REGISTERED NUMBER: 04147608 (England and Wales)

AURA METALS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2026

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

Mr R.O. Cohen

Mr A.N. Axson

SECRETARY:

A. Mead

REGISTERED OFFICE:

Ground Floor

Kings House

174 Hammersmith Road

London

W6 7JP

REGISTERED NUMBER:

04147608 (England and Wales)

SENIOR STATUTORY AUDITOR:

Richard Hogg

AUDITORS:

Carston ETL

Statutory Auditor

Second Floor

34 Lime Street

London

EC3M 7AT

The directors present their strategic report for the year ended 30th June 2026.

PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS

Year end 30/6/2026

Year end 30/6/2025

Period end 30/06/2024

Year end 31/12/2022

Turnover

£19,455,019

£21,714,833

£58,187,243

£49,560,166

Gross Profit margins

6.9%

6.1%

2.3%

1.36%

Profit/(Loss) before tax

£316,614

£233,901

£(1,007,038

)

£(1,063,350

)

Net (Liabilities)/Assets

£247,712

£(43,902

)

£(299,601

)

£1,662,751

Liquidity ratio (Current assets/current liabilities)

1.01

0.96

0.92

1.06

Gearing ratio (Total borrowings/total assets)

0.51

0.57

0.50

0.46

The year ending on the 30th June 2026 showed a profit before tax of £ 316,614 compared to £ 233,901 for the previous year.

At the end of June 2026 the company had a positive balance sheet of £ 247,712 compared to a negative balance sheet of £ 43,902 at the end of June 2025.

As at the 30th June 2026, the company had facilities with Lloyds Bank of USD 5 million. The company continues to remain reliant on the ongoing support of its bank. We appreciate the confidence Lloyds have shown in the future of the company. The facilities we have with Lloyds are due for renewal on the 31st March 2027. The bank have made clear that it is their current intention to continue this support.

This year has seen a number of challenges in particular surging commodity prices requiring careful control of the company’s cashflow and volatile markets requiring tight monitoring of the increased level of risk. Whilst there are clear dangers caused by current international turmoil, as a trading company there are also opportunities. We are doing the best we can to limit risk and seize on new possibilities caused by changing trade patterns.

We are also contending with the changes that AI has already brought. Traditionally traders have made their living from knowledge others don’t possess. This has now all changed and whilst relationships, shipping experience and financing will remain central to a traders role, pricing information has become much more transparent. Traders margins are already at risk. For many years we have developed relations that have been more open than is usual. The intention was and remains to move closer to becoming an outsourced service forming part of our partners procurement and sales team.

Most reports mention the commitment of those that make up the company, and it would be remiss not to do so. In reality a trading company is the people. It is as simple as that. How lucky we are to have such a good team.

Whilst we have tightened controls within the business there is further to go. It’s important to emphasise the role of those who administer our business. The work they do to reduce problems and support the traders is vitally important.

This report cannot end without mentioning Dave Willis, one of the founders of the business, who sadly died a few months ago. He will be missed by us all.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks of the company are:-

Credit Risk:

Credit risk arises principally from the company's trade receivables, prepayments for stocks, and cash and cash equivalents. It is the risk that the counterparty fails to discharge its obligations in respect of the instrument. The company's exposure to credit risk represents its receivables as disclosed.

Prior to accepting new customers, a credit check is carried out. Based on this information, credit limits and payment terms are established and authorised by the directors. The directors review monthly the trade receivable balance and ageing profile of each individual customer. No individual trade receivable balance is considered to represent a significant portion of the total balance. The directors believe that credit risk is minimised by credit insurance and regular reviews and the diversification of trade receivables across a large section of customers and different geographical regions.

Liquidity risk:

Liquidity risk arises from the company's management of working capital and the finance charges and principal repayments on its debt instruments.

The company's financial assets and liabilities were due within one year throughout the review period. The company's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The directors review the cash availability on a regular basis to determine whether the company has sufficient cash reserves and facilities to meet future working capital requirements and to take advantage of the business opportunities.

Market risk:

Price risk is the risk of loss arising from adverse movements in the level or volatility of market prices. The company monitors this risk on a daily basis and when appropriate by hedging on the London Metal Exchange. The impact of such movements in market price can mean that the net realisable value of inventories falls below that of the original cost, which results in provisions being made against such stock items in order to include them in the financial statements at the lower of cost and net realisable value in the accordance with the company's accounting policies.

Interest rate risk:

Interest rate risk arises from interest bearing financial liabilities of the company. Interest is payable on bank overdrafts at an agreed variable rate.

Currency risk:

The company's trading activities exposes it to currency risk relating to its monetary assets and liabilities. The company's policy is to economically hedge currency risk using forward currency contracts for foreign currency receivables and payables. Forward foreign currency contracts are also used for currency exposures arising on the expected sales and purchases for the following period. The directors will do their utmost to monitor and reduce risk in the current difficult trading climate.

This report was approved by the board of directors and signed on behalf of the board by:

ON BEHALF OF THE BOARD:

Mr R.O. Cohen - Director

5th October 2026

The directors present their report with the financial statements of the company for the year ended 30th June 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of international metal trading and UK foundry ingot supplies.

DIVIDENDS

No dividends will be distributed for the year ended 30th June 2026.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Mr R.O. Cohen

Mr A.N. Axson

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

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, Carston ETL, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr R.O. Cohen - Director

5th October 2026

Opinion

We have audited the financial statements of Aura Metals Limited (the 'company') for the year ended 30th June 2026 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 30th June 2026 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 four, 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:

Extent to which the audit is capable of detecting irregularities, including fraud

We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the Directors.

Based on our understanding of the Company and industry, discussions with management and directors we identified financial reporting standards and Companies Act 2006 as having a direct effect on the amounts and disclosures in the financial statements.

As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud.

Our audit procedures included:

- completing a risk-assessment process during our planning for this audit that specifically considered the risk of fraud;

- enquiry of management about the Company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;

- examining supporting documents for all material balances, transactions and disclosures;

- enquiry of management, about litigation and claims and inspection of relevant correspondence;

- analytical procedures to identify any unusual or unexpected relationships;

- specific audit testing on and review of areas that could be subject to management override of controls and potential bias, most notably around the key judgments and estimates, including the carrying value of accruals, provisions, investments, recoverability of trade debtors and revenue recognition;

- considering management override of controls outside of the normal operating cycles including testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements including evaluating the business rationale of significant transactions, outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

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 Hogg (Senior Statutory Auditor)

for and on behalf of Carston ETL

Statutory Auditor

Second Floor

34 Lime Street

London

EC3M 7AT

5th October 2026

TURNOVER

3

19,455,019

-

19,455,019

Cost of sales

(18,113,474

)

-

(18,113,474

)

GROSS PROFIT

1,341,545

-

1,341,545

Administrative expenses

(854,672

)

-

(854,672

)

OPERATING PROFIT

5

486,873

-

486,873

Interest payable and similar expenses

7

(170,259

)

-

(170,259

)

PROFIT BEFORE TAXATION

316,614

-

316,614

Tax on profit

8

(25,000

)

-

(25,000

)

PROFIT FOR THE FINANCIAL YEAR

291,614

-

291,614

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

291,614

TURNOVER

3

19,721,121

1,993,712

21,714,833

Cost of sales

(18,415,834

)

(1,970,159

)

(20,385,993

)

GROSS PROFIT

1,305,287

23,553

1,328,840

Administrative expenses

(778,194

)

(100,170

)

(878,364

)

OPERATING PROFIT/(LOSS)

5

527,093

(76,617

)

450,476

Interest payable and similar expenses

7

(187,669

)

(28,906

)

(216,575

)

PROFIT/(LOSS) BEFORE TAXATION

339,424

(105,523

)

233,901

Tax on profit/(loss)

8

21,798

-

21,798

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

361,222

(105,523

)

255,699

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

255,699

FIXED ASSETS

Intangible assets

9

156,183

156,183

Tangible assets

10

22,818

25,938

Investments

11

840

840

179,841

182,961

CURRENT ASSETS

Stocks

12

893,325

817,716

Debtors

13

3,172,330

4,351,987

Cash at bank and in hand

707,766

591,172

4,773,421

5,760,875

CREDITORS

Amounts falling due within one year

14

4,705,550

5,987,738

NET CURRENT ASSETS/(LIABILITIES)

67,871

(226,863

)

TOTAL ASSETS LESS CURRENT LIABILITIES

247,712

(43,902

)

CAPITAL AND RESERVES

Called up share capital

20

75,000

75,000

Retained earnings

21

172,712

(118,902

)

SHAREHOLDERS' FUNDS

247,712

(43,902

)

The financial statements were approved by the Board of Directors and authorised for issue on 5th October 2026 and were signed on its behalf by:

Mr R.O. Cohen - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2024

75,000

(374,601

)

(299,601

)

Changes in equity

Profit for the year

-

255,699

255,699

Total comprehensive income

-

255,699

255,699

Balance at 30th June 2025

75,000

(118,902

)

(43,902

)

Changes in equity

Profit for the year

-

291,614

291,614

Total comprehensive income

-

291,614

291,614

Balance at 30th June 2026

75,000

172,712

247,712

Cash flows from operating activities

Cash generated from operations

1

1,573,737

163,727

Interest paid

(170,259

)

(216,575

)

Net cash from operating activities

1,403,478

(52,848

)

Cash flows from investing activities

Purchase of tangible fixed assets

(2,582

)

(499

)

Purchase of fixed asset investments

-

(840

)

Sale of intangible fixed assets

-

38,401

Sale of tangible fixed assets

-

81,682

Net cash from investing activities

(2,582

)

118,744

Cash flows from financing activities

New loans in year

563,002

-

Loan repayments in year

(8,891

)

(10,407

)

Net cash from financing activities

554,111

(10,407

)

Increase in cash and cash equivalents

1,955,007

55,489

Cash and cash equivalents at beginning of year

2

(2,939,552

)

(2,995,041

)

Cash and cash equivalents at end of year

2

(984,545

)

(2,939,552

)

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

2026

2025

£

£

Profit before taxation

316,614

233,901

Depreciation charges

5,702

15,575

Profit on disposal of fixed assets

-

(9,463

)

Finance costs

170,259

216,575

492,575

456,588

(Increase)/decrease in stocks

(75,609

)

307,066

Decrease in trade and other debtors

1,154,657

723,911

Increase/(decrease) in trade and other creditors

2,114

(1,323,838

)

Cash generated from operations

1,573,737

163,727

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30th June 2026

30/6/26

1/7/25

£

£

Cash and cash equivalents

707,766

591,172

Bank overdrafts

(1,692,311

)

(3,530,724

)

(984,545

)

(2,939,552

)

Year ended 30th June 2025

30/6/25

1/7/24

£

£

Cash and cash equivalents

591,172

518,225

Bank overdrafts

(3,530,724

)

(3,513,266

)

(2,939,552

)

(2,995,041

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/7/25

Cash flow

At 30/6/26

£

£

£

Net cash

Cash at bank and in hand

591,172

116,594

707,766

Bank overdrafts

(3,530,724

)

1,838,413

(1,692,311

)

(2,939,552

)

1,955,007

(984,545

)

Debt

Debts falling due within 1 year

(8,891

)

(554,111

)

(563,002

)

(8,891

)

(554,111

)

(563,002

)

Total

(2,948,443

)

1,400,896

(1,547,547

)

1.	STATUTORY INFORMATION

Aura Metals 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.

The financial statements are presented in Pound Sterling (£) which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

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.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future.

The company reported a net profit before tax of £316,614 for the year ended 30 June 2026 (Year ended 30 June 2025- Profit before tax of £233,901).

At the Balance Sheet date the company had net assets of £247,712 (30 June 2025- Net liabilities of £43,902) with current ratio of 1.01 (2025: 0.96), reflecting the working capital intensive nature of the company's trading activities.

The company operates with bank facilities provided by Lloyds Bank totalling US$ 5 million which are used primarily to finance working capital requirements associated with the trading cycle. At 30 June 2026, the bank facilities totalled £1,692,311 (2025:- £3,530,724) as shown in note 17 to these accounts. During the year the company received financial support from other parties in form of loans, at the Balance Sheet date those loans totalled £563,002. The company is reliant on the support from its bank and other parties and will continue to need those supports in order to be able to continue to trade. The bank facilities have been renewed to 31 March 2027 at which point the bank will review again. There are various covenants in place which the company must remain within.

The directors continue to monitor closely the company's liquidity position, including the level of working capital, cash flow generation and trading within the banking facilities. The directors have prepared detailed cash flow forecasts and profit projections for a period of at least twelve months from the date of approval of these financial statements. These forecasts take into account expected trading activity within both the international metals trading division and the foundry supply division, together with expected working capital requirements. The forecasts also reflect the directors' assessment of the principal risks facing the business, including commodity price volatility, foreign exchange exposure and fluctuations in demand within the metals markets.

Based on the forecasts prepared, the recent improvement in trading performance and the renewed support of the company's bankers for the next 12 months, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future.

Accordingly, the directors consider it appropriate to prepare the financial statements on the going concern basis.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

(a) Useful economic lives of assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets.

(b) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(c) Deferred tax provision

The Company recognises a provision for deferred tax in respect of timing differences arising from accelerated capital allowances and tax losses carried forward. The calculation of the deferred tax provision requires management to make estimates and assumptions regarding the timing of reversal of these differences, the availability of future taxable profits against which tax losses may be utilised, and the tax rates expected to apply when the timing differences reverse. These estimates are based on management's expectations of future trading performance and capital expenditure. Actual results may differ from these estimates and could result in material adjustments to the deferred tax balances in future periods.

(d) Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Revenue recognition

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on reducing balance, 20% straight line on cost and 20% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Tangible assets are initially recorded at cost and subsequently stated at costs less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an assets as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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

Cost is determined using the first-in, first-out (FIFO) method. Net realisable value represents the estimated selling price in the ordinary course of business.

Financial instruments

Derivative financial instruments are initially measured at fair value on the date on which the derivative contract is entered into and are subsequently measured at fair value through profit or loss. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discount would be immaterial. In such cases the debtors are stated at cost less impairment losses for bad and doubtful debts. Trade and other debtors due less than 1 year ar stated at cost.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter at amortised cost using the effective interest method, unless the effect of discount would be immaterial. In such cases they are stated at cost.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Taxation

Taxation for the year 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Foreign currency transactions are initially recorded at the HMRC exchange rate of the functional currency for the month concerned. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

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.

Pension costs and other post-retirement benefits

Contributions to defined contribution schemes are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discount present value basis. The unwinding of the discount is recognised as finance cost in profit or loss in the period in which it arises.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2026

2025

£

£

Sale of goods

19,455,019

21,714,833

19,455,019

21,714,833

An analysis of turnover by geographical market is given below:

2026

2025

£

£

United Kingdom

8,520,583

7,008,551

Europe

5,322,324

7,261,599

United States of America

374,315

1,795,393

South America

2,029,358

968,295

Asia

1,844,406

3,360,643

Asia Pacific

719,233

502,915

Africa

639,946

785,519

Other

4,854

31,918

19,455,019

21,714,833