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

The principal activity of the company is that of a holding company. The principal activity of the group is the hire and distribution of non operated construction plant and tools, portable accommodation and toilet primarily to the building industry. The group operates predominantly in the South West of England and also covers the Midlands, North West England, London and Wales.

The economic climate for the construction industry was not as good as in previous years, with high interest rates, and a lack of confidence in the general economy affecting the housing market and construction sector as a whole. Given this, the directors were pleased that the group turnover increased by 6.2% compared to 2023 to £39.8m (2023 - £37.5m). Gross profit decreased to 41% (2023 - 43%). There continue to be increases in almost all costs following the inflationary pressures experienced in 2023 and 2024. The second hand plant market continued to be buoyant - this is always part of our business model, and 2024 has recorded strong residual values resulting in good profits on disposals. Distribution costs increased slightly due to the increase in the size of the vehicle fleet, with administration costs increasing in the year by 3.6%. Interest payable also increased by 17% following interest rate rises.

The group invested £15.6m (2023 - £18.9m) in new plant, equipment and vehicles in the year. This has been funded by hire purchase agreements, of which £10.0m is due in the next 12 months. The financing of these additions has allowed the cash flow requirements to be met in the year and this is expected to continue. The net current liability position has improved to £4.2m (2023 - £6.3m). It should be noted that it is normal in the hire sector for there to be a net current liability position given the high level of capital equipment required to run the business. The net asset position of the group remains healthy at £41,316,053 (2023 £38,732,153).

At the year end the fixed assets of the group totalled £56.8m, an increase of £0.3m compared to the previous year end (£56.5m). Cash at bank increased by £643k to £1.85m at year end (2023 £1.21m). Creditors decreased to £14.1m due in 1 year (2023 14.5m), but creditors due after more than a year decreased slightly (2024 £8.06m, 2023 £8.45m).

The directors are of the opinion that the balance sheet is strong and are confident that working capital is available to ensure the commitments the company have can be met through cash flow and borrowings through hire purchase agreements. This should mean the group is reasonably placed to meet the demands placed on it.

During the year the bank account balance remained positive throughout. The asset finance headroom was half (50%) the actual year end asset finance liability.

The average number of staff increased to 267 (2023 - 263) in the year.

The directors are extremely pleased and proud of the 2024 financial results, a good year for Wessex Eagle group, and pay tribute to our dedicated co-owners who have worked so hard to make this happen.

Employee Ownership

On 13 April 2016, 55% of the share capital of Wessex Eagle Holdings Limited, the parent company, was sold by the previous majority shareholder of the business to Wessex Eagle Employee Trust (“Employee Trust”). This resulted in Wessex Eagle Holdings Limited and its subsidiary, Wessex Eagle Limited, becoming an “employee owned” group with the Employee Trust now holding 55% of the share capital. The Employee Trust therefore has a controlling interest.

Employee ownership has allowed our staff (co-owners) to become much more influential in the running of the business. Two co-owners sit on the Trustee board of directors, each depot is represented at regular council meetings where directors are available, and information on the business is regularly circulated to all co-owners. We believe that this involvement does give us an edge over our competitors.

In the opinion of the directors the principal risk currently facing the group is a reduction in demand for our plant if the construction industry contracts from its current levels. The possible consequences of a contraction have been included in the group plan for 2025, with corresponding actions agreed. The other principal risks are the impact of rising costs, shortage of skilled labour and the competitive market environment.

The group operates in a competitive market. This could lead to reduced income by reductions in hire rates and losing business to competitors. This risk is managed by providing excellent service to our customers and continually improving and updating our hire fleet. Given the increase in costs we have endured we will continually review our hire rates to ensure they are viable.

The group is dependent on the economic activity in the areas it trades. This risk is continually reviewed with the utilisation of the plant monitored to ensure correct levels are held. The risk is mitigated as the depreciation rates are based upon residual values which reflect the expected market value on disposal. There is a large amount of unencumbered equipment that could be sold if trading activity decreases and utilisation rates decline.

The group is capital intensive and deals with a number of funders to ensure capital is available to fund equipment purchases.

Much of the group's borrowing are on variable rate agreements. The group manages the repayment period of debt to ensure it is appropriate to the assets being purchased.

The directors consider key performance indicators are those that communicate the financial performance and strength of the group. The 3 year financial performance is summarised below.

The main non-financial measures reviewed by the directors relate to the health and safety and well-being of our co-owners, and monitoring of plant utilisation figures.

The health and safety of our co-owners and customers is the main priority of the directors. The directors monitor health and safety in a number of ways including having a health and safety agenda item at all director’s meetings, separate health and safety meetings, regular depot audits and regular staff training.

Plant utilisation is monitored by both depot and plant type to ensure plant is located in the correct location to meet demand.

The group has a consistent and experienced board of directors who have responsibility for specific regions and are based at depots, and regularly visit the other depots they are responsible for. This means they are accessible to both co-owners and customers and can cascade the ethos of being employee owned to all stakeholders. Being employee owned, co-owners have several ways to communicate with both the directors of the group and the trustees of the holding board. This means directors are held to account and can be challenged to justify any decision made by the group.

The group ethos is to provide excellent customer service at a price that is considered value for money, mindful of our competitors. Being employee owned can only help this ethos.

The board takes its Companies Act Section 172 duty to promote the success of the group very seriously and considers the company’s various stakeholders when making decisions. Representatives from the trading board meet with trustees 3 times a year, giving the trustees an opportunity to hold the trading board to account.

The Board, both individually and together, consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Companies Act 2006) in the decisions taken during the year. As a board, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so that they all benefit from the successful delivery of our plan. The board of directors has overall responsibility for determining the group's purpose, values and strategy and for ensuring high standards of governance. The primary aim of the board is to promote the long-term sustainable success of the group, generating value for shareholders and contributing to wider society.

Our key stakeholders include trustees, employees (co-owners), shareholders, suppliers, customers and creditors. In particular our aims to interact with key stakeholders are as follows:

• To ensure the board takes account of the likely consequences of decisions in the long term, the board prepares a yearly plan. Progress against this plan is reviewed at board meetings and is updated as and when necessary.

• Our employees (co-owners) are fundamental to the delivery of our plan. The group has a range of initiatives and activities aimed at enhancing the interest of our employees. We recognise that organisations are most successful when management and staff share a common purpose, work in partnership and communicate openly. To this end we have regular meetings that allows the timely dissemination of information from the board down to all staff and just as importantly from staff up to board level. Two co-owners are on the trustee board of directors, each depot is represented at regular council meetings where directors are available, and information on the business is regularly circulated to all co-owners. Councillors have been given the opportunity to raise questions to the directors at these regular meetings.

• Our customers and suppliers are also fundamental to the delivery of our plan and as a prominent service business, it is essential that we maintain our reputation for high standards of business conduct, offering exceptional service at reasonable rates. We engage with our customers within our establishments and social media and our websites. We hold regular meetings with our key suppliers to ensure support for our plans and objectives and to resolve any issues at an early stage.

• We aim to be a responsible member of our community and minimise our impact on the environment. This includes supporting local charity initiatives, recycling as much of our waste as is possible and seeking to reduce our energy usage wherever possible.

• As a board, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so that they all benefit from the successful delivery of our plan. Being employee owned our shareholders are our employees (co-owners) and therefore are intrinsic to the business.

The board recognises the importance of engaging with stakeholders to help inform strategy and board decision-making. Relevant stakeholder interests, including those of employees, suppliers, customers, creditors and others are taken into account by the board when it takes decisions. Given there is the opportunity for our shareholders - the employees (co-owners) - to question any decision made by the trading board, it is imperative stakeholders are consulted as necessary. Our co-owners are our most important stakeholders and through regular depot, staff councillor and trustee meetings, their interests are communicated to the trading board directors, to take into account when decisions are made.

During the year the main objective was to consolidate the business following a period of high-cost inflation. The key objective was to take advantage of the trading opportunities in the construction sector and operate as efficiently as possible to try and mitigate the cost increases suffered.

We were able to do this following the efforts of our co-owners providing excellent service to all of our stakeholders.

We are also aware of the contribution of co-owners to the success of the business, and as such are trying to make sure this is a good place to work, by not only enjoying a share of the profit through co-ownership, but also improving the environment that co-owners are working in.

The group operates in a competitive market. This could lead to reduced income by reductions in hire rates and losing business to competitors. This risk is managed by providing excellent service to our customers and continually improving and updating our hire fleet.

The group is dependent on the economic activity in the areas it trades. This risk is continually reviewed with the utilisation of the plant monitored to ensure correct levels are held. The risk is mitigated as the depreciation rates are based upon residual values which reflect the expected market value on disposal.

The business is capital intensive and deals with a number of funders to ensure capital is available to fund equipment purchases.

Much of the group's borrowing is on variable rate agreements. The group manages the repayment period of debt to ensure it is appropriate to the assets being purchased.

Energy and carbon report

This report meets the climate-related financial disclosure requirements per the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 and is in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which was established by the Financial Stability Board with the aim of improving the reporting of climate-related risks and opportunities.

The group has reported in respect of its subsidiary, Wessex Eagle Limited, which meets the criteria for SECR reporting purposes. Wessex Eagle Holdings Limited has no emissions or energy use of its own.

Being an employee owned company, Wessex Eagle Ltd is mindful of the impact on the climate of energy consumed. We continue to invest in new fleet, benefitting from the latest engine technology. We are also looking closely at our transport planning to ensure journeys are made as efficiently as possible. Electric vehicles have been purchased where operational constraints allow. Solar panels have been installed at some of our sites to reduce our dependency on fossil fuel. Our electricity supplier has guaranteed our supply is categorised as 100% renewable.

The ratio of tonnes of CO2 per £m sales revenue is 78.6 tonnes. We have taken the energy used in the year and calculated the CO2 generated by reference to figures from the Carbon Trust.

Emissions and energy consumption

Summary of scope 1 (direct) greenhouse gas emissions for the year ended 31 December 2024:

Summary of scope 1 (direct) greenhouse gas emissions for the year ended 31 December 2023:

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £388,636. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The group's principal financial instruments comprise cash, bank balances, hire purchase agreements and items that arise directly from the company's trading operations such as trade debtors and creditors.

The group's activities expose it to a number of financial risks, such as interest rates, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and these are summarised below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding through hire purchase agreements and cash held at bank to ensure sufficient funds are available for on-going operations. The group maintains short, medium and long term funding arrangements.

The primary risks are attributable to bank funding and hire purchase agreements which are predominately variable interest rate deals. Monthly repayments on hire purchase agreements are fixed and the directors are satisfied with the interest cover.

The group's principal credit risk is trade debtors. The amounts shown in the financial statements are after deducting an allowance for doubtful debts. Trade debtors are monitored for both time to pay debts, and credit limits set to mitigate the risk. The group's biggest customer accounts for 7.25% of turnover and exposure is spread over a significant number of customers.

Hire rates are reviewed against competitors, and service levels monitored to ensure we provide good value for our customers.

The group offers equal opportunities to all applicants for employment. Disabled people are offered employment, training, staff development and promotion on the basis of their aptitude and abilities, in common with all employees.

Ultimately, we are an employee owned group and as such we recognise that organisations are most successful where management and staff share a common purpose, work in partnership and communicate openly. The group operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employee Regulations 2004. During the year, the policy of providing employees with information about the group has been continued through the monthly newsletter and monthly depot communication meetings. We also hold staff council meetings every 4 months where a representative from every depot of the business is invited, given information and are able to ask questions to the directors. Employees participate directly in the success of the business through the group's employee ownership profit share scheme.

Whilst the directors are confident that the business can continue to trade at good levels, it is expected that 2025 may see a contraction in demand, and plans are in place should this happen. Further description is provided in the Strategic Report.

Lentells (Audit) Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006. The auditor, Lentells (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Details of the group's emissions and energy consumption have been included within the strategic report.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group 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 UK 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Wessex Eagle Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 the parent company's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which 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 directors' remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, 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 is 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 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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 an auditor's report 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.

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the group and the industry/sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the group, review other communications and considered findings from previous audits.

The key laws and regulations we identified as relevant were tachograph laws and regulations, heavy goods vehicles operating licences, COSHH, GDPR, health and safety and employment laws.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006 and relevant UK tax law.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.

We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the group's ability to continue trading and the risk of material misstatement to the financial statements.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;

• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance;

• Reviewed Board minutes; and

• Reviewed regulatory reports in relation to the key laws and regulations where such reports have been made during the period and after the period.

As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.

We also evaluated the risk of fraud through management override. The key risks we identified were the securing of funding facilities, improving credit ratings and the minimisation of tax liabilities. We determined that the principal risks were related to cut-off in respect of revenue recognition and the existence and valuation of plant and machinery and stock.

In response to the identified risk, as part of our audit work we:

• Review journal entries throughout the year, for accuracy and appropriateness;

• Reviewed estimates and judgements made in the financial statements for any indication of bias and challenged assumptions used by management in making the estimates;

• Undertook specific cut-off procedures in respect of revenue recognition;

• Undertook physical stock counts at the year end and substantive testing of the stock valuation; and

• Reviewed contracts in place to prove the existence of assets within the financial statements.

Given the inherent limitations of an audit, the more remote the non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the greater the risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements, as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £388,636 (2023 - £492,955 profit).

Wessex Eagle Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Beeching Close, Chard, Somerset, TA20 1BB.

The group consists of Wessex Eagle Holdings Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Wessex Eagle Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Despite net current liabilities of £4,182,250 (2023: £6,294,132) the accounts have been prepared on a going concern basis. This represents a key accounting judgement. In reaching this conclusion the directors have considered a number of key factors including, but not limited to, the profitable and cash generative trading performance of the company and their forecasts, inflationary pressure on the cost of plant and equipment, significant fixed asset and cash balances , banking and hire purchase asset finance facilities available,

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the hire of plant and machinery is recognised on a straight line basis over the period of the hire. Revenue from the sale of plant and machinery is recognised when the risks and rewards of ownership have passed, which is normally on delivery.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

There are instances where specific assets lives will be extended to prevent an unnecessary drop in value. Assets will be reviewed on an individual basis to evaluate whether their useful life needs to be extended.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to sell.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key estimate that has a significant effect on the amounts recognised in the financial statements are in respect of tangible fixed assets. Tangible fixed assets are carried at cost, less accumulated depreciation and any subsequent accumulated impairment loss. This requires an estimation in the depreciation rates used as well as an assessment of the ongoing economic contribution of the assets of the group as to whether an indicator of impairment has occurred. The carrying value of assets is £56,753,190 (2023 - £56,543,552).

Other estimates and judgements can be seen within the standard accounting adjustments for accruals and prepayments.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Plant and machinery with a carrying amount of £29,580,968 (2023 - £29,995,727) has been pledged as security for finance lease liabilities.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Hire purchase payments relate to certain items of plant and machinery, Hire purchases may include purchase options at the end of the lease period, and no restrictions are place on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Hire purchase are secured on the plant and machinery they are financing.

Hire purchase have a nominal interest rate of between 0.9% and 2.5% above base rate, fixed and variable. The carrying amount at the year end is £18,050,819 (2023 - £18,811,431).

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax liability includes accelerated capital allowances that are expected to reverse in future tax years.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in independently administered funds.

Rights, preferences and restrictions

Ordinary shares are non-redeemable and attract full voting, equity and dividend rights.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

Wessex Eagle Employee Trust:

During 2023, Wessex Eagle Limited also paid £1,695,330 to the Employee Ownership Trust, through a distribution for accounting purposes to their nominee Trustee company. No such distribution was made during 2024.

Wessex Eagle Limited paid fees of £6,617 (2023 - £9,200) on behalf of the Employee Ownership Trust.