REGISTERED NUMBER: 02501010 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SHOREWOOD LEISURE GROUP LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTORS:

D R Allison

N Willson

SECRETARY:

N Willson

REGISTERED OFFICE:

Marton Hall

Church Lane

Sewerby

Bridlington

East Yorkshire

YO15 1DS

REGISTERED NUMBER:

02501010 (England and Wales)

INDEPENDENT AUDITORS:

Ryecroft Glenton

Chartered Accountants & Statutory

Auditors

32 Portland Terrace

Newcastle Upon Tyne

NE2 1QP

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

REVIEW OF BUSINESS

The company operates a caravan and leisure park. The results for the company show an EBITDA, excluding exceptional items of £157,823 for the year (2023 : £538,880).

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to a number of risks including employee, health and safety together with legal compliance and competitive pressures.

The directors have reviewed all risks and have implemented a strategy for continuous improvement.

In line with many businesses in the United Kingdom, the greatest challenge facing the business has been the uncertainty in the UK economy as a result of the war in the Ukraine and the Middle East which has had an impact on the company's costs. The company has managed the business well so far and the holiday park industry still continues to trade well even with a slow down on new caravan sales.

For the above reasons, the board considers that the company is a going concern, and so have continued to prepare the financial statements on that basis.

FUTURE DEVELOPMENTS

The company intends to continue improving its caravan and holiday park in order to maintain the quality and range of facilities available to its customers.

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, stocking loan, hire purchase, trade creditors and trade debtors. The main purpose of these instruments is to raise funds to finance the company's and subsidiaries operations.

Due to the nature of the financial instruments used by the company there is no exposure to price or currency risk. The company's approach to managing other risks applicable to the financial instruments is detailed below.

Trade debtors are managed through credit and cash flow risk by assessing the credit offered to customers and the regular monitoring of amounts outstanding at a given time.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet liabilities as they fall due.

The company's bank accounts are monitored to ensure the company has sufficient funds to meet their current commitments, making use of overdraft facilities where appropriate. Bank loans and hire purchase are used to fund the development of the park and acquisition of other fixed assets. The stocking loan is used to finance new caravan stock, where necessary. Repayment terms are negotiated at the outset of the loans and monitored throughout the repayment period to ensure they continue to be appropriate to the overall financial structure.

ON BEHALF OF THE BOARD:

D R Allison - Director

19 May 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a caravan and leisure park operator and there has been no significant change.

DIVIDENDS

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

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1 January 2024 to the date of this report.

The beneficial interests of the directors holding office at 31 December 2024 in the shares of the company, according to the register of directors' interests, were as follows:

31.12.24

1.1.24

Ordinary shares of £1 each

D R Allison

4,100

4,100

N Willson

-

-

These directors did not hold any non-beneficial interests in the shares of the company.

4,000 ordinary £1 shares are owned by the David Robert Allison Family 2003 Discretionary Settlement, a trust in which D R Allison is a trustee but not a beneficiary.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with Section 414C (11) of the Companies Act 2006, the company has chosen to report details concerning financial instruments and future developments within the strategic report.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

As 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.

ON BEHALF OF THE BOARD:

D R Allison - Director

19 May 2025

Opinion

We have audited the financial statements of Shorewood Leisure Group Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 loss 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 three, 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 the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: -

-

the responsible individual 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 in which the company operates;

-

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 the site licences granted to each site from the relevant councils;

-

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

-

we ensured that the 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 and 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;

-

tested journal entries to identify unusual transactions; and

-

assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias.

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;

-

reviewing the site licences and assessing compliance with the terms of each licence during the period under review;

-

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

-

reviewing correspondence with HMRC and the company's legal advisers where appropriate.

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 more difficult 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.

Andrew Cameron (Senior Statutory Auditor)

for and on behalf of Ryecroft Glenton

Chartered Accountants & Statutory

Auditors

32 Portland Terrace

Newcastle Upon Tyne

NE2 1QP

19 May 2025

TURNOVER

3

4,950,076

9,269,161

Cost of sales

3,367,270

7,490,827

GROSS PROFIT

1,582,806

1,778,334

Administrative expenses

1,609,631

1,436,909

(26,825

)

341,425

Other operating income

4

20,000

20,000

OPERATING (LOSS)/PROFIT

6

(6,825

)

361,425

Interest receivable and similar income

523

-

(6,302

)

361,425

Interest payable and similar expenses

7

1,503,865

1,304,267

LOSS BEFORE TAXATION

(1,510,167

)

(942,842

)

Tax on loss

8

52,258

113,847

LOSS FOR THE FINANCIAL YEAR

(1,562,425

)

(1,056,689

)

Retained earnings at beginning of year

(5,829,989

)

(4,773,300

)

RETAINED EARNINGS AT END OF YEAR

(7,392,414

)

(5,829,989

)

FIXED ASSETS

Tangible assets

9

7,484,947

7,602,081

Investments

10

3,419,476

3,419,476

10,904,423

11,021,557

CURRENT ASSETS

Stocks

11

858,089

2,169,464

Debtors

12

14,163,623

13,982,406

Cash in hand

5,268

3,049

15,026,980

16,154,919

CREDITORS

Amounts falling due within one year

13

9,512,406

11,271,642

NET CURRENT ASSETS

5,514,574

4,883,277

TOTAL ASSETS LESS CURRENT LIABILITIES

16,418,997

15,904,834

CREDITORS

Amounts falling due after more than one year

14

(15,441,974

)

(13,417,644

)

PROVISIONS FOR LIABILITIES

18

(259,770

)

(207,512

)

NET ASSETS

717,253

2,279,678

CAPITAL AND RESERVES

Called up share capital

19

10,500

10,500

Share premium

20

8,099,167

8,099,167

Retained earnings

20

(7,392,414

)

(5,829,989

)

SHAREHOLDERS' FUNDS

717,253

2,279,678

The financial statements were approved by the Board of Directors and authorised for issue on 19 May 2025 and were signed on its behalf by:

D R Allison - Director

N Willson - Director

Cash flows from operating activities

Cash generated from operations

1

648,747

1,566,869

Interest paid

(1,463,815

)

(1,281,041

)

Interest element of hire purchase payments paid

(18,431

)

(25,740

)

Net cash from operating activities

(833,499

)

260,088

Cash flows from investing activities

Purchase of tangible fixed assets

(38,011

)

(43,830

)

Sale of tangible fixed assets

9,020

31,495

Interest received

9,285

-

Net cash from investing activities

(19,706

)

(12,335

)

Cash flows from financing activities

Loan repayments in year

(1,526,282

)

(2,987,670

)

Advanced (to) group members

(381,072

)

(1,341,697

)

Hire purchase repayments in year

(86,490

)

(164,242

)

Introduced/withdrawn by directors

27,702

(27,881

)

Net cash from financing activities

(1,966,142

)

(4,521,490

)

Decrease in cash and cash equivalents

(2,819,347

)

(4,273,737

)

Cash and cash equivalents at beginning of year

2

(3,793,596

)

480,141

Cash and cash equivalents at end of year

2

(6,612,943

)

(3,793,596

)

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

31.12.24

31.12.23

£

£

Loss before taxation

(1,510,167

)

(942,842

)

Depreciation charges

164,125

185,371

Profit on disposal of fixed assets

-

(7,916

)

Finance costs

1,503,865

1,304,267

Finance income

(523

)

-

157,300

538,880

Decrease in stocks

1,311,375

691,856

Decrease/(increase) in trade and other debtors

163,391

(162,136

)

(Decrease)/increase in trade and other creditors

(983,319

)

498,269

Cash generated from operations

648,747

1,566,869

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

5,268

3,049

Bank overdrafts

(6,618,211

)

(3,796,645

)

(6,612,943

)

(3,793,596

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

3,049

480,141

Bank overdrafts

(3,796,645

)

-

(3,793,596

)

480,141

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

3,049

2,219

5,268

Bank overdrafts

(3,796,645

)

(2,821,566

)

(6,618,211

)

(3,793,596

)

(2,819,347

)

(6,612,943

)

Debt

Finance leases

(241,288

)

86,490

(18,000

)

(172,798

)

Debts falling due

within 1 year

(5,360,617

)

3,612,688

-

(1,747,929

)

Debts falling due

after 1 year

(13,260,619

)

(2,086,406

)

-

(15,347,025

)

(18,862,524

)

1,612,772

(18,000

)

(17,267,752

)

Total

(22,656,120

)

(1,206,575

)

(18,000

)

(23,880,695

)

1.	STATUTORY INFORMATION

Shorewood Leisure Group 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.

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 as modified by the revaluation of certain assets.

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

Going concern

The financial statements have been prepared on the going concern basis of accounting, which assumes that the company is able to continue operating as a going concern.

Having considered all relevant factors, the board are of the opinion that the going concern basis of accounting remains appropriate.

Preparation of consolidated financial statements

These financial statements contain information about Shorewood Leisure Group Limited as an individual company and do not contain the consolidated information as the parent of a group. The company has prepared separate consolidated accounts under the Companies Act 2006.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are addressed below.

i. Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

ii. Inventory provisioning

The company purchases holiday homes both from manufacturers and second-hand from private individuals. It is necessary to consider the recoverability of the cost of this inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature, age and condition of the inventory, as well as applying assumptions around anticipated saleability of holiday homes.

Turnover

Turnover represents net invoiced sales of goods and services provided by the company as part of the operation of the caravan parks, excluding value added tax.

Income regarding site fees and insurance is deferred and released over the term of chargeable period, with the deferred amount being recorded as a current liability.

Income regarding light and heat recharges and other sundry park income is accrued and released over the term of the chargeable period, with the accrued amount being recorded as a current asset.

Income regarding park services, caravans and other goods sold are recognised on a receipts basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land, buildings & site development

-

2% on cost, excluding land element

Plant and machinery

-

15% on reducing balance

Wagons & trailers

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Fixed assets are depreciated in full in the year of acquisition.

Government grants

Grants relating to revenue are recognised in the Statement of Income and Retained Earnings on a systematic basis over the accounting periods in which the company recognises the related costs for which the grant is intended to compensate.

Grants that are received in respect of expenses or losses already incurred by the company are recognised in the Statement of Income and Retained Earnings in the accounting period in which the grant becomes receivable.

Grants to fund capital assets are initially recognised as a liability in the Statement of Financial Position and are not deducted from the carrying value of an asset. These grants are subsequently released as income in the Statement of Income and Retained Earnings on a systematic basis over the useful economic life of the relevant assets.

Stocks

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

Financial instruments

The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties and the issue of share capital.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying value and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

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 the statement of income and retained earnings over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged the statement of income and retained earnings on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company has implemented automatic enrolment into a workplace pension scheme in relation to all employees.

All contributions payable for the year are charged to the income statement in the period to which they relate.

The company also operates a small self administered pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged to the income statement.

Employee pension contributions are charged to the income statement as they become payable.

Investments

Fixed asset investments are valued at original cost.

3.

TURNOVER

During the prior period the company lodged a retrospective claim with HMRC. This claim was a contingent asset as at 31 December 2023, and was settled in full during the current period.

4.	OTHER OPERATING INCOME

31.12.24

31.12.23

£

£

Rents received

20,000

20,000

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

456,614

431,240

Social security costs

38,744

34,764

Other pension costs

17,205

11,519

512,563

477,523

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

31.12.24

31.12.23

Management & office staff

3

5

Site workers & other employees

15

16

18

21

31.12.24

31.12.23

£

£

Directors' remuneration

3,378

-

Directors' pension contributions to money purchase schemes

1,200

1,200

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

Money purchase schemes

1

1

6.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Hire of plant and machinery

11,662

10,090

Depreciation - owned assets

91,507

88,966

Depreciation - assets on hire purchase contracts

72,618

96,405

Profit on disposal of fixed assets

-

(7,916

)

Auditors' remuneration

10,681

14,887

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

186,022

1,891

Bank loan interest

1,299,412

1,276,636

Hire purchase

18,431

25,740

1,503,865

1,304,267

8.

TAXATION

Analysis of the tax charge

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

31.12.24

31.12.23

£

£

Deferred tax

52,258

113,847

Tax on loss

52,258

113,847

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:

31.12.24

31.12.23

£

£

Loss before tax

(1,510,167

)

(942,842

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%)

(377,542

)

(221,568

)

Effects of:

Expenses not deductible for tax purposes

38

-

Capital allowances in excess of depreciation

-

(40,887

)

Depreciation in excess of capital allowances

34,920

-

Utilisation of tax losses

342,584

262,455

Deferred tax

52,258

113,847

Total tax charge

52,258

113,847