REGISTERED NUMBER: 08411787 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2025

FOR

DIGILED GROUP LTD

Page

Group Strategic Report

1

Report of the Directors

2

Report of the Independent Auditors

3

Consolidated Statement of Comprehensive Income

6

Consolidated Balance Sheet

7

Company Balance Sheet

8

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Financial Statements

12

The directors present their strategic report of the company and the group for the year ended 30 November 2025.

REVIEW OF BUSINESS

The Group designs, supplies, installs and maintains LED display and control solutions across multiple sectors including sports venues, entertainment, broadcast, retail and corporate environments, operating through its subsidiaries.

The Group delivered a strong performance during the year. Turnover increased to £21.87 million (2024: £11.91 million), operating profit increased to £4.02 million (2024: £0.55 million), and profit before taxation was £4.06 million (2024: £0.57 million).

The increase in turnover reflected strong project activity, including the recognition during FY25 of the Group's significant eye-level digital display rollout for Westfield across North America. Trading strengthened across a number of markets, with North America in particular delivering substantially improved performance.

The Group continued to invest in its technical capability, including additional resources to support the Westfield rollout and the associated ongoing service-level agreement.

Development and deployment of the Group's patented digiLED Zeus power-saving technology also continued during the year. Zeus is being adopted on a number of strategic projects internationally and remains an important area of future product development.

The Group generated £3.19 million of cash from operations and remained in a strong financial position at the year end, with cash balances of £4.98 million and minimal external borrowings.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group operates internationally and is exposed to risks including supply-chain disruption, project delivery and timing, foreign exchange movements, technological change, and wider economic and geopolitical conditions.

These risks are managed through established supplier relationships and direct engagement with manufacturing partners, experienced project and technical teams, ongoing product development and testing, monitoring of currency exposure, and diversification across customers, sectors and geographical markets.

The timing of significant customer capital expenditure projects remains an important risk, particularly during periods of economic or geopolitical uncertainty.

FUTURE OUTLOOK

Since the year end, wider economic and geopolitical uncertainty has resulted in delays to a number of customer capital investment projects. These projects have generally been deferred rather than cancelled or lost, affecting the timing of revenue during FY26.

At the same time, the Group's project pipeline has grown and strengthened, providing increased visibility of opportunities across its international markets. The Board therefore remains positive about the medium-term prospects of the Group, while recognising that the timing of major projects can be affected by external conditions.

North America remains a key strategic priority following the progress achieved during FY25. The Group will also continue the development and international adoption of digiLED Zeus, with increased focus on engagement with consultants and other industry influencers to encourage its consideration and specification in future projects.

The Board believes that the Group's strong financial position, growing project pipeline, international presence and continued investment in technical capability and proprietary technology provide a sound platform for future development.

ON BEHALF OF THE BOARD:

C G Burgess - Director

22 October 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 November 2025.

DIVIDENDS

Dividends voted during the year amounted to £4,223,445 (2024: £553,318).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2024 to the date of this report.

C G Burgess

S G Horrigan

DISCLOSURE IN THE STRATEGIC REPORT

The group has chosen, in accordance with the Companies Act 2006 s414C(11), to set out in the group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

C G Burgess - Director

22 October 2026

Qualified opinion

We have audited the financial statements of DigiLED Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the accompanying financial statements:

-

give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 November 2025 and of the group’s 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 qualified opinion

The group’s investment in DigiLED Japan Limited, a foreign associate is carried at £6,878 on the consolidated statement of financial position as at 30 November 2025, and has not been accounted for by the equity method. We were unable to obtain sufficient appropriate audit evidence about the carrying amount of DigiLED Group Ltd’s investment in DigiLED Japan Limited as at 30 November 2025 and DigiLED Group Ltd’s share of DigiLED Japan Limited’s net income for the year because we were unable to obtain access to the financial information and management of DigiLED Japan Limited. Consequently, we were unable to determine whether the omission of equity accounting for DigiLED Japan Limited would result in a material misstatement.

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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.

Arising solely from the limitation on the scope of our work relating to the group's associate undertaking referred to above:

-

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

-

we were unable to determine whether adequate accounting records have been kept and returns adequate for our audit have not been received from branches not visited by us.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 group's and the parent 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 group or the parent 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:

Based on our understanding of the company and industry, we considered the risk of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed included:

-

Enquiring of management whether there were instances of non-compliance with laws and regulation or fraud;

-

Review of legal expenses for evidence of fees relating to non-compliance;

-

Reviewing non-routine journal entries, non-sales bank receipts and non-purchase bank payments for unusual accounting entries;

-

Substantive accrued and deferred income testing to confirm that revenue had been recognised in the correct period;

-

Substantive revenue occurrence testing to confirm that revenue relates to a valid customer transaction; and

-

Creditor completeness testing to ensure that liabilities had been recognised in the correct period.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Christian Heeger BSc BFP FCA (Senior Statutory Auditor)

for and on behalf of Galloways Accounting

Statutory Auditors

15 West Street

Brighton

East Sussex

BN1 2RL

22 October 2026

TURNOVER

3

21,871,748

11,914,958

Cost of sales

(14,157,157

)

(7,805,580

)

GROSS PROFIT

7,714,591

4,109,378

Administrative expenses

(3,696,024

)

(3,555,065

)

OPERATING PROFIT

5

4,018,567

554,313

Interest receivable and similar income

42,430

21,702

4,060,997

576,015

Interest payable and similar expenses

6

(3,974

)

(5,360

)

PROFIT BEFORE TAXATION

4,057,023

570,655

Tax on profit

7

(221,579

)

(247,386

)

PROFIT FOR THE FINANCIAL YEAR

3,835,444

323,269

OTHER COMPREHENSIVE INCOME

Foreign exchange translation

(192,353

)

3,900

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(192,353

)

3,900

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,643,091

327,169

Profit attributable to:

Owners of the parent

3,835,444

323,269

Total comprehensive income attributable to:

Owners of the parent

3,643,091

327,169

FIXED ASSETS

Tangible assets

10

160,801

306,928

Investments

11

Interest in associate

6,878

6,878

167,679

313,806

CURRENT ASSETS

Stocks

12

36,569

95,267

Debtors

13

5,810,718

10,111,149

Cash at bank and in hand

4,984,700

6,411,757

10,831,987

16,618,173

CREDITORS

Amounts falling due within one year

14

7,519,765

12,868,332

NET CURRENT ASSETS

3,312,222

3,749,841

TOTAL ASSETS LESS CURRENT LIABILITIES

3,479,901

4,063,647

CREDITORS

Amounts falling due after more than one year

15

-

60,940

NET ASSETS

3,479,901

4,002,707

CAPITAL AND RESERVES

Called up share capital

19

15

10

Share premium

61,887

4,344

Translation reserve

(331,704

)

(139,351

)

Retained earnings

3,749,703

4,137,704

SHAREHOLDERS' FUNDS

3,479,901

4,002,707

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2026 and were signed on its behalf by:

C G Burgess - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

7,040

7,040

7,040

7,040

CURRENT ASSETS

Debtors

13

57,547

299,935

Cash at bank

19,194

89,903

76,741

389,838

CREDITORS

Amounts falling due within one year

14

40,333

43,050

NET CURRENT ASSETS

36,408

346,788

TOTAL ASSETS LESS CURRENT LIABILITIES

43,448

353,828

CAPITAL AND RESERVES

Called up share capital

19

15

10

Share premium

61,887

4,344

Retained earnings

(18,454

)

349,474

SHAREHOLDERS' FUNDS

43,448

353,828

Company's profit for the financial year

3,855,517

833,129

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2026 and were signed on its behalf by:

C G Burgess - Director

Called up

share

Retained

Share

Translation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 December 2023

10

4,367,753

4,344

(143,251

)

4,228,856

Changes in equity

Profit for the year

-

323,269

-

-

323,269

Other comprehensive income

-

-

-

3,900

3,900

Total comprehensive income

-

323,269

-

3,900

327,169

Dividends

-

(553,318

)

-

-

(553,318

)

Balance at 30 November 2024

10

4,137,704

4,344

(139,351

)

4,002,707

Changes in equity

Profit for the year

-

3,835,444

-

-

3,835,444

Other comprehensive income

-

-

-

(192,353

)

(192,353

)

Total comprehensive income

-

3,835,444

-

(192,353

)

3,643,091

Dividends

-

(4,223,445

)

-

-

(4,223,445

)

Issue of share capital

5

-

57,543

-

57,548

Balance at 30 November 2025

15

3,749,703

61,887

(331,704

)

3,479,901

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 December 2023

10

69,663

4,344

74,017

Changes in equity

Profit for the year

-

833,129

-

833,129

Total comprehensive income

-

833,129

-

833,129

Dividends

-

(553,318

)

-

(553,318

)

Balance at 30 November 2024

10

349,474

4,344

353,828

Changes in equity

Profit for the year

-

3,855,517

-

3,855,517

Total comprehensive income

-

3,855,517

-

3,855,517

Dividends

-

(4,223,445

)

-

(4,223,445

)

Issue of share capital

5

-

57,543

57,548

Balance at 30 November 2025

15

(18,454

)

61,887

43,448

Cash flows from operating activities

Cash generated from operations

24

3,193,865

2,211,414

Tax paid

(486,775

)

1,418

Net cash from operating activities

2,707,090

2,212,832

Cash flows from investing activities

Purchase of tangible fixed assets

(40,552

)

(89,790

)

Sale of tangible fixed assets

42,474

21,753

Interest received

42,430

21,702

Net cash from investing activities

44,352

(46,335

)

Cash flows from financing activities

Loan repayments in year

(6,755

)

(5,625

)

Hire purchase repayments in year

(41,197

)

(8,654

)

Amount introduced by directors

300,945

-

Amount withdrawn by directors

(11,721

)

(301,009

)

Equity dividends paid

(4,223,445

)

(553,318

)

Interest paid

-

(1,282

)

Hire purchase interest paid

(3,973

)

(4,078

)

Net cash from financing activities

(3,986,146

)

(873,966

)

(Decrease)/increase in cash and cash equivalents

(1,234,704

)

1,292,531

Cash and cash equivalents at beginning of year

25

6,411,757

5,115,326

Effect of foreign exchange rate changes

(192,353

)

3,900

Cash and cash equivalents at end of year

25

4,984,700

6,411,757

1.	STATUTORY INFORMATION

DigiLED Group Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

08411787

Registered office:

The Pixel Depot Copse Farm

Moorhurst Lane

Beare Green

Surrey

RH5 4LJ

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

The principal activity of the group was the supply of LED screen products.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing its individual financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows;

- the requirement of paragraph 3.17(d);

- the requirements paragraphs 26.18(b), 26.19 to 26.21 and 26.23.

Basis of consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings together with the group’s share of the results of associates.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.

Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.

All intra-group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the group’s interest in the entity.

Associates

An associate is an entity in which the group holds a long-term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates should be accounted for using the equity method of accounting. As the information was not available, the interest is included at historic cost.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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

i. Dilapidation provision

Provision is made for dilapidations. This requires management’s best estimate of the expenditure that will be incurred based on contractual requirements. The provision has been calculated using market data for properties of a similar nature.

ii. Share-based payments

Share-based payments have been valued using the Black-Scholes model. The company has made estimates and key judgements based around the values used for these Black-Scholes share options calculations. The key inputs to the values used were the market risk-free rate of return, prior year dividend yields, share value at the point of issue of the options and the volatility rate.

Turnover

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns and discounts allowed by the group and value added taxes.

The group recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer, (b) the group retains no continuing involvement or control over the goods. (c) the amount of revenue can be measured reliably, (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to each of the group’s sales channels have been met, as described below.

i. Sale of goods

The group supplies LED screens and associated products to its customers. Customers are invoiced in advance of dispatch. Invoiced revenue is recognised in deferred income and released to the profit and loss account on delivery to the customer.

ii. Installation services

The group provides installation services of the products it supplies to some customers. Customers are invoiced for the time spent on the installation and revenue is recognised at the point of installation. Where the installation is over a period of time, the revenue is recognised on a straight line basis over the period of installation.

iii. Maintenance services

The group provides match day support. Customers are invoiced for the time spent and parts used. Revenue is recognised at the point that the support is provided.

Tangible fixed assets

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

Demonstration screens

-

33% straight line

Plant and machinery

-

20% straight line

Fixtures and fittings

-

20% straight line

Motor vehicles

-

20% straight line

Computer equipment

-

20% straight line

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

Stocks

Stock is stated at the lower of cost and estimated selling price less costs to sell. Stock is recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition.

At the end of each reporting period stock is assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Financial instruments

Basic financial assets and liabilities, including trade and other receivables, cash and bank balances, trade and other payables and bank loans, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets and liabilities are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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

Assets acquired under hire purchase or finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

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

Pension costs and other post-retirement benefits

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

3.

TURNOVER

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

Turnover is categorised as following:

2025

2024

£

£

Sale of goods

21,498,177

11,548,345

Rendering of services

373,571

366,613

21,871,748

11,914,958

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,639,130

1,366,855

Social security costs

221,142

156,443

Other pension costs

73,652

233,651

1,933,924

1,756,949

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

2025

2024

Sales

6

6

Technical

13

10

Administration

14

15

33

31

2025

2024

£

£

Directors' remuneration

236,298

263,857

Directors' pension contributions to money purchase schemes

10,000

62,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

One director exercised share options during the year (2024 - no directors).

No directors received shares under long term incentive schemes (2024 - one director).

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

233,698

215,925

Pension contributions to money purchase schemes

10,000

62,000

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

2,625

2,980

Other operating leases

196,001

150,044

Depreciation - owned assets

147,104

186,090

Profit on disposal of fixed assets

(2,899

)

(8,992

)

Foreign exchange differences

(74,450

)

41,192

Auditor remuneration

38,250

38,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

1

1,282

Hire purchase

3,973

4,078

3,974

5,360

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

Overseas taxation

472,708

254,353

(Over)/under provision in prior year

(251,129

)

(6,967

)

Tax on profit

221,579

247,386

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