REGISTERED NUMBER: 04568580 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Period

1 September 2024 to 31 December 2025

for

APS Packaging Ltd

Previously known as

Advanced Pallet Systems Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Balance Sheet

12

Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr M J R Bowes

Mr P J R Bowes

REGISTERED OFFICE:

69 High Street

Bideford

Devon

EX39 2AT

REGISTERED NUMBER:

04568580 (England and Wales)

INDEPENDENT AUDITORS:

Sumer Auditco Ltd

Statutory Auditors

69 High Street

Bideford

Devon

EX39 2AT

BUSINESS ADDRESS:

Chubb Road

East The Water

Bideford

Devon

EX39 4HE

The directors present their strategic report for the period 1 September 2024 to 31 December 2025.

REVIEW OF BUSINESS

The company designs and manufactures timber pallets, crates, export cases and protective packaging to customer specification, and distributes a complementary range of packaging materials and consumables. It operates from a single site in Bideford, Devon, and serves manufacturing customers principally in the South West of England.

During the period the company extended its accounting reference date from 31 August to 31 December in order to align with that of its parent company, Hybrid Packaging Solutions Ltd, which acquired the entire issued share capital of the company on 25 November 2025. These financial statements therefore cover a sixteen-month period. The comparative figures relate to the year ended 31 August 2024 and are not directly comparable.

The directors are pleased with the performance of the business. Demand was strong throughout the first twelve months and moderated towards the end of 2025 as customers aligned orders with their own production schedules. Turnover for the sixteen-month period was £24,345,403 (year ended 31 August 2024: £16,824,931), which on an annualised basis represents growth of 8.5%. The average number of employees increased from 63 to 73 in support of this higher level of activity. Employment and carriage costs rose during the period, and the directors maintained close control over both direct and administrative expenditure.

The company's financial position remains strong. At 31 December 2025 net assets were £6,348,576 (31 August 2024: £6,696,308), cash at bank and held in short term investments was £4,861,526 (2024: £5,155,983) and the company had no borrowings. Capital expenditure on tangible fixed assets amounted to £292,584 (2024: £196,441), reflecting continued investment in the premises, machinery and the vehicle fleet.

Following the period end, on 23 February 2026, the company changed its name to APS Packaging Ltd (formerly Advanced Pallet Systems Ltd). The new name reflects the breadth of the company's product range and its strategy of developing its crate, case and packaging activities alongside its established pallet business.

PRINCIPAL RISKS AND UNCERTAINTIES

There are several potential risks and uncertainties that could significantly affect the company's performance, leading to outcomes that may differ from both expectations and historical results. The company continuously monitors these operational risks, which are outlined below:

- Customer demand: A significant proportion of turnover is derived from a small number of long-standing manufacturing customers, and sales are therefore influenced by their production volumes. The company manages this exposure through long-term supply arrangements, consistently high levels of service and quality, and a continuing programme to broaden its customer base and product range.

- Operational resources: The availability of the people, plant and materials needed to meet customer requirements is managed through careful financial and operational planning, continuous forecasting and the maintenance of long-term relationships with stakeholders.

- Credit and liquidity risk: The principal financial risk is exposure to bad debts. This is mitigated by robust credit control procedures, including credit assessment of new customers, regular monitoring of customer accounts and prompt action on overdue balances. The company has no borrowings and maintains substantial cash reserves, which are held with a number of UK banking institutions.

- Supply chain: Timber is the company's principal raw material, and its price and availability are influenced by international markets, exchange rates and transport costs. The company mitigates this risk through strategic relationships with key suppliers and by holding appropriate levels of stock.

- Cost inflation and regulation: Increases in the National Living Wage and in employer National Insurance contributions have raised the cost of labour, and the packaging sector is subject to increasing regulation. The company responds through investment in machinery, process improvement and training, and monitors regulatory developments closely in order to support its customers.

The directors consider that the principal risks facing the business are broadly unchanged from previous years, and that the policies and procedures in place continue to manage them effectively.

The directors are not aware of any material uncertainties that would cast significant doubt on the company's ability to continue as a going concern.

FUTURE DEVELOPMENTS

The company will continue to build on its strong operational foundations and its ISO-certified management systems to support sustainable growth. The directors' priorities are as follows:

- Product range:To grow sales of crates, export cases, engineered pallets and protective packaging alongside the core pallet business, and to widen the customer base.

- Sustainable materials: All timber is sourced from responsibly managed forests. In March 2026 the company achieved FSC Chain of Custody certification, which provides independently verified traceability and enables certified products to be offered to customers..

- Carbon reduction: The carbon reduction roadmap established in 2015 continues to develop, with a target of net zero operations by 2030. The site generates renewable energy from its solar array and from biomass burners fuelled by wood process waste, and investment in energy-efficient machinery continues.

- Waste and logistics: To increase recycling rates in line with the company's ISO 14001 objectives, and to improve transport efficiency and reduce fuel consumption.

- Innovation and Technology: To extend the use of digital systems and automation across manufacturing and administrative processes in order to improve efficiency, strengthen control and reduce resource consumption.

- People: To continue to invest in training, health and safety and employee engagement, embedding responsibility for quality, safety and the environment at every level of the business.

The directors believe that these initiatives will support the continued development of the business, reduce its environmental impact and meet the expectations of its customers and other stakeholders.

KEY PERFORMANCE INDICATORS

The directors monitor the business using a range of financial and non-financial measures. The principal financial indicators are turnover, cash at bank, net assets and capital investment, each of which is reported above. The principal non-financial indicators are on-time delivery, product quality, and health and safety performance, all of which are reviewed regularly by management within the company's integrated management system, which is independently certified to ISO 9001, ISO 14001 and ISO 45001.

RESULTS

The results for the period are set out in the Statement of Income and Retained Earnings on page 10.

SIGNED ON BEHALF OF THE BOARD:

Mr M J R Bowes - Director

25 September 2026

The directors present their report with the financial statements of the company for the period 1 September 2024 to 31 December 2025.

CHANGE OF NAME

The company passed a special resolution on 23 February 2026 changing its name from Advanced Pallet Systems Ltd to APS Packaging Ltd.

PRINCIPAL ACTIVITY

The company's principal activity is to manufacture packaging solutions using wood as the core product, offering tailored and sustainable solutions across the Southwest. We specialise in the manufacturing of pallets and crates to our customers' exact specification but also distribute a wide range of competitively priced paper, plastic and consumable packaging.

DIVIDENDS

Interim dividends of £4,764,410 (2024 - £1,256,328) were voted during the period.

The directors recommend that no final dividend be paid.

The total distribution for the period ended 31 December 2025 will be £4,764,410 (2024 - £1,256,328).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 September 2024 to the date of this report.

Mr M J R Bowes

Mr P J R Bowes

Other changes in directors holding office are as follows:

Mr A J R Bowes - resigned 25 November 2025

Mrs K Bowes - resigned 25 November 2025

POLITICAL DONATIONS AND EXPENDITURE

During the period the company made charitable contributions totalling £5,380 (2024 - £4,121).

There were no donations made to political parties/organisations/persons in the period.

DISCLOSURE IN THE STRATEGIC REPORT

Particulars of the financial risk management objectives and policies of the company and future developments are set out in the strategic report.

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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.

SIGNED ON BEHALF OF THE BOARD:

Mr M J R Bowes - Director

25 September 2026

Opinion

We have audited the financial statements of APS Packaging Ltd (the 'company') for the period ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and 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 period 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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.

As part of our audit planning, through discussions with management, we obtained an understanding of the legal and regulatory framework applicable to the company and the sector in which it operates in order to identify the key laws and regulations affecting the company. The key laws and regulations we identified were health and safety and employment law.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006, the applicable financial reporting framework (FRS 102) and relevant UK tax legislation.

We discussed with management how compliance with these laws and regulations is monitored and the policies and procedures in place. We also identified those individuals with responsibility for ensuring that the company complies with applicable laws and regulations and for reporting any issues arising.

As part of our planning procedures, we assessed the risk of non-compliance with laws and regulations giving rise to a material misstatement in the financial statements. Based on this understanding, we designed audit procedures to identify instances of non-compliance with laws and regulations. Our procedures included:

- enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;

- reviewing minutes of meetings of those charged with governance to identify any instances of non-compliance, litigation or matters requiring disclosure in the financial statements;

- reviewing legal and professional costs to identify any indications of non-compliance, litigation or related matters;

- agreeing relevant financial statement disclosures to underlying supporting documentation.

As part of our enquiries, we discussed with management whether there had been any known instances, allegations or suspicions of fraud. No such matters were identified.

We also assessed the susceptibility of the financial statements to material misstatement due to fraud, including the risk of management override of controls and consideration of management's incentives and opportunities for fraudulent financial reporting.

The key fraud risks identified were management override of controls and revenue recognition. In response to the identified risks, our audit procedures included:

- identifying and testing journal entries and other adjustments made throughout the period and at the period end for appropriateness;

- reviewing accounting estimates and judgements for indicators of management bias and challenging the assumptions used by management;

- evaluating the business rationale for significant transactions that were unusual or outside the normal course of business; and

- performing substantive testing over revenue, including testing transactions to supporting documentation and performing cut-off testing around period end.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting a material misstatement resulting from fraud is also higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment through, for example, forgery, intentional misrepresentations 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.

Richard Baker FCA (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Ltd

Statutory Auditors

69 High Street

Bideford

Devon

EX39 2AT

25 September 2026

TURNOVER

4

24,345,403

16,824,931

Cost of sales

16,433,623

11,141,978

GROSS PROFIT

7,911,780

5,682,953

Administrative expenses

2,359,550

1,724,164

5,552,230

3,958,789

Other operating income

138,600

114,587

OPERATING PROFIT

6

5,690,830

4,073,376

Interest receivable and similar income

212,586

144,999

5,903,416

4,218,375

Interest payable and similar expenses

8

-

3,721

PROFIT BEFORE TAXATION

5,903,416

4,214,654

Tax on profit

9

1,486,738

1,065,810

PROFIT FOR THE FINANCIAL PERIOD

4,416,678

3,148,844

Retained earnings at beginning of period

6,696,096

4,803,580

Dividends

10

(4,764,410

)

(1,256,328

)

RETAINED EARNINGS AT END OF PERIOD

6,348,364

6,696,096

FIXED ASSETS

Intangible assets

11

4,046

8,286

Tangible assets

12

963,792

1,150,804

967,838

1,159,090

CURRENT ASSETS

Stocks

13

1,434,234

1,293,644

Debtors

14

1,590,462

2,500,130

Investments

15

525,666

-

Cash at bank and in hand

4,335,860

5,155,983

7,886,222

8,949,757

CREDITORS

Amounts falling due within one year

16

2,392,368

3,293,238

NET CURRENT ASSETS

5,493,854

5,656,519

TOTAL ASSETS LESS CURRENT LIABILITIES

6,461,692

6,815,609

PROVISIONS FOR LIABILITIES

19

113,116

119,301

NET ASSETS

6,348,576

6,696,308

CAPITAL AND RESERVES

Called up share capital

20

212

212

Retained earnings

21

6,348,364

6,696,096

SHAREHOLDERS' FUNDS

6,348,576

6,696,308

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2026 and were signed on its behalf by:

Mr M J R Bowes - Director

Cash flows from operating activities

Cash generated from operations

26

6,351,069

5,171,090

Interest paid

(3,721

)

(879

)

Tax paid

(1,717,887

)

(1,181,811

)

Net cash from operating activities

4,629,461

3,988,400

Cash flows from investing activities

Purchase of intangible fixed assets

(2,250

)

(2,050

)

Purchase of tangible fixed assets

(292,584

)

(196,441

)

Sale of tangible fixed assets

17,497

10,500

Amounts held as short-term investments

(525,666

)

-

Interest received

212,051

97,328

Net cash from investing activities

(590,952

)

(90,663

)

Cash flows from financing activities

Loan to parent company

(91,981

)

-

Capital repayments in year

(2,241

)

(26,894

)

Amount withdrawn by directors

-

(500,000

)

Equity dividends paid

(4,764,410

)

(756,328

)

Net cash from financing activities

(4,858,632

)

(1,283,222

)

(Decrease)/increase in cash and cash equivalents

(820,123

)

2,614,515

Cash and cash equivalents at beginning of period

27

5,155,983

2,541,468

Cash and cash equivalents at end of period

27

4,335,860

5,155,983

1.	STATUTORY INFORMATION

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

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

2.	STATEMENT OF COMPLIANCE

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. There were no material departures from that standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements are rounded to the nearest pound.

The principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous period, and also have been consistently applied within the same accounts.

During the period the company changed its accounting reference date from 31 August 2025 to 31 December 2025. Accordingly, the financial statements cover the sixteen-month period ended 31 December 2025. Comparative figures relate to the year ended 31 August 2024 and are therefore not directly comparable. The change was made for commercial reasons and to align the parent and subsidiary companies.

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 current and future periods.

Key sources of estimation uncertainty

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.

Estimated useful lives

In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change is expected useful life of tangible assets. The depreciation charge for the period ended 31 December 2025 was £449,217 (2024 - £322,896).

Work in progress

The labour cost associated to jobs in progress is estimated based on an average of labour time spent. The total value of work in progress at 31 December 2025 was £190,077 (2024 - £182,840).

Turnover

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

Goodwill

Goodwill representing the excess of the purchase price over the fair value of the net assets of undertakings acquired is capitalised in the balance sheet and is amortised by equal annual instalments over the expected useful economic life of 20 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Planning costs

-

Written off in year of purchase

Improvements to property

-

10% straight line

Plant and machinery

-

33% straight line and 20% straight line

Fixtures and fittings

-

33% straight line

Motor vehicles

-

25% straight line

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management.

Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Basic financial instruments with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised 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 period 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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.

Investments

Fixed-term deposits with three months or more remaining to maturity at the reporting date are classified as short-term investments and are recognised as financial assets. They are initially measured at transaction price and subsequently measured at amortised cost using the effective interest method.

Interest income is recognised in profit or loss using the effective interest method over the term of the deposit.

Going concern

Having regard to the company's anticipated future revenues and costs including repayment of debt where appropriate, together with the expected availability of working capital, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

United Kingdom

24,345,403

16,824,931

24,345,403

16,824,931

5.	EMPLOYEES AND DIRECTORS

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

Wages and salaries

2,840,740

1,768,232

Social security costs

298,270

160,677

Other pension costs

213,385

271,483

3,352,395

2,200,392

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

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

Directors

4

4

Production

59

52

Administration

10

7

73

63

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

Directors' remuneration

64,946

42,184

Directors' pension contributions to money purchase schemes

133,586

220,129

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

4

6.	OPERATING PROFIT

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

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

Depreciation - owned assets

447,971

307,956

Depreciation - assets on hire purchase contracts

1,246

14,940

Loss/(profit) on disposal of fixed assets

12,882

(10,500

)

Computer software amortisation

6,490

4,290

Operating leases on premises

200,000

62,500

7.	AUDITORS' REMUNERATION

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

20,000

18,000

Auditors' remuneration for non audit work

30,364

8,202

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

Interest payable

-

3,721

9.

TAXATION

Analysis of the tax charge

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

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

Current tax:

UK corporation tax

1,492,923

1,143,565

Deferred tax

(6,185

)

(77,755

)

Tax on profit

1,486,738

1,065,810

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.9.24

to

Year Ended

31.12.25

31.8.24

£

£

Profit before tax

5,903,416

4,214,654

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

1,475,854

1,053,664

Effects of:

Property improvements depreciation and loss on disposals

15,813

11,685

Movement in general bad debt provision

(4,929

)

461

Total tax charge

1,486,738

1,065,810

10.

DIVIDENDS

Interim dividends of £4,764,410 (2024 - £1,256,328) were voted during the period.