| Interlink Direct Limited |
| Registered number: |
03938482 |
| Directors' Report |
|
| The directors present their report and financial statements for the year ended 31 March 2026. |
|
| Principal activities |
| The principal activity of the Company, during the year continued to be that of importers, wholesalers and the distributors of oriental foods and general products. |
|
| Financial instrument risk |
The Company's financial risk management objective is to manage foreign exchange rate and interest rate volatility arising from overseas trading operations, primarily GBP/USD currency exposures. Its policy utilises spot transactions, foreign exchange forward contracts, and complex structured derivative instruments—including FX options, Target Accumulation Redemption Forwards (TARF), Barrier Options, Structured Dual Strike Forwards, and Knock-Out Redemption Forwards (KORFE)—to hedge transactional currency exposures.
All derivative financial instruments are recognised on the balance sheet at fair value, with all realised and unrealised valuation changes recognised in profit or loss (FVTPL) under FRS 102 Section 12. Hedge accounting is not applied. Working capital and fixed assets are financed through retained earnings. While counterparties to these transactions are regulated financial institutions, mitigating counterparty credit risk, the director and management actively monitor open derivative positions, potential liquidity requirements, and market risks associated with leveraged structures. |
|
| Dividends |
The profit for the year, after taxation, amounted to £3,446,026 (2025: £5,485,469).
The company paid an interim dividends during the year of £108,050 (2025: £131,200 ).
The directors do not recommend the payment of final dividends. |
|
| Events since the balance sheet date |
Subsequent to the year end, the Board approved a capital expenditure plan to install a commercial battery energy storage system (BESS) and solar panels at the primary operating facility to store renewable energy and reduce grid reliance. This non-adjusting event has no financial impact on the results for the year ended 31 March 2026.
In addition, certain structured derivative contracts open at 31 March 2026 have subsequently settled at rates more favourable than implied by the year-end mark-to-market valuation. This is a non-adjusting event under FRS 102 Section 32 and does not change the fair value recognised in these financial statements at the balance sheet date. |
|
| Directors |
| The following persons served as directors during the year: |
|
|
Ms Y H Kwok |
|
Mr F K Kwok |
|
Mr F L Kwok |
|
| Greenhouse gas emissions, energy consumption and energy efficiency action |
| The company’s UK energy consumption and greenhouse gas (GHG) emissions for the period are set out below: |
|
|
|
|
|
|
2026 |
2025 |
|
UK Energy Consumption (kWh) |
|
|
Electricity |
625,995 |
652,963 |
|
Gas & Heating |
41,402 |
55,521 |
|
Transport Fuel (Fleet & Business Travel) |
497,254 |
438,572 |
|
|
Total Energy Consumption |
1,164,651 |
1,147,056 |
|
|
|
|
|
|
|
|
|
Greenhouse Gas Emissions (tCO₂e) |
|
|
Scope 1: Direct emissions (Gas & Fleet fuel) |
134 |
119 |
|
Scope 2: Indirect emissions (Purchased electricity) |
111 |
135 |
|
|
Total Scope 1 & 2 Gross Emissions |
245 |
254 |
|
|
|
|
|
|
|
|
|
Intensity Ratio |
|
|
Tonnes of CO₂e per £1m Turnover |
4.3000 |
4.6769 |
|
| Emissions and energy consumption have been calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard and using UK Government (DESNZ/DEFRA) Greenhouse Gas Conversion Factors for Company Reporting. Figures cover operational facilities under management control at the business address. |
|
| Energy Efficiency Measures Taken |
|
| During the financial year, the company implemented several measures to improve energy efficiency: |
|
| Route-optimisation updates for the commercial vehicle fleet to minimise fuel usage per delivery. |
| Planned maintenance and efficiency servicing of refrigeration and warehouse plant machinery. |
|
| Directors' responsibilities |
| Interlink Direct Limited |
| Strategic Report |
|
| The directors present their strategic report on the company for the year ended 31 March 2026. |
|
| The directors aim to present a balanced and comprehensive review of the development and performance of the company's business during the year and its position at the year end. This review reflects the scale of the Company's operations and the nature of its risk exposures — including those arising from its use of structured foreign exchange derivative instruments — and is written in the context of the risks and uncertainties the Company faces. |
|
| Business review |
|
| The Company’s gross margin showed a slight improvement compared with the previous year, supported by the growth in revenue. However, operating profit declined, primarily due to foreign exchange and derivative losses, together with higher administrative expenses. The directors continue to monitor operating costs closely and actively seek opportunities to improve operational efficiency while managing the Company’s exposure to foreign exchange fluctuations. |
|
| To support future growth, the development of the new warehouse facility next to our existing site has progressed and is now scheduled for completion by the end of the next financial year. Once in operation, the facility will boost storage capacity and improve logistics planning. |
|
| The directors continue to monitor the company’s operations closely and regularly review its performance and strategy, particularly as trading conditions remain difficult and competitive. |
|
| Principal risk and uncertainties |
|
| As an importer of oriental food products, the company's key financial exposure is foreign exchange rate volatility, given that overseas stock purchases are primarily denominated in US Dollars (USD) while revenues are in Sterling (GBP). To manage this transactional currency risk, the company uses foreign exchange forwards and structured derivatives, such as TARFs, KORFE and options, which are measured at fair value through profit or loss under FRS 102 Section 12. These structured instruments carry asymmetric risk features: potential gains are limited once a pre-agreed profit target is reached (a 'Target Cap'), at which point the contract terminates early, whereas an adverse market movement beyond a specified barrier level (a 'Knock-In') obliges the company to continue purchasing USD at off-market rates for the remaining contractual settlement dates. During the year this risk contributed to an unrealised fair value loss on structured derivatives of £2,489,939, equivalent to approximately 54.4% of profit before tax. At 31 March 2026, the aggregate notional (contractual) amount of open structured derivative contracts was approviately £125.8m, with settlement dates extending to 2028; accordingly, the leveraged downside exposure described above is not confined to the current reporting period but continues over a multi-year settlement profile. Management continuously monitors open derivative positions, market valuations, and the potential magnitude of this leveraged downside risk, including its extended multi-year settlement profile, against internal risk limits. |
|
| Operationally, the company faces risks related to global supply chain disruptions, rising freight costs, and port delays that could impact landed stock costs and product availability. The company mitigates these risks by maintaining strong relationships with diverse international suppliers and logistics partners, while managing working capital prudently to hold optimal buffer stock for high-demand items. |
|
| Credit and liquidity risks arise from wholesale operations with UK and European trade customers, as well as counterparty risks from derivative contracts. Credit risk is controlled through strict credit limits and payment reviews before dispatch. Counterparty risk is minimized by executing derivative transactions solely with reputable, regulated financial institutions, backed by adequate liquid reserves. |
|
| Finally, future business performance relies on warehouse capacity and operational efficiency. To resolve current capacity constraints, the development of the new warehouse facility adjacent to the operating site is progressing well and scheduled for completion by the end of the next financial year, which will expand storage and optimize logistics. |
|
| Financial key performance indicators |
|
| The directors consider that the company's key financial performance indicators are those that communicate its financial performance and strength as a whole and these are: |
|
|
| 2026 (£) |
2025 (£) |
|
Turnover (UK) |
56,916,116 |
54,263,339 |
|
Turnover (Europe) |
58,483 |
150,293 |
|
Total Turnover |
56,974,599 |
54,413,632 |
|
Gross profit margin |
21% |
20% |
|
Profit before tax |
4,576,198 |
6,977,686 |
|
|
| Non-financial key performance indicators |
|
| The Company monitors key non-financial indicators to assess operational performance, employee management, and environmental impact: |
|
| Workforce and Human Resources: Average headcount for the financial year increased to 74 employees (2025: 70 employees), consisting of 30 administrative and 44 distribution staff (Note 7). Management focuses on employee retention, health and safety standards, and workforce stability across warehouse operations. |
|
| Operational Efficiency and Logistics: Logistics performance is tracked through warehouse capacity and fulfillment accuracy. Development of the new warehouse facility adjacent to the primary site progressed during the year and remains on track for completion by the end of the next financial year. |
|
| Environmental Sustainability: Environmental efficiency is monitored using carbon intensity metrics. The Company’s Scope 1 and Scope 2 emissions intensity was 4.3000 tonnes of CO2e per £1m turnover (2025: 4.6769 tonnes of CO2e per £1m turnover), demonstrating enhanced carbon efficiency. Complete Streamlined Energy and Carbon Reporting (SECR) details are set out in the Directors' Report on page 3. |
|
|
| Directors' statement of compliance with duty to promote the success of the Company |
|
| The Directors present their Section 172(1) Statement, detailing how they have acted to promote the success of the Company for the benefit of its members as a whole, while having regard to the matters set out in Section 172(1)(a)–(f) of the Companies Act 2006. In discharging their duties, the Board regularly evaluates the long-term strategic impacts of its decisions on key stakeholders and the broader operating environment. Over the financial year, strategic focus centered on expanding operational capacity, maintaining financial stability, and securing high standards of commercial conduct across all trade activities. |
|
| Long-term strategic investments and environmental sustainability remain central to board decision-making. During the year, the Board progressed the construction of a new commercial warehouse facility adjacent to the primary operating site and approved capital expenditures for commercial battery energy storage systems (BESS) and solar panels. These decisions were taken to expand long-term logistics capacity, lower grid reliance, and reduce the Company's environmental impact over the long term. |
|
| Relationships with operational stakeholders, including customers, suppliers, and employees, are actively managed to support long-term business resilience. The Company works closely with wholesale and retail clients to maintain consistent product availability and food safety across its distribution network. To protect relationships with international suppliers, the Board actively manages USD foreign exchange risks through transparent derivative hedging strategies, ensuring operational liabilities are settled predictably. Furthermore, working capital is funded through retained earnings to preserve operational stability, protecting employment across administrative and distribution functions. |
|
| Finally, the Board maintains responsible corporate governance by balancing business reinvestment with shareholder returns. Interim dividend distributions to the parent company, Interlink Direct Holdings Limited, are evaluated against capital expenditure priorities and liquidity reserves to safeguard the financial health and long-term viability of the Company for all members. |
|
|
|
| This report was approved by the board on 30 September 2026 and signed on its behalf. |
|
|
|
| Ms Y H Kwok |
| Director |
|
|
Motor Vehicle |
25% reducing balance |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Functional and presentation currency: The financial statements are presented in Sterling (£), which is the Company's functional currency.
Transactions and balances: Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each reporting date, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.
Foreign exchange gains and losses resulting from the settlement of operational trade transactions and from the translation at period-end exchange rates of operational monetary assets and liabilities are recognised in the Income Statement within Cost of Sales.
Realised and unrealised gains and losses arising from foreign exchange derivative contracts and structured financial instruments are recognised in the Income Statement under 'Gain/loss on foreign exchange and derivative'. |
|
|
Derivative financial instruments |
|
The Company enters into foreign exchange derivative contracts—including foreign currency forward contracts, Target Accumulation Redemption Forwards (TARF), Barrier Options, Structured Dual Strike Forwards, and Knock-Out Redemption Forwards (KORFE)—to manage its foreign currency exchange rate risk arising from overseas stock purchases in US Dollars (USD).
Derivative financial instruments are categorised as non-basic financial instruments under FRS 102 Section 12. They are initially recognised at fair value on the contract date and subsequently remeasured at fair value at each reporting date.
Realised and unrealised gains or losses arising from changes in fair value are recognized in the Income Statement immediately under "Gain/loss on foreign exchange and derivative". Hedge accounting is not applied.
Derivatives with a positive fair value (In-the-Money) are recognised as financial assets within debtors; derivatives with a negative fair value (Out-of-the-Money) are recognised as financial liabilities within creditors. Financial assets and liabilities are not offset unless a legally enforceable master netting agreement exists. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Operating leases |
|
The lease of the Company's principal premises from Interlink Direct Properties Limited was executed on 1 April 2025 and has a remaining term of approximately 19 years from 1 April 2026. Rent is fixed at £417,000 per annum until the first rent review occurring on 31 March 2030; thereafter, rent is subject to upward-only open market reviews. Based on the rent currently in effect and the remaining lease term, the directors' preliminary estimate is that, upon adoption of amended FRS 102 Section 20 (effective for the accounting period ending 31 March 2027), the Company will recognise a right-of-use asset and a corresponding lease liability of approximately £5.1 million to £5.2 million. This has been calculated using the modified retrospective transition approach by discounting lease payments currently due using an estimated incremental borrowing rate of 5% per annum. This change will increase gross non-current assets and lease liabilities on the balance sheet. It will have no impact on cash flows and is not expected to materially affect distributable reserves upon initial application. The final figures, including confirmation of the contractual commencement date, the incremental borrowing rate applied, and any lease prepayments or initial direct costs, will be confirmed upon formal adoption. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
| 3 |
Critical accounting estimates and judgements |
|
|
Management exercises judgement in determining the useful economic lives and depreciation of fixed assets, as well as estimating the fair value of complex derivative financial instruments using counterparty market valuations. No further judgements or estimates are recognised which could materially affect the Company's financial position. |
|
|
| 4 |
Analysis of turnover |
2026 |
|
2025 |
| £ |
£ |
|
|
Sale of goods |
56,974,599 |
|
54,413,632 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
56,916,116 |
|
54,263,339 |
|
Europe |
58,483 |
|
150,293 |
|
|
|
|
|
|
56,974,599 |
|
54,413,632 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Operating profit |
2026 |
|
2025 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
394,718 |
|
340,498 |
|
Amortisation of trademark |
50 |
|
50 |
|
Operating lease rentals - land and buildings |
461,985 |
|
83,000 |
|
Auditors' remuneration for audit services |
12,000 |
|
11,000 |
|
Auditors' remuneration for other services |
6,000 |
|
6,000 |
|
Carrying amount of stock sold |
45,092,692 |
|
43,314,675 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Directors' emoluments |
2026 |
|
2025 |
| £ |
£ |
|
|
Emoluments |
84,000 |
|
80,000 |
|
Benefits in kind |
5,207 |
|
4,483 |
|
|
|
|
|
|
89,207 |
|
84,483 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Staff costs |
2026 |
|
2025 |
| £ |
£ |
|
|
Wages and salaries |
2,513,022 |
|
2,408,629 |
|
Social security costs |
321,196 |
|
240,460 |
|
Other pension costs |
34,065 |
|
30,685 |
|
|
|
|
|
|
2,868,283 |
|
2,679,774 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
30 |
|
29 |
|
Distribution |
44 |
|
41 |
|
|
|
|
|
|
74 |
|
70 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Interest payable |
2026 |
|
2025 |
| £ |
£ |
|
|
Other loans |
148 |
|
20,256 |
|
|
|
|
|
|
|
|
|
|
| 9 |
Taxation |
2026 |
|
2025 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
1,065,625 |
|
1,796,167 |
|
Adjustments in respect of previous periods |
- |
|
(134,413) |
|
|
|
|
|
|
1,065,625 |
|
1,661,754 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
64,547 |
|
(169,537) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
1,130,172 |
|
1,492,217 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2026 |
|
2025 |
| £ |
£ |
|
Profit on ordinary activities before tax |
4,576,198 |
|
6,977,686 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
1,144,050 |
|
1,744,422 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
632,535 |
|
51,745 |
|
Capital allowances for period in excess of depreciation |
(710,960) |
|
- |
|
Adjustments to tax charge in respect of previous periods |
- |
|
(134,413) |
|
|
Current tax charge for period |
1,065,625 |
|
1,661,754 |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
The Company has taken into account all factors that could affect future tax charges. Other than the deferred tax matters disclosed in the notes, no significant factors require disclosure. |
|
|
| 10 |
Intangible fixed assets |
£ |
|
Trademark: |
|
|
Cost |
|
At 1 April 2025 |
250 |
|
Additions |
250 |
|
At 31 March 2026 |
500 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 April 2025 |
50 |
|
Provided during the year |
50 |
|
At 31 March 2026 |
100 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2026 |
400 |
|
At 31 March 2025 |
200 |
|
|
|
|
|
|
|
|
|
|
The trademark is being amortised on a straight-line basis over its estimated useful economic life of 10 years, which has been determined by reference to its legal life. |
|
|
| 11 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery |
|
Motor vehicles |
|
Total |
|
|
At cost |
|
At cost |
|
At cost |
| £ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2025 |
- |
|
2,497,206 |
|
571,486 |
|
3,068,692 |
|
Additions |
2,868,130 |
|
444,008 |
|
179,340 |
|
3,491,478 |
|
Disposals |
- |
|
- |
|
(63,015) |
|
(63,015) |
|
At 31 March 2026 |
2,868,130 |
|
2,941,214 |
|
687,811 |
|
6,497,155 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2025 |
- |
|
2,157,505 |
|
291,708 |
|
2,449,213 |
|
Charge for the year |
- |
|
281,603 |
|
113,115 |
|
394,718 |
|
On disposals |
- |
|
- |
|
(56,356) |
|
(56,356) |
|
At 31 March 2026 |
- |
|
2,439,108 |
|
348,467 |
|
2,787,575 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2026 |
2,868,130 |
|
502,106 |
|
339,344 |
|
3,709,580 |
|
At 31 March 2025 |
- |
|
339,701 |
|
279,778 |
|
619,479 |
|
|
|
|
|
|
|
|
|
|
Included within Land and buildings is £2,868,130 (2025: £Nil) relating to the ongoing construction and development of the new commercial warehouse facility adjacent to the primary operating site. In accordance with FRS 102 Section 17.16, no depreciation has been charged in the current financial year as the asset was under construction and not yet available for operational use at the balance sheet date. Depreciation will commence once the facility is completed and brought into operational use. |
|
| 12 |
Stocks |
2026 |
|
2025 |
| £ |
£ |
|
|
Finished goods and goods for resale |
10,461,060 |
|
9,027,251 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Debtors |
2026 |
|
2025 |
| £ |
£ |
|
|
Trade debtors |
5,584,652 |
|
4,469,031 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
13,115,340 |
|
13,758,756 |
|
Deferred tax asset (see note 16) |
|
|
|
|
- |
|
15,805 |
|
Other debtors |
1,259,647 |
|
941,971 |
|
Derivative financial instruments asset (see notes 15) |
245,284 |
|
- |
|
Restricted cash (derivative collateral) |
5,442,562 |
|
- |
|
Prepayments and accrued income |
233,694 |
|
223,325 |
|
|
|
|
|
|
25,881,179 |
|
19,408,888 |
|
|
|
|
|
|
|
|
|
|
|
Amounts due after more than one year included in: |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
12,698,340 |
|
13,758,756 |
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings due after more than one year are interest free, and have no fixed repayment date but are not expected to be recalled within twelve months. Having regard to the financial position of the relevant group undertakings, the directors do not consider any impairment provision to be required. |
|
| 14 |
Creditors: amounts falling due within one year |
2026 |
|
2025 |
| £ |
£ |
|
|
Trade creditors |
2,907,007 |
|
1,416,606 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
108,748 |
|
106,848 |
|
Corporation tax |
- |
|
579,641 |
|
Other taxes and social security costs |
259,445 |
|
161,828 |
|
Other creditors |
4,443,201 |
|
4,097,661 |
|
Derivative financial instruments liabilities (see notes 15) |
2,494,253 |
|
5,133 |
|
Accruals and deferred income |
32,696 |
|
30,675 |
|
|
|
|
|
|
10,245,350 |
|
6,398,392 |
|
|
|
|
|
|
|
|
|
|
| 15 |
Derivative financial instruments & risk disclosures |
2026 |
|
2025 |
| £ |
£ |
|
(a) Carrying amount of derivative financial instruments |
|
Assets(£) |
|
Foreign exchange forward contracts |
|
25,900 |
|
- |
|
Structured derivatives (TARF, Barrier Options, Dual Strike, KORFE) |
|
219,384 |
|
- |
|
|
Total Financial Instruments at FVTPL |
|
245,284 |
|
- |
|
|
|
|
|
|
|
|
|
|
Liability(£) |
|
Foreign exchange forward contracts |
|
4,314 |
|
5,133 |
|
Structured derivatives (TARF, Barrier Options, Dual Strike, KORFE) |
|
2,489,939 |
|
- |
|
|
Total Financial Instruments at FVTPL |
|
2,494,253 |
|
5,133 |
|
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL are presented as 'Derivative financial instruments asset' within Debtors (Note 13), and financial liabilities at FVTPL are presented as 'Derivative financial instruments liabilities' within Creditors (Note 14). |
|
|
The aggregate notional (contractual) amount of structured foreign exchange derivative contracts open at 31 March 2026 was approxiately £125.8m. These contracts have settlement (fixing) dates extending to 2028. The following table analyses the notional amount by expected settlement date: |
|
|
|
|
|
|
|
2026 |
|
2025 |
|
Notional amount (GBP) |
£ m |
£ m |
|
|
Within one year |
|
|
|
|
103.2 |
|
Between one and two years |
|
|
|
|
22.4 |
|
Between two and three years |
|
|
|
|
0.2 |
|
Total |
|
|
|
|
125.8 |
|
- |
|
|
|
|
|
|
|
|
|
|
Because these are leveraged structured instruments (see Strategic Report), the fair value liability recognised at the reporting date (£2,494,253) does not represent the maximum potential future obligation; an adverse movement beyond the contractual barrier level ('Knock-In') would increase the Company's obligation to purchase USD at off-market rates for the remaining, currently-open notional amount through to the final settlement date in 2028. |
|
|
(b) Key terms and risk profile of complex derivatives |
|
TARF & KORFE Contracts: Feature target profit ceiling mechanisms ("Target Cap"). Upon accumulating specified target profit levels, contracts automatically terminate ("Knock-Out") for remaining settlement dates. If market spot rates move unfavourably beyond specified barrier thresholds (Enhanced Knock-In), the company retains leveraged obligations to purchase USD at off-market strike rates until maturity. |
|
|
Barrier Options & Dual Strike Forwards: Conditioned on market exchange rates breaching lower/upper barrier thresholds, altering option exercise obligations. |
|
|
(c) Fair value hierarchy (FRS 102 section 11/12) |
|
|
All derivative financial instruments held by the company are measured at fair value and categorized as Level 2 within the fair value hierarchy: |
|
|
Level 2 Inputs: Valuation is based on observable counterparty market inputs at the reporting date (31 March 2026), using spot exchange rates (GBP/USD), forward interest rate curves, and market volatility inputs from counterparty Mark-to-Market (MTM) statements. |
|
|
(d) Realised/unrealised gain or loss on financial instruments at FVTPL |
|
|
|
|
|
|
2026 |
|
2025 |
| £ |
£ |
|
Realised foreign exchange gain |
|
|
|
557,509 |
|
Realised foreign exchange loss |
|
|
|
(813,231) |
|
Net realised loss |
|
(255,722) |
|
- |
|
|
|
|
|
|
|
|
|
|
Unrealised foreign exchange gain |
|
|
|
245,284 |
|
Unrealised foreign exchange loss |
|
|
|
(2,494,253) |
|
Net unrealised loss |
|
(2,248,969) |
|
- |
|
|
|
|
|
|
|
|
|
|
Total loss on foreign exchange and derivative (Income Statement) |
|
(2,504,691) |
|
- |
|
|
|
|
|
|
|
|
|
|
Realised amounts represent gains and losses on foreign exchange and derivative contracts settled during the year. Unrealised amounts represent the movement in fair value of derivative positions open at the reporting date (see note 15(a)). The unrealised loss of £2,494,253 relates substantially to the fair value decline of structured derivatives (TARF, KORFE and similar instruments)." |
|
|
| 16 |
Deferred taxation |
2026 |
|
2025 |
| £ |
£ |
|
|
Accelerated capital allowances |
48,742 |
|
(15,805) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
2025 |
| £ |
£ |
|
|
At 1 April |
(15,805) |
|
153,732 |
|
Charged/(credited) to the profit and loss account |
64,547 |
|
(169,537) |
|
|
At 31 March |
48,742 |
|
(15,805) |
|
|
|
|
|
|
|
|
|
|
|
| 17 |
Share capital |
Nominal |
|
2026 |
|
2026 |
|
2025 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
- |
|
2 |
|
2 |
|
|
|
|
|
|
|
|
|
|
| 18 |
Profit and loss account |
2026 |
|
2025 |
| £ |
£ |
|
|
At 1 April |
40,209,617 |
|
34,855,348 |
|
Profit for the financial year |
3,446,026 |
|
5,485,469 |
|
Dividends |
(108,050) |
|
(131,200) |
|
|
At 31 March |
43,547,593 |
|
40,209,617 |
|
|
|
|
|
|
|
|
|
|
| 19 |
Dividends |
2026 |
|
2025 |
| £ |
£ |
|
|
Dividends on ordinary shares (note 18) |
108,050 |
|
131,200 |
|
|
|
|
|
|
|
|
|
|
|
| 20 |
Capital commitments |
2026 |
|
2025 |
| £ |
£ |
|
|
Amounts contracted for but not provided in the accounts |
2,093,651 |
|
- |
|
|
|
|
|
|
|
|
|
|
| 21 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
| £ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
417,000 |
|
48,417 |
|
- |
|
- |
|
within two to five years |
1,668,000 |
|
- |
|
- |
|
- |
|
in over five years |
5,838,000 |
|
- |
|
- |
|
- |
|
|
7,923,000 |
|
48,417 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
The lease of the Company's principal premises from Interlink Direct Properties Limited has a remaining term of approximately 19 years from 1 April 2026. Rent is fixed at £417,000 per annum only until the first rent review (occurring after the initial 5-year fixed period under the lease); thereafter rent is subject to upward-only open market reviews, the outcome of which cannot presently be determined. Based on the rent currently in effect and the remaining lease term, the directors' preliminary estimate is that, on adoption of amended FRS 102 Section 20 (first applicable to the year ending 31 March 2027), the Company will recognise a right-of-use asset and corresponding lease liability of approximately £5.1-5.2 million, calculated by discounting the payments currently due (updated for actual rent reviews as they occur) using the Company's incremental borrowing rate. This is expected to increase gross assets and liabilities on the balance sheet but is not expected to affect distributable reserves or cash flows. The final amount will be confirmed on adoption. |
|
| 22 |
Related party transactions |
|
|
During the year, the Company undertook transactions with, and at the year end had balances due from/to, related parties as follows: |
|
|
|
|
|
|
|
2026 |
|
2025 |
| £ |
£ |
|
|
Interlink Direct Properties Limited - Rent paid |
417,000 |
|
- |
|
Interlink Direct Holdings Limited - Dividends to parent company |
108,050 |
|
131,200 |
|
Key management personnel renumeration |
84,000 |
|
80,000 |
|
Key management personnel benefits in kind |
5,207 |
|
4,483 |
|
|
Interlink Direct Properties Limited is a related party by virtue of the fact that the companies are under common control. |
|
|
All other entities are subsidiaries of ultimate parent company, Interlink Direct Holdings Limited . |
|
|
The Company consider that their key management personnel are the Directors. |
|
|
The Company occupies its principal premises at 402-404 Roding Lane South, Woodford Green, Essex under a lease with Interlink Direct Properties Limited, a related party under common control, for a contractual term of 20 years. [Based on management's representations, the lease was executed on 1 April 2025 and the 20-year term runs from that date; prior to execution, the Company occupied the property without a rent liability arising.] The Annual Rent is fixed at £417,000 per annum for the first five years of the term and is thereafter subject to upward-only open market rent reviews, determined in the absence of agreement by an independent valuer appointed in accordance with the lease. The directors consider the rent review mechanism to provide for rent to be reset to open market value on an arm's-length basis. |
|
| 23 |
Controlling party |
|
|
The ultimate controlling party is Interlink Direct Holdings Limited, a company registered in
England and Wales. Interlink Direct Holdings Limited holds 100% of the shares in the company.
The consolidated financial statements of Interlink Direct Holdings Limited are available to the public and may be obtained from Companies House, Cardiff, CF14 3UZ. |
|
|
| 24 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
| 25 |
Legal form of entity and country of incorporation |
|
|
Interlink Direct Limited is a private company limited by shares and incorporated in England. |
|
|
| 26 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
402-404 Roding Lane South |
|
Woodford Green |
|
Essex |
|
IG8 8EY |
|
|
|
|
|
|
|
|
|