REGISTERED NUMBER: 03662925 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

FRANKLIN PRODUCTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTOR:

K Picard

REGISTERED OFFICE:

20 Crownhill Business Park

Vincent Avenue

Milton Keynes

Buckinghamshire

MK8 0AB

REGISTERED NUMBER:

03662925 (England and Wales)

AUDITORS:

Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

The director presents her strategic report for the year ended 31 December 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

The director continually reviews and evaluates the risks that the company is facing. The principal risks and uncertainties facing the company are broadly grouped as: Competitive, Legislative, and Financial risks.

Competitive risks

The aviation seating industry continues to operate within a highly competitive global market. The Company maintains its position through a strong focus on product quality, customer service, responsiveness technical capability and competitive pricing. Continued investment in manufacturing capacity and operational efficiency is intended to strengthen the Company's competitive position and support future growth.

Legislative risks

The Company operates within a heavily regulated aviation environment and remains subject to the requirement of the relevant aviation authorities. Compliance with customer, regulatory and certification requirements remains a key business priority. Management continually monitors legislative and regulatory developments to ensure ongoing compliance.

Operational risks

As customer demand continues to increase, the Company remains focused on maintaining sufficient manufacturing capacity workforce capability and supply chain resilience. Expansion activities in both the United Kingdom and Poland have been undertaken to support future growth while maintaining service levels and product quality

Financial risks

The Company's activities expose it to a number of financial risks including foreign exchange risk, credit risk, liquidity risk and inflationary cost pressures. These risks are actively monitored by management and reviewed regularly through out the year.

Financial risk management objectives and policies

The Company holds bank accounts in multiple currencies to facilitate international trading activities and to minimise transactional inefficiencies associated with foreign currency transactions.

* Cash flow risk

The Company generates revenue and includes expenditure in several currencies. Foreign exchange gains and losses and monitored closely and management regularly reviews cash flow forecasts to ensure sufficient liquidity is maintained.

* Credit risk

The Company's principal financial assets comprise cash balances and trade receivables. Credit risk is managed through ongoing monitoring of customer balances and collection performance. the Company's customer base continues to consist primarily of establish organisations operating within the aviation sector.

* Liquidity risk

The Company maintains appropriate cash reserves and continues to benefit from the support of its parent company where necessary. management closely monitors working capital requirements to ensure adequate resources are available to support expansion plans and ongoing operations.

* Price risk

The Company continues to experience inflationary pressures within labour, materials and purchases services. These risks are managed through continuous review of supplier arrangements, operation efficiencies and customer pricing where commercially appropriate.

KEY PERFORMANCE INDICATORS

2025

2024

Change

Turnover

£19,438,918

£16,310,739

19.2%

Depreciation

£89,150

£48,408

84.2%

Operating profit

£1,263,995

£1,432,286

-11.7%

Profit after tax

£909,822

£1,150,034

-26.40%

Cash generation

(£75,024

)

£318,692

-123.5%

Current assets as % of current liabilities

295.0%

273.0%

8.0%

Average number of employees

189

177

6.8%

Turnover increased significantly during the year to £19.4 million (2024: £16.3 million), representing growth of 19.2%. Despite the increase in revenue, operating profit decreased to £1.26 million (2024: £1.43 million), with profit after tax reducing to £909,822 (2024: £1,150,034).

The reduction in profitability reflects increased costs and pressures on margins during a period of significant growth. The company has continued to implement measures aimed at improving operational efficiency, strengthening product availability and controlling costs.

BUSINESS REVIEW AND FUTURE OUTLOOK

The Company continued its growth trajectory throughout 2025, benefiting from sustained recovery and expansion within the global aviation market. Demand from both existing and new customers remained strong throughout the year.

The expansion of operations in Milton Keynes and continued development of the Poland facility have increased available manufacturing capacity and positioned the Company to support future growth. Investments in facilities, equipment, systems and process improvements have continued to enhance efficiency, product availability and customer service.

Management remains focused on maintaining operational excellence, improving productivity and strengthening profitability while continuing to invest in the long-term development of the business.The Director believes that Franklin Products Limited is well positioned to continue its growth strategy and remains confident regarding the Company's future prospects. The order book remains strong, customer relationships remain well established and opportunities continue to exist across both existing and emerging markets.

ON BEHALF OF THE BOARD:

K Picard - Director

21 October 2026

The director presents her report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and sale of aircraft seat cushions, covers and associated products for the airline industry throughout the United Kingdom, Europe and international markets. The Company also operates a manufacturing branch in Poland, the results of which are included within these financial statements.

REVIEW OF THE BUSINESS

The Company continued to experience strong demand throughout 2025, supported by ongoing growth within the global aviation sector and continued expansion of relationships with bot existing and new customers.

Throughout the year, management focused on increasing manufacturing capacity, improving operational efficiency and maintaining high levels of product quality and customer service. Investment continued across both the United Kingdom and polish operations to support future growth requirements and increased customer demand.

The Company remains financially stable and continues to maintain a strong market position within the aircraft seating industry.

DIVIDENDS

No dividends were received in 2025 (2024: Nil). No dividends have been declared and paid by the company in 2025 (2024: Nil).

FUTURE DEVELOPMENTS

The Director remains focused on supporting sustainable growth whilst maintaining the Company's commitment to quality, service and operational excellence

The continued development of both the Milton Keynes and Poland operations is expected to provide additional manufacturing capacity and operation flexibility to support customer requirements and future business growth. Investment in facilities, equipment, technology and employee development will continue where appropriate.

Management will continue to pursue opportunities with both existing and prospective customer whilst seeking operational improvements that enhance productivity, profitability and customer satisfaction.

The Company remains committed to maintaining a strong order book, effective cost control and posited cash generation whilst supporting future expansion initiatives.

DIRECTOR

K Picard held office during the whole of the period from 1 January 2025 to the date of this report.

ENGAGEMENT WITH EMPLOYEES

The Company recognises that its employees are fundamental to its continued success. Employees are regularly updated regarding business performance, operational developments and future objectives through management communications and meetings.

The Company encourage employee involvement in identifying opportunities for continuous improvement and remains committed to providing a safe, inclusive and supportive working environment. Training and development opportunities continue to be provided to enhance skills, support career progression and strengthen organisational capability.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

K Picard - Director

21 October 2026

Opinion

We have audited the financial statements of Franklin Products Limited (the 'company') for the year ended 31 December 2025 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 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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.

Opinion on other matters prescribed by 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;

- We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements, or the operations of the company which included the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

- Performed detailed substantive testing to address completeness and accuracy of sales;

- Assessed the appropriateness and application of the accounting policy concerning income recognition; and

- Performed detailed cut-off testing either side of the balance sheet date.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions;

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- Investigated the rationale behind significant or unusual transactions.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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.

Darren Kerins FCCA (Senior Statutory Auditor)

for and on behalf of Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

21 October 2026

TURNOVER

5

19,438,918

16,310,739

Cost of sales

13,404,583

11,323,387

GROSS PROFIT

6,034,335

4,987,352

Administrative expenses

4,770,340

3,555,066

OPERATING PROFIT

7

1,263,995

1,432,286

Interest receivable and similar income

-

4,067

1,263,995

1,436,353

Interest payable and similar expenses

8

-

186

PROFIT BEFORE TAXATION

1,263,995

1,436,167

Tax on profit

9

354,173

286,133

PROFIT FOR THE FINANCIAL YEAR

909,822

1,150,034

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

909,822

1,150,034

FIXED ASSETS

Tangible assets

10

346,401

103,394

CURRENT ASSETS

Stocks

11

1,346,020

1,714,700

Debtors

12

3,582,416

3,337,852

Cash at bank and in hand

1,512,597

1,587,621

6,441,033

6,640,173

CREDITORS

Amounts falling due within one year

13

2,204,165

2,432,382

NET CURRENT ASSETS

4,236,868

4,207,791

TOTAL ASSETS LESS CURRENT LIABILITIES

4,583,269

4,311,185

CREDITORS

Amounts falling due after more than one year

14

728,431

1,366,169

NET ASSETS

3,854,838

2,945,016

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

3,854,738

2,944,916

SHAREHOLDERS' FUNDS

3,854,838

2,945,016

The financial statements were approved by the director and authorised for issue on 21 October 2026 and were signed by:

K Picard - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

1,794,882

1,794,982

Changes in equity

Total comprehensive income

-

1,150,034

1,150,034

Balance at 31 December 2024

100

2,944,916

2,945,016

Changes in equity

Total comprehensive income

-

909,822

909,822

Balance at 31 December 2025

100

3,854,738

3,854,838

Cash flows from operating activities

Cash generated from operations

1

700,763

379,227

Interest paid

-

(186

)

Tax received

(443,630

)

(5,856

)

Net cash from operating activities

257,133

373,185

Cash flows from investing activities

Purchase of tangible fixed assets

(332,157

)

(58,560

)

Interest received

-

4,067

Net cash from investing activities

(332,157

)

(54,493

)

(Decrease)/increase in cash and cash equivalents

(75,024

)

318,692

Cash and cash equivalents at beginning of year

2

1,587,621

1,268,929

Cash and cash equivalents at end of year

2

1,512,597

1,587,621

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

2025

2024

£

£

Profit before taxation

1,263,995

1,436,167

Depreciation charges

89,150

48,408

Finance costs

-

186

Finance income

-

(4,067

)

1,353,145

1,480,694

Decrease/(increase) in stocks

368,680

(452,899

)

Increase in trade and other debtors

(282,950

)

(1,109,266

)

(Decrease)/increase in trade and other creditors

(738,112

)

460,698

Cash generated from operations

700,763

379,227

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 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

1,512,597

1,587,621

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,587,621

1,268,929

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

1,587,621

(75,024

)

1,512,597

1,587,621

(75,024

)

1,512,597

Total

1,587,621

(75,024

)

1,512,597

1.	STATUTORY INFORMATION

Franklin Products 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 (£).

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

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis which assumes that continuing support will be made available by the company's parent company to provide working capital and enable the company to meet its obligations as they fall due. Further details are shown below.

TURNOVER

The company's turnover represents the value, excluding sales taxes, of goods and services supplied to customers during the year. A sale is recognised when goods and services have been delivered and future economic benefits are probable. Revenue is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, net of discounts and sales taxes.

TANGIBLE FIXED ASSETS

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.

Improvements to property

-

10% or 17% straight line

Plant, machinery and office equipment

-

at varying rates on cost

* Lease ends in 2031.

Loose tools and moulds

It is the company's policy to write off expenditure on loose tools and moulds immediately to profit or loss, since individually they are not of any significant value.

STOCKS

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

Cost is calculated using the first-in first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work in progress includes an additional proportion of relevant overheads dependent on the stage of completion.

FINANCIAL INSTRUMENTS

Financial assets including cash at bank and in hand and other debtors are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment.

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations rather than the the financial instrument's legal form. Financial liabilities including other creditors as well as bank overdrafts are initially measured at transaction price (including transaction costs) and are subsequently held at amortised cost.

Debt instruments that are payable or receivable within one year are measured at the undiscounted amount of cash or other consideration expected to be paid or received.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

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.

DEBTORS AND CREDITORS RECEIVABLE/PAYABLE WITHIN ONE YEAR

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in administrative expenses.

TAX

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. it is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. 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 balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In preparing these financial statements, the Directors have made the following judgements:

* Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

* Impairment of trade receivables

The company evaluates the amount of allowance for impairment based on available facts and circumstances affecting the collectability of the accounts, including, but not limited to, the length of the Company's relationship with the customers, the customers' current credit status, average age of accounts, collection experience and historical loss experience. The methodology and assumptions used in estimating future cash flows are reviewed regularly by the Company to reduce any differences between loss estimates and actual loss experience.

* Inventory

The Company evaluates the amount of allowance for impairment based on available facts and circumstances affecting the inventory balances at the year end. The methodology and assumptions used in determining whether inventory items are impaired is reviewed regularly by the Company to reduce any differences between loss estimates and actual loss experience.

5.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

3,144,695

2,854,109

Rest of Europe

13,772,634

5,797,246

Rest of the World

2,521,589

7,659,384

19,438,918

16,310,739

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,883,818

3,283,489

Social security costs

109,733

83,768

Other pension costs

232,229

196,040

4,225,780

3,563,297

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

2025

2024

UK

62

46

Poland

127

131

189

177

2025

2024

£

£

Directors' remuneration

-

-

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

12,905

11,896

Depreciation - owned assets

89,150

48,410

Auditors' remuneration

51,289

53,559

Operating lease rentals

280,760

230,805

Exchange losses/(gains)

409,035

(235,320

)

The auditors remuneration in 2025 is analysed as: HLB Avanta Audit Sp z o.o Sp.k. £21,289 (2024: £23,559) and Ad Valorem Audit Services Limited £30,000 (2024: £30,000).

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

-

186

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

280,505

213,475

Foreign tax paid

35,281

169,194

Total current tax

315,786

382,669

Deferred tax

38,387

(96,536

)

Tax on profit

354,173

286,133

UK corporation tax has been charged at 25% (2024 - 25%).

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

1,263,995

1,436,167

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

315,999

359,042

Effects of:

Expenses not deductible for tax purposes

22,847

31,053

Capital allowances in excess of depreciation

(23,060

)

-

Depreciation in excess of capital allowances

-

6,122

Other

-

(13,548

)

Movement in deferred tax

38,387

(96,536

)

Total tax charge

354,173

286,133

10.	TANGIBLE FIXED ASSETS

Plant,

machinery

Assets

Improvements

and office

under

to property

equipment

construction

Totals

£

£

£

£

COST

At 1 January 2025

138,771

1,116,442

35,039

1,290,252

Additions

50,864

281,293

-

332,157

Reclassification/transfer

-

30,001

(30,001

)

-

At 31 December 2025

189,635

1,427,736

5,038

1,622,409

DEPRECIATION

At 1 January 2025

91,318

1,095,540

-

1,186,858

Charge for year

24,761

64,389

-

89,150

At 31 December 2025

116,079

1,159,929

-

1,276,008

NET BOOK VALUE

At 31 December 2025

73,556

267,807

5,038

346,401

At 31 December 2024

47,453

20,902

35,039

103,394

11.

STOCKS

2025

2024

£

£

Stocks

1,346,020

1,714,700