REGISTERED NUMBER: 14465645 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

UKSS HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

A B Cochrane

REGISTERED OFFICE:

First Floor

Hurstwood Business Centre

York Road

Thirsk

North Yorkshire

YO7 3BX

REGISTERED NUMBER:

14465645 (England and Wales)

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The business has continued to operate a local stock yard facility and office to process current and future volumes as well as project manage the procurement and delivery of steel sections, hollow sections and plates.

Turnover was £39,086,559 (2023 - £32,464,882) with an associated gross profit of £1,181,620 (2023 - £1,830,793) and group net assets at the financial reporting date were £3,397,565 (2023 - £2,612,879).

PRINCIPAL RISKS AND UNCERTAINTIES

Price risk

Price risk is the risk that changes in raw materials prices have the potential to impact on the profitability of the group. Management monitors price risk via consistent review of general economic indicators and key supplier prices to inform budgeting and forecasting procedures, to identify potential effect on margins ahead of time.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Group policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The group does not consider that it is materially exposed to credit risk.

Cash flow and liquidity risk

Cash flow and liquidity risk is the risk that the group's available cash will not be be sufficient to meet its financial obligations. The group actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the group and continued financial support of lenders, is deemed sufficient to minimise the group's exposure to cash flow and liquidity risk.

Foreign exchange risk

Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Group policies are aimed at minimising this risk, including utilisation of short term derivative transactions.

Interest rate risk

Interest rate risk relates to the potential for loss from exposure to base rate fluctuations. Lending undertaken by the group is linked to base rate and borrowing is monitored by management to avoid overexposure. The group does not consider that it is materially exposed to this risk on current trading performance.

ON BEHALF OF THE BOARD:

A B Cochrane - Director

19 March 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of steel stockholding and trading.

DIVIDENDS

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

FUTURE DEVELOPMENTS

The group continues to project manage the procurement and delivery of steel required to service our customer base.

DIRECTOR

A B Cochrane held office during the whole of the period from 1 January 2024 to the date of this report.

GOING CONCERN

Information relating to going concern can be found in the notes to the financial statements.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

A B Cochrane - Director

19 March 2025

Opinion

We have audited the financial statements of UKSS Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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 focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management 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;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or 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, where applicable, correspondence with HMRC and relevant regulators including the Health and Safety Executive, and the services billed by the group's legal advisors.

Due to 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. 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.

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.

Steven Aitken BSc ACA CTA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie Watson Limited

Statutory Auditors

Chartered Accountants

Units 7-8 Manor Court

Manor Garth

Eastfield

Scarborough

North Yorkshire

YO11 3TU

19 March 2025

REVENUE

4

39,086,559

32,464,882

Cost of sales

37,904,939

30,634,089

GROSS PROFIT

1,181,620

1,830,793

Administrative expenses

617,120

535,365

OPERATING PROFIT

6

564,500

1,295,428

Negative goodwill released

7

275,634

1,760,163

840,134

3,055,591

Interest receivable and similar income

8

118,137

1,310

958,271

3,056,901

Interest payable and similar expenses

9

3,102

155,765

PROFIT BEFORE TAXATION

955,169

2,901,136

Tax on profit

10

170,483

288,357

PROFIT FOR THE FINANCIAL YEAR

784,686

2,612,779

Profit attributable to:

Owners of the parent

784,686

2,612,779

PROFIT FOR THE YEAR

784,686

2,612,779

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

784,686

2,612,779

Total comprehensive income attributable to:

Owners of the parent

784,686

2,612,779

FIXED ASSETS

Intangible assets

12

(12,440

)

(288,074

)

Property, plant and equipment

13

156,078

245,583

Investments

14

-

-

143,638

(42,491

)

CURRENT ASSETS

Inventories

15

537,509

1,878,206

Debtors

16

3,836,283

5,858,933

Cash at bank

764,290

2,155,421

5,138,082

9,892,560

CREDITORS

Amounts falling due within one year

17

1,845,675

7,124,462

NET CURRENT ASSETS

3,292,407

2,768,098

TOTAL ASSETS LESS CURRENT LIABILITIES

3,436,045

2,725,607

CREDITORS

Amounts falling due after more than one year

18

-

(55,552

)

PROVISIONS FOR LIABILITIES

22

(38,480

)

(57,176

)

NET ASSETS

3,397,565

2,612,879

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

24

3,397,465

2,612,779

SHAREHOLDERS' FUNDS

3,397,565

2,612,879

The financial statements were approved by the director and authorised for issue on 19 March 2025 and were signed by:

A B Cochrane - Director

FIXED ASSETS

Intangible assets

12

-

-

Property, plant and equipment

13

-

-

Investments

14

100

100

100

100

CURRENT ASSETS

Debtors

16

2,000,000

-

Cash at bank

2,195

-

2,002,195

-

CREDITORS

Amounts falling due within one year

17

1,632

-

NET CURRENT ASSETS

2,000,563

-

TOTAL ASSETS LESS CURRENT LIABILITIES

2,000,663

100

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

24

2,000,563

-

SHAREHOLDERS' FUNDS

2,000,663

100

Company's profit for the financial year

2,000,563

-

The financial statements were approved by the director and authorised for issue on 19 March 2025 and were signed by:

A B Cochrane - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

2,612,779

2,612,779

Balance at 31 December 2023

100

2,612,779

2,612,879

Changes in equity

Total comprehensive income

-

784,686

784,686

Balance at 31 December 2024

100

3,397,465

3,397,565

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Balance at 31 December 2023

100

-

100

Changes in equity

Total comprehensive income

-

2,000,563

2,000,563

Balance at 31 December 2024

100

2,000,563

2,000,663

Cash flows from operating activities

Cash generated from operations

1

1,647,730

7,241,256

Interest paid

(3,102

)

(155,765

)

Tax paid

(328,428

)

(539,078

)

Net cash from operating activities

1,316,200

6,546,413

Cash flows from investing activities

Purchase of tangible fixed assets

(1,429

)

(8,548

)

Sale of tangible fixed assets

55,186

-

Purchase of subsidiary undertaking

-

(100

)

Cash balances acquired with subsidiary

-

1,316,558

Interest received

117,800

1,075

Net cash from investing activities

171,557

1,308,985

Cash flows from financing activities

Bank loan repayments in year

-

(4,088,965

)

Other loan repayments in year

(388,888

)

(1,611,112

)

Loans issued

(2,490,000

)

-

Share issue

-

100

Net cash from financing activities

(2,878,888

)

(5,699,977

)

(Decrease)/increase in cash and cash equivalents

(1,391,131

)

2,155,421

Cash and cash equivalents at beginning of year

2

2,155,421

-

Cash and cash equivalents at end of year

2

764,290

2,155,421

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

Period

7.11.22

Year Ended

to

31.12.24

31.12.23

£

£

Profit before taxation

955,169

2,901,136

Depreciation charges

45,094

36,020

(Profit)/loss on disposal of fixed assets

(9,346

)

922

Amortisation of goodwill

(275,634

)

(1,760,163

)

Finance costs

3,102

155,765

Finance income

(118,137

)

(1,310

)

600,248

1,332,370

Decrease in inventories

1,340,697

5,962,660

Decrease/(increase) in trade and other debtors

4,512,650

(413,636

)

(Decrease)/increase in trade and other creditors

(4,805,865

)

359,862

Cash generated from operations

1,647,730

7,241,256

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

764,290

2,155,421

Period ended 31 December 2023

31.12.23

7.11.22

£

£

Cash and cash equivalents

2,155,421

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,155,421

(1,391,131

)

764,290

2,155,421

(1,391,131

)

764,290

Debt

Debts falling due within 1 year

(333,336

)

333,336

-

Debts falling due after 1 year

(55,552

)

55,552

-

(388,888

)

388,888

-

Total

1,766,533

(1,002,243

)

764,290

1.	STATUTORY INFORMATION

UKSS Holdings 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 General Information page.

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

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The financial statements consolidate the accounts of UKSS Holdings Limited and its subsidiary undertaking UK Steel Stock Limited, acquired on 14 March 2023, which is dealt with on the acquisition basis.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

Critical judgements in applying the company's policies

The management consider that no critical judgements have had to be made in preparing these financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings, ageing profile of debtors and experience of recoverability. Where indications of impairment are identified, the necessary provision for impairment is recognised in the corresponding period.

Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the asset. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

The director does not consider that any other estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the group's activities. Turnover is shown net of value added tax. The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met, including that the significant risks and rewards of ownership of the goods has been transferred to the buyer.

Goodwill

Intangible fixed assets relates to negative goodwill arising on acquisition of the immediate subsidiary company in March 2023.

Negative goodwill is released to the Consolidated Income Statement over periods in which the non-monetary assets acquired are recovered.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Plant and machinery

- 10% on cost

Fixtures and fittings

- 25% on cost

Office equipment

- 33% on cost

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The group adds to the carrying value of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying value of the replaced part is derecognised. Repairs are charged to the profit and loss account during the period in which they are incurred.

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 previous financial period.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within administrative expenses in the statement of comprehensive income.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Where applicable, prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. Cost is based on the purchase price of the actual quantities in stock.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to sell and the impairment loss is recognised immediately in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date.

Deferred tax

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

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

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

Foreign currencies

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated in to the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Hire purchase and leasing commitments

Assets acquired under finance lease agreements, including hire purchase agreements, are capitalised and the corresponding liability is included in creditors. Finance lease interest is charged to the profit and loss account on a sum of digits basis over the period of the agreement. Operating lease rentals are charged against profits on a straight-line basis over the period of the lease.

Defined contribution pension obligation

Payments to defined contribution pension schemes are charged as an expense in the period to which they relate.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. If the contribution due for service exceeds contribution payments, the excess is recognised as an accrual.

Derivative financial instruments

The group enters into certain short term derivative transactions, purchasing forward currency contracts to manage the exchange rate risk arising from the company's operations.

These derivative financial instruments are initially recognised at fair value on the date on which the contract is entered into, and are subsequently remeasured at fair value.

Fair value is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

Derivatives are carried in the balance sheet as assets when the fair value is positive and as liabilities when the fair value is negative. Fair value movements are taken into account in arriving at the profit on ordinary activities before taxation.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits and other short term, highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for goods sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established where there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditors for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Provisions

A provision is recognised when:

- The group has a present obligation (legal of constructive) as a result of a past event;

- It is probable that a transfer of economic benefit will be required to settle the obligation, and;

- A reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account the relevant risks and uncertainties.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Going concern

The financial statements have been prepared on a going concern basis.

The group has net current assets of £3,292,407 (2023 - £2,768,098) at the year end including cash of £764,290 (2023 - £2,155,421).

The group's forecasts and projections for the next twelve months show that the group should be able to continue in operational existence for that period and that the director will support this by repaying balances due within that period.

Based on the factors set out above the director believes that there is no material uncertainty in relation to going concern and that the group has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believes that it remains appropriate to prepare the financial statements on a going concern basis.