REGISTERED NUMBER: 03494214 (England and Wales)

STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

FOR

GEOSYNTHETICS LIMITED

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

C Foxton

T Woods

SECRETARY:

T Woods

REGISTERED OFFICE:

Unit 2 Charnwood Edge Business Park

Syston Road

Cossington

Leicestershire

LE7 4UZ

BUSINESS ADDRESS:

Unit 3 Hinckley Park

Avery Way

Hinckley

Leicestershire

LE10 3FF

REGISTERED NUMBER:

03494214 (England and Wales)

AUDITORS:

Magma Audit LLP (part of the Dains Group)

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

The directors present their strategic report for the year ended 28 February 2025.

REVIEW OF BUSINESS

The directors consider the financial performance for the year and the company’s position at the year end to be satisfactory. Despite a challenging and uncertain economic environment, the company has continued to demonstrate resilience and remains well-positioned within its sector.

Turnover increased to £13,519,718 (2024: £10,840,512), reflecting both organic growth and improved market penetration. Although operating profit decreased to £331,174 (2024: £521,056), this reduction was expected and primarily attributable to strategic investment in personnel, systems, and infrastructure to support long-term growth.

During the year, the company incurred non-recurring transitional costs associated with the relocation of its operations, as it exited a former leasehold property. These costs are not expected to recur in future periods. Overall, the directors consider that the business continues to operate from a position of financial and operational strength.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is exposed to a range of risks and uncertainties which could materially affect its performance. The principal risks identified by the directors include:

Oil Prices and Exchange Rates:

These influence the cost of raw materials and transportation. Although management endeavours to mitigate the impact through forward purchasing and pricing strategies, it is not always possible to pass increased costs on to customers immediately, potentially placing pressure on margins.

Economic Confidence and Market Demand:

Reduced business confidence or investment activity may adversely affect demand for the company’s products and services. The directors continue to monitor market conditions closely and adjust operating and investment strategies accordingly.

Supply Chain Disruption:

Global supply chain challenges may affect lead times and material availability. The company maintains multiple sourcing arrangements and strong supplier relationships to mitigate these risks.

Health, Safety, and Environmental Compliance:

As part of its operations, the company is committed to maintaining high standards of health, safety, and environmental compliance. The directors monitor regulatory developments to ensure continued adherence to applicable standards.

The board conducts regular risk assessments and maintains internal controls and contingency plans to enable timely and effective responses to changing external conditions. This proactive approach supports business continuity and the company’s long-term development.

KEY PERFORMANCE INDICATORS

The directors monitor a range of financial and non-financial KPIs to assess the company’s performance and progress toward its strategic objectives. The key financial indicators during the year were:

- Turnover: £13,519,718 (2024: £10,840,512)

- Operating Profit: £331,174 (2024: £521,056)

- Operating Margin: 2.4% (2024: 4.8%)

Non-financial KPIs include customer satisfaction, staff retention, on-time delivery, and sustainability measures. These metrics are regularly reviewed to ensure continuous improvement and operational efficiency.

FUTURE OUTLOOK

The directors remain confident about the company’s prospects for sustainable growth. The investments made in people, systems, and facilities have strengthened the company’s operational capacity and created a solid foundation for future expansion.

While recognising ongoing uncertainties in the wider economic environment, particularly around input cost volatility, interest rates, and global supply chain stability, the directors believe the company’s flexible cost base, skilled workforce, and focus on customer service and innovation position it well for the future.

Continued investment in technology, sustainability initiatives, and employee development will remain key priorities as the company seeks to enhance long-term shareholder value and maintain its strong market position.

ON BEHALF OF THE BOARD:

T Woods - Director

26 November 2025

The directors present their report with the financial statements of the company for the year ended 28 February 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply of civil engineering materials.

DIVIDENDS

Interim dividends were paid amounting to £240,000 (2024: £240,000). The directors recommend that no final dividends will be paid.

DIRECTORS

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

C Foxton

T Woods

FINANCIAL INSTRUMENTS

Interest rate risk

The company reviews its exposure to interest rates regularly and considers the benefit (or otherwise) of hedging against adverse interest rate movements as part of these reviews.

Foreign currency risk

Foreign currency exposure resulting from trade suppliers abroad is considered and is mitigated by a hedging policy where the directors consider there to be a benefit.

Credit risk

Managing cashflow and credit risk is a key priority of the company. All customers are subject to credit checks to minimise exposure to bad debts and to ensure sufficient cashflow is maintained to support the working capital requirements of the business operations.

Supply chain disruption risk

The ability to deliver to customers in a timely manner is a key priority for the business. We work hard with our suppliers to provide greater visibility to our requirements whilst also reviewing our stock levels to ensure optimal stock management.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T Woods - Director

26 November 2025

Opinion

We have audited the financial statements of Geosynthetics Limited (the 'company') for the year ended 28 February 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006, health and safety and employment law. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included:

-

Enquiries with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

Challenging assumptions made by management in their accounting estimates, in particular in relation to the impairment of stock and dilapidation provisions; and

-

Identifying and testing material journal entries, in particular those journal entries posted with unusual account combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific defined descriptions.

There are inherent limitations in the audit procedures described above. The more removed non-compliance with laws and regulations is, from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by forgery or intentional misrepresentation, for example, or through 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 Auditors' Report.

Use of our report

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

Paul Orton FCA FCCA (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP (part of the Dains Group)

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

26 November 2025

TURNOVER

4

13,519,718

10,840,512

Cost of sales

(8,785,642

)

(6,809,802

)

GROSS PROFIT

4,734,076

4,030,710

Administrative expenses

(4,402,902

)

(3,509,654

)

OPERATING PROFIT

6

331,174

521,056

Interest on tax settlement

7

(46,764

)

(49,888

)

284,410

471,168

Interest receivable and similar income

59,368

4,841

PROFIT BEFORE TAXATION

343,778

476,009

Tax on profit

8

(41,716

)

(162,086

)

PROFIT FOR THE FINANCIAL YEAR

302,062

313,923

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

302,062

313,923

FIXED ASSETS

Tangible assets

10

385,212

294,576

CURRENT ASSETS

Stocks

11

1,416,239

1,385,230

Debtors: amounts falling due within one year

12

2,715,695

2,570,261

Debtors: amounts falling due after more than one year

12

1,340,269

1,460,901

Cash at bank and in hand

558,118

648,068

6,030,321

6,064,460

CREDITORS

Amounts falling due within one year

13

(4,187,008

)

(3,871,369

)

NET CURRENT ASSETS

1,843,313

2,193,091

TOTAL ASSETS LESS CURRENT LIABILITIES

2,228,525

2,487,667

CREDITORS

Amounts falling due after more than one year

14

(541,447

)

(913,851

)

PROVISIONS FOR LIABILITIES

17

(308,359

)

(257,159

)

NET ASSETS

1,378,719

1,316,657

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

1,378,619

1,316,557

SHAREHOLDERS' FUNDS

1,378,719

1,316,657

The financial statements were approved by the Board of Directors and authorised for issue on 26 November 2025 and were signed on its behalf by:

C Foxton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

100

1,602,096

1,602,196

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

313,923

313,923

Distribution

-

(359,462

)

(359,462

)

Balance at 29 February 2024

100

1,316,557

1,316,657

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

302,062

302,062

Balance at 28 February 2025

100

1,378,619

1,378,719

Cash flows from operating activities

Cash generated from operations

1

595,882

1,567,141

Interest paid

(46,764

)

(110,150

)

Tax paid

(129,276

)

(219,898

)

Net cash from operating activities

419,842

1,237,093

Cash flows from investing activities

Purchase of tangible fixed assets

(95,739

)

(279,018

)

Net cash from investing activities

(95,739

)

(279,018

)

Cash flows from financing activities

Loan repayments in year

(260,000

)

(260,000

)

Hire purchase repayments in year

(7,791

)

-

Amount withdrawn by directors

(48,488

)

(404,538

)

Increase in invoice financing facility

142,226

208,259

Equity dividends paid

(240,000

)

(240,000

)

Net cash from financing activities

(414,053

)

(696,279

)

(Decrease)/increase in cash and cash equivalents

(89,950

)

261,796

Cash and cash equivalents at beginning of year

2

648,068

386,272

Cash and cash equivalents at end of year

2

558,118

648,068

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

2025

2024

£

£

Profit before taxation

343,778

476,009

Depreciation charges

87,184

29,214

Finance costs

46,764

110,150

Finance income

(59,368

)

(4,841

)

418,358

610,532

(Increase)/decrease in stocks

(31,009

)

327,503

Decrease in trade and other debtors

83,054

314,877

Increase in trade and other creditors

125,479

314,229

Cash generated from operations

595,882

1,567,141

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 28 February 2025

28/2/25

1/3/24

£

£

Cash and cash equivalents

558,118

648,068

Year ended 29 February 2024

29/2/24

1/3/23

£

£

Cash and cash equivalents

648,068

386,272

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/3/24

Cash flow

changes

At 28/2/25

£

£

£

£

Net cash

Cash at bank

and in hand

648,068

(89,950

)

558,118

648,068

(89,950

)

558,118

Debt

Finance leases

-

7,791

(82,081

)

(74,290

)

Debts falling due

within 1 year

(1,596,094

)

(142,226

)

-

(1,738,320

)

Debts falling due

after 1 year

(325,000

)

260,000

-

(65,000

)

(1,921,094

)

125,565

(82,081

)

(1,877,610

)

Total

(1,273,026

)

35,615

(82,081

)

(1,319,492

)

1.	STATUTORY INFORMATION

Geosynthetics Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is Unit 2 Charnwood Edge Business Park, Syston Road, Cossington, Leicestershire, LE7 4UZ and the registered number is 03494214.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

The financial statements have been prepared on a going concern basis. In forming this view, the directors have considered the company's current financial position and its future prospects. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As part of their assessment, the directors prepare annual financial forecasts to ensure that the company has sufficient funding and facilities in place to meet its obligations as they fall due.

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised as goods are despatched.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Long leasehold land & buildings

20% straight line or 15 years over the life of the lease

Fixtures and fittings

20% straight line

Motor vehicles

20% straight line

Computer equipment

33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

(i) Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

(ii) Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

(iii) Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

(iv) Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

The tax expense for the year comprises current and deferred tax.

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

(ii) Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Operating leases

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

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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provisioning

The company has products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision, management considers the nature, age and condition of the stock, as well as applying assumptions around the saleability/useability of the stock.

Dilapidations provision

The company has a dilapidation provision that refers to a provision for unknown future repairs for the property. The dilapidation provision will be assessed at the outset of each individual lease agreement.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

13,508,822

10,840,512

Europe

10,896

-

13,519,718

10,840,512

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,738,255

1,544,722

Social security costs

177,663

142,191

Other pension costs

155,383

134,716

2,071,301

1,821,629

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

2025

2024

Engineering

3

3

Finance and Human Resources

5

6

Management

7

3

Operations

9

8

Sales

16

20

Warehouse

8

7

48

47

2025

2024

£

£

Directors' remuneration

187,321

168,204

Directors' pension contributions to money purchase schemes

52,299

48,506

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

Money purchase schemes

2

2

6.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

35,341

22,474

Other operating leases

715,333

540,842

Depreciation - owned assets

74,872

29,214

Depreciation - assets on hire purchase contracts

12,312

-

Auditors' remuneration

13,230

15,700

Foreign exchange differences

(149,415

)

(19,703

)

7.	EXCEPTIONAL ITEMS

2025

2024

£

£

Interest on tax settlement

(46,764

)

(49,888

)

The amount contained within exceptional items relates to the settlement of historic tax planning.