REGISTERED NUMBER: 04085062 (England and Wales)

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

GRAYFORD INDUSTRIAL LIMITED

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

I E Gray

J P Welby

SECRETARY:

J P Welby

REGISTERED OFFICE:

Unit 8 Lion Centre

Hanworth Trading Estate

Hampton Road West

Feltham

Middlesex

TW13 6DS

REGISTERED NUMBER:

04085062 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Jeremy Laurence Hyde FCCA

AUDITORS:

CG LEE Limited

Chartered Certified Accountants

Statutory Auditors

Ingram House

Meridian Way

Norwich

Norfolk

NR7 0TA

The directors present their Strategic Report for the year ended 31 October 2025.

REVIEW OF BUSINESS

The company supplies products for the manufacturing and petroleum industry. The company has remained profitable in a challenging economic environment and volatility in the geopolitical area in which it trades.

The directors view turnover, gross margin and overheads as the company's key financial performance indicators.

2025

2024

Turnover (£)

10,602,280

10,872,908

Gross profit %

19.0%

18.5%

Profit before tax (£)

474,827

528,447

EBITDA (£)

627,949

637,972

During the year, the freehold property from which the company trades was professionally revalued, resulting in a revaluation gain.

FINANCIAL RISK MANAGEMENT

The company is exposed to a variety of financial risks resulting from its operational activities. The company's risk management is coordinated by the Board of Directors, focusing on actively securing the company's short to medium term cash flows.

Liquidity and credit risk

The company funds the operational and working capital requirements through its retained profits and external funding, via overdraft and loan facilities, from its bankers, HSBC. At 31 October 2025, the company had funding in place which the directors believe is sufficient to maintain robust liquidity in the business as it continues to trade through the uncertainties in the global economy. The company reviews its working capital on a continual basis.

The company sells to most of its customers on customary credit terms and is, as a result, exposed to the usual credit risk and cash flow risk associated with this form of trading. It manages this risk through rigorous credit control procedures on a continual basis.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company are:

Economic climate risk

The company has structured debt and as such the directors feel that the direct interest rate risk is minimal. However, with interest rates remaining high together with continuing inflationary constraints, there is general pressure on business investment and spending. The directors continue to monitor the raw material, utilities and labour costs and supply for the business and take these factors into consideration when making pricing decisions.

Foreign exchange risk

The directors closely monitor foreign exchange rates as the company's activities expose it to the risk of a weaker pound pushing up import prices.

Human resource risk

Failure to maintain a sufficiently skilled workforce and retain key staff can adversely affect any business.

OUTLOOK AND FUTURE DEVELOPMENTS

Whilst the company continues to be profitable with a strong order book, there is caution with regards to the impact of the volatility in the geopolitical area in which it trades. Material costs are also affected with interest rates remaining high and continuing inflationary pressure.

However, with strong demand from customers, the business is well positioned to take advantage of opportunities that arise.

ON BEHALF OF THE BOARD:

I E Gray - Director

28 October 2026

The directors present their report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of being in the supply chain for the manufacturing and petroleum industry.

DIVIDENDS

Particulars of dividends paid are detailed in note 10 to the financial statements.

DIRECTORS

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

I E Gray

J P Welby

GOING CONCERN

The directors recognise the uncertainty surrounding the economic and political environment that the world faces and have considered the financial impact that this may have on the business.

However, the directors are satisfied that the company has access to sufficient liquid resources to enable it to continue in operational existence for the foreseeable future. The directors have therefore prepared the financial statements on a going concern basis.

Further information relating to going concern is detailed in the Accounting Policies in note 3 to the financial statements.

MATTERS INCLUDED IN THE STRATEGIC REPORT

Details regarding a review of the business, including future developments, principal risk and uncertainties are provided in the Strategic Report on pages 2 to 3.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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

In the case of each director in office at the date the Directors' Report is approved:

-

so far as each 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

-

they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

CG LEE Limited, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Act.

ON BEHALF OF THE BOARD:

I E Gray - Director

28 October 2026

Opinion

We have audited the financial statements of Grayford Industrial Limited (the 'company') for the year ended 31 October 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 October 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

-

enquiry of management and those charged with governance;

-

review of accounting records to identify any indication of non-compliance with laws and regulations;

-

reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

-

performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 Auditors' Report.

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 an Auditors' Report 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.

Mr Jeremy Laurence Hyde FCCA (Senior Statutory Auditor)

for and on behalf of CG LEE Limited

Chartered Certified Accountants

Statutory Auditors

Ingram House

Meridian Way

Norwich

Norfolk

NR7 0TA

29 October 2026

TURNOVER

5

10,602,280

10,872,908

Cost of sales

(8,590,876

)

(8,856,085

)

GROSS PROFIT

2,011,404

2,016,823

Administrative expenses

(1,407,229

)

(1,406,250

)

OPERATING PROFIT

7

604,175

610,573

Interest payable and similar expenses

8

(129,348

)

(82,126

)

PROFIT BEFORE TAXATION

474,827

528,447

Tax on profit

9

(117,234

)

(135,571

)

PROFIT FOR THE FINANCIAL YEAR

357,593

392,876

OTHER COMPREHENSIVE INCOME

Gain on revaluation of tangible fixed

538,752

-

assets

Income tax relating to other comprehensive income

(79,232

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

459,520

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

817,113

392,876

FIXED ASSETS

Tangible assets

11

1,045,496

530,518

CURRENT ASSETS

Stocks

12

543,888

426,442

Debtors

13

5,255,601

4,170,823

Cash at bank and in hand

51,631

171,948

5,851,120

4,769,213

CREDITORS

Amounts falling due within one year

14

4,252,728

3,147,505

NET CURRENT ASSETS

1,598,392

1,621,708

TOTAL ASSETS LESS CURRENT LIABILITIES

2,643,888

2,152,226

CREDITORS

Amounts falling due after more than one year

15

(265,703

)

(292,777

)

PROVISIONS FOR LIABILITIES

19

(89,622

)

(14,559

)

NET ASSETS

2,288,563

1,844,890

CAPITAL AND RESERVES

Called up share capital

20

7

7

Revaluation reserve

21

459,520

-

Capital redemption reserve

21

3

3

Retained earnings

21

1,829,033

1,844,880

SHAREHOLDERS' FUNDS

2,288,563

1,844,890

The financial statements were approved by the Board of Directors and authorised for issue on 28 October 2026 and were signed on its behalf by:

I E Gray - Director

J P Welby - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 November 2023

7

1,796,644

-

3

1,796,654

Changes in equity

Dividends

-

(344,640

)

-

-

(344,640

)

Total comprehensive income

-

392,876

-

-

392,876

Balance at 31 October 2024

7

1,844,880

-

3

1,844,890

Changes in equity

Dividends

-

(373,440

)

-

-

(373,440

)

Total comprehensive income

-

817,113

-

-

817,113

Transfer of revaluation

-

(538,752

)

538,752

-

-

Deferred tax movement

-

79,232

(79,232

)

-

-

Balance at 31 October 2025

7

1,829,033

459,520

3

2,288,563

Cash flows from operating activities

Cash generated from operations

25

(483,697

)

(124,040

)

Interest paid

(129,348

)

(82,126

)

Tax paid

(41,401

)

(163,231

)

Net cash from operating activities

(654,446

)

(369,397

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(8,715

)

Net cash from investing activities

-

(8,715

)

Cash flows from financing activities

New loans in year

348,788

571,562

Loan repayments in year

(9,391

)

(8,950

)

Capital repayments in year

(17,683

)

(17,681

)

Amount introduced by directors

281,990

237,120

Amount withdrawn by directors

(222,520

)

(159,030

)

Equity dividends paid

(373,440

)

(344,640

)

Net cash from financing activities

7,744

278,381

Decrease in cash and cash equivalents

(646,702

)

(99,731

)

Cash and cash equivalents at beginning of year

26

71,851

171,582

Cash and cash equivalents at end of year

26

(574,851

)

71,851

1.	STATUTORY INFORMATION

Grayford Industrial 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 company's principal activities are set out in the Directors Report on page 4.

2.	STATEMENT OF COMPLIANCE

The financial statements of Grayford Industrial Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The principal accounting policies of the company applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of accounting

These financial statements are prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain assets. The financial statements are presented in pound sterling which is the company's functional currency.

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4.

Going concern

The directors have prepared these financial statements on a going concern basis. In considering their assessment of going concern they have had to take into account the volatility in the geopolitical area in which it trades and delays in the recovery of outstanding trade debtor balances due to the company and the potential non-recovery of these balances.

At 31 October 2025, trade debtor balances of £5.0m were owed to the company. The deferred payment of these outstanding balances has impacted on the cashflow of the company. The directors have put in place careful management and oversight to ensure ongoing liquidity, alongside the support of the company's bank.

In forming their assessment of going concern, the directors have considered the financial position of the company and cash flow projections. The core underlying trading activities of the company have been profitable during FY26, and the directors anticipate ongoing profitability in future periods.

During FY26, the company has received payment of £4.2m of the outstanding balances. Having considered the matters outlined above and after reviewing the projected cash flows and other relevant information, the directors are satisfied that the company has access to sufficient liquid resources to enable it to continue trading for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

Revenue

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, discounts and rebates allowed by the company and value added tax.

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; and (d) it is probable that future economic benefits will flow to the entity.

Tangible assets

Tangible assets are initially recorded at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Cost includes the original purchase price of the asset plus costs attributable to bringing the asset to its working condition for its intended use. Land is not depreciated. Depreciation on other assets is charged from the time when tangible assets are brought into use and is calculated so as to write off the cost of fixed assets, less their estimated residual values, over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are as follows:

Freehold property

- 2% straight line

Fixtures, fittings and equipment

- 25% straight line

Motor vehicles

- 25% reducing balance

Stocks and work in progress

Stocks 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.

Impairment of non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit).

The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset.

If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in profit or loss, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in profit or loss.

Trade and other debtors

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

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

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

Foreign currencies

Transactions denominated in foreign currencies are translated and recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the balance sheet date. Gains and losses on retranslation are recognised in profit or loss for the year.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Employee benefits

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

The obligations for contributions to defined contribution pension schemes are recognised as an expense in the period they are incurred. Amounts not paid at the balance sheet date are included in other creditors.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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.

Critical judgements in applying the company's accounting policies

There are no critical judgements in applying the company's accounting policies.

Key accounting estimates and assumptions

The company 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.

Depreciation of tangible assets

An allowance for depreciation is made against tangible assets and charged to profit or loss over the useful economic lives of the assets. The useful economic life assessment of an asset is based on the time in which benefits of the asset are realised to the company. See note 11 for the net carrying value of the tangible assets, and note 3 for the useful economic lives for each class of assets.

Impairment of stocks

The company makes an estimate of the recoverable value of stocks. When calculating the stock provision, management considers the nature and condition of the stock as well as applying assumptions around anticipated saleability of goods held for resale. See note 12 for the net carrying amount of stocks and the related movement in impairment provision.

Impairment of debtors

The directors make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the directors consider factors including the credit worthiness and financial conditions of customers. See note 13 for the net carrying amount of the debtors and associated impairment provision.

Going concern

The directors make an estimate of the future performance of the company in order to prepare the financial statements under the going concern methodology. When assessing the future performance, the directors considers financial projections which reflect the current and expected market conditions, operational cash flow requirements and financing opportunities. See note 3 for detailed consideration of going concern.

5.

TURNOVER

The directors are of the opinion that there is only one category of business and consequently no segmental analysis by activity has been provided. The directors have not disclosed the geographical analysis of turnover as they consider this information to be commercially sensitive.

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

870,456

875,788

Social security costs

81,845

70,567

Other pension costs

75,814

96,405

1,028,115

1,042,760

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

2025

2024

Staff

20

22

Directors

2

2

22

24

2025

2024

£

£

Directors' remuneration

19,128

19,128

Directors' pension contributions to money purchase schemes

60,159

82,774

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

Money purchase schemes

2

2

Key management compensation

All key management personnel are considered to be directors. As such, the key management compensation is equivalent to the directors' emoluments above.

7.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

7,434

20,355

Depreciation - assets on hire purchase contracts and finance leases

16,340

21,785

Profit on disposal of fixed assets

-

(14,742

)

Auditors' remuneration

10,850

10,850

Foreign exchange differences

41,790

12,944

Auditors' remuneration for non audit work

17,495

10,666

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

29,029

18,805

Interest due to HMRC

3,477

974

Loan

90,242

55,747

Hire purchase

6,600

6,600

129,348

82,126

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

125,209

139,023

Prior year adjustment

(3,806

)

-

Total current tax

121,403

139,023

Deferred tax

(4,169

)

(3,452

)

Tax on profit

117,234

135,571

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 lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

474,827

528,447

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

118,707

132,112

Effects of:

Expenses not deductible for tax purposes

2,333

3,459

Adjustments to tax charge in respect of previous periods

(3,806

)

-

Total tax charge

117,234

135,571

Tax effects relating to effects of other comprehensive income

2025

Gross

Tax

Net

£

£

£

Gain on revaluation of tangible fixed

538,752

(79,232

)

459,520

assets

538,752

(79,232

)

459,520

10.

DIVIDENDS

2025

2024

£

£

Ordinary A shares of 0.01 each

Interim

373,440

344,640