Sumo UK Ltd. Company accounts

COMPANY REGISTRATION NUMBER: 03272544

Sumo UK Ltd.

Financial Statements

For the year ended

31 January 2026

Sumo UK Ltd.

Financial Statements

Year ended 31 January 2026

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	5

Independent auditor's report to the members	8

Statement of income and retained earnings	12

Statement of financial position	13

Notes to the financial statements	14

Sumo UK Ltd.

Officers and Professional Advisers

The board of directors	S J Ridley
	S D Herring
	J T Sweeting

Registered office	Redgates
	Melbourne
	York
	North Yorkshire
	YO42 4RG

Auditor	Townends Accountants LLP
	Chartered Accountants & Statutory Auditor
	Carlisle Street
	Goole
	East Riding of Yorkshire
	DN14 5DX

Bankers	Barclays Bank Plc
	2 Humber Quays
	Wellington Street West
	Hull
	HU1 2BN

Solicitors	Andrew Jackson Solicitors
	Marina Court
	Castle Street
	Hull
	East Yorkshire
	HU1 1TJ

Sumo UK Ltd.

Strategic Report

Year ended 31 January 2026

Business review

The principal activity of the company during the year was the manufacture and wholesale of agricultural machinery . We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. We consider our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. These include turnover, gross profit and pre-tax profit. Sumo UK Ltd continued with an improvement on the previous year's results with another good sales performance arising from solid customer demand. Turnover in the year was £6,785,163 up from £6,554,525, a 3.5% increase. Gross profit increased to £3,125,731 from £3,058,902, which represents a 2.2% increase. Pre-tax profit increased to £60,866 from £3,433. Tractor registrations act as a barometer for the industry and according to the Agricultural Engineers Association, the UK agricultural tractor registrations fell to their lowest level on record in 2025. An inevitable result is that we have seen further dealer consolidation nationwide. Increasing operational costs have continued to put downward pressure on farm margins which has reduced the incentive to invest. Government proposals to tax inherited farmland were watered down slightly in the period but not enough to change the mood and confidence in the farming sector. Export activity followed a similar trend, with a few bright spots but an overall similar theme to the UK. Despite difficult market conditions, we have continued to grow the awareness of the Sumo brand, an example of which was our first time attendance at the Agritechnica Trade Fair in Hannover in November 2025. Our investment here should benefit us in the longer term. Future expectations for fiscal year 2026/27 show only a marginal sign of an upturn. The one positive is that dealer stocks have continued to fall and at some point a natural replacement point will be reached. In light of the above Market conditions the board is pleased with the performance of the company and pay credit to the management and staff of Sumo in achieving this. Financial risk management The company's operations expose it to a variety of risks that include price risk, liquidity risk and interest rate risk. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board are implemented by the company's management. Credit risk The company has implemented policies that require appropriate credit checks on potential customers before sales are made. Liquidity risk The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations. Interest rate risk The company has both interest-bearing assets and interest bearing liabilities. The company's exposure to interest rate risk is regularly evaluated and action would be taken to mitigate any exposure as necessary. With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control. Going Concern The company is in a net current assets position at the balance sheet date. The company meets its day to day working capital requirements through a combination of bank balances and trade creditors. As part of the boards assessment of going concern, forecasts have been prepared for the company covering the period to October 2027. The performance of the company is also monitored during the preparation of managements, done monthly, which are reviewed during board meetings. The most critical assumptions when assessing future cash flows are the expected level of income, gross margins and overheads. As more fully described in the strategic report above, trading conditions continue to be challenging, not helped by the general uncertainty in the UK economy, including the ongoing effects of inflation, interest rates and energy costs. Despite this, the forecast prepared show that the company should be able to operate wholly within current facilities. Whilst recognising the inevitable uncertainties impacting the company going forward, the directors confirm that, after considering the matters set out above, they have reasonable expectation that the company has adequate resources and lending facilities, to continue in operational existence for at least twelve months following the signing of these financial statements. For these reasons, the directors continue to adopt the going concern basis in preparing the financial statements

This report was approved by the board of directors on 31 October 2026 and signed on behalf of the board by:

J T Sweeting

Director

Registered office:

Redgates

Melbourne

York

North Yorkshire

YO42 4RG

Sumo UK Ltd.

Directors' Report

Year ended 31 January 2026

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

Directors

The directors who served the company during the year were as follows:

S D Herring
J T Sweeting
S J Ridley	(Appointed 24 March 2025)

Dividends

The directors do not recommend the payment of a dividend.

Future developments

The level of business and the period end financial position remain satisfactory for the company and the directors are confident to be able to develop the business further in the future.

Financial instruments

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to raise funds for the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial statements is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdraft facilities at floating rates of interest.

In respect of loans these compromise of a loan from companies owned by the shareholders and bank loans. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Research and development

The company has a continuing commitment to a high level of research and development. Expenditure on research and development continued throughout the year reflecting the need to be at the forefront of the industry to ensure future growth. Research and development in the year continued to improve the company's existing products and develop new products to introduce to the market.

Disclosure of information in the strategic report

The company has in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups(Accounts and Reports) Regulations 2008.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, 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 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 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 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. 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.

This report was approved by the board of directors on 31 October 2026 and signed on behalf of the board by:

J T Sweeting

Director

Registered office:

Redgates

Melbourne

York

North Yorkshire

YO42 4RG

Sumo UK Ltd.

Independent Auditor's Report to the Members of Sumo UK Ltd.

Year ended 31 January 2026

Opinion

We have audited the financial statements of Sumo UK Ltd. (the 'company') for the year ended 31 January 2026 which comprise the statement of income and retained earnings, statement of financial position 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 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; - 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 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are 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 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 in relation to which 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 directors' responsibilities statement, 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 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 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.

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 have obtained an understanding of the legal and regulatory framework applicable to the company through discussions with senior management and review of the regulatory framework of any professional or membership bodies that the company is a part of. The company uses third parties to ensure that it remains up to date with changes and to review compliance with all its legal and regulatory requirements. In making our assessment of detecting irregularities, including fraud, we have discussed the issue with management who have advised that there have been no changes and the company remains compliant with its legal and regulatory requirement. Nothing has been brought to light in completing our audit work that contradicts this. - The following laws and regulations have been identified as being of significance in the context of the company; Companies Act 2006, health and safety legislation, the bribery act 2010, employment laws, data protection, environmental regulation, and relevant tax laws. - In making our assessment of the susceptibility of the company's financial statements to material misstatement, we have also considered how fraud might occur. No instances of material misstatement or fraud have been noted in the audit of the accounts for the year. - All matters regarding non-compliance with laws and regulations and fraud have been communicated to all members of the audit engagement team. The engagement partner has assessed that the engagement team has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations, affected by the inherent difficulty in detecting irregularities, the effectiveness of the company's controls, and the nature, timing and extent of the audit procedures performed. 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 directors. - Conclude on the appropriateness of the directors' 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.

Rebecca de Cobain FCA

(Senior Statutory Auditor)

For and on behalf of

Townends Accountants LLP

Chartered Accountants & Statutory Auditor

Carlisle Street

Goole

East Riding of Yorkshire

DN14 5DX

31 October 2026

Sumo UK Ltd.

Statement of Income and Retained Earnings

Year ended 31 January 2026

		2026	2025
Note		£	£
Turnover	4	6,785,163	6,554,525

Cost of sales	3,659,432	3,495,623
	-------------	-------------
Gross profit	3,125,731	3,058,902

Administrative expenses		2,941,701	2,906,601
		-------------	-------------
Operating profit	5	184,030	152,301

Interest payable and similar expenses	9	123,164	148,868
		-------------	-------------
Profit before taxation		60,866	3,433

Tax on profit	10	15,818	3,863
		--------	-------
Profit/(loss) for the financial year and total comprehensive income		45,048	( 430)
		--------	-------

Retained earnings at the start of the year	1,169,475	1,169,905
	-------------	-------------
Retained earnings at the end of the year	1,214,523	1,169,475
	-------------	-------------

All the activities of the company are from continuing operations.

Sumo UK Ltd.

Statement of Financial Position

31 January 2026

	2026		2025
Note	£	£	£	£

Fixed assets

Intangible assets	11	2,056	2,160
Tangible assets	12	592,508	660,182
		----------	----------
		594,564	662,342

Current assets

Stocks	13	2,888,633	3,303,385
Debtors	14	659,661	538,237
Cash at bank and in hand		910,031	659,467
		-------------	-------------
		4,458,325	4,501,089

Creditors: amounts falling due within one year	15	( 2,249,887)		( 2,387,982)
		-------------		-------------
Net current assets			2,208,438		2,113,107
			-------------		-------------
Total assets less current liabilities			2,803,002		2,775,449

Creditors: amounts falling due after more than one year	16		( 41,359)		( 41,413)

Provisions

Taxation including deferred tax	18	( 100,496)	( 117,937)
		-------------	-------------
Net assets		2,661,147	2,616,099
		-------------	-------------

Capital and reserves

Called up share capital	21	1,395,572	1,395,572
Share premium account	22	50,562	50,562
Capital redemption reserve	22	490	490
Profit and loss account	22	1,214,523	1,169,475
		-------------	-------------
Shareholders funds		2,661,147	2,616,099
		-------------	-------------

These financial statements were approved by the board of directors and authorised for issue on 31 October 2026 , and are signed on behalf of the board by:

J T Sweeting

Director

Company registration number: 03272544

Sumo UK Ltd.

Notes to the Financial Statements

Year ended 31 January 2026

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Redgates, Melbourne, York, North Yorkshire, YO42 4RG.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

(a) Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. Amounts are rounded to the nearest whole pound.

(b) Going concern

The UK economy continues to face a degree of economic uncertainty, including the ongoing effects of inflation, interest rates and energy costs. These factors have affected the company's trading results to varying degrees. In preparing these financial statements, the directors have considered the potential impact of these matters based on the information available at the date of approval and do not believe they will affect the company's ability to continue trading for the foreseeable future. Accordingly, at the date of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The directors have therefore prepared the financial statements on a going concern basis.

(c) Disclosure exemptions

The entity is a small company therefore is not required to prepare a cash flow statement under FRS 102 section 7.1B.

(d) Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome . The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Research and development The company's accounting policy for research and development is set out in the notes below. Where expenditure meets the criteria, it is capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis from the date that the company starts to receive a benefit from the expenditure over managements estimate of its useful economic life . Property, plant and equipment The company's accounting policy for tangible fixed assets is set out in the notes below. Estimated useful lives of plant and equipment are based on management's judgement and historical experience with similar items . Stock provision The company's accounting policy for stock is set out in the notes below. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work-in-progress. Bad debts Provision is made for debts that are not considered to be recoverable. The provision is based on management experience of previous years' recoverability of trade debtors and is applied to the amounts of outstanding debt.

(e) Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

(f) Current and deferred 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 be paid or recovered 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.

(g) 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.

(h) Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

(i) Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

(j) Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill	-	over 10 years
Research & Development	-	over 3 to 10 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

(k) Research and development

Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

(l) Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

(m) 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:

	Plant and machinery	-	15% to 35% reducing balance and 33% straight line

(n) Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date .

(o) 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. Work in progress is valued on the basis of direct costs plus attributable labour. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work-in-progress.

(p) 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.

(q) Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

(r) Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

(s) Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2026	2025
	£	£
Sale of goods	6,785,163	6,554,525
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2026	2025
	£	£
United Kingdom	5,727,414	5,241,363
Overseas	1,057,749	1,313,162
	-------------	-------------
	6,785,163	6,554,525
	-------------	-------------

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2026	2025
	£	£
Amortisation of intangible assets	104	2,150
Depreciation of tangible assets	109,399	103,685
Impairment of trade debtors	2,465	(1,647)
Foreign exchange differences	( 48,156)	70,302
	----------	----------

6. Auditor's remuneration

	2026	2025
	£	£
Fees payable for the audit of the financial statements	3,700	3,500
	-------	-------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2026	2025
	No.	No.
Production staff	37	42
Administrative staff	3	2
Management staff	2	2
	----	----
	42	46
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2026	2025
	£	£
Wages and salaries	1,526,777	1,541,645
Social security costs	190,663	159,652
Other pension costs	35,769	33,810
	-------------	-------------
	1,753,209	1,735,107
	-------------	-------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2026	2025
	£	£
Remuneration	111,403	173,500
Company contributions to defined contribution pension plans	1,210	2,642
	----------	----------
	112,613	176,142
	----------	----------

The number of directors who accrued benefits under company pension plans was as follows:

	2026	2025
	No.	No.
Defined contribution plans	1	2
	----	----

9. Interest payable and similar expenses

	2026	2025
	£	£
Interest on obligations under finance leases and hire purchase contracts	31,293	70,778
Interest due to group undertakings	30,000	30,000
Other interest payable	55,655	42,345
Other interest payable and similar charges	6,216	5,745
	----------	----------
	123,164	148,868
	----------	----------

10. Tax on profit

Major components of tax expense

	2026	2025
	£	£

Current tax:

UK current tax expense	33,259	–
Adjustments in respect of prior periods	–	( 340)
	--------	----
Total current tax	33,259	( 340)
	--------	----

Deferred tax:

Origination and reversal of timing differences	( 17,441)	4,203
	--------	-------
Tax on profit	15,818	3,863
	--------	-------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2025: higher than) the standard rate of corporation tax in the UK of 25 % (2025: 25 %).

	2026	2025
	£	£
Profit on ordinary activities before taxation	60,866	3,433
	--------	-------
Profit on ordinary activities by rate of tax	15,217	858
Adjustment to tax charge in respect of prior periods	–	( 340)
Effect of expenses not deductible for tax purposes	601	3,345
	--------	-------
Tax on profit	15,818	3,863
	--------	-------

11. Intangible assets

	Goodwill	Research & Developm't	Total
	£	£	£
Cost
At 1 February 2025 and 31 January 2026	65,000	719,143	784,143
	--------	----------	----------
Amortisation
At 1 February 2025	65,000	716,983	781,983
Charge for the year	–	104	104
	--------	----------	----------
At 31 January 2026	65,000	717,087	782,087
	--------	----------	----------
Carrying amount
At 31 January 2026	–	2,056	2,056
	--------	----------	----------
At 31 January 2025	–	2,160	2,160
	--------	----------	----------

Amortisation of intangible assets is included in administrative expenses .

12. Tangible assets

	Plant and machinery
	£
Cost
At 1 February 2025	2,616,511
Additions	41,725
	-------------
At 31 January 2026	2,658,236
	-------------
Depreciation
At 1 February 2025	1,956,329
Charge for the year	109,399
	-------------
At 31 January 2026	2,065,728
	-------------
Carrying amount
At 31 January 2026	592,508
	-------------
At 31 January 2025	660,182
	-------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery
	£
At 31 January 2026	89,105
	--------
At 31 January 2025	314,781
	----------

13. Stocks

	2026	2025
	£	£
Raw materials and consumables	1,813,618	2,068,606
Work in progress	486,603	361,614
Finished goods and goods for resale	588,412	873,165
	-------------	-------------
	2,888,633	3,303,385
	-------------	-------------

An impairment loss of £271,092 (2025: £219,572) was recognised in cost of sales in respect of a provision against slow moving and obsolete stock .

14. Debtors

	2026	2025
	£	£
Trade debtors	594,439	458,152
Prepayments and accrued income	65,222	55,552
Other debtors	–	24,533
	----------	----------
	659,661	538,237
	----------	----------

Trade debtors are stated after provisions for impairment of £6,167 (2025: £3,702).

15. Creditors: amounts falling due within one year

	2026	2025
	£	£
Trade creditors	504,945	419,789
Amounts owed to group undertakings	423,215	679,215
Accruals	442,801	500,011
Corporation tax	33,259	–
Social security and other taxes	113,561	48,466
Obligations under finance leases and hire purchase contracts	32,106	40,501
Other loans	700,000	700,000
	-------------	-------------
	2,249,887	2,387,982
	-------------	-------------

Hire purchase liabilities as noted above are secured on the associated asset. The bank overdraft is secured by a fixed and floating charge over the assets of the company.

16. Creditors: amounts falling due after more than one year

	2026	2025
	£	£
Obligations under finance leases and hire purchase contracts	41,359	41,413
	--------	--------

Hire purchase liabilities as noted above are secured on the associated asset .

17. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2026	2025
	£	£
Not later than 1 year	32,106	40,501
Later than 1 year and not later than 5 years	41,359	41,413
	--------	--------
	73,465	81,914
	--------	--------

18. Provisions

	Deferred tax (note 19)
	£
At 1 February 2025	117,937
Additions	( 17,441)
	----------
At 31 January 2026	100,496
	----------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2026	2025
	£	£
Included in provisions (note 18)	100,496	117,937
	----------	----------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2026	2025
	£	£
Accelerated capital allowances	100,496	117,937
	----------	----------

The reversal of deferred tax liabilities in the year commencing 1 February 2026 is not expected to be material.

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 35,769 (2025: £ 33,810 ).

21. Called up share capital

Issued, called up and fully paid

	2026		2025
	No.	£	No.	£
Ordinary shares of £ 1 each	1,395,572	1,395,572	1,395,572	1,395,572
	-------------	-------------	-------------	-------------

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company's residual assets.

22. Reserves

Share premium account This reserve records the amount above the nominal value received for shares sold, less transaction costs . Capital redemption reserve This reserve records the nominal value of shares repurchased by the company . Profit and loss account This reserve records retained earnings and accumulated losses.

23. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2026	2025
	£	£
Not later than 1 year	160,000	160,000
Later than 1 year and not later than 5 years	320,000	480,000
	----------	----------
	480,000	640,000
	----------	----------

24. Related party transactions

The company has taken advantage of the exemptions provided in FRS 102 from reporting transactions between wholly owned members of the group. During the year, companies controlled by two of the directors made loans available to the company. Interest is payable on the loans at the rate of 8% and the loans are repayable on demand. At the year end date, the balance due to the companies totalled £ 700,000 (2025: £ 700,000 ).

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 £ 149,876 (2025: £ 176,142 ).

25. Controlling party

For the entire year, the parent company was EWE Holdings Limited a company whose registered office address is Kahawa House, Elsham Wold Industrial Estate, Elsham, Brigg, North Lincolnshire, DN20 0SP. The ultimate controlling party of EWE Holdings Limited is S D Herring .