REGISTERED NUMBER: 00192996 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

GAWITH HOGGARTH & CO.,LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mrs I M Gawith

Mr C S Gawith

Mrs R Gawith

REGISTERED OFFICE:

Minstfleet House

Mintsfeet Road North

Kendal

Cumbria

LA9 6LL

REGISTERED NUMBER:

00192996 (England and Wales)

AUDITORS:

RFM Audit Services LLP, Statutory Auditor

Unit 1, Guest House Farm

Runshaw Lane

Euxton

Chorley

Lancashire

PR7 6HD

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

This year saw turnover increase by 32.73%. Orders have been strong throughout the year and are expected to continue.

Gross profit has also continued to increase, rising by 5.33%.

Cash in bank and investments have continued to increase by £1,803,149 allowing for further investment in plant and equipment and expansion of the business.

To maximise liquid funds available to meet the planned expansion and provide sufficient funds for the ever-increasing cost of legislative compliance, no dividends have been paid to shareholders during the year and no dividends are proposed.

Improvement's in online presence should open a wider market, increasing sales and expansion.

PRINCIPAL RISKS AND UNCERTAINTIES

Price risk, credit risk, liquidity risk and cash flow risk.

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and outgoings. All of the business' cash balances are held in such a way that achieves a competitive rate of interest and this is kept under review.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the statement of financial position are net of allowances for doubtful debtors.

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

DEVELOPMENT AND PERFORMANCE

The group remains a leading supplier to the specialist tobacco trade in both the UK and abroad and will continue to rationalise the comprehensive portfolio of products to the specialist market in both the UK and export markets.

Expansion of the company's operating premises, investment in new plant and machinery and online presence will drive efficiency savings and quality improvements through automation and systems development. New equipment and processes should increase productivity to help meet demand.

FINANCIAL KEY PERFORMANCE INDICATORS

The financial key performance indicators used by the company to assess performance are as follows:

2024/25

2023/24

Performance +/-

Turnover

£24,896,293

£18,756,767

+32.7%

Gross Profit

£3,700,784

£3,513,412

+5.3%

Operating Profit/(Loss)

£1,560,182

£1,673,383

-6.8%

Stocks as % of Turnover

10.7%

17.4%

-38.5%

Trade Debtors as Days of Turnover

27.7

40.3

-12.6 days

Investments and Cash at Bank

£11,588,112

£9,784,963

+18.4%

ON BEHALF OF THE BOARD:

Mrs R Gawith - Director

14 October 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture and sale of tobacco products.

DIVIDENDS

To provide financial support for the investment required for the company to meet the legislative changes with respect of the next phase of the Tobacco Products Directive, it is proposed that no dividends will be declared in the next accounting period.

DIRECTORS

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

Mrs I M Gawith

Mr C S Gawith

Mrs R Gawith

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, RFM Audit Services LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs R Gawith - Director

14 October 2025

Opinion

We have audited the financial statements of Gawith Hoggarth & Co.,Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

-	the parent company 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, is detailed below.

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the tobacco manufacturing sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, environmental and health and safety legislation, The Tobacco and Related Products Regulations 2016, The Standardized Packaging of Tobacco Products Regulations 2015, Tobacco Products Directive (2014/40/EU), The Tobacco Products (Manufacture, Presentation, and Sale) (Safety) Regulations 2002 and Health Act 2009;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Flynn FCA (Senior Statutory Auditor)

for and on behalf of RFM Audit Services LLP, Statutory Auditor

Unit 1, Guest House Farm

Runshaw Lane

Euxton

Chorley

Lancashire

PR7 6HD

14 October 2025

TURNOVER

3

24,896,293

18,756,767

Cost of sales

21,195,509

15,243,355

GROSS PROFIT

3,700,784

3,513,412

Distribution costs

537,813

488,926

Administrative expenses

1,609,586

1,351,103

2,147,399

1,840,029

1,553,385

1,673,383

Other operating income

6,798

-

OPERATING PROFIT

5

1,560,183

1,673,383

Interest receivable and similar income

233,523

184,395

PROFIT BEFORE TAXATION

1,793,706

1,857,778

Tax on profit

6

524,931

480,000

PROFIT FOR THE FINANCIAL YEAR

1,268,775

1,377,778

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,268,775

1,377,778

Profit attributable to:

Owners of the parent

1,382,306

1,419,876

Non-controlling interests

(113,531

)

(42,098

)

1,268,775

1,377,778

Total comprehensive income attributable to:

Owners of the parent

1,382,306

1,419,876

Non-controlling interests

(113,531

)

(42,098

)

1,268,775

1,377,778

FIXED ASSETS

Intangible assets

8

5,092

53,808

Tangible assets

9

552,862

394,797

Investments

10

1,531,080

1,434,593

Investment property

11

241,028

236,949

2,330,062

2,120,147

CURRENT ASSETS

Stocks

12

2,674,362

3,268,433

Debtors

13

2,107,873

2,273,773

Cash at bank

10,057,032

8,350,370

14,839,267

13,892,576

CREDITORS

Amounts falling due within one year

14

1,991,629

2,139,626

NET CURRENT ASSETS

12,847,638

11,752,950

TOTAL ASSETS LESS CURRENT LIABILITIES

15,177,700

13,873,097

PROVISIONS FOR LIABILITIES

18

116,316

80,487

NET ASSETS

15,061,384

13,792,610

CAPITAL AND RESERVES

Called up share capital

19

10,000

10,000

Retained earnings

20

13,924,456

12,542,150

SHAREHOLDERS' FUNDS

13,934,456

12,552,150

NON-CONTROLLING INTERESTS

21

1,126,928

1,240,460

TOTAL EQUITY

15,061,384

13,792,610

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 14 October 2025 and were signed on its behalf by:

Mrs R Gawith - Director

FIXED ASSETS

Intangible assets

8

5,092

53,808

Tangible assets

9

465,267

321,948

Investments

10

1,550,582

1,454,095

Investment property

11

241,028

236,949

2,261,969

2,066,800

CURRENT ASSETS

Stocks

12

1,359,492

1,638,723

Debtors

13

1,721,865

1,425,484

Cash at bank

8,007,638

6,855,667

11,088,995

9,919,874

CREDITORS

Amounts falling due within one year

14

1,356,292

1,620,944

NET CURRENT ASSETS

9,732,703

8,298,930

TOTAL ASSETS LESS CURRENT LIABILITIES

11,994,672

10,365,730

PROVISIONS FOR LIABILITIES

18

116,317

80,487

NET ASSETS

11,878,355

10,285,243

CAPITAL AND RESERVES

Called up share capital

19

10,000

10,000

Retained earnings

20

11,868,355

10,275,243

SHAREHOLDERS' FUNDS

11,878,355

10,285,243

Company's profit for the financial year

1,593,112

1,498,061

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 14 October 2025 and were signed on its behalf by:

Mrs R Gawith - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 April 2023

10,000

11,122,274

11,132,274

1,282,558

12,414,832

Changes in equity

Total comprehensive income

-

1,419,876

1,419,876

(42,098

)

1,377,778

Balance at 31 March 2024

10,000

12,542,150

12,552,150

1,240,460

13,792,610

Changes in equity

Total comprehensive income

-

1,382,306

1,382,306

(113,531

)

1,268,775

Balance at 31 March 2025

10,000

13,924,456

13,934,456

1,126,929

15,061,385

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

10,000

8,777,182

8,787,182

Changes in equity

Total comprehensive income

-

1,498,061

1,498,061

Balance at 31 March 2024

10,000

10,275,243

10,285,243

Changes in equity

Total comprehensive income

-

1,593,112

1,593,112

Balance at 31 March 2025

10,000

11,868,355

11,878,355

Cash flows from operating activities

Cash generated from operations

1

2,376,881

2,012,892

Tax paid

(540,434

)

(544,397

)

Net cash from operating activities

1,836,447

1,468,495

Cash flows from investing activities

Purchase of intangible fixed assets

-

(191

)

Purchase of tangible fixed assets

(266,202

)

(248,850

)

Purchase of fixed asset investments

(96,487

)

(56,978

)

Purchase of investment property

(4,079

)

-

Sale of tangible fixed assets

3,460

764

Interest received

233,523

184,395

Net cash from investing activities

(129,785

)

(120,860

)

Increase in cash and cash equivalents

1,706,662

1,347,635

Cash and cash equivalents at beginning of year

2

8,350,370

7,002,735

Cash and cash equivalents at end of year

2

10,057,032

8,350,370

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

2025

2024

£

£

Profit before taxation

1,793,706

1,857,778

Depreciation charges

156,889

134,188

(Profit)/loss on disposal of fixed assets

(1,740

)

252

Finance income

(233,523

)

(184,395

)

1,715,332

1,807,823

Decrease/(increase) in stocks

594,071

(541,830

)

Decrease in trade and other debtors

164,142

331,300

(Decrease)/increase in trade and other creditors

(96,664

)

415,599

Cash generated from operations

2,376,881

2,012,892

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

10,057,032

8,350,370

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

8,350,370

7,002,735

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank

8,350,370

1,706,662

10,057,032

8,350,370

1,706,662

10,057,032

Total

8,350,370

1,706,662

10,057,032

1.	STATUTORY INFORMATION

Gawith Hoggarth & Co.,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 General Information page.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

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

The nature of the company's operations and principal activity is that of the manufacture and sale of tobacco products.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £.

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

BASIS OF CONSOLIDATION

The group financial statements consolidate the financial statements of Gawith Hoggarth & Co.,Limited and all its subsidiary undertakings drawn up to 31 March each year.

Business combinations are accounted for under the purchase method. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Significant judgements and estimates made by management in preparing these financial statements which also have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

- Depreciation and impairment of fixed assets

- Accrued Income

- Investment property revaluations

- Calculation of finished goods

TURNOVER AND OTHER INCOME

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Turnover from the sale of tobacco products is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Recharges of overhead costs

Turnover from recharges of overhead costs is recognised by reference to the costs invoiced to the company at the statement of financial position date.

Interest and dividends receivable

Interest income is recognised using the effective interest method and dividend income is recognised as the company's right to receive payment is established.

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 recognised at acquisition is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis over its useful life, which is estimated to be ten years.

Goodwill amortisation is charged on a straight line basis so as to write off the cost of the asset, less its residual value assumed to be zero, over its useful economic life, which is estimated to be ten years.

Goodwill amortisation is included in administrative expenses in the statement of comprehensive income.

OTHER INTANGIBLE FIXED ASSETS

Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired on business combinations are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition.

Intangible assets are amortised on a straight line basis over their useful lives. The useful lives of intangible assets are as follows:

Trade mark

-

10% on cost

Provision is made for any impairment.