REGISTERED NUMBER: SC177091 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements

For The Year Ended 31 July 2024

for

A.t. Best Handlers Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

16

DIRECTORS:

Mr Stuart Rose

Mr Richard Rose

REGISTERED OFFICE:

Ninian Road

Brownsburn Industrial Estate

Airdrie

ML6 9SE

REGISTERED NUMBER:

SC177091 (Scotland)

AUDITORS:

Cahill Jack Associates Limited

Chartered Accountants and Statutory Auditors

91 Alexander Street

Airdrie

North Lanarkshire

ML6 0BD

SOLICITORS:

Murray Snell

Solicitors

40 North Castle Street

Edinburgh

EH2 3BN

The directors present their strategic report for the year ended 31 July 2024.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

The directors are very happy with the results achieved by the company during the year and recognise the contributions made by all employees to achieve the outstanding levels of turnover and profit.

Below is a summary of the main key performance indicators (KPIs) from the amounts included within the financial statements:

2024

2023

Gross Profit % age

23.51%

19.99%

Net Profit before tax % age

3.40%

5.36%

Turnover

£22.6m

£22.2m

Net profit before tax

£0,768k

£1,191k

Net asset value

£6.2m

£5.4m

Closing Stock

£6.6m

£8.1m

Current asset ratio

1.06:1

1.05:1

As shown by the turnover and profit KPIs above, the turnover for the year decreased by £.5m from last year's figure. The gross profit percentage increased to 24% as compared to 20% which was due to the increased sales values for hire income which has a higher gross profit percentage. Gross profit for the year increased by £875k with the increased turnover levels for hire income.

While the Covid 19 pandemic eased during the year, it still continued to impacted everyone and the business. Being part of the critical farm machinery supply chain, the company was still subjected to a number of significant challenges. Sales performance ceased to be impacted by the outbreak and in common with other suppliers, we continued to adapt our sites to keep our employees safe whilst still playing our part in ensuring continuity of supply within our industry. This challenge is ongoing and we remain vigilant to the possibility of further outbreaks.

The directors were very satisfied with the results for the year which still showed a healthy profit and balance sheet position..

During the year to 31 July 2024 the company continued to develop the new site in Edinburgh and enable the company to continue to supply to a wider area of customers for the years to come. This development has helped enhance the trading performance in the current year. In addition to this, the company secured another site in Ayr, with the intention to widen its geographical market to the surrounding areas there.

PRINCIPAL RISKS AND UNCERTAINTIES, BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT

The board of directors consider the major risk still facing the company to be the general risk of a repeat of the recent economic downturn. To mitigate any possible effects of this risk crystallising they continue to expand the company's products and customer base. In particular a new member of staff has been recruited in an attempt to boost industrial forklift sales.The directors continually monitor the company's progress and financial position through regular review of management accounting information.

The company has also mitigated the effects of more minor risks as follows:

The yard the business operates from is physically secured with cameras and fencing in place and all stock and assets are fully insured.

All vehicles and some of the machines held for hire or as stock are fitted with tracking devices to minimise the risk of losses through theft and misuse.

The company employs the services of a specialist HR and Health & Safety consultant to ensure all legal requirements in these areas are met.

The directors are involved directly with the operation of financial controls thereby mitigating the threat of internal fraud.

The main Manitou dealership contract has been in place since the company's incorporation and there is an excellent relationship with the manufacturer. With this in mind and the level of business the company generates for the dealer the directors consider the risk of this being withdrawn very minimal.

The new new information and accounts system installed previously continues to provides more accurate and up to date management information allowing the directors to maintain controls over all areas of the business.

FINANCIAL INSTRUMENTS

The directors have considered the risks involved with financial instruments utilised in the company as follows:

Bank loans and overdraft

The risk is considered low as the company have maintained a good working relationship with the Clydesdale Bank who offer these facilities and have complied with all banking requirements without defaults.

Trade debtors and creditors

The company also has a good working relationship with customers and suppliers ensuring credit terms are established and adhered to. The risk is therefore considered to be very low in respect of these financial instruments.

ON BEHALF OF THE BOARD:

Director

25 March 2025

The directors present their report with the financial statements of the company for the year ended 31 July 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of retail trading, repair and hire of rough terrain vehicles, access equipment, industrial forklifts and warehouse lifting equipment.

DIVIDENDS

Total dividends declared amounted to £90,000 for the year to 31 July 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report.

Mr Stuart Rose

Mr Richard Rose

POLITICAL DONATIONS AND EXPENDITURE

The company made donations totalling £14,727 in the year to 31 July 2024 (2023 - £7,015).

DISCLOSURE IN THE STRATEGIC REPORT

The directors have chosen to set out the following information in the Strategic Report rather than in the Directors' Report:

Future developments

Review of the business

Risk and exposure in relation to the use of financial instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Cahill Jack Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Richard Rose - Director

25 March 2025

Opinion

We have audited the financial statements of A.t. Best Handlers Limited (the 'company') for the year ended 31 July 2024 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 31 July 2024 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 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 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 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.

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

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity through communication with management and determined the most significant regulations included employment law, tax legislation, data protection laws, health and safety, bribery and corruption practices, and the Companies Act 2006.

Identified laws and regulations that were considered to have a possible direct material effect on the financial statements or the operations of the company, were communicated with the audit team who were instructed to remained alert for instances of non-compliance throughout the audit. We also ensured that the team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with these laws and regulations by questioning management and those charged with governance and corroborated by review of board minutes, HMRC correspondence and regulatory bodies.

We also assessed the risks of material misstatement in respect of fraud through enquiries of management and those charged with governance augmented by discussions with the audit team at pre audit meetings. This included an assessment of internal controls used to mitigate risks of fraud. Audit procedures were also designed to identify the main areas of weakness and address any possible material misstatements in relation to fraud.

We also considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.

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.

Mr A Fraser (Senior Statutory Auditor)

for and on behalf of Cahill Jack Associates Limited

Chartered Accountants and Statutory Auditors

91 Alexander Street

Airdrie

North Lanarkshire

ML6 0BD

25 March 2025

TURNOVER

22,624,234

22,228,083

Cost of sales

17,305,214

17,784,210

GROSS PROFIT

5,319,020

4,443,873

Administrative expenses

4,246,286

3,064,255

1,072,734

1,379,618

Other operating income

29,565

9,385

OPERATING PROFIT

5

1,102,299

1,389,003

Interest payable and similar expenses

6

333,845

197,652

PROFIT BEFORE TAXATION

768,454

1,191,351

Tax on profit

7

(45,754

)

405,341

PROFIT FOR THE FINANCIAL YEAR

814,208

786,010

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

814,208

786,010

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

12,903,652

10,932,816

12,903,652

10,932,816

CURRENT ASSETS

Stocks

11

6,414,634

8,165,459

Debtors

12

1,397,344

1,650,369

Cash at bank

199,621

117,215

8,011,599

9,933,043

CREDITORS

Amounts falling due within one year

13

7,592,265

9,477,884

NET CURRENT ASSETS

419,334

455,159

TOTAL ASSETS LESS CURRENT LIABILITIES

13,322,986

11,387,975

CREDITORS

Amounts falling due after more than one year

14

(5,818,664

)

(4,635,882

)

PROVISIONS FOR LIABILITIES

18

(1,258,034

)

(1,320,013

)

NET ASSETS

6,246,288

5,432,080

CAPITAL AND RESERVES

Called up share capital

19

80,000

80,000

Retained earnings

20

6,166,288

5,352,080

SHAREHOLDERS' FUNDS

6,246,288

5,432,080

The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2025 and were signed on its behalf by:

Mr Richard Rose - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2022

80,000

4,656,070

4,736,070

Changes in equity

Profit for the year

-

786,010

786,010

Total comprehensive income

-

786,010

786,010

Dividends

-

(90,000

)

(90,000

)

Balance at 31 July 2023

80,000

5,352,080

5,432,080

Changes in equity

Profit for the year

-

814,208

814,208

Total comprehensive income

-

814,208

814,208

Balance at 31 July 2024

80,000

6,166,288

6,246,288

Cash flows from operating activities

Cash generated from operations

1

1,878,108

1,662,099

Interest paid

(67,017

)

(40,986

)

Interest element of hire purchase payments paid

(266,828

)

(156,666

)

Tax paid

(1,783

)

(1,270

)

Net cash from operating activities

1,542,480

1,463,177

Cash flows from investing activities

Purchase of tangible fixed assets

(2,669,526

)

(1,973,873

)

Sale of tangible fixed assets

4,486,356

3,840,079

Net cash from investing activities

1,816,830

1,866,206

Cash flows from financing activities

New loans in year

-

675,000

Loan repayments in year

(124,878

)

(521,116

)

Capital repayments in year

(3,099,125

)

(3,337,237

)

Amount introduced by directors

-

20,458

Amount withdrawn by directors

(52,901

)

-

Equity dividends paid

-

(90,000

)

Net cash from financing activities

(3,276,904

)

(3,252,895

)

Increase in cash and cash equivalents

82,406

76,488

Cash and cash equivalents at beginning of year

2

117,215

40,727

Cash and cash equivalents at end of year

2

199,621

117,215

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

31.7.24

31.7.23

£

£

Profit before taxation

768,454

1,191,351

Depreciation charges

1,577,018

1,193,896

Profit on disposal of fixed assets

(266,661

)

(539,224

)

Finance costs

333,845

197,652

2,412,656

2,043,675

Decrease/(increase) in stocks

1,750,825

(3,182,248

)

Decrease/(increase) in trade and other debtors

253,025

(966,851

)

(Decrease)/increase in trade and other creditors

(2,538,398

)

3,767,523

Cash generated from operations

1,878,108

1,662,099

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 July 2024

31.7.24

1.8.23

£

£

Cash and cash equivalents

199,621

117,215

Year ended 31 July 2023

31.7.23

1.8.22

£

£

Cash and cash equivalents

117,215

93,971

Bank overdrafts

-

(53,244

)

117,215

40,727

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.8.23

Cash flow

changes

At 31.7.24

£

£

£

£

Net cash

Cash at bank

117,215

82,406

199,621

117,215

82,406

199,621

Debt

Finance leases

(5,607,253

)

3,099,125

-

(7,606,151

)

Debts falling due

within 1 year

(124,878

)

60,047

-

(64,831

)

Debts falling due

after 1 year

(649,903

)

64,831

-

(585,072

)

(6,382,034

)

3,224,003

-

(8,256,054

)

Total

(6,264,819

)

3,306,409

-

(8,056,433

)

4.	MAJOR NON-CASH TRANSACTIONS

Non-cash transactions represent new hire purchase agreements totalling £5,098,022.

1.	COMPANY INFORMATION

A. T. Best Handlers Limited is a private company limited by shares, incorporated in Scotland with its registered office at Ninian Road, Brownsburn Industrial Estate, Airdre, ML6 9SE.

2.	STATUTORY INFORMATION

A.t. Best Handlers Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

3.	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.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made are described below:

Estimated useful lives and residual values of fixed assets

As described under the Tangible Fixed Asset heading of this accounting policies note, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as applicable. The reviews take into account estimated useful lives used by other companies operating within the same sector and actual asset lives and residual values as evidenced by disposals during current and prior accounting periods.

Valuation of stock

Stock valuation uses estimations for provisions against old and obsolete items of stock .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 and in any future periods affected.

Debtors recoverability

For any balance considered irrecoverable, provision is made against the debtor. The remaining debtor balance at the year end not provided for, is therefore considered fully recoverable.

Going concern

The directors consider the going concern basis to be appropriate following their assessment of the group's financial position and its ability to meet its obligations as and when they fall due. In making the going concern assessment, the directors have taken into account the following:

The group has implemented stringent safeguards to ensure the safety of employees working within the factory and ensure that operations can continue while lockdown measures are in place.

Projections and management accounts prepared for the subsequent years show that the company will continue to meet its obligations as they fall due.

On that basis, the directors are satisfied that the going concern basis of preparation for the financial statements continues to be appropriate and the financial statements have been prepared accordingly.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods, short term hires under operating leases and from the rendering of services. The company also receives a small amount of rental income from the hire of yard space which is included in other operating income .

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Short term hire income

Hire income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless the lease payments are structured to increase in line with expected general inflation in which case the income is recognised as revenue in accordance with the expected payments.

Rendering of services

Revenue from agreement to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the agreement.

Intangible fixed assets

Intangible fixed assets consist of computer software purchased and the associated costs to enable the operation of the new system including training and licences.

All intangible assets are measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation rates are as follows:

Computer software - 4 years

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, other than freehold land over their expected useful lives at the following rates:

Freehold property - 2% on reducing balance

Plant and machinery - 10% on cost

Fixtures and fittings - 25% on cost and 10% on cost

Motor vehicles - 25% on reducing balance

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value being the 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 reporting date, inventories are assessed for impairment. If inventory 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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.

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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than 3 months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, bank loans, and directors' loans.

Bank loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Other items

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Holiday pay

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

4.	EMPLOYEES AND DIRECTORS

31.7.24

31.7.23

£

£

Wages and salaries

1,529,033

1,267,312

Social security costs

163,890

130,347

Other pension costs

27,701

23,733

1,720,624

1,421,392

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

31.7.24

31.7.23

Management and administration

20

20

Workshop and engineers

11

11

Sales

6

5

37

36