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COMPANY REGISTRATION NUMBER: 07041988
Sarant Limited
Financial Statements
31 October 2025
Sarant Limited
Financial Statements
Year ended 31 October 2025
Contents
Page
Strategic report
1
Director's report
3
Independent auditor's report to the members
5
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
Sarant Limited
Strategic Report
Year ended 31 October 2025
The director presents their strategic report of the company for the year ended 31 October 2025. Review of business The company's principal activities during the year continued to be the manufacture of food produce to the retail and manufacturing sectors. Development and performance during the year The results of the company for the year show a profit on ordinary activities before tax of £811,747 (2024 - £812,092). Turnover has increase year on year due to some successful customer deals. The biggest challenge still remains to be the cost increases on shipping they have still remained challenging but are heading in the correct direction. The director considers the profit achieved and the state of the affairs of the company to be satisfactory. The shareholders' funds total £8,313,432 (2024 - £7,951,025). Business environment The retail sector and the manufacturers supplying the retail sector is highly competitive. There are a huge number of UK and overseas competitors trying to win business in the food sector. Strategy With ongoing significant investment in new machinery, this enables us to continue expanding and developing our products to the highest quality within the food industry. Our aim remains to provide our customers with the confidence that the products they purchase meet the highest standards expected within the food industry. Key performance indicators
2025 2024
£ £
Turnover 20,451,118 18,208,488
Gross profit 5,966,406 5,589,377
GP% 29 31
Net profit before tax 811,747 812,092
NP% 4 4
Position post year end The performance this year is strong, the director believes the the company is expecting to report a reasonable gross profit by the end of the year. They are expecting to achieve similar margins in 2025. Principal risks and uncertainties Regulatory compliance: The company has identified obligations arising from its historical packaging activities under packaging producer responsibility regulations, and has recognised a provision as per the notes to the accounts. The amount ultimately payable has not been agreed with the relevant authorities and could differ materially from the amount provided. The company is taking steps to comply with the current regime and is working with advisers to regularise its historical position. Disputed machinery: The company is in dispute with a supplier over filling equipment that is unsuitable for honey. The equipment is carried at £172,333. The outcome of the dispute, and the amount recoverable from the equipment, are uncertain. Liquidity risk: The company finances its working capital through a debt factoring facility and bank borrowings. Cash balances and facility headroom are monitored against forecast requirements. Credit risk: Trade debtors are with UK packaging companies and retailers. The company manages credit risk through credit checks and credit limits. Price Risk The company manages this risk by maintaining strong service levels with suppliers and maintaining appropriate stock holdings of raw materials Currency risk The company purchases the majority of its raw materials in USD, AUD or EUR, as such currency accounts are held in these currencies and all risk is hedged.
This report was approved by the board of directors on 29 October 2026 and signed on behalf of the board by:
Mr P Backshall
Director
Registered office:
3rd Floor
44-48 Paul Street
London
EC2A 4LB
Sarant Limited
Director's Report
Year ended 31 October 2025
The director presents his report and the financial statements of the company for the year ended 31 October 2025 .
Director
The director who served the company during the year was as follows:
Mr P Backshall
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The company will continue to seek to expand its product portfolio in the year and take full advantage of the growth in the markets it operates in.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 29 October 2026 and signed on behalf of the board by:
Mr P Backshall
Director
Registered office:
3rd Floor
44-48 Paul Street
London
EC2A 4LB
Sarant Limited
Independent Auditor's Report to the Members of Sarant Limited
Year ended 31 October 2025
Qualified opinion
We have audited the financial statements of Sarant Limited (the 'company') for the year ended 31 October 2025 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 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; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
As explained in the notes to the accounts, the company has recognised a provision of £1,400,000 at 31 October 2025 for obligations arising from its historical packaging activities. The corresponding provision at 31 October 2024 was £1,250,000, and a net expense of £150,000 has been recognised in the current year. The director’s estimate is derived from the annual compliance costs of a predecessor business, scaled for the company’s size, together with calculations of historical packaging quantities and packaging recovery note (PRN) prices. The information and explanations provided to us in support of the estimate did not include verifiable data on the weight and material composition of the packaging placed on the market in the periods to which the obligation relates. As a result, the quantities used in the estimate could not be agreed to source documentation. Published PRN prices are available for those periods, but they cannot be reliably applied without supportable quantities and material types. In addition, neither the periods for which settlement will be required nor the basis of settlement, including any enforcement amounts, has been agreed with the Environment Agency. Our alternative procedures did not enable us to satisfy ourselves as to the valuation and completeness of the provision. These procedures included attempting to reconstruct packaging volumes from the company’s sales records, applying estimated packaging weights per unit, and recomputing the obligation using published historical PRN prices, and they indicated that an obligation exists. However, as the estimated weights could not be verified to packaging specifications, supplier records or other source documentation for the periods concerned, the procedures did not substantiate the quantities, prices, periods or settlement basis underlying the estimate, or the £150,000 increase recognised in the year. Consequently, we were unable to obtain sufficient appropriate audit evidence concerning the provision at 31 October 2025 and 31 October 2024, or the related expense for the year. It is therefore not possible for us to determine whether any adjustments were necessary to the provision at either reporting date, to the expense for the year, or to the consequential amounts reported for taxation, deferred tax, profit for the year, retained earnings and the related disclosures.
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 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 qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In relation to the packaging provision described under "Basis for Qualified Opinion", we did not obtain the supporting information and explanations necessary to complete our assessment of its valuation and completeness. The financial statements of the company for the year ended 31 October 2024 were audited by another auditor who expressed an unmodified opinion on those statements.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 auditor’s 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. 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: We obtained an understanding of the legal and regulatory framework applicable to the company and its activities as a manufacturer and supplier of honey. We identified company and tax legislation as having a direct effect on the determination of material amounts and disclosures in the financial statements. We also considered legislation relating to food safety, food hygiene, the composition and labelling of honey, and product traceability. Non-compliance with these requirements could affect the company’s ability to operate or result in a material penalty. Our procedures included enquiries of management and those charged with governance about the company’s arrangements for complying with relevant laws and regulations and about any known or suspected non-compliance. We also considered relevant correspondence with regulators, board minutes and information obtained during the audit for indications of non-compliance. We assessed the susceptibility of the financial statements to material misstatement due to fraud through discussion among the engagement team and enquiries of management. In doing so, we considered the recognition of revenue from sales to packaging companies and retailers, the valuation of honey and finished goods inventory, and the risk of management override of controls. Our procedures in response included testing journal entries, assessing the timing and recording of sales, evaluating the basis on which inventory was valued, and considering accounting estimates for evidence of management bias. There are inherent limitations in our ability to detect irregularities. These limitations are greater where non-compliance with laws and regulations is removed from the transactions and events reflected in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect every instance of it. The risk of failing to detect a material misstatement resulting from fraud is higher than the risk of failing to detect one resulting from error, because fraud may involve deliberate concealment, collusion, forgery, intentional omissions, misrepresentations or the override of internal control. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 auditor's 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.
Kriss Hutchinson FCCA
(Senior Statutory Auditor)
For and on behalf of
EC Professionals Limited
Chartered Certified Accountants & statutory auditor
2 Earls Court
Henry Boot Way
Hull
HU4 7DY
29 October 2026
Sarant Limited
Statement of Comprehensive Income
Year ended 31 October 2025
2025
2024
Note
£
£
Turnover
4
20,451,118
18,208,488
Cost of sales
14,484,712
12,619,111
-------------
-------------
Gross profit
5,966,406
5,589,377
Distribution costs
993,274
870,837
Administrative expenses
4,129,653
3,858,521
------------
------------
Operating profit
5
843,479
860,019
Other interest receivable and similar income
9
42,738
31,790
Interest payable and similar expenses
10
74,470
79,717
------------
------------
Profit before taxation
811,747
812,092
Tax on profit
11
44,185
262,270
---------
---------
Profit for the financial year
767,562
549,822
---------
---------
Profit/(Loss) on value of derivative contracts
(5,155)
10,936
---------
---------
Total comprehensive income for the year
762,407
560,758
---------
---------
All the activities of the company are from continuing operations.
Sarant Limited
Statement of Financial Position
31 October 2025
2025
2024
Note
£
£
£
£
Fixed assets
Tangible assets
13
3,701,170
3,506,692
Current assets
Stocks
14
4,530,361
4,551,599
Debtors
15
5,366,712
5,270,136
Cash at bank and in hand
34,096
222,741
------------
-------------
9,931,169
10,044,476
Creditors: amounts falling due within one year
16
4,655,925
4,675,665
------------
-------------
Net current assets
5,275,244
5,368,811
------------
------------
Total assets less current liabilities
8,976,414
8,875,503
Creditors: amounts falling due after more than one year
17
244,043
358,061
Provisions
Taxation including deferred tax
19
418,939
566,417
------------
------------
Net assets
8,313,432
7,951,025
------------
------------
Capital and reserves
Called up share capital
23
80
80
Profit and loss account
8,313,352
7,950,945
------------
------------
Shareholders funds
8,313,432
7,951,025
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 29 October 2026 , and are signed on behalf of the board by:
Mr P Backshall
Director
Company registration number: 07041988
Sarant Limited
Statement of Changes in Equity
Year ended 31 October 2025
Called up share capital
Profit and loss account
Total
£
£
£
At 1 November 2023
80
7,790,187
7,790,267
Profit for the year
549,822
549,822
Other comprehensive income for the year:
Profit/(Loss) on value of derivative contracts
–
10,936
10,936
----
------------
------------
Total comprehensive income for the year
–
560,758
560,758
Dividends paid and payable
12
–
( 400,000)
( 400,000)
----
------------
------------
Total investments by and distributions to owners
–
( 400,000)
( 400,000)
At 31 October 2024
80
7,950,945
7,951,025
Profit for the year
767,562
767,562
Other comprehensive income for the year:
Profit/(Loss) on value of derivative contracts
–
(5,155)
(5,155)
----
------------
------------
Total comprehensive income for the year
–
762,407
762,407
Dividends paid and payable
12
–
( 400,000)
( 400,000)
----
---------
---------
Total investments by and distributions to owners
–
( 400,000)
( 400,000)
----
------------
------------
At 31 October 2025
80
8,313,352
8,313,432
----
------------
------------
Sarant Limited
Statement of Cash Flows
Year ended 31 October 2025
2025
2024
£
£
Cash flows from operating activities
Profit for the financial year
767,562
549,822
Adjustments for:
Depreciation of tangible assets
460,948
508,839
Other interest receivable and similar income
( 42,738)
( 31,790)
Interest payable and similar expenses
74,470
79,717
Gains on disposal of tangible assets
( 15,000)
( 2,733)
Tax on profit
44,185
262,270
Operating workflow correction regarding derivatives
(5,155)
–
Changes in:
Stocks
21,238
( 902,392)
Trade and other debtors
( 96,576)
( 378,696)
Trade and other creditors
251,045
1,001,927
------------
------------
Cash generated from operations
1,459,979
1,086,964
Interest paid
( 74,470)
( 79,717)
Interest received
42,738
31,790
Tax paid
( 381,535)
( 6,696)
------------
------------
Net cash from operating activities
1,046,712
1,032,341
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 655,426)
( 310,749)
Proceeds from sale of tangible assets
15,000
6,900
Profits/(losses) on market value of future contracts
–
10,936
------------
------------
Net cash used in investing activities
( 640,426)
( 292,913)
------------
------------
Cash flows from financing activities
Repayments of borrowings
( 87,000)
( 87,000)
Payments of finance lease liabilities
( 107,931)
( 353,549)
Dividends paid
( 400,000)
( 400,000)
------------
------------
Net cash used in financing activities
( 594,931)
( 840,549)
------------
------------
Net decrease in cash and cash equivalents
( 188,645)
( 101,121)
Cash and cash equivalents at beginning of year
222,741
323,862
---------
---------
Cash and cash equivalents at end of year
34,096
222,741
---------
---------
Sarant Limited
Notes to the Financial Statements
Year ended 31 October 2025
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3rd Floor, 44-48 Paul Street, London, EC2A 4LB.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, except for derivative financial instruments, which are measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The principal judgements and estimates affecting these financial statements concern historic packaging obligations, stock valuation and the carrying value and classification of production equipment. Actual outcomes may differ from the estimates used. Provision for liabilities A provision of £1,400,000 has been recognised for historic packaging compliance obligations (2024: £1,250,000), including a charge of £150,000 for the year. The director considers that past packaging activity has created an obligation for which settlement is probable. The obligation is therefore recognised as a provision rather than disclosed solely as a contingent liability. The accumulated estimate originated from the annual compliance costs of a predecessor business, scaled for the company's size. Historical calculations and more recent estimates of packaging quantities and packaging recovery note costs inform the assessment. The £150,000 current-year charge remains an estimate. Significant uncertainty remains over the historical periods assessed, applicable costs, potential enforcement amounts and settlement timing. The final liability has not been agreed with the relevant bodies and could differ materially from the amount provided. Stock valuation Stock is carried at £4,530,361. There are estimates that reflects the ageing, condition and saleability of ingredients, honey and finished goods, together with expected selling prices and the costs of completing and selling stock. Judgement is required where stocks are slow-moving or their eventual recovery is uncertain. Changes in demand, condition or achievable prices could materially change the provision. Disputed machinery claim The company has retained equipment at a combined carrying amount of £172,333 (2024: £219,333), with no impairment recorded. The director considers that the equipment remains functional and valuable for other applications, although the filling process is unsuitable for honey because of excessive aeration. The supplier dispute principally concerns the resulting business losses, and the equipment is retained pending its resolution. Retention at net book value reflects the director's judgement about value recoverable from alternative utility, taking account of achievable proceeds, disposal restrictions and timing. Any compensation claim is assessed separately. Assets under construction Assets under construction of £565,296. At 31 October 2025 the asset was not yet available for use because commissioning and testing had not been completed. Depreciation will be charged from the date post year end when it is brought into use.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of honey and related products to UK packaging companies and retailers. It is stated net of value added tax, trade discounts, rebates and returns. Turnover is recognised when the significant risks and rewards of ownership of the goods have passed to the customer, which is generally on delivery or collection in accordance with the agreed terms of sale.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Long leasehold property
-
2% straight line
Plant and machinery
-
20% on cost, 10% on cost
Fixtures and fittings
-
30% on cost, 25% on cost, 10% on cost
Motor vehicles
-
25% straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
The company has chosen to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 in full. Derivative financial instruments, comprising forward foreign exchange contracts, are initially recognised at fair value on the date the contract is entered into and are subsequently remeasured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. The company does not apply hedge accounting. Trade debtors subject to the company's invoice factoring arrangement remain recognised in the statement of financial position because the company retains substantially all the risks and rewards of ownership. Amounts advanced by the factor are included within creditors as a financial liability.
Defined contribution plans
The company operates a defined contribution pension plan for its employees. Contributions payable to the plan are charged to profit or loss in the period to which they relate. Amounts not paid over to the plan at the reporting date are included within creditors. The assets of the plan are held separately from those of the company in independently administered funds. The cost of short-term employee benefits is recognised as a liability and an expense in the period in which the service is received.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and balances held with banks. Balances denominated in foreign currencies are translated into sterling at the exchange rate ruling at the reporting date.
Amounts advanced under the company’s invoice factoring arrangement are not included within cash and cash equivalents.
4. Turnover
Turnover arises from:
2025
2024
£
£
Sale of goods UK
18,502,626
15,565,286
Sale of goods outside of UK
1,948,492
2,643,202
-------------
-------------
20,451,118
18,208,488
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2025
2024
£
£
Depreciation of tangible assets
460,948
508,839
Gains on disposal of tangible assets
( 15,000)
( 2,733)
Impairment of trade debtors
10,000
–
Foreign exchange differences
69,872
( 47,003)
---------
---------
6. Auditor's remuneration
2025
2024
£
£
Fees payable for the audit of the financial statements
14,000
6,450
--------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2025
2024
No.
No.
Production staff
70
70
Management staff
5
5
----
----
75
75
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2025
2024
£
£
Wages and salaries
2,149,744
1,871,121
Social security costs
258,657
199,395
Other pension costs
34,113
35,212
------------
------------
2,442,514
2,105,728
------------
------------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2025
2024
£
£
Remuneration
162,024
153,432
---------
---------
9. Other interest receivable and similar income
2025
2024
£
£
Interest on loans and receivables
38,672
31,790
Interest on bank deposits
4,066
–
--------
--------
42,738
31,790
--------
--------
10. Interest payable and similar expenses
2025
2024
£
£
Interest on banks loans and overdrafts
74,470
79,717
--------
--------
11. Tax on profit
Major components of tax expense
2025
2024
£
£
Current tax:
UK current tax expense
191,663
144,734
Deferred tax:
Origination and reversal of timing differences
( 147,478)
117,536
---------
---------
Tax on profit
44,185
262,270
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2024: higher than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).
2025
2024
£
£
Profit on ordinary activities before taxation
811,747
812,092
---------
---------
Profit on ordinary activities by rate of tax
202,937
203,023
Effect of expenses not deductible for tax purposes
2,988
4,258
Effect of capital allowances and depreciation
69,212
20,713
Deferred tax charge
( 147,478)
117,536
Effects of research and development costs
( 83,474)
( 83,260)
---------
---------
Tax on profit
44,185
262,270
---------
---------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2025
2024
£
£
Dividends on equity shares
400,000
400,000
---------
---------
13. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Assets under construction
Total
£
£
£
£
£
£
Cost
At 1 Nov 2024
1,327,494
6,204,932
96,672
206,692
–
7,835,790
Additions
–
86,752
3,378
–
565,296
655,426
Disposals
–
( 209,215)
–
–
–
( 209,215)
------------
------------
---------
---------
---------
------------
At 31 Oct 2025
1,327,494
6,082,469
100,050
206,692
565,296
8,282,001
------------
------------
---------
---------
---------
------------
Depreciation
At 1 Nov 2024
286,986
3,772,669
85,878
183,565
–
4,329,098
Charge for the year
23,716
421,871
4,353
11,008
–
460,948
Disposals
–
( 209,215)
–
–
–
( 209,215)
------------
------------
---------
---------
---------
------------
At 31 Oct 2025
310,702
3,985,325
90,231
194,573
–
4,580,831
------------
------------
---------
---------
---------
------------
Carrying amount
At 31 Oct 2025
1,016,792
2,097,144
9,819
12,119
565,296
3,701,170
------------
------------
---------
---------
---------
------------
At 31 Oct 2024
1,040,508
2,432,263
10,794
23,127
–
3,506,692
------------
------------
---------
---------
---------
------------
Included within the carrying amount of land and buildings is freehold land of £141,680 (2024: £141,680) which is not depreciated.
14. Stocks
2025
2024
£
£
Finished goods and goods for resale
4,530,361
4,551,599
------------
------------
15. Debtors
2025
2024
£
£
Trade debtors
3,486,422
3,151,033
Prepayments and accrued income
80,056
83,650
VAT
113,311
71,865
Other debtors
1,686,923
1,963,588
------------
------------
5,366,712
5,270,136
------------
------------
16. Creditors: amounts falling due within one year
2025
2024
£
£
Bank loans and overdrafts
87,000
87,000
Trade creditors
1,470,015
1,464,864
Accruals and deferred income
578,586
585,213
Corporation tax
122,520
312,392
Social security and other taxes
64,744
47,011
Obligations under finance leases and hire purchase contracts
23,158
104,071
Derivative financial liability
12,724
7,567
Other creditors
–
311
Factoring account
897,178
817,236
Other creditors
1,400,000
1,250,000
------------
------------
4,655,925
4,675,665
------------
------------
The bank loans of £331,043 (2024: £418,043) and the amounts due to the factor of £897,178 (2024: £817,236) are secured by an all assets debenture, a legal mortgage over the freehold property and a pledge over goods. Obligations under finance leases and hire purchase contracts of £23,158 (2024: £131,089) are secured on the assets concerned.
Within the creditors is a provision for liabilities. This is scheduled below.
2025
£
Packaging provision
At 1st November 2024 1,250,000
Net charge for the year 150,000
------------
At 31st October 2025 1,400,000
------------
The company has recognised a provision of £1,400,000 at 31 October 2025 (2024: £1,250,000) for obligations arising from its historical packaging activities. The directors consider that these activities give rise to a present obligation for which settlement is probable. The provision represents management's estimate of the expenditure required to settle that obligation. Historical packaging and PRN price calculations inform the assessment of the prior-years component. The £150,000 net charge recognised in the current year reflects the increase in management's overall estimate. Significant uncertainty remains concerning the historical periods for which settlement will be required, the relevant packaging quantities, applicable prices and the basis on which outstanding obligations and any additional enforcement amounts will be assessed. The ultimate settlement amount and timing remain uncertain, and the amount ultimately payable could differ materially from the provision recognised.
17. Creditors: amounts falling due after more than one year
2025
2024
£
£
Bank loans and overdrafts
244,043
331,043
Obligations under finance leases and hire purchase contracts
–
27,018
---------
---------
244,043
358,061
---------
---------
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2025
2024
£
£
Not later than 1 year
23,158
104,071
Later than 1 year and not later than 5 years
–
27,018
--------
---------
23,158
131,089
--------
---------
19. Provisions
Deferred tax (note 20)
£
At 1 November 2024
566,417
Transfers
( 147,478)
---------
At 31 October 2025
418,939
---------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2025
2024
£
£
Included in provisions (note 19)
418,939
566,417
---------
---------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 34,113 (2024: £ 35,212 ).
At the year end 31st October 2025, there were no amounts due for pensions as payments are made prior to the year end.
22. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2025
2024
£
£
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss
12,724
7,567
--------
-------
23. Called up share capital
Issued, called up and fully paid
2025
2024
No.
£
No.
£
Ordinary shares of £ 1 each
80
80
80
80
----
----
----
----
24. Director's advances, credits and guarantees
As at 31st October 2025, the director owes £1,260,499 to the company (£1,465,508 as at 2024). This balance will not be paid off within 9 months of the year end and S455 tax has been applied accordingly within the tax calculations. Interest is also charged on the overdrawn loan account at a HMRC approved rate.
25. Related party transactions
During the period the company transacted with Property & Risk Management Services Limited, to supply insurance brokering services worth £8,100 (2024: £8,100). The amount owed to this company is £1,350 (2024: £1,350). The director of Property Risk Management Services is a relative of Paul Backshall. During the period the company transacted with JRN Distribution Limited, the company sold goods worth £109,028. The amount owed by this company is £42,617 (2024: £52,577). The company is owned by Mr Paul Backshall. All services were provided at full market value.
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £ 486,983 (2024: £ 478,984 ).
26. Controlling party
Mr P Backshall , the sole director has ultimate control of the company.