REGISTERED NUMBER: 00294023 (England and Wales)

Dugdale Nutrition Limited

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 30 April 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

8

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

MR Dugdale

MA Tickle

HL O'Hare

M Beech

REGISTERED OFFICE:

Bellman Mill

Salthill

CLITHEROE

Lancashire

BB7 1QW

REGISTERED NUMBER:

00294023 (England and Wales)

AUDITORS:

McMillan & Co LLP

Chartered Accountants and

Statutory Auditor

28 Eaton Avenue

Matrix Office Park

Buckshaw Village

Chorley

Lancashire

PR7 7NA

The directors present their strategic report for the year ended 30 April 2025.

The company is a member of the B. Dugdale & Son Limited group of companies. For a fuller understanding of the business as a whole reference should be made the consolidated financial statements and the group's strategic report.

REVIEW OF BUSINESS

Following the dramatic effects of the outbreak of war in Ukraine on the raw material markets, this trading year saw the markets gradually slide to more normal pre-war levels. Milk prices have firmed throughout the trading year and coupled with a positive milk price / feed price ratio has encouraged dairy farmers to spend and chase milk yield. Beef enjoyed a year of record prices and corresponding high prices for cull cows has helped encourage feed consumption. Despite a reduction in overall sheep numbers due to economic and environmental scheme pressures, high finished lamb and cull ewe prices have kept demand for sheep and lamb feeds high. This positivity in the milk, lamb and beef markets has led the 2024/25 trading year being a record in terms of sale volumes.

Set against a background of sales of £77.9m (2024: £80.4m) and continued significant reinvestment in the business, the company has delivered a profit before taxation of £876,075 (2024: £276,796).

The company's commitment to delivering outstanding customer service and products necessitates a continual plan of capital investment. Delivering record volumes has seen further additions and replacements in our fleet. A further expansion of our 7 days a week, 363 days a year feed delivery service has also led to a significant increase in our driver team as we continue to build our own fleet capacity, reducing our reliance on contractors. Large-scale plant investments are in the pipeline for the next trading year which will lead to increased efficiency and extra capacity.

KEY PERFORMANCE INDICATORS

2025

2024

Gross profit margin

16.7%

14.8%

Operating profit margin

1.7%

0.9%

Return on capital employed (profit after tax / shareholders funds)

15.6%

3.9%

Capital spend

£1.6m

£2.8m

PRINCIPAL RISKS AND UNCERTAINTIES

This next year will continue to be challenging and we are likely to see a number of customers exit the industry, but the directors view is that we are well placed to meet these challenges and deliver another strong year.

SECTION 172(1) STATEMENT

In governing the Company on behalf of its shareholders and discharging their duties under section 172, the board has had regard to the factors set out in section 172 (see below) and other factors which the board considers appropriate.

Matters identified that may affect the Company's performance in the long term are set out in the principal risks disclosed in the strategic report below.

The Company has engaged with key stakeholders and the outcome from such engagement has been considered by the directors during the decision-making process where appropriate.

SECTION 172 FACTORS

Section 172 requires a director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

a)

The likely long-term consequences of the decision;

b)

The interests of the company's employees;

c)

The need to foster the company's business relationships with suppliers, customers, and others;

d)

The impact of the company's operations on the community and the environment;

e)

The desire to maintain the company's reputation for high standards of business conduct; and

f)

The need to act fairly between members of the company.

Shareholder and long term strategy

As a subsidiary of B Dugdale & Son Limited ("BDS"), the directors have the support of the Group in the discharge of their duties. The directors have monthly review meetings with the board of BDS to review the performance of the Company.

The Company looks to Group initiatives for guidance and takes them into account in its decision making and the directors of the company have access to functional assurance support from BDS to identify matters which may have an impact on any proposed decision including, where relevant, section 172 factors as outlined above.

Any key investment decisions are made with the involvement of the directors of BDS. Long term investments are based on strategic decisions to underpin the growth of the Company and the Group as a whole. This has proven to have been very successful in recent years enabling growth to satisfy demand for its products. The Company continues to review capacity and investment decisions are based largely on ensuring the Company can fulfil its customer's needs.

Customers

The Company has strong customer relations and is in regular contact with all customers to ensure they deliver the best business relationship they can. Recent years have been particularly challenging due to market conditions and price fluctuations. The Company seeks to behave responsibly treating all its customers fairly. The Company has a complaints procedure should customers have any issues on quality or service levels.

Communities

The Company seeks to support the community areas in which it does business in. Examples include supporting the Air Ambulance (recognising the remoteness of some farming customers), Field Nurse (promoting physical and mental heath and wellbeing across Lancashire and Yorkshire) and McMillan Cancer coffee mornings among others. The Company also offers work experience and is proud to have employed apprentices.

Employees

The Company's employees are fundamental to the delivery of its' strategy. The Company aims to be a responsible employer and is committed to enabling its people to develop, ensuring that they are engaged and have the skills and capabilities to serve its customers. The Company maintains its policy of training and career development, actively encouraging this to employees for their advancement and promotion.

The Board addresses the employees in forums to update them on the Company's performance and to enable employees to put forward comments and feedback any suggestions for change.

Suppliers

The Company assesses its suppliers a cross a number of key risk areas, initially at the onboarding stage for all suppliers and periodically thereafter for any key suppliers to ensure critical and high dependency suppliers are still suitable. Regular supplier meetings take place where any feedback on quality, delivery and payment times can be discussed openly and honestly.

Results, business review and future developments

During the year the directors continued to monitor progress against both the Company's and Group's strategy, as highlighted in the business review section of the strategic report of the Company. In line with this strategy the key decisions taken by the directors during the financial year and the impact on the Group as a whole were;

- the capital spend of £1.6m to further invest in quality new assets to improve our products and delivery;

- liaising with both customers and suppliers to try as far as possible to be fair in our trade dealings as the price of raw materials, animal feeds and farming produce fluctuates back and forth, largely due to factors out of our control.

ON BEHALF OF THE BOARD:

MR Dugdale - Director

8 September 2025

The directors present their report with the financial statements of the company for the year ended 30 April 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and distribution of animal foods.

DIVIDENDS

The company paid a dividend of £650,000 (2024: £84,249) to its holding company.

FUTURE DEVELOPMENTS

The Company will look to continue to develop its direct-to-the-market sales team and to forge longstanding relationships with existing and new wholesale customers. The Company will also look to explore further opportunities to develop its offering to its core customer base of Dairy, Beef and Sheep farmers.

DIRECTORS

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

MR Dugdale

MA Tickle

HL O'Hare

M Beech

STREAMLINED ENERGY AND CARBON REPORTING

Dugdale Nutrition Limited's greenhouse gas emissions, reportable under the Streamlined Energy and Carbon Reporting (SECR) for the period 1 May 2024 to 30 April 2025 were 5,368 tonnes CO2e (2024: 5,116). These include the emissions associated with electricity, kerosene and business travel in company and private vehicles by employees. In accordance with the legislation an intensity ratio has been calculated, and for Dugdale Nutrition Limited, this is 68.88 tonnes CO2e per £m revenue (2024: 63.65).

Greenhouse gas emissions

Greenhouse gas emissions for the year 2024/25 expressed in tonnes CO2e ("tCO2e") totalled 5,368 (100%) on revenues of £77.9m equating to an Intensity ratio (tCO2e per £m of revenue) of 68.88. This can be broken down as:

2025

2024

Electricity

2,112 (39%

)

2,068 (41%

)

Kerosene

408 (8%

)

323 (6%

)

Transport

2,848 (53%

)

2,725 (53%

)

The breakdown of greenhouse gas emissions by scope for the year 2024/25 expressed in tonnes CO2e were:

2025

2024

Scope 1- Transport

2,848 (53%

)

2,725 (53%

)

Scope 2- Electricity & Kerosene

2,520 (47%

)

2,391 (47%

)

Energy consumption

Energy consumption by year

2025

2024

Electricity, kWh

9,948,972 ( 43%

)

9,741,761 (44%

)

Kerosene, KWh

1,575,529 ( 6%

)

1,248,272 (5%

)

Transport fuel, kWh

11,791,469 ( 51%

)

11,279,906 (51%

)

Total Energy Consumption (kWh)

23,315,970 ( 100%

)

22,269,939 (100%

)

Boundary, methodology and exclusions

An 'operational control' approach has been used to define the Greenhouse Gas emissions boundary. This approach captures emissions associated with the operation of all buildings such as warehouses, offices, and manufacturing sites, plus company-owned and leased transport. This report covers UK operations only, as required by SECR for Non-Quoted Large Companies.

This information was collected and reported in line with the methodology set out in the UK Government's Environmental Reporting Guidelines, 2019. Emissions have been calculated using the latest conversion factors provided by the UK Government. There are no material omissions from the mandatory reporting scope. The reporting period is 1 May 2024 to 30 April 2025, as per the financial accounts.

Energy efficiency initiatives

The company has been pro-active in the 2024/25 reporting period and we have set out the following energy efficiency initiatives:

Move towards better more efficient motors in our mills,

Move towards more efficient vehicles of which all are Euro 6,

More meetings held on Microsoft Teams to prevent unnecessary travel.

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 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, McMillan & Co LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

MR Dugdale - Director

8 September 2025

Opinion

We have audited the financial statements of Dugdale Nutrition Limited (the 'company') for the year ended 30 April 2025 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 30 April 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 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 six, 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 to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

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

-

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

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-

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

-

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

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

-

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

-

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

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

-

performed analytical procedures to identify any unusual or unexpected relationships; and

-

tested journal entries to identify unusual transactions.

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

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

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

-

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

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

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.

Andrea Gerring FCA (Senior Statutory Auditor)

for and on behalf of McMillan & Co LLP

Chartered Accountants and

Statutory Auditor

8 September 2025

TURNOVER

3

77,923,970

80,373,118

Cost of sales

64,882,662

68,499,161

GROSS PROFIT

13,041,308

11,873,957

Distribution costs

7,150,383

7,144,159

Administrative expenses

4,571,844

4,020,424

11,722,227

11,164,583

OPERATING PROFIT

5

1,319,081

709,374

Interest payable and similar expenses

6

443,006

432,578

PROFIT BEFORE TAXATION

876,075

276,796

Tax on profit

7

231,904

114,102

PROFIT FOR THE FINANCIAL YEAR

644,171

162,694

PROFIT FOR THE YEAR

644,171

162,694

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

644,171

162,694

FIXED ASSETS

Tangible assets

9

7,455,032

7,637,480

CURRENT ASSETS

Stocks

10

2,167,875

2,006,590

Debtors

11

10,301,660

8,858,498

Cash at bank

-

156,443

12,469,535

11,021,531

CREDITORS

Amounts falling due within one year

12

9,048,395

8,656,843

NET CURRENT ASSETS

3,421,140

2,364,688

TOTAL ASSETS LESS CURRENT LIABILITIES

10,876,172

10,002,168

CREDITORS

Amounts falling due after more than one year

13

(5,200,725

)

(4,365,906

)

PROVISIONS FOR LIABILITIES

17

(1,555,479

)

(1,510,465

)

NET ASSETS

4,119,968

4,125,797

CAPITAL AND RESERVES

Called up share capital

18

28,380

28,380

Capital redemption reserve

19

36,000

36,000

Retained earnings

19

4,055,588

4,061,417

SHAREHOLDERS' FUNDS

4,119,968

4,125,797

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2025 and were signed on its behalf by:

MR Dugdale - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2023

28,380

3,982,972

36,000

4,047,352

Changes in equity

Dividends

-

(84,249

)

-

(84,249

)

Total comprehensive income

-

162,694

-

162,694

Balance at 30 April 2024

28,380

4,061,417

36,000

4,125,797

Changes in equity

Dividends

-

(650,000

)

-

(650,000

)

Total comprehensive income

-

644,171

-

644,171

Balance at 30 April 2025

28,380

4,055,588

36,000

4,119,968

1.	STATUTORY INFORMATION

Dugdale Nutrition Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

The amounts in the financial statements have been rounded to the nearest £1.

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 contain information about Dugdale Nutrition Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements.

Going Concern and business continuity

Notwithstanding the uncertainty caused by the on-going conflict in Ukraine and the effect this will have on the raw material supply chain and prices, the company continues to trade profitably. The directors have prepared forecasts which cover a period of at least 12 months from the date of approval of the financial statements and the directors confirm that the going concern basis remains appropriate for the preparation of the financial statements.

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.

Turnover

Turnover represents sales of goods excluding value added tax and is recognised on delivery.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold improvements

- 10% on cost

Plant and machinery

- 10% on cost

Office equipment

- 25% on cost

Motor vehicles

- 20% on reducing balance

Stocks

Stocks are stated at the lower of cost and net realisable value. For work in progress and finished goods, manufactured by the company, cost is taken as production cost which includes an appropriate proportion of attributable overheads.

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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

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

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.

3.

TURNOVER

For both this and the previous year, all of the turnover arose in the UK and all from the trade conducted by the company.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

5,021,185

4,659,549

Social security costs

559,762

530,870

Other pension costs

538,455

569,415

6,119,402

5,759,834

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

2025

2024

Management

4

4

Sales

14

14

Administration

20

17

Operational

96

95

134

130

2025

2024

£

£

Directors' remuneration

499,583

414,521

Directors' pension contributions to money purchase schemes

97,257

95,378

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

148,081

126,506

Pension contributions to money purchase schemes

21,583

20,773

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

26,135

91,206

Depreciation - owned assets

1,368,455

1,194,285

Depreciation - assets on hire purchase contracts

223,867

202,411

Loss/(profit) on disposal of fixed assets

22,615

(44,362

)

Auditors' remuneration

6,300

6,000

Taxation compliance services

4,000

3,600

Other non - audit services

6,100

4,200

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

27,471

49,249

Group interest

297,799

319,417

Hire purchase

117,736

63,912

443,006

432,578

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

186,890

-

Corporate taxes group relief

-

(205,514

)

Total current tax

186,890

(205,514

)

Deferred tax:

Timing differences in the year

45,014

319,616

Tax on profit

231,904

114,102

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

876,075

276,796

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

219,019

69,199

Effects of:

Expenses not deductible for tax purposes

364

2,459

Adjustments to prior years corporation and deferred tax

-

16,773

Amortisation and depreciation on non qualifying assets

12,521

12,521

Expenditure qualifying for enhanced deductions

-

(750

)

Reversal of enhanced deduction on disposal of assets

-

13,900

Total tax charge

231,904

114,102

8.

DIVIDENDS

2025

2024

£

£

Dividends paid

650,000

84,249