CONSOLIDATED CASH FLOW STATEMENT                                                

NOTES TO THE INTERIM FINANCIAL REPORT

1.            BASIS OF PREPARATION OF INTERIM REPORT

As permitted, IAS34 'Interim Financial Reporting' has not been applied in this interim report. The information for the period ended 30 September 2023 is not audited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The statutory accounts for the year ended 31 March 2023 were given an unqualified audit report and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The interim accounts for the half year ended 30 September 2022 were also unaudited.

2.            ACCOUNTING POLICIES

Basis of accounting

The report has been prepared on a going concern basis in accordance UK-adopted International Accounting Standards.

The group has not availed itself of early adoption options in standards and interpretations.

The principal accounting policies adopted are as set out in the Annual Report for the year ended 31 March 2023. The valuation of inventories is considered to be the main area in terms of significant accounting estimates and judgements.

The retirement benefit scheme liability recognised in these interim accounts reflects the estimated change in the deficit at 30 September 2023 from the movements in discount rates and inflation during the six months.

3.            DIVIDENDS

A final dividend for the financial year 2023 of 7.5625p per share (2022: 7.5625p) was paid during the period.

An Interim dividend for the financial year 2024 of 4.5p per share is proposed (2023: 5.5p), payable on 22 March 2024.

4.            EARNINGS PER SHARE

The basic and diluted earnings per share are calculated by dividing the relevant profit after taxation of £411,000 (2022: profit £488,000) by the average number of ordinary shares in issue during the period being 2,534,322 (2022: 2,534,322). The number of shares used in the calculation is the same for both basic and diluted earnings.

5.           OTHER OPERATING INCOME

Income was received for the financial year 2023 by recognition of the fair value in foreign currency contracts held at 31 March 2023, but to be exercised during financial year ended 31 March 2024. There are no contracts currently held which would be exercised post 31 March 2024.

Income has been accounted for under the accruals method.

NOTES TO THE INTERIM FINANCIAL REPORT

6.            RETIREMENT BENEFIT SCHEME

The retirement benefit scheme is valued in part using yield rates, as indicated by government bonds. Towards the end of September 2022, the rate of these bonds increased significantly, causing the valuation of the scheme to move from a liability to become an asset. Yields have dropped since, returning the scheme to a deficit position.

The improvement in a reduced deficit at 30 September 2023 (£195,000) compared to 31 March 2023 (£537,000) is largely a result of reduced forward inflation estimates.

Note: 

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.