dispatch of the goods), the amount of revenue can be measured reliably, 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.
Research and development expenditure is written off against profits in the year in which it is incurred.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors 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.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, other loans and loans from fellow group companies, are initially recognised at transaction price 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 creditors 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 not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Auditors limitation of liability
The company has entered into a liability limitation agreement with Royce Peeling Green Limited, the statutory auditor, in respect of the statutory audit for the year ended 31 December 2025. The proportionate liability agreement follows the standard terms in Appendix B to the FRC's June 2008 Guidance on Auditor Liability Agreements, and has been approved by the shareholders.
In the application of the group’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 periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The provision is based on a review of old/ slow moving stock lines and the estimated realisation of that stock. The estimated realisation is based on past experience and subsequent recovery after the year end.
The bad debt provision is based on a review of old/ slow paying customer balances and the estimated recoverability of those balances. Estimated recoverability is based on past experience and subsequent recovery after the year end.
Provision for customer rebates are based on estimated amounts due based on quantities of customer purchases during the year. The estimated provision is based on past experience and amounts subsequently paid post year end.
All such judgements are regularly reviewed.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2025 are as follows:
The long-term loan is secured by fixed and floating charges over all the property and undertaking of Rectella International Limited.
A loan of £6,000,000 was taken from a related party on 14 September 2021. The loan is repayable in equal annual instalments over a five year term and carries interest at 2.75%. The balance owing within one year includes interest accrued but unpaid at the year end date.
The following are the major deferred tax liabilities and assets recognised by the group and company:
On 13 September 2021 Tellar Holdings EOT Trustees Limited acquired 90% of the entire issued ordinary share capital of the company as the Trustee of the Tellar Holdings Employee Ownership Trust.
In September 2025 the company made a further gift of £2,000,000 (2024: £2,000,000) to the Employee Ownership Trust. D H Eventhall and J P Keighley are amongst the directors of that company.
Rent of £715,000 (2022: £715,000) was paid to the Trustees of the Flexible Pension Fund. £214,500 (2023: £214,500) was owed at the balance sheet date.
As allowed by FRS 102 transactions between companies which are wholly owned are not disclosed.