REGISTERED NUMBER: 10006286 (England and Wales)

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 March 2026

for

Zatu Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Financial Statements

14

Directors:

Mr S P J Budd

Mr D Budd

Registered office:

40 Barnard Road

Bowthorpe Employment Area

Norwich

Norfolk

NR5 9JB

Registered number:

10006286 (England and Wales)

Auditors:

Stephenson Smart (East Anglia) Limited

Chartered Accountants & Statutory Auditors

22-26 King Street

King's Lynn

Norfolk

PE30 1HJ

The directors present their strategic report for the year ended 31 March 2026.

Review of business

The company posted a pre-tax profit of £271,256 (2025: £3,480) for the year.

During the year, the company continued to invest in its operational site, its variety of stock, and the expansion of its revenue streams. Significant developments include further steps towards the development of a new larger primary premises to support the growing business.

The director considers the company to be in a strong position at the year end. While they acknowledge retained earnings remain negative, the balance sheet position has moved to a net asset position of £114,662 (2025: net liability position of £171,335), and this opinion is further substantiated by the growth in both turnover and EBITDA, showing the underlying financial performance has improved significantly in the year. The fact that the company has no external third-party debt and has continued to invest heavily in assets to improve its operational efficiency and revenue-generating capacity strengthens this view.

Key performance indicators

The directors consider turnover and EBITDA to be the key performance indicators of the company. The KPI's are listed below:

31.3.26

31.3.25

£

£

Turnover

20,674,411

18,997,441

EBITDA

1,012,428

621,361

The directors are pleased with the financial performance of the company in the year and expect performance to continue to improve in FY26.

Principal risks and uncertainties

The company as a retailer is exposed to the risk of stagnation or contraction of its primary market, namely tabletop and board gaming in the UK. The company mitigates this risk by diversifying into new revenue streams and adjacent categories of retail goods, as well as expanding its international presence, and is encouraged by continued observed and projected growth in the domestic and global core markets for its products.

Inflationary pressures on company costs pose a risk to the business' profitability. These are mitigated by strong cost-control measures and regular review of processes and operating costs.

The company is exposed to credit risk and foreign exchange risk in the ordinary course of its operations. The company monitors these closely and is satisfied that its current policies sufficiently minimise exposure to these risks.

The directors are of the opinion that there are no significant unmitigated risks to the company.

Future developments

The company continues to strengthen all pillars of its core retail offering - variety, quality, price and customer experience.

The company is concentrating on continuing the growth of all revenue streams, while maintaining its investment in staff and operational capacity, site and operations.

On behalf of the board:

Mr S P J Budd - Director

9 October 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

Principal activity

The principal activity of the company in the year under review was that of the retail sale of games.

Dividends

No dividends will be distributed for the year ended 31 March 2026.

Future developments

The future developments of the business are discussed in the Strategic Report.

Directors

Mr S P J Budd has held office during the whole of the period from 1 April 2025 to the date of this report.

Other changes in directors holding office are as follows:

Mr D Budd - appointed 2 April 2025

Financial instruments

The company uses various financial instruments including overdrafts and cash, and items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The company does not usually use derivative financial instruments to hedge risk.

The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.

Currency risk

The company is exposed to currency risk with a proportion of purchases denominated in currencies other than Sterling. This risk is under regular review and is factored into the director's decision making processes.

Credit risk

The company is exposed to credit risk on its' debtors. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.

Liquidity risk

Liquidity risk is the risk that cash may not be available to pay obligations when due at a reasonable cost. The company forecasts cash requirements and ensures that there are sufficient cash balances and borrowing facilities available to meet the requirements of operational activities and future developments.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' Report 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, Stephenson Smart (East Anglia) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Mr S P J Budd - Director

9 October 2026

Opinion

We have audited the financial statements of Zatu Limited (the 'company') for the year ended 31 March 2026 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 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 Directors' Report, 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 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.

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 Directors' Report.

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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identify those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the group and parent company.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include the UK financial reporting standards, Company Law, Taxation and Pension legislation and distributable profits legislation.

- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the

business and therefore may have a material effect on the financial statements include but are not limited to; health and safety legislation; trade descriptions act and employment regulation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which includes fraud and non-compliance with laws and regulations) comprised of: Inquiries of management and those charged with governance as to whether the group and parent company complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriate of journal entries; and the performance of of analytical review to identify unexpected movement in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the group and parent company's control and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than those irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements might not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Michael Andrews FCA (Senior Statutory Auditor)

for and on behalf of Stephenson Smart (East Anglia) Limited

Chartered Accountants & Statutory Auditors

22-26 King Street

King's Lynn

Norfolk

PE30 1HJ

9 October 2026

Turnover

4

20,674,411

18,997,441

Cost of sales

(16,645,990

)

(15,930,517

)

Gross profit

4,028,421

3,066,924

Administrative expenses

(3,791,441

)

(3,093,611

)

236,980

(26,687

)

Other operating income

5

428,555

290,990

Operating profit

7

665,535

264,303

Interest receivable and similar income

9

501

6,058

666,036

270,361

Interest payable and similar expenses

10

(394,780

)

(266,881

)

Profit before taxation

271,256

3,480

Tax on profit

11

14,701

(93,599

)

Profit/(loss) for the financial year

285,957

(90,119

)

Other comprehensive income

-

-

Total comprehensive income/(loss) for the year

285,957

(90,119

)

Fixed assets

Intangible assets

12

250,736

65,496

Tangible assets

13

8,036,900

8,125,886

Investments

14

900

900

8,288,536

8,192,282

Current assets

Stocks

15

4,291,354

2,676,927

Debtors

16

1,670,652

1,384,029

Cash at bank and in hand

411,266

346,189

6,373,272

4,407,145

Creditors

Amounts falling due within one year

17

(5,550,304

)

(3,861,692

)

Net current assets

822,968

545,453

Total assets less current liabilities

9,111,504

8,737,735

Creditors

Amounts falling due after more than one year

18

(8,843,689

)

(8,741,176

)

Provisions for liabilities

22

(153,193

)

(167,894

)

Net assets/(liabilities)

114,622

(171,335

)

Capital and reserves

Called up share capital

23

1,860

1,860

Share premium

24

165

165

Capital contribution reserve

24

156,312

258,824

Retained earnings

24

(43,715

)

(432,184

)

Shareholders' funds

114,622

(171,335

)

The financial statements were approved by the Board of Directors and authorised for issue on 9 October 2026 and were signed on its behalf by:

Mr S P J Budd - Director

Called up

Capital

share

Retained

Share

contribution

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2024

1,860

(342,065

)

165

-

(340,040

)

Changes in equity

Recognition

-

-

-

258,824

258,824

Total comprehensive loss

-

(90,119

)

-

-

(90,119

)

Balance at 31 March 2025

1,860

(432,184

)

165

258,824

(171,335

)

Changes in equity

Transfer between reserves

-

102,512

-

(102,512

)

-

Total comprehensive income

-

285,957

-

-

285,957

Balance at 31 March 2026

1,860

(43,715

)

165

156,312

114,622

Cash flows from operating activities

Cash generated from operations

30

(927,669

)

353,122

Net cash from operating activities

(927,669

)

353,122

Cash flows from investing activities

Purchase of intangible fixed assets

(196,878

)

(650

)

Purchase of tangible fixed assets

(261,368

)

(303,168

)

Sale of tangible fixed assets

15,100

50,000

Interest received

501

6,058

Net cash from investing activities

(442,645

)

(247,760

)

Cash flows from financing activities

Amount introduced by directors

1,435,391

-

Amount withdrawn by directors

-

(135,698

)

Net cash from financing activities

1,435,391

(135,698

)

Increase/(decrease) in cash and cash equivalents

65,077

(30,336

)

Cash and cash equivalents at beginning of year

31

346,189

376,525

Cash and cash equivalents at end of year

31

411,266

346,189

1.	Statutory information

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

Figures are rounded to the nearest whole pound sterling.

2.	Statement of compliance

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

3.	Accounting policies

Basis of preparing the financial statements

These individual financial statements have been prepared on a going concern basis, under the historical cost convention. All accounting policies have been applied consistently.

Going concern

The director has assessed the performance of the company, and despite the net liability position, deems it to be a going concern. The financial statements have therefore been prepared on this basis. The director confirms that they will provide any required financial support to ensure that the company will continue in operational existence for the foreseeable future. In making this assessment the director has considered a period in excess of one year from the date of approval of the financial statements.

In order to make this assessment the director has prepared a letter of comfort, and post year end management accounts, including reviewing reasonably possible negative scenarios, and assessed the liquidity of the business under these scenarios. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Preparation of consolidated financial statements

The financial statements contain information about Zatu Limited as an individual company and do not contain consolidated financial information as the parent of the group. The company is exempt under Section 405(2) of the Companies Act 2006 from the requirements to prepare consolidated financial statements on the basis that its subsidiaries are not material for the purpose of giving a true and fair view.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) Useful economic lives of tangible and intangible assets

The annual depreciation and amortisation charge for tangible and intangible 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 technological advancements, future investments, economic utilisation and the physical condition of the assets.

(b) Taxation

The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

(c) Stocks

The carrying amount of stocks recognised on the balance sheet are subject to estimates around rates of provision applied to certain inventory items. The level of provisions recorded are subject to estimation uncertainty in determining the eventual sales price of goods to customers in the future, as well as assessing which items may be slow-moving or obsolete.

(d) Long term loan effective rate of interest

The company has a long-term loan from a director that was advanced on non-market terms. In accordance with FRS 102, the loan was initially recognised at the present value of future cash flows discounted using an estimated market rate of interest for a comparable instrument. The determination of the discount rate required management to use judgement regarding the selection of a reasonable effective rate of interest for the nature of the loan. Different assumptions could have resulted in a different initial carrying value of the loan and a corresponding impact on reserves and future finance costs.

Revenue recognition

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, which is on despatch of the goods, whereby the amount of revenue can be measured reliably, and it is probable that the associated economic benefits will flow to the entity, and the costs incurred in respect of the transactions can be measured reliably. Amounts received in advance of despatch are recorded as deferred income.

Revenue from the rendering of fulfilment services is measured by reference to the stage of completion of the service transaction at the end of the reporting period, be it storage, shipping, or related handling charges.

Other income

Operating lease rental income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Service charge income is measured by usage of utilities by operating lease rental tenants. The company is a principle as it bears the responsible for procuring and managing services and bears the associated risks. Therefore service charge income and any related expenses are recognised fully in profit or loss.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Patents and licenses - 10% straight line

Patents and licenses (server) - 3 years straight line

Development costs - 10% straight line

Computer software - 10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Development cost is capitalised within intangible assets once it is confirmed the asset is technically feasible, the costs can be reliably measured, with the company intending to sell or use it and it is expected the generate future economic benefits. Expenditure on research and development is written off in the year in which it is incurred.

Tangible fixed assets

Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

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

Freehold land and property

-

Straight line over 25 years

Plant and machinery

-

15% p.a. reducing basis

Fixtures and fittings

-

15% p.a. reducing basis

Motor vehicles

-

15% p.a. reducing basis

Computer equipment

-

25% p.a. reducing basis

Freehold land is not depreciated.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being

estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Stock is valued on an average value of cost basis.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Amounts recognised in the capital contribution reserve in respect of below market rate shareholder financing are transferred to retained earnings over the term of the loan as the associated discount is unwound through finance costs.

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 balance sheet date.

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Deferred income

Deferred income represents deposits taken in advance of new releases of products, and payments received for existing products in advance of despatch. Monies received are recorded in deferred income until the date of release and despatch to the customer at which point the revenue is recognised.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

4.

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:

31.3.26

31.3.25

£

£

Sale of goods

18,959,557

17,473,572

Rendering of services

1,714,854

1,523,869

20,674,411

18,997,441

Turnover has not been disclosed by geographical market as the directors consider this to be seriously prejudicial to the interests of the company.

5.	Other operating income

31.3.26

31.3.25

£

£

Rents received

191,762

113,210

Sundry receipts

45,223

32,968

Credit card rewards

-

(24,621

)

Service charge income

191,570

169,433

428,555

290,990

6.	Employees and directors

31.3.26

31.3.25

£

£

Wages and salaries

2,265,356

1,634,998

Social security costs

251,153

134,923

Other pension costs

43,320

88,444

2,559,829

1,858,365

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

31.3.26

31.3.25

Management and administration

62

32

Warehouse operations

37

24

99

56