The directors present the strategic report for the year ended 31 December 2025.
The principal activity of the group continued to be that of the provision of garage equipment, tools and accessories.
At the end of the financial year, the group has strengthened its net assets position of £3,869,351 (2024 - £3,184,403).
During the financial year the UK market, the group's primary market, remained buoyant and turnover has significantly improved in the year, increasing by 18.14% from £11,947,558 in 2024 to £14,114,681 for the year.
The group has consistently delivered revenue growth, with cumulative annual growth rate (CAGR) over the past five years of 21.3%. To maintain the growth rate, in 2025 the group invested in its workforce, which has impacted margins, which are down from 27.1% to 22.6%, but the Directors are confident that the early investment will create a solid platform to deliver high quality customer service and long term growth. The directors are satisfied with the performance of the group for the year under review.
Principal risks and uncertainties faced by the group relate primarily to the political and economic uncertainty and the impact on costs within the group. Russia's invasion of the Ukraine and more recently the Iranian conflict with the USA and Israel are examples that have a direct impact on product costs, delivery charges and product availability. There is also the indirect impact of UK inflationary pressure which increases overheads.
In addition to the principle business risks within the market place, the group is exposed to price risk, the usual credit and cash flow risks associated with buying and selling on credit and also importing and exporting. The directors manage these risks through robust credit control procedures, fixed term pricing and the use of foreign exchange future contracts.
The group's strategy is to satisfy the requirements of customers in the garage industry by sourcing reputable and efficient garage tools and equipment worldwide at competitive prices. The group maintains a high level of compliance, by ensuring relevant UK standards are adhered to.
The key financial performance indicators for the group are as follows;
2025 2024 2023 2022 2021
Turnover (£'000) 14,115 11,948 10,600 9,488 7,839
Turnover Growth 18.1% 12.7% 11.7% 21% 45.8%
Gross Profit Margin 22.6% 27.1% 21.8% 27.2% 24.1%
Sales per FTE (£'000) 214 221 212 216 183
The information available for the new financial year shows continued turnover growth and good control of costs. Results are achieving sales and profitability growth expectations. The directors are confident that the group's business's strategic policies will enable it to meet the challenges going forward and enable them to achieve an improved share of the market in the medium to long term.
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 10.
Ordinary dividends were paid amounting to £259,200. 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:
The group’s principal financial instruments comprise bank balances and loans together with finance leases, the main purpose of which is to provide and raise finance for the company’s operations. The group also utilises foreign currency forward exchange contracts to mitigate adverse exchange rate movements.
In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
In respect of bank balances, the liquidity is managed by maintaining a balance sufficient to cover the group's anticipated operating funding requirements. All of the business's cash balances are held in such a way that achieves a competitive rate of interest. The group makes use of higher rate bank deposit facilities where funds are available.
Trade debtors are managed in respect of credit and cash flow risks by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.
Trade creditors' liquidity risk is managed by ensuring sufficient bank funds are available to meet amounts due, with regular fund availability reviews undertaken. Foreign currency forward exchange contracts are utilised to minimise the risk arising from adverse foreign exchange movements.
The group maintains sufficient cash resources to meet its financial obligations as they fall due. Liquidity risk is managed by monitoring cash flow forecasts against long term contractual commitments . This includes the regular assessment of liabilities arising from on balance sheet lease obligations.
In accordance with section 485 of the Companies Act 2006, a resolution proposing that Warrens Accountants Limited be reappointed as independent auditors of the company will be put at a General Meeting.
There have been no significant post balance sheet events that have impacted on the results of the year.
This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the medium-sized companies exemption.
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.
We have audited the financial statements of MDJC Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
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 group's and parent 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, including how fraud may occur by enquiring with management as to its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of the discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of material adjusting journals and key estimates and judgements made by management.
We gained an understanding of the legal and regularity framework applicable to the company and its group and the industry in which it operates, drawing on our audit experience and knowledge of the company, its group and the sector they operate in, and considered the risk of acts by the company and its group that were contrary to these laws and regulations, including fraud.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to:
The Companies Act 2006 and associated legislation
UK Health and Safety at Work legislation
UK Employment & Labour laws and regulations
UK Tax Legislation
Standards and regulations in respect of the specific equipment supplied and installed and by the business
We also made enquiries of management with regards to the compliance with the above laws and regulations and obtained any necessary evidence to corroborate the information provided, for example minutes of directors and board meetings and legal correspondence between the company, its group and its solicitors.
The following audit work was undertaken in response to the risks identified:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing key sources of estimation uncertainty testing to supporting documentation, ensuring reasonableness of assumptions and consistently applied
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Examining transactions immediately before and after the reporting period to ensure income is recognised in the correct period.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Identifying related parties and ensuring transactions are complete by testing to available supporting documentation.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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.
Other matters which we are required to address
The financial statements for the company and its group for the year ended 31st December 2024, which constitute the comparative figures in the current years financial statements, were unaudited.
The notes on pages 18 to 39 form part of these financial statements.
The notes on pages 18 to 39 form part of these financial statements.
The notes on pages 18 to 39 form part of these financial statements.
The notes on pages 18 to 39 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 £293,640 (2024 - £256,498 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The notes on pages 18 to 39 form part of these financial statements.
The notes on pages 18 to 39 form part of these financial statements.
The notes on pages 18 to 39 form part of these financial statements.
MDJC Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The company number is 11812398 and the registered office is Brunel Close, Brunel Industrial Estate, Harworth, Doncaster, DN11 8QA.
The group consists of MDJC Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company MDJC Holdings 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. In assessing whether the going concern assumption is appropriate, management has taken into account all available relevant information about the future, which is at least, but is not limited to, 12 months from the date when the financial statements are authorised for issue
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
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 income statement.
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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 statement of financial position 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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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 income statement 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 income statement, 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
In the course of preparing the financial statements, no significant judgements have been made in the process of applying the company's accounting policies, other than those involving estimations that have had a significant effect on the amounts recognised in the financial statements.
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.
Accounting estimates and assumptions are made concerning the future and by their nature, will rarely equal the related actual outcome. The group does not have any key assumptions concerning the future, or other key sources of estimation or uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Notwithstanding this, the following matters should be noted;
The group reviews its stock at the financial year end and makes provision for the impairment of old and obsolete stock of finished goods for resale as appropriate. In assessing the recoverable amount of the stock held the management considers the age profile and historic sales of stock lines to determine the overall provision required These estimates may need to be revised as circumstances and technology change.
In relation to the group's property, plant and equipment etc, the useful economic lives and residual value of assets have been established using historical experience and an assessment of the nature of the assets involved, again these estimates may need to be revised as circumstances and technology change.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 2 (2024 - 2).
The actual charge 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:
The carrying value of land and buildings comprises:
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
Depreciation charge for the year in respect of leased assets amounted to £79,912 (2024 - £96,502).
Details of the company's subsidiaries at 31 December 2025 are as follows:
A provision of £97,291 (2024 - £69,641) has been made in respect of old, damaged and obsolete stock at the financial year end. The impairment loss has been recognised in cost of sales, within the groups income statement in the year.
The bank loan and facilities are part of a group borrowing arrangement dated 7/10/2021 held jointly with the bank by MDJC Holdings Limited and its principal operating subsidiary J.H.M. Butt & Co Limited.
The bank borrowings are secured by :
A debenture creating a fixed and floating charge over the entire present and future property, assets and undertakings of MDJC Holdings Limited and J.H.M. Butt & Co Limited.
A composite cross-guarantee entered into by MDJC Holdings Limited and J.H.M. Butt & Co Limited, under which each entity acts as a guarantor for the total bank liabilities of the other group undertaking within the facility agreement.
In addition to the above, the bank loan is also secured by a legal charge over the group's property known as 8-10 Brunel Gate, Harworth and land on the north side of Brunel Close,Harworth, Doncaster, South Yorkshire, United Kingdom, DN11 8QA dated 7/10/2021.
The loans from related parties are interest free advances from related entities which are repayable on demand.
The bank loan was drawn down in October 2021 and is for a period of 15 years, with repayments commencing one month after drawdown, and interest charged at a margin of 2.6% per annum above the bank base rate.
Finance lease payments represent rentals payable by the group for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets.
At the 31 December 2025 eight leases remained outstanding, each of which were initially taken out over 35 to 36 months. Five of the leases are on a fixed repayment basis, while the residue are at the Bank of England base rate plus a margin varying from 2.96% to 3.89%, no arrangements have been entered into for contingent rental payments.
The obligations under finance leases of £132,652 (2024 - £144,744) are secured on the underling assets financed.
Deferred income is included in the financial statements as follows:
The deferred income at the 31 December 2025 relates to deferred sales. Included within the 2024 comparatives is a capital grant of £817 (of which £613 was due after 1 year) which was being amortised over the anticipated lifetime of the underlying asset acquired at a rate of 25% per annum on a reducing balance basis. The asset was disposed of in the current financial period. The residue of deferred income relates to contracted sales income.
The following are the major deferred tax liabilities and assets recognised by the group and company:
Unrelieved and unrecognised tax losses at the 31 December 2025 amounted to £Nil (2024 - £8,639).
The deferred tax liability set out above is not expected to reverse within 12 months.
Defined contribution pension schemes are operated for all qualifying employees. The assets of the schemes are held separately from those of the group in independently administered funds.
At the 31 December 2025 pension liabilities amounting to £10,711 had been accrued, in addition to this normal monthly contributions for December 2025 of £12,941 (2024 - £8,787) were also outstanding.
During the period a bonus issue of 3,890 Ordinary A shares of £1 each and 432 Ordinary B shares of £1 each were issued at par from retained earnings,
The A and B Ordinary shares hold a right to a variable dividend, they have full voting rights and rank pari passu in all other respects to the Ordinary share capital of the company.
At the 31 December 2025 the group has commitments under service contracts amounting to £67,280 (2024 - £5,910) of which £35,556 (2024 - £Nil) is due after one year and within 5.
Amounts contracted for but not provided in the financial statements:
At the 31 December 2025 the group has entered into foreign currency forward exchange contracts to acquire US $1,797,500 at Pound Sterling rates varying from 1.295 to 1.36 Dollars to the Pound ( 2024 -US $750,000 at rates between 1.290 and 1.305 Dollars to the Pound).
In addition to the above forward contracts to acquire 667,625 Euros at Pound Sterling rates varying from 1.1175 to 1.1300 Euros to the Pound (2024 - 2,200,000 Euros at rates between 1.169 and 1.186 Euros to the Pound)
At the financial year end the exchange rate stood at 1.3448 US Dollars to the Pound and 1.1462 Euros to the Pound, giving rise to a shortfall of £36,630.
The remuneration of key management personnel is as follows.
At the 31 December 2025 the group owed £9,000 (2024 - £59,982) in respect of loans and advances to companies under the common control of the directors following the repayment of £50,982 in the year. The loans are interest free and repayable on demand.
At the 31 December 2025 the group was owed £60,000 for payments made on behalf of the director's pension fund, this was repaid in full subsequent to the financial year end.
During the year the group met costs and advanced funds amounting to £181,302, to companies under the common control of the directors, the loans are interest free and repayable on demand.
The group sold goods and re-charged services to a company under the common control of the director's, at a value in excess of original cost, amounting to £963,108 (2024 - £727,725) in the year, at the 31 December 2025 the group was owed £1,414 (2024 - £10,243) by the company, which was due on normal trading terms.
The group also sold goods and services to a company from the 28 March 2025, when it became a company under common control of the directors, to the 31 December 2025 amounting to £13,418 together with a vehicle at its then estimated value of £3,000 and acquired goods and services from them amounting to £184,519,on normal trading terms. At the 31 December 2025 the group owed this company £20,744 (net of trade debtors) which was payable on normal trading terms.
Dividends totalling £204,000 (2024 - £229,000) were paid in the year in respect of shares held by the company's directors.
At the 31 December 2025 the company & group owed the director's £4,700. The loan is interest free and repayable on demand.