REGISTERED NUMBER: 07280179 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 January 2026

for

John Pass Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

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

DIRECTORS:

A J Pass

Mrs J P Pass

REGISTERED OFFICE:

Datum House

Electra Way

Crewe

Cheshire

CW1 6ZF

REGISTERED NUMBER:

07280179 (England and Wales)

AUDITORS:

Banks Sheridan (Statutory Auditor)

Datum House

Electra Way

Crewe

Cheshire

CW1 6ZF

BANKERS:

Barclays

38 Market Street

Crewe

Cheshire

CW1 2ET

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

The principal activity of the company continues to be that of a retailer of fine jewellery and premium brand watches.

REVIEW OF BUSINESS

31 January

31 January

2026

2025

Revenue

£11.16m

£10.90m

Gross Profit Margin

33.27%

33.87%

EBITDA (non adjusted)

£2.06m

£1.91m

Shareholders funds

£6.52m

£6.17m

The company's revenue has increased by 2.4% from the previous year, which continues to show year-on-year growth. The results buck the trend in the High Street retail sector which continues to be challenging, and as economic conditions are not particularly favourable, consumer spending can be unpredictable. The directors attribute these results thanks to the company's excellent reputation for service quality products, which ensures long-standing customers return and new customers continue to be attracted.

Revenue expectations and forecasts remain positive that the company's growth trajectory will continue.

Gross profit margins have maintained similar levels to the previous year and the company is also focussed on keeping a tight control on overheads which fell by 7% to £1.73m in 2026. The fall in overheads is despite staff costs (excluding director's remuneration) rising by 9% to £0.80M in 2026. The above controls resulted in an increase in EBITDA which continues to show strong values.

Financial instruments

The company has no borrowings and has a strong cash position, which is managed with passive treasury operations to achieve returns of interest.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are required to identify risks that might adversely affect the company's business in the medium to long term. The directors have considered the risks to the business and the means to manage those risks. The primary risks are considered to be as follows:

Customer retention risk

There is an ongoing risk with respect to changes in the retail market, including changes in trends and particularly a shift towards online shopping. We acknowledge the move towards the internet buying culture and has continued to invest in this area. However, equally, we recognises the value of face-to-face transactions and customer service, especially regarding our high-end products and the Company continues to be recognised for providing an excellent customer service experience.

Supplier risk

The Company has an excellent relationship with all of its suppliers and brand partners, both past and present, who have recognised the deserved reputation for providing excellent service to the end consumers. There are a number of key suppliers who are integral to the company's operations and accordingly this risk is managed through the directors remaining focused on maintaining strong ties with those suppliers and ensuring the company continues to deliver on providing an excellent customer experience.

Liquidity risk

The company successfully manages its long-term and short-term debt finance that is designed to ensure the Company has sufficient available funds for operations and any unforeseen contingencies.

Risks resulting from general economic cost of living pressures and inflation affecting customers and markets

Cost of living pressures and inflation are clearly impacting costs, wages and discretional spending power across the wider economy. This can affect the buying decisions of customers and drive up the costs of the company, both of which could affect margins and profitability. The company's focus on high-end goods has seen there to be little effect on many of its products and a continuing high demand for the products sold. The directors also highly value the Company's excellent employees and have established excellent, but manageable, pay structures which fully reward them for their outstanding service and isn't affected by outside influences such as increases to NMW.

Having taken full account of the above, the Board is confident that the company will provide a robust and sustainable long-term growth platform for its shareholders as well as its valued employees, suppliers and customers.

FUTURE DEVELOPMENTS

Over the next 12 months, the company will consolidate the achievements it has seen by a strong focus on operational efficiency within our retail locations. The company will also continue to focus on delivering excellent customer service and ensuring it is renowned as the jeweller of choice in its operating region.

The directors would like to take this opportunity to wholeheartedly thank the whole company team, both front of house and the backroom operations, for their continued contributions to the future of John Pass, without whom we would not have been able to have achieved the successes already seen.

ON BEHALF OF THE BOARD:

A J Pass - Director

26 October 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 31 January 2026 will be £ 663,992 .

DIRECTORS

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

A J Pass

Mrs J P Pass

EXPOSURE TO CASHFLOW, LIQUIDITY, CREDIT AND PRICE RISK

Liquidity and cashflow risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company is in a strong financial position and has agreed facilities to allow it to meet its financial obligations through operating cash flows.

Credit risk

The company may offer credit terms to its customers which allow payment of the debt after delivery of goods. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going customer relationships and effective credit control procedures.

Price risk

Price risk arises because of the volatile nature of purchase prices for goods, materials and services.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Banks Sheridan (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A J Pass - Director

26 October 2026

Qualified Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 January 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 qualified 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, except for:

The fact that the financial statements for the comparative year ended 31 January 2025 were not subject to an audit.

Our audit engagement commenced in August 2026 and consequently we did not attend the stocktake as at 31 January 2026 to observe the counting of physical stock at the year end. The company maintains perpetual stock records, but we were unable to satisfy ourselves by audit procedures or alternative means concerning the physical stock quantities at 31 January 2026, which are included in the balance sheet at £2,928,796. Consequently we are unable to determine whether any adjustment to this amount is necessary.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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. Based on our understanding of company, and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption, fraud and money laundering 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 preparation of the financial statements, such as the Companies Act 2006.

We evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to loss reserves, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

-

Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;

-

Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and

-

Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

-

Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;

-

Gaining an understanding of the internal controls established to mitigate risks related to fraud;

-

Discussing amongst the engagement team the risks of fraud; and

-

Addressing the risks of fraud through management override of controls by performing journal entry testing.

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 Walley FCCA (Senior Statutory Auditor)

for and on behalf of Banks Sheridan (Statutory Auditor)

Datum House

Electra Way

Crewe

Cheshire

CW1 6ZF

26 October 2026

TURNOVER

4

11,161,993

10,905,242

Cost of sales

(7,448,080

)

(7,211,339

)

GROSS PROFIT

3,713,913

3,693,903

Administrative expenses

(1,737,405

)

(1,861,862

)

1,976,508

1,832,041

Other operating income

1,310

1,028

OPERATING PROFIT

6

1,977,818

1,833,069

Interest receivable and similar income

111,077

136,234

2,088,895

1,969,303

Interest payable and similar expenses

7

(1,960

)

(1,471

)

PROFIT BEFORE TAXATION

2,086,935

1,967,832

Tax on profit

8

(526,336

)

(506,117

)

PROFIT FOR THE FINANCIAL YEAR

1,560,599

1,461,715

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,560,599

1,461,715

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

242,889

298,295

242,889

298,295

CURRENT ASSETS

Stocks

12

2,928,795

2,843,504

Debtors

13

167,643

300,724

Cash at bank

4,364,569

4,181,949

7,461,007

7,326,177

CREDITORS

Amounts falling due within one year

14

(1,120,988

)

(1,378,377

)

NET CURRENT ASSETS

6,340,019

5,947,800

TOTAL ASSETS LESS CURRENT LIABILITIES

6,582,908

6,246,095

PROVISIONS FOR LIABILITIES

16

(58,076

)

(68,402

)

NET ASSETS

6,524,832

6,177,693

CAPITAL AND RESERVES

Called up share capital

17

93

101

Capital redemption reserve

8

-

Retained earnings

6,524,731

6,177,592

SHAREHOLDERS' FUNDS

6,524,832

6,177,693

The financial statements were approved by the Board of Directors and authorised for issue on 26 October 2026 and were signed on its behalf by:

A J Pass - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2024

101

5,784,627

-

5,784,728

Changes in equity

Dividends

-

(1,068,750

)

-

(1,068,750

)

Total comprehensive income

-

1,461,715

-

1,461,715

Balance at 31 January 2025

101

6,177,592

-

6,177,693

Changes in equity

Reduction in share capital

(8

)

-

8

-

Dividends

-

(663,992

)

-

(663,992

)

Total comprehensive income

-

1,560,599

-

1,560,599

Purchase of own shares

-

(549,468

)

-

(549,468

)

Balance at 31 January 2026

93

6,524,731

8

6,524,832

Cash flows from operating activities

Cash generated from operations

1

1,773,396

1,905,380

Interest paid

(1,960

)

-

Tax paid

(440,000

)

(530,000

)

Taxation refund

5,044

3,289

Net cash from operating activities

1,336,480

1,378,669

Cash flows from investing activities

Purchase of tangible fixed assets

(78,013

)

(96,616

)

Interest received

109,429

136,234

Net cash from investing activities

31,416

39,618

Cash flows from financing activities

Amount withdrawn by directors

(60,808

)

(506,536

)

Share buyback

(549,468

)

-

Equity dividends paid

(575,000

)

(1,068,750

)

Net cash from financing activities

(1,185,276

)

(1,575,286

)

Increase/(decrease) in cash and cash equivalents

182,620

(156,999

)

Cash and cash equivalents at beginning of year

2

4,181,949

4,338,948

Cash and cash equivalents at end of year

2

4,364,569

4,181,949

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

2026

2025

£

£

Profit before taxation

2,086,935

1,967,832

Depreciation charges

61,683

76,956

Increase in provisions

1,473

4,153

Finance costs

1,960

1,471

Finance income

(111,077

)

(136,234

)

2,040,974

1,914,178

Increase in stocks

(85,291

)

(18,491

)

Decrease/(increase) in trade and other debtors

133,081

(170,118

)

(Decrease)/increase in trade and other creditors

(315,368

)

179,811

Cash generated from operations

1,773,396

1,905,380

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 January 2026

31.1.26

1.2.25

£

£

Cash and cash equivalents

4,364,569

4,181,949

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

4,181,949

4,338,948

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.25

Cash flow

At 31.1.26

£

£

£

Net cash

Cash at bank

4,181,949

182,620

4,364,569

4,181,949

182,620

4,364,569

Total

4,181,949

182,620

4,364,569

1.	STATUTORY INFORMATION

John Pass Limited ('The Company') is primarily engaged as a retailer for fine jewellery and premium brand watches.

The company is a private company limited by shares and is incorporated in England and Wales. The address of the principal place of business is 179 Nantwich Road, Crewe, Cheshire, CW2 6DT and the registered office is Datum House, Electra Way, Crewe, CW1 6ZF.The registered number can be found on the Company Information page.

The functional and presentational currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

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

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparation

The financial statements are prepared on the going concern basis under the historical cost convention and comply with the United Kingdom Accounting Standards and Companies Act 2006.

Going concern

Having considered all known factors and after reviewing forecasts and projections, no material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.The period under review covers not less than 12 months from the date of signing there financial statements.

The directors therefore consider it appropriate to prepare the financial statements on the going concern basis.

Revenue recognition

Revenue (described as turnover) is recognised on the delivery of goods to the customer and on the performance of services for the customer (net of VAT) returns, rebates and discounts. It is recognised when the company obtains the right to consideration.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates so as to write off their cost less residual amounts over their estimated useful economic lives. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount.

Long Leasehold

- over 5 - 15 years

Plant and machinery

- 20% on reducing balance

Fixtures and fittings

- 20% on reducing balance

Motor Vehicles

- 25% on reducing balance

The residual values and useful lives of assets are reviewed and adjusted if appropriate at each statement of financial position date.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.Cost comprises direct goods and materials incurred in bringing the stock to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit or loss. Reversals of impairment losses are also recognised in the profit and loss.

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 that have been enacted or substantively enacted by the year end.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the year end.

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.

Deferred tax is charged or credited in profit or loss, except when it relates to items credited or charged directly to other comprehensive income or equity, in which case the tax follows the transaction or event it relates to and is also charged or credited directly to other comprehensive income, or equity.

Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and a defined contribution pension plan.

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which service is received.

The company operates a defined contribution pension plan for its directors and employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown as accruals at the end of the statement of financial position date. The assets of the plan are held separately from the company in independently administered funds.

The company operates an annual bonus plan for certain employees. An expense is recognised in the Statement of Comprehensive Income when the company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

Impairment of assets

Assets not measured at fair value are reviewed for any indications that the asset maybe impaired at each statement of financial position date. If such indications exists the recoverable amount of the asset or the assets cash generating unit is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Any losses arising from impairment are recognised in the Statement of Comprehensive Income under the appropriate heading.

Trade and other receivables within one year

Trade and other receivables with no stated interest rate are recorded at transaction price.

Trade and other creditors

Trade and other creditors (including deposits and gift vouchers) are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand and other short-term highly liquid investments with original maturities of three months or less that are readily convertible into known amounts of cash.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price and are subsequently carried at amortised cost, using the effective interest method, 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.

(ii) Financial liabilities

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

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Key accounting judgements and estimates

The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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 year are discussed below:

(i) Stock impairment/provision (shown as an expected reduction in stock and debited to the income statement through cost of sales).

An impairment loss is recognised where the expected selling price is less than cost. In arriving at this impairment loss judgement and estimates have been used particularly for slow moving and discontinued stick items. This is based on the ageing of the stock and taking into account general market conditions.

(ii) Depreciation rates

In assessing depreciation rates the directors have considered the expected useful life of the specific assets involved.

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:

2026

2025

£

£

Sale of goods

11,161,993

10,905,242

11,161,993

10,905,242

An analysis of turnover by geographical market is given below:

2026

2025

£

£

United Kingdom

11,161,993

10,905,242

11,161,993

10,905,242

5.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

728,688

680,024

Social security costs

76,294

56,670

Other pension costs

157,610

310,770

962,592

1,047,464

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

2026

2025

Directors

2

2

Sales and administration

24

23

26

25

The company operates a defined contribution pension scheme for the benefit of employees and directors. The assets of the scheme are administered by an independent pensions provider. Pension payments are recognised as an expense during the year and amounted to £157,610 (2025: £310,770).