REGISTERED NUMBER: 09142230 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

Baby Mori Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

15

Cash Flow Statement

16

Notes to the Cash Flow Statement

17

Notes to the Financial Statements

18

DIRECTORS:

A Onal

J P D Stead

H Vaux

D Ziv

REGISTERED OFFICE:

Pall Mall Deposits, Unit PL35

124-128 Barlby Road

London

W10 6BL

REGISTERED NUMBER:

09142230 (England and Wales)

AUDITORS:

Harris & Co (Accountants) Ltd, Statutory Auditor

2 Pavilion Court

600 Pavilion Drive

Northampton

NN4 7SL

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

REVIEW OF BUSINESS

1. Business Overview

The Directors present their Strategic Report for the year ended 31 December 2025.

MORI is a UK-based baby and children's apparel and lifestyle company, recognised for its focus on quality, thoughtful design, responsible sourcing and customer trust.

During the year, the Company acquired the Kidly and Storksak brands and certain related assets, expanding from a predominantly single-brand business into a broader portfolio of owned brands. These acquisitions extended the Company's customer reach and product offering alongside the core MORI brand.

The Company continued to focus on delivering value to customers, integrating the acquired brands and investing in its digital, retail, wholesale and marketplace capabilities.

2. Business Model and Strategy

The Company designs, sources and retails premium clothing, footwear and accessories for babies, children and parents across its portfolio of owned brands: MORI, Kidly and Storksak. This is supplemented by a curated third-party marketplace.

Products are sold through the Company's direct-to-consumer websites and physical stores, together with wholesale and retail partners in the UK and selected international markets.

During 2025, the Company's strategic priorities were to:

-Integrate Kidly and Storksak into the Company's operating model.

- Continue developing the Company's direct-to-consumer, retail, wholesale and marketplace channels.

- Broaden the Company's customer and product-category reach.

- Maintain disciplined management of costs, working capital and inventory.

- Improve cash generation despite investments into expanding channels, product category, and brand portfolio.

- Build a scalable operating platform capable of supporting future growth.

3. Market and Industry Overview

The baby and children's apparel market remained competitive during 2025. Consumer demand continued to be affected by cost-of-living pressures and wider economic uncertainty, particularly within discretionary spending categories.

Customers continued to place importance on product quality, value, design and responsible sourcing. The market also continued to evolve through increased digital adoption, broader marketplace propositions and consolidation across the premium children's sector.

The Directors believe the Company's portfolio of established brands, direct customer relationships and diversified routes to market provide a strong platform from which to respond to these trends.

4. Business and Financial Review

Revenue for the year was £16.1m (2024: £13.8m), representing growth of 16.7%.

Growth was supported by positive performance across the Company's UK operations, including its online, wholesale and physical retail channels, together with the contribution from the Kidly acquisition and marketplace proposition.

Gross profit was £7.6m (2024: £6.7m), representing a gross margin of 47.6% (2024: 48%). The year-on-year movement reflected changes in channel and product mix, including the impact of the acquired brands and inventory.

Operating profit was £0.58m (2024: £0.7m), reflecting the Company's continued focus on profitable growth and cost management, alongside investment in the integration and development of the expanded brand portfolio.

Cash generated from operating activities was £0.87m (2024: £0.2m). Net cash at 31 December 2025 was £5.4m (2024: £5.0m).

The Company's principal financial key performance indicators were:

-Revenue growth: 16.7%

-Gross margin: 47.6%

-Operating profit margin: 3.2%

The Directors monitor these measures alongside cash flow, inventory and performance across the Company's principal sales channels.

5. Non-Financial Review

Commercial development

During the year, the Company acquired the Kidly and Storksak brands and certain related assets. The integration of these brands progressed during the remainder of the year, with a focus on developing a coherent portfolio and using the Company's existing operational and commercial capabilities.

The Company also continued to develop its physical retail presence and strengthen relationships with its wholesale and retail partners.

Customers

Customer experience remained a core focus throughout the year. The Company continued to invest in its digital platforms, physical retail experience and customer service capabilities, while maintaining its focus on delivering safe, high-quality products.

People and culture

The Company had 49 employees at 31 December 2025 (2024: 43, reflecting investment in its retail operations and the capabilities required to support the expanded brand portfolio.

The Company remained focused on maintaining an inclusive and collaborative culture and supporting the development and wellbeing of its employees.

6. Principal Risks and Uncertainties

The Company is exposed to a number of risks and uncertainties that could affect its future performance. The principal risks identified by the Directors are set out below.

Consumer demand

Changes in economic conditions and consumer confidence may affect demand for the Company's products. This risk is managed through regular trading reviews, careful inventory management and a diversified mix of brands, channels and geographic markets.

Acquisition and integration

The acquisition and integration of Kidly and Storksak increases operational, systems and organisational complexity. The integration process is overseen by senior management, with progress and performance reviewed regularly by the Board.

Supply chain and inventory

Supply chain disruption, cost inflation or inaccurate demand forecasting could result in product shortages, excess inventory or pressure on margins. The Company manages this risk through supplier relationships, purchasing controls and regular monitoring of stock levels and commitments.

Technology and third-party service providers

The Company is dependent on its ecommerce platforms, technology systems and third-party logistics and payment providers. The Company manages these risks through system controls, supplier oversight, data security measures and appropriate business continuity arrangements.

Foreign exchange and international trading

The Company purchases and sells products in a number of currencies and is therefore exposed to movements in foreign exchange rates and changes in international trading conditions. These exposures are monitored as part of the Company's financial planning and purchasing processes.

Legal and regulatory compliance

The Company is subject to product safety, consumer protection, data protection, employment and environmental requirements across its markets. The Company maintains appropriate compliance, product-testing and supplier-approval processes and obtains professional advice where required.

The Board reviews the Company's principal risks regularly and considers their potential impact when making strategic and operational decisions.

7. Future Outlook

Looking ahead, the Company will remain focused on integrating and developing its portfolio of brands, improving performance across its sales channels and maintaining disciplined management of costs, cash and inventory.

The Company also intends to continue the selective development of its physical retail, wholesale and marketplace propositions where opportunities meet its commercial and financial criteria.

While the wider consumer environment remains uncertain, the Board believes the strength of the Company's brands, customer relationships and multi-channel operating model provides a sound foundation for future development.

8. Section 172(1) Statement

The Directors recognise their duty under section 172 of the Companies Act 2006 to promote the success of the Company for the benefit of its members as a whole, while having regard to the interests of the Company's wider stakeholders and the long-term consequences of their decisions.

During the year, the Board considered these responsibilities when making decisions concerning the acquisition and integration of Kidly and Storksak, investment in the Company's retail and digital capabilities and the allocation of the Company's financial and operational resources.

The Company's principal stakeholder relationships include:

-Employees: The Company seeks to maintain regular communication with employees and considers the impact on its people when making organisational and strategic decisions.

-Customers: The Company remains focused on product safety, quality, value and customer service across its brand portfolio.

-Suppliers and business partners: The Company seeks to build fair and constructive long-term relationships with suppliers, wholesale partners and service providers.

-Community and environment: The Company considers responsible sourcing, material choices and the environmental impact of its operations and products.

-Shareholders: The Board maintains regular communication with shareholders regarding the Company's performance, strategy and significant business developments.

The Board considers the interests of these stakeholders alongside the need to maintain the Company's financial strength and support its long-term success.

9. Governance

The Board provides leadership and oversight of the Company's strategy, performance and operations. It meets regularly to review financial performance, cash flow, strategy, principal risks and significant investment decisions.

During 2025, the Board devoted particular attention to the acquisition and integration of Kidly and Storksak, the development of the Company's routes to market and the management of performance across its principal geographic markets.

ON BEHALF OF THE BOARD:

Director

24 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

A Onal

J P D Stead

H Vaux

D Ziv

Other changes in directors holding office are as follows:

B Mekkaoui - resigned 25 April 2025

POLITICAL DONATIONS AND EXPENDITURE

Donations of £2,423 were made during the year.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Harris & Co (Accountants) Ltd, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A Onal - Director

24 September 2026

Opinion

We have audited the financial statements of Baby Mori Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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.

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:

- The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant: Toys (Safety) Regulations 2011, BS EN 14682 Safety of children's clothing and the tax regulations relating to company eligibility under VCT's . We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

- We understood how the company is complying with those legal and regulatory frameworks by making enquiries through our review of relevant documentation and enquiries of the company's employees who are tasked with ensuring compliance with these laws and regulations.

- The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. Audit procedures performed by the engagement team included:

- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

- As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

- Posting of unusual journals out of the normal course of business;

- Incorrectly recognising revenue in the wrong period that may inflate or deflate revenue;

- Posting of non-business related expenses.

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

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.

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.

Phillip Harris BA FCA (Senior Statutory Auditor)

for and on behalf of Harris & Co (Accountants) Ltd, Statutory Auditor

2 Pavilion Court

600 Pavilion Drive

Northampton

NN4 7SL

24 September 2026

TURNOVER

16,088,233

13,765,883

Cost of sales

8,433,283

7,177,186

GROSS PROFIT

7,654,950

6,588,697

Administrative expenses

7,139,764

5,952,631

515,186

636,066

Other operating income

3,085

1,356

OPERATING PROFIT

4

518,271

637,422

Interest receivable and similar income

53,772

74,558

572,043

711,980

Interest payable and similar expenses

5

252

510

PROFIT BEFORE TAXATION

571,791

711,470

Tax on profit

6

-

-

PROFIT FOR THE FINANCIAL YEAR

571,791

711,470

PROFIT FOR THE YEAR

571,791

711,470

OTHER COMPREHENSIVE INCOME

-

(522,582

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(522,582

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

571,791

188,888

FIXED ASSETS

Intangible assets

7

288,978

59,824

Tangible assets

8

223,013

192,470

511,991

252,294

CURRENT ASSETS

Stocks

9

2,420,267

2,175,160

Debtors

10

756,720

462,019

Cash at bank

5,353,626

4,967,027

8,530,613

7,604,206

CREDITORS

Amounts falling due within one year

11

2,561,850

1,829,405

NET CURRENT ASSETS

5,968,763

5,774,801

TOTAL ASSETS LESS CURRENT LIABILITIES

6,480,754

6,027,095

CREDITORS

Amounts falling due after more than one year

12

-

(4,414

)

PROVISIONS FOR LIABILITIES

15

-

(113,718

)

NET ASSETS

6,480,754

5,908,963

CAPITAL AND RESERVES

Called up share capital

16

381

381

Share premium

17

9,446,827

9,446,827

Share option reserve

17

70,130

70,130

Retained earnings

17

(3,036,584

)

(3,608,375

)

SHAREHOLDERS' FUNDS

6,480,754

5,908,963

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2026 and were signed on its behalf by:

A Onal - Director

Called up

Share

share

Retained

Share

option

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

381

(4,319,845

)

9,446,827

592,712

5,720,075

Changes in equity

Total comprehensive income

-

711,470

-

(522,582

)

188,888

Balance at 31 December 2024

381

(3,608,375

)

9,446,827

70,130

5,908,963

Changes in equity

Total comprehensive income

-

571,791

-

-

571,791

Balance at 31 December 2025

381

(3,036,584

)

9,446,827

70,130

6,480,754

Cash flows from operating activities

Cash generated from operations

1

869,468

162,407

Interest paid

(252

)

(510

)

Net cash from operating activities

869,216

161,897

Cash flows from investing activities

Purchase of intangible fixed assets

(300,226

)

(63,604

)

Purchase of tangible fixed assets

(112,126

)

(197,577

)

Interest received

53,772

74,558

Net cash from investing activities

(358,580

)

(186,623

)

Cash flows from financing activities

Loan repayments in year

(10,397

)

(10,140

)

Tax provision

(113,718

)

-

Amount introduced by directors

5,246

-

Amount withdrawn by directors

(5,168

)

(5,246

)

Net cash from financing activities

(124,037

)

(15,386

)

Increase/(decrease) in cash and cash equivalents

386,599

(40,112

)

Cash and cash equivalents at beginning of year

2

4,967,027

5,007,139

Cash and cash equivalents at end of year

2

5,353,626

4,967,027

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

2025

2024

£

£

Profit before taxation

571,791

711,470

Depreciation charges

152,655

39,484

Share option reserve

-

(522,582

)

Finance costs

252

510

Finance income

(53,772

)

(74,558

)

670,926

154,324

Increase in stocks

(245,107

)

(497,836

)

(Increase)/decrease in trade and other debtors

(294,779

)

224,189

Increase in trade and other creditors

738,428

281,730

Cash generated from operations

869,468

162,407

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

5,353,626

4,967,027

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

4,967,027

5,007,139

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

4,967,027

386,599

5,353,626

4,967,027

386,599

5,353,626

Debt

Debts falling due within 1 year

(10,397

)

5,983

(4,414

)

Debts falling due after 1 year

(4,414

)

4,414

-

(14,811

)

10,397

(4,414

)

Total

4,952,216

396,996

5,349,212

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

Asset lives

Judgement is used in determining the expected useful life of the company's assets at each balance sheet date

in order to ensure that the assets are valued at an amount which accurately reflects their value in use or

recoverable value. The directors have used their experience of the sector to estimate the expected useful lives

of the company's assets and these are in line with those used by most companies.

Turnover

Revenue is recognised when the sale has been completed and the related payment has been confirmed. This is generally at the point of sale or when a customer order has been received and payment has been successfully authorised or received, provided that the goods have been, or are being, delivered in accordance with the agreed terms.

Revenue is recognised at the amount expected to be received from the customer, excluding VAT, other sales taxes and applicable discounts. Where payment has been received in advance of the delivery of goods or services, the amount received is recorded as deferred revenue until the relevant performance obligation has been satisfied.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2025, is being amortised evenly over its estimated useful life of three 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, with an 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.

Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives of 3 years:

Plant and machinery 33.33% on straight line

Fixtures and fittings 33.33% on straight line

Computer equipment 33.33% on straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans

to related parties and investments in ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line

basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's

benefit from the use of the leased asset.

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.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised

when they are approved by the directors. Final equity dividends are recognised when approved by the

shareholders at an annual general meeting.

Share based payments

Certain employees of the Company, including directors, receive remuneration in the form of awards of options in respect of shares in the Company, whereby they render services in exchange for such equity- based awards.

The costs of these equity based awards, based on fair value, is recognised in the Statement of Comprehensive Income, together with a corresponding increase in total equity under the share options reserve, over the vesting period.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,036,717

1,807,442

Social security costs

158,464

178,623

Other pension costs

48,193

50,912

2,243,374

2,036,977

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

2025

2024

Employees

49

43