REGISTERED NUMBER: 09020601 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

RECO Hoist Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

G E Roest

M R Percival

SECRETARY:

G Roest

REGISTERED OFFICE:

Needingworth Road

St Ives

Cambridgeshire

PE27 3ND

REGISTERED NUMBER:

09020601 (England and Wales)

AUDITORS:

GH Audit Limited

St George's House

George Street

Huntingdon

Cambridgeshire

PE29 3GH

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

PRINCIPAL ACTIVITY

RECO Hoist's operational activities are primarily focused on the supply and rental of hoist and common tower equipment in the United Kingdom including related consulting, engineering, assembly, disassembly, insurance, and transport. RECO's strategy is to be a strong partner for its customers and affiliates, delivering innovative, project-oriented, comprehensive solutions as a multi-specialist ("Specialist+"). The investment strategy focuses specifically on purchasing high-quality equipment to enhance customer satisfaction and sustainability.

REVIEW OF BUSINESS

The directors of the business consider the key performance indicators (KPI's) of the company to be rental turnover, utilization rate, labor costs and EBITD?. We saw another year of high order intake meaning that the business continues on a good footing for the future. We have, on a group level, invested further into extending and renewing the fleet during the year. The business has delivered an increase in turnover of 2% to £11.9m (2023 £11.7m). Gross margin is reported as 65% (2023 60%), reflecting the impact of decreased used of external labour. EBITDA is within management expectations given the wider economic climate. Our order intake during FY2024 was strong and we start FY2025 with a good level of work in hand. Given our large fleet, dedicated and professional workforce and unrivalled facilities we are confident the business will remain profitable during the year ending 31 December 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's principal financial instruments comprise cash, bank borrowings and various items, such as trade debtors and trade creditors, which arise directly from its operations. The main purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks. The main risks arising from the company's financial risks are credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.

- Credit risk : Credit risk is the risk of financial loss if a customer fails to fulfill its contractual obligations. Credit risks arise primarily from receivables from customers. RECO has established stringent procedures to determine the creditworthiness of its clients. Furthermore, RECO continuously monitors its receivables and applies a strict reminder procedure. To manage this risk, information from recognized institutions specialized in providing credit information is used. Furthermore, accounts receivable are insured, where possible, with internationally operating credit insurers. The company's liquid assets are held with various leading banks supervised by a central bank.

- Liquidity risk : The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by utilising the cash reserves.

- Interest rate risk : RECO's interest rate risk on long-term (lease) financing is limited due to the agreed fixed interest rates and interest periods.

MARKET CONDITIONS

The company seeks to manage market conditions risk through a combination of maintaining and monitoring its level of forward order book and through close partnerships with its suppliers.

INDUSTRY STRENGTH

The company's principal risk continues to be the fluctuations in the construction sector of the British economy. By maintaining our core product range and continuously seeking to develop new products and serving new customers, we expect to meet any challenge robustly.

BUSINESS REVIEW AND OUTLOOK

The company entered the current financial year with a strong order book. The company's order intake in the early part of the current financial year is in line with management expectation.

ON BEHALF OF THE BOARD:

G E Roest - Director

24 July 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

M R Percival has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

G E Roest - appointed 10 December 2024

E H Verpoort - resigned 9 December 2024

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;

-	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, GH Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G E Roest - Director

24 July 2025

Opinion

We have audited the financial statements of RECO Hoist Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 December 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

1. The nature of the industry and sector, control environment and business performance

2. Enquiries with management about their own identification and assessment of the risks of irregularities.

3. The matters discussed among the audit team regarding how and where fraud might occur and fraud indicators.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest areas most susceptible to fraud to be management override, revenue recognition and asset valuation.

In addition we considered the legal and regulatory framework that the company operates in, focusing on provisions of these law and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. Key laws considered include the UK Companies Act and UK Tax Legislation.

We also considered those laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the companies ability to operate or to avoid a material penalty, these include Health & Safety Legislation.

Audit response to risks identified:

The asset valuation is tested by substantive and analytical procedures including a physical inspection of the site at the balance sheet date. Areas of the valuation that are subjective and checked to corroborating evidence where possible.

Substantive testing was undertaken to look at revenue recognition, including looking specifically at completeness of revenue and cut off around the year end.

In relation to management override we tested the reasonableness of journals throughout the year and in preparation on the year end financial statements by agreeing to supporting documentation. In areas where significant judgement or estimation are required we reviewed supporting evidence and looked at historical trends to be able to assess the appropriateness.

We remained alert to any indications of fraud or non-compliance throughout the entire audit process.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Emma Wilsher FCA (Senior Statutory Auditor)

for and on behalf of GH Audit Limited

St George's House

George Street

Huntingdon

Cambridgeshire

PE29 3GH

24 July 2025

TURNOVER

3

11,922,117

11,715,397

Cost of sales

4,221,316

4,641,315

GROSS PROFIT

7,700,801

7,074,082

Administrative expenses

7,624,951

6,721,090

OPERATING PROFIT

5

75,850

352,992

Interest receivable and similar income

269

14,177

76,119

367,169

Interest payable and similar expenses

6

18,106

12,671

PROFIT BEFORE TAXATION

58,013

354,498

Tax on profit

7

(92,060

)

91,685

PROFIT FOR THE FINANCIAL YEAR

150,073

262,813

FIXED ASSETS

Tangible assets

8

538,308

364,488

CURRENT ASSETS

Stocks

9

50,000

50,000

Debtors

10

2,512,950

2,949,052

Cash at bank

180,466

270,932

2,743,416

3,269,984

CREDITORS

Amounts falling due within one year

11

1,002,456

1,698,339

NET CURRENT ASSETS

1,740,960

1,571,645

TOTAL ASSETS LESS CURRENT LIABILITIES

2,279,268

1,936,133

CREDITORS

Amounts falling due after more than one year

12

(260,270

)

(94,614

)

PROVISIONS FOR LIABILITIES

14

(65,475

)

(38,069

)

NET ASSETS

1,953,523

1,803,450

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

16

1,953,423

1,803,350

SHAREHOLDERS' FUNDS

1,953,523

1,803,450

The financial statements were approved by the Board of Directors and authorised for issue on 24 July 2025 and were signed on its behalf by:

G E Roest - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

1,540,537

1,540,637

Changes in equity

Total comprehensive income

-

262,813

262,813

Balance at 31 December 2023

100

1,803,350

1,803,450

Changes in equity

Total comprehensive income

-

150,073

150,073

Balance at 31 December 2024

100

1,953,423

1,953,523

1.	STATUTORY INFORMATION

RECO Hoist Ltd 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 Company 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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain

critical accounting estimates. It also requires management to exercise judgement in applying the

Company's accounting policies.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

In preparing these financial statements, the Directors have had to make judgements, estimates and

assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses.

The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of material adjustment to the carrying amount of assets and liabilities are:

- Accrued income (see note 10)

The Company has recognised accrued income for services provided, but not as yet invoiced at 31

December 2043. The income is calculated based on agreed rates and contract terms. The value of

accrued income in note 12 is net of provisions for amounts unlikely to be invoiced or recovered

subsequent to the Balance Sheet date.

- Doubtful debt provision (see note 10)

The Company has recognised provisions against certain trade debtor balances. The judgements and estimates necessary to calculate these provisions are based on historical experience and other reasonable factors. This provision is based on the age of debtor balances and the assessed recoverability. The value of trade debtors in note 12 is stated net of the provision for doubtful debts.

- Tangible fixed assets (see note 8)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Turnover is recognised for the provision of services when the entity has fulfilled its obligations under contract. Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Fixtures and fittings - 20% - 33% on cost

Transport equipment - 20% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted

prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial assets

Financial assets comprise cash at bank and in hand and amounts owed by group undertakings;

these are initially recorded at cost on the date they originate and are subsequently recorded at

amortised cost under the effective interest method. The Company considers evidence of impairment for all individual trade and other debtors and amounts owed by group undertakings, and any subsequent impairment is recognised in the Statement of Comprehensive Income.

Impairment of financial assets carried at amortised cost

Impairment provisions are recognised when there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulties of the counterparty, default or significant delays in payment.

Impairment provisions represent the difference between the net carrying amount of a financial asset

and the present value of the expected future cash receipts from that asset.

Financial liabilities

Financial liabilities comprise other creditors and amounts owed to group undertakings; these are

initially recorded at cost on the date they originate, and are subsequently carried at amortised cost

under the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Hire purchase and leasing commitments

Annual operating lease rentals are charged to the Statement of Comprehensive Income on a straight line basis over the term 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.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt

using the effective interest 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.

3.

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:

2024

2023

£

£

United Kingdom

11,922,117

11,715,397

11,922,117

11,715,397

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

4,819,768

4,062,106

Social security costs

506,859

419,156

Other pension costs

93,421

82,892

5,420,048

4,564,154

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

2024

2023

87

84

2024

2023

£

£

Directors' remuneration

118,944

91,450

5.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

3,169,658

2,864,279

Depreciation - owned assets

160,753

145,479

Profit on disposal of fixed assets

(30,238

)

-

Auditors remuneration

29,359

51,618

Foreign exchange differences

1,009

591

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Hire purchase

18,106

12,671

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(487

)

119,466

Overprovided in earlier years

(118,979

)

-

Total current tax

(119,466

)

119,466

Deferred tax

27,406

(27,781

)

Tax on profit

(92,060

)

91,685

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

58,013

354,498

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

14,503

83,378

Effects of:

Expenses not deductible for tax purposes

12,392

9,504

Capital allowances in excess of depreciation

(56,304

)

(1,644

)

Adjustments to tax charge in respect of previous periods

(487

)

-

Fixed asset differences

-

447

Deferred Tax

27,406

-

Losses Carried Forward

29,409

-

Tax repayable 2023

(118,979

)

-

Total tax (credit)/charge

(92,060

)

91,685

The main rate of Corporation Tax changed to 25% on 1 April 2023.

The deferred tax balance has been measured at 25%, which was the rate enacted at the year end.

8.	TANGIBLE FIXED ASSETS

Fixtures

and

Transport

fittings

Equipment

Totals

£

£

£

COST

At 1 January 2024

171,003

645,934

816,937

Additions

108,073

246,262

354,335

Disposals

-

(108,450

)

(108,450

)

At 31 December 2024

279,076

783,746

1,062,822

DEPRECIATION

At 1 January 2024

85,338

367,111

452,449

Charge for year

31,762

128,991

160,753

Eliminated on disposal

-

(88,688

)

(88,688

)

At 31 December 2024

117,100

407,414

524,514

NET BOOK VALUE

At 31 December 2024

161,976

376,332

538,308

At 31 December 2023

85,665

278,823

364,488

Transport Equipment are held under finance lease and hire purchase contracts. The related depreciation is as shown above.

9.

STOCKS

2024

2023

£

£

Stocks

50,000

50,000

There is no material difference between the replacement cost of stocks and the amounts stated above.

Impairment losses relating to damaged or obsolete inventories and included within cost of sales

amounted to £Nil (2023 - £Nil).

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,443,747

1,827,310

Amounts owed by group undertakings

50,000

-

Other debtors

752,024

986,436

Sundry Debtors and Prepayments

139,789

99,042

Tax

118,979

-

VAT

8,411

36,264

2,512,950

2,949,052

All amounts shown under debtors fall due for payment within one year.

The impairment loss recognised in the Statement of Comprehensive Income for the period in respect of bad and doubtful trade debtors was £26,870 (2023 - £2,007). The impairment provision in respect of doubtful debts at 31 December 2024 is £60,000 (2023 - £20,000).

The amounts owed by group undertakings accrue interest at approximately 1% and is receivable on demand.

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 13)

102,672

111,828

Trade creditors

349,203

622,179

Tax

-

119,466

Sundry Creditors and Accruals

393,686

670,782

Taxation & Social Security

156,895

174,084

1,002,456

1,698,339

Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 13)

260,270

94,614

13.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2024

2023

£

£

Net obligations repayable:

Within one year

102,672

111,828

Between one and five years

260,270

94,614

362,942

206,442

Non-cancellable

operating leases

2024

2023

£

£

Within one year

1,961,600

1,767,500

Between one and five years

342,406

342,406

2,304,006

2,109,906

The Company has leased equipment from its fellow subsidiary, Reco Equipment Limited, on a rolling rental agreement. The agreement was entered into for a period of one year and, if not cancelled, extends for a further year from the same date.

The Company is jointly and severally liable for the repayment of the debts of Reco Equipment Limited to the asset financing companies regarding the leased equipment.

Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.

14.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

65,475

38,069

Deferred

tax

£

Balance at 1 January 2024

38,069

Provided during year

27,406

Balance at 31 December 2024

65,475

The deferred tax liability relates to temporary timing differences during the year, offset against taxable losses carried forward.

The deferred tax balance has been measured at 25%, which was the rate enacted in the year and is the rate at which the liability is expected to unwind.

The balance is expected to reverse in full in future periods as a result of the utilisation of losses brought forward against taxable profits and the unwinding of the timings differences.