The Directors present their Group Strategic Report together with the audited financial statements for the year ended 31 December 2025.
The Group experienced a slight sales increase during the year. The top line sales increased by 1.1% from £18.6m in 2024 to £18.8m in 2025. Gross margin improved 0.6% points on improved freight cost and slightly better product cost. The Ukraine war and continued cost pressures continued on from 2024 into 2025 and continue to challenge the business.
Key business risks
The Group has a well-established control framework, which is documented and regularly reviewed by the Board. This incorporates risk management and internal control procedures, which are designed to provide reasonable, but not absolute, assurance that assets are safeguarded and that risks facing the business are being addressed.
Competitive pressure across all markets is a continuing risk for the Group, which could result in it losing sales to its key competitors. The Group manages this risk by providing added value services to its customers, having fast response times in not only delivery of the products but also handling customer queries. Inflationary costs are currently a key business risk. The Group actively seeks to counter these inflationary cost pressures with cost saving initiatives. In addition, the Group also utilises pricing to address the cost increases but must weigh these against its market position of product cost to the customer.
Financial risk management
The Group will continue to face various risks in the marketplace as its customers are located across various geographies, including Europe, the Middle East and Africa. These geographies always carry higher risk of political shifts in the local markets (such as protectionism and high import barriers) or political disagreements between the countries (for example Brexit for the UK or Israel-Gaza war). The Group actively seeks to mitigate these risks and maintain a neutral stance to the extent possible and will always comply with all governmental requirements to not violate any laws.
Russia war
On 16 February 2022, Russia invaded Ukraine. This resulted in a number of economic sanctions being imposed on Russia. The Group continues to follow all governmental sanctions issued. Management does not expect a significant direct impact from this conflict and the resulting sanctions but will continue to monitor the impact of the crisis on the global economy and supply chains.
The Group has exposure to three main areas of financial risk - liquidity risk, credit risk and foreign exchange risk.
Liquidity risk
The objective of the Group in managing liquidity is to ensure that it can meet its financial obligations as and when they fall due. The Group expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations, the Group has commercial credit facilities available including with a global bank as well as intercompany borrowings with the ultimate parent company, Turtle Wax, Inc.
Credit risk
The Group's principal financial assets are bank balances, trade debtors and inventory. The amounts presented in the Statement of Financial Position for trade debtors are net of provisions for doubtful debts. The credit risk on liquid funds is limited because the counter parties are UK and USA banks.
Foreign exchange risk
The Group is exposed to adverse foreign currency fluctuations which can impact the carrying value of foreign currency debtor and creditor balances. In addition, the Group manufactures or buys products and ingredients in multiple currencies whose cost may be impacted by currency fluctuations. The company also has trade receivables in multiple currencies. This revenue exposure in currency that is also used to purchase products helps to limit the impact of currency fluctuations.
It is the Group's objective to continually improve the environment for its workforce and the local communities in which it operates.
Employee involvement
Employee involvement is central to the management approach of the Group headed by Turtle Wax, Inc. Systems operate in each of the Group's businesses to provide all employees with information of concern to them, including information regarding financial and economic conditions affecting the Group and its business and the results achieved. Principal communication methods used are monthly team briefings, monthly regional and global updates that include financial updates and corporate email communication. Employees are encouraged to participate fully in the performance of their place of work. There is commitment to total quality management. Consulting with employee representatives takes place at Group and Company level.
Disabled employees
The Group complies with the requirements of the Disability Discrimination Act 1995. The Group policy is to give full and fair consideration to applications for employment by disabled persons having regard to their particular aptitudes and abilities. In the event of members of staff becoming disabled, the Group policy is to continue their employment and arrange for appropriate training where suitable positions exist. Disabled employees have the same training, career development and promotion opportunities as all other employees.
Financial key performance indicators
The board considers turnover (£18.8m) and profit before tax (£0.6m) to be key financial performance indicators. Cash generated from operations (£-0.0009m) continues to be important and the level of cash availability is monitored daily (approx. £4.4m).
On behalf of the board
The directors present their annual report and 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 further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
While there is not a clear consensus on the future of cars, the auto appearance market is expected to stay as competitive as it currently is or possibly become even more competitive as some larger private equity firms are in the space. This is true in multiple sales channels and with the growth of ecommerce, some barriers to entry have been lowered. This will continue to put pressure on the company from both a volume and price perspective.
The auditor, Cottons Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
United Kingdom 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.
The Directors are required to prepare these financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in business. This assessment has been carried out on the cash flows of Turtle Wax Inc. group of companies, which the Group is a member of, as cash is managed by a centralized treasury function who ensure Turtle Wax Europe Limited have sufficient cash to meet their immediate needs. As part of the arrangement, the Group has issued a letter of support for a period of at least twelve months from the date of approval of these financial statements to the Group which includes both making funds available if required and not to seek repayment of amounts due at the reporting date if it would be detrimental to the Group.
The Directors have reviewed various potential downside scenarios and their likely impact on the business for the period of twelve months following signing of the financial statements. The Directors have given consideration to the ongoing conflicts in Russia/Ukraine and Israel/Palestine as well as the continued cost of living inflation which may impact on the business through general cost pressures. Any direct impact is assessed to be minimal but the existing downside scenario planning is continually reviewed. In the event that there is a more significant downturn, there are further mitigating actions that could be enacted, including reductions in business expenditure and overheads. The Group believes that while 2026 will continue to be a challenging environment, the Group has sufficient headroom to continue to operate within available banking facilities.
Despite net current liabilities of £1,500,261 (2024 - £1,746,612), the financial statements have been prepared on a going concern basis. Under the Group's credit facility, which was extended to May 2029, Turtle Wax Europe Limited is able to draw down a maximum of £3,500,000. The revolver on this facility has been paid down fully at different times, demonstrating Turtle Wax Europe’s ability to generate cash seasonally and meet its obligations. Further, there is an undertaking by Turtle Wax Inc., the Group's ultimate controlling party, to not demand repayment of any amounts due unless the Group can meet that demand to enable it to meet its other obligations as they fall due for at least 12 months from the date of approval of the financial statements. As such, the board is satisfied it has access to sufficient cash resources to meet its obligations as they fall due for at least 12 months from the date of approval of the financial statements and the board has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and financial statements.
This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions of the small companies regime.
We have audited the financial statements of Turtle Wax Europe 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, the company 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.
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 were indicative of potential bias;
- 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;
- reviewing correspondence with HMRC, relevant regulators 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 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.
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
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 profit for the year was £497,813 (2024 - £428,084 profit).
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
Turtle Wax Europe Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is 4th Floor Alaska House, Atlantic Park, Dunnings Bridge Road, Liverpool, Merseyside, L30 4AB.
The group consists of Turtle Wax Europe 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 consolidated group financial statements consist of the financial statements of the parent company Turtle Wax Europe Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
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.
The Directors are required to prepare these financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in business. This assessment has been carried out on the cash flows of Turtle Wax Inc. group of companies, which the Group is a member of, as cash is managed by a centralized treasury function who ensure Turtle Wax Europe Limited have sufficient cash to meet their immediate needs. As part of the arrangement, the Group has issued a letter of support for a period of at least twelve months from the date of approval of these financial statements to the Group which includes both making funds available if required and not to seek repayment of amounts due at the reporting date if it would be detrimental to the Group.
The Directors have reviewed various potential downside scenarios and their likely impact on the business for the period of twelve months following signing of the financial statements. The Directors have given consideration to the ongoing conflicts in Russia/Ukraine and Israel/Palestine as well as the continued cost of living inflation which may impact on the business through general cost pressures. Any direct impact is assessed to be minimal but the existing downside scenario planning is continually reviewed. In the event that there is a more significant downturn, there are further mitigating actions that could be enacted, including reductions in business expenditure and overheads.
The Group believes that while 2026 will continue to be a challenging environment, the Group has sufficient headroom to continue to operate within available banking facilities.
Despite net current liabilities of £1,500,261 (2024 - £1,746,612), the financial statements have been prepared on a going concern basis. Under the Group's credit facility, which was extended to May 2029, Turtle Wax Europe Limited is able to draw down a maximum of £3,500,000. The revolver on this facility has been paid down fully at different times, demonstrating Turtle Wax Europe’s ability to generate cash seasonally and meet its obligations. Further, there is an undertaking by Turtle Wax Inc., the Group's ultimate controlling party, to not demand repayment of any amounts due unless the Group can meet that demand to enable it to meet its other obligations as they fall due for at least 12 months from the date of approval of the financial statements. As such, the board is satisfied it has access to sufficient cash resources to meet its obligations as they fall due for at least 12 months from the date of approval of the financial statements and the board has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probably that the Group 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.
Royalty income
Turnover from royalties is recognised on an accruals basis and in the statement of comprehensive income in the period in which they are earned.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
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.
Defined benefit pension plan
The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependant upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of the plan assets at the reporting date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the Company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques,
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
the increase in net pension benefit liability arising from employee service during the period; and
the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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 at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'administrative expenses'.
Finance costs
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.
In preparing the financial statements, the Directors have made the following judgements:
Determine whether leases entered into by the Company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
The Company measures inventories at the lower of cost and estimated selling prices less costs to complete and sell.
The Directors believe that this standard costing best reflects the method of valuation of inventory in order to incorporate distribution costs.
In determining the value of the defined benefit pension scheme liability, management place reliance on key assumptions based on the latest report from an independent actuary.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Included in pension costs is £22,026 (2024 - £14,723) for administrative expenses paid from plan assets in respect of the defined benefit pension scheme.
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).
The total accrued pension of the highest paid director at 31 December 2025 amounted to £nil (2024: £nil).
During the year 2 (2024: 2) directors were remunerated for their services to the company by Turtle Wax Inc., the ultimate parent undertaking.
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Details of the company's subsidiaries at 31 December 2025 are as follows:
Other investments relate to a 9.2% (2024: 9.2%) shareholding in Turtle Wax Car Care India Private Limited.
There is no difference between the replacement cost of stock and the amounts presented above.
An impairment loss of £21,698 (2024: £50,234) was recognised in cost of sales against stock during the year due to slow moving and obsolete stock.
The impairment loss recognised in the profit or loss for the year in respect of bad and doubtful debts was £149,455 (2024: £14,160).
Amounts owed by group undertakings are interest free and repayable on demand.
All amounts shown under debtors fall due for payment within one year except for the deferred tax asset recognised predominantly in respect of the tax losses and the defined benefit pension scheme operated by the company. Tax losses are expected to be utilised over future accounting periods. In respect of the defined benefit pension scheme, this is expected to reverse over the life of the scheme and is subject to changes in valuations of the defined benefit obligation and plan assets.
Included within other debtors is an invoice discounting facility amounting to £300,932 (2024: £561,500). Under the terms of the agreement, the company is able to draw down a maximum of £3,500,000 against the revolving loan. Interest rate on the revolving loan is set at SOFR plus a margin of 1.85% and the loan is secured with a fixed and floating charges against the assets of the company. These charges also contain a negative pledge.
Amounts owed to group undertakings are interest free and repayable on demand.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
There is an unrecognised deferred tax asset of £1,405,382 (2024: £1,405,382). This balance relates to trading losses brought forward from the hive-up of Turtle Wax Limited into Turtle Wax Europe Limited in 2015. The losses have not been relieved in Turtle Wax Europe Limited as it is not probable that they will be utilised.
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.
As at 31 December 2025, there were no outstanding contributions payable (2024: £Nil).
The Group operates a defined benefit scheme.
Pension benefits depend upon age, length of service and salary level.
A full actuarial valuation of the defined benefit scheme was carried out at 30 April 2023 and updated to 31 December 2025 by a qualified independent actuary. Contributions to the scheme are made by the company based on the advice of the actuary and with the aim of making good the deficit over the remaining working life of the employees.
There were no changes to the scheme during the year and no amounts owing to the scheme at the year end.
Assumed life expectations on retirement at age 65:
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
The defined benefit obligations arise from plans which are wholly or partly funded.
The actual return on plan assets was £27,526 (2024 - £35,718).
(A) On a show of hands every member shall have one vote on a poll. Every member shall have one vote for every share of which they are the holder.
(B) The Company may by ordinary resolution declare dividends in accordance with the respective rights of the members, but no dividend shall exceed the amount recommended by the directors.
(C) Each share is entitled pari passu to participate in a distribution arising from a winding up of the company and any distribution from a company being wound up will therefore operate in accordance with the law.
(D) The ordinary shares are not issued as redeemable, and are not redeemable.
The profit and loss reserves represent cumulative profits or losses net of dividends paid and other adjustments.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The Group has taken advantage of the exemption covered by section 33.1A of FRS 102 not to disclose transactions with other wholly owned entities within the group.
Upon appointment of Cottons Accountants LLP as auditors, the company entered into a limitation liability agreement with the auditors and this was approved by written resolution. Liability is limited to the lesser of 20 times the audit fee quoted, totalling £930,000. In accordance with section 537 of CA06, the effect of the liability limitation agreement is to limit the auditor's liability to less than such amount as is fair and reasonable, as determined by that section, the agreement shall have effect as if it limited the liability to such amount as is fair and reasonable, as so determined.
The agreement limits the liability owed to the company by the auditors in respect of any negligence, default or breach of duty, or breach of trust, occurring in the course of the audit of the financial statements for the year ending 31 December 2025.
The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restricted by applicable laws or regulations.