REGISTERED NUMBER: 08393062 (England and Wales)

PROTECTIVE WEAR SUPPLIES LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr N J Burtenshaw

Mr R Burtenshaw

Mr C Burtenshaw

REGISTERED OFFICE:

10 Darklake View

Estover

Plymouth

Devon

PL6 7TL

REGISTERED NUMBER:

08393062 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

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

STRATEGY AND BUSINESS MODEL

The company's focus is to provide our customers with innovative quality products and services to our key sectors.

Our dedication to service creates satisfied customers whose costs of procurement are reduced through time saved.

Our product portfolio includes branded workwear, specialised safety workwear, Personal Protective Equipment and janitorial supplies.

We partner with a broad range of customers, from major multinational companies to smaller independent businesses, across our key sectors housing associations, not-for-profit organisations, and utilities companies and contractors.

REVIEW OF BUSINESS

2024 has showed steady growth from 2023, as the business progress realigns with the Board's long-term projections.

Turnover has increased by £0.93m (5.79%) and gross profit increased by £0.39m (6.39%) to £6.48m.

The KPIs outlined below show clear improvements in the business over the course of 2024.

The company continues to be debt-free and places itself in a position to remain competitive within a saturated market.

Relationships with key stakeholders have been maintained and there are significant projects in the pipeline for 2025 and beyond.

The year 2024 marked a period of strategic investment and consolidation for the company. The directors believe that the reported figures reflect a robust financial performance and a solid foundation for sustained future growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The company, like all businesses, faces a number of operating risks and uncertainties. The most fundamental issues faced by the company are:

- increased risk of recession;

- supply chain challenges;

- credit risk of customers;

- inflationary pressures;

- foreign exchange currency risk; and

- achieving quality standards.

The directors and their team use strategies learned over their many years of experience in order to meet and deal with these potential risks.

There is no external bank debt, which assists the group with being flexible, and avoids any further risks arising in relation to interest rates.

KEY PERFORMANCE INDICATORS

The development, performance and position of the company is monitored using the following measures:

MEASURE

2024

2023

Gross profit margin

38.4%

38.1%

Net profit before tax

13.5%

15.0%

The directors consider these KPIs demonstrate the strong financial performance and position of the company.

ENVIRONMENT AND SUSTAINABILITY

Sustainability remains a central pillar of the company's strategic direction. Guided by our newly formed Net Zero Committee, recent initiatives include the launch of the Ecowear clothing line and a sustainable footwear range, both certified under the Global Recycled Standard (GRS).

The company has also achieved a significant milestone by eliminating single-use plastics in over 80% of stock lines.

Efforts continue to expand the range of environmentally responsible products and services in response to evolving regulatory and consumer expectations.

CHARITABLE DONATIONS AND EXPENDITURE

The company increased its charitable donations to £75,000 in 2024 (2023: £64,962), reinforcing our commitment to social value.

Contributions supported key initiatives including local foodbanks, homelessness services, childcare, disaster relief, and humanitarian aid.

Notable recipients included the Rapid Relief Team, which provides emergency support and home and globally in response to crises such as fires, floods, and humanitarian emergencies, and The Grace Trust, which funds education, poverty alleviation, disability support, disaster response, and medical research both in the UK and internationally.

No donations were made to political organisations.

ON BEHALF OF THE BOARD:

Mr N J Burtenshaw - Director

19 August 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 supplying safety equipment, corporate clothing and janitorial supplies.

DIVIDENDS

An interim dividend of £1,333.44 per share on the 600 Ordinary £1 shares was paid on 5 April 2024. A further interim dividend of £4,583.33 per share on the 600 Ordinary £1 shares was paid on 27 October 2024.

The directors recommend that no final dividend be paid on these shares.

The total distribution of equity dividends for the year ended 31 December 2024 will be £3,550,064 (2023: £916,272).

DIRECTORS

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

Mr N J Burtenshaw

Mr R Burtenshaw

Mr C Burtenshaw

FINANCIAL INSTRUMENTS

The company's main financial instruments comprise bank balances, trade creditors, shareholder and directors loans and hire purchase arrangements.

The main purpose of each of these instruments is to fund ongoing operations.

Due to the nature of the financial instruments used by the company there is not considered to be significant exposure to price risk.

Credit Risk

The majority of the sales for the company are to large trade customers where the risk is relatively low. The company's debtor ledger is reviewed on a regular basis and collection of debts are maintained to optimism the company's liquidity.

Interest Risk

The loans are from shareholders and directors only. As such, any interest is agreed within the shareholders meeting and will not be charged if this would negatively affect the company's liquidity.

Liquidity Risk

In respect of bank balances the liquidity risk is managed by maintaining a balance between the various elements of working capital.

Trade creditors' liquidity risk is managed by ensuring there are sufficient funds available from working capital to meet amounts due.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, WP Audit Services LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr N J Burtenshaw - Director

19 August 2025

Opinion

We have audited the financial statements of Protective Wear Supplies Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Objectives

The objectives of our audit in respect of fraud, are;

- to identify and assess the risks of material misstatement of the financial statements due to fraud;

- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and

- to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Audit Approach

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Consumer Rights Act, the Consumer Protection (Distance Selling) Regulations, the Companies Act 2006, FRS 102, and UK taxation legislation.

- We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.

- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance.

- We used our knowledge of the Company and the industry in which it operates to determine if management's explanations were consistent with our own conclusions.

- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business.

- Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area.

No instances of fraud were identified from the above procedures.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.

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.

Stephanie Williams (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

9 September 2025

TURNOVER

16,896,931

15,971,635

Cost of sales

(10,416,053

)

(9,880,238

)

GROSS PROFIT

6,480,878

6,091,397

Distribution costs

(2,497,306

)

(2,219,344

)

Administrative expenses

(1,774,446

)

(1,475,730

)

OPERATING PROFIT

5

2,209,126

2,396,323

Interest receivable and similar income

76,315

30,858

2,285,441

2,427,181

Interest payable and similar expenses

6

(804

)

(34,251

)

PROFIT BEFORE TAXATION

2,284,637

2,392,930

Tax on profit

7

(560,062

)

(591,413

)

PROFIT FOR THE FINANCIAL YEAR

1,724,575

1,801,517

PROFIT FOR THE YEAR

1,724,575

1,801,517

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,724,575

1,801,517

FIXED ASSETS

Intangible assets

9

127,636

-

Tangible assets

10

882,831

879,638

1,010,467

879,638

CURRENT ASSETS

Stocks

11

4,127,149

3,325,240

Debtors

12

2,535,931

2,510,098

Cash at bank

2,204,330

2,211,713

8,867,410

8,047,051

CREDITORS

Amounts falling due within one year

13

5,054,700

2,316,123

NET CURRENT ASSETS

3,812,710

5,730,928

TOTAL ASSETS LESS CURRENT LIABILITIES

4,823,177

6,610,566

PROVISIONS FOR LIABILITIES

15

92,000

53,900

NET ASSETS

4,731,177

6,556,666

CAPITAL AND RESERVES

Called up share capital

16

612

612

Retained earnings

17

4,730,565

6,556,054

SHAREHOLDERS' FUNDS

4,731,177

6,556,666

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

Mr N J Burtenshaw - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

612

5,670,809

5,671,421

Changes in equity

Dividends

-

(916,272

)

(916,272

)

Total comprehensive income

-

1,801,517

1,801,517

Balance at 31 December 2023

612

6,556,054

6,556,666

Changes in equity

Dividends

-

(3,550,064

)

(3,550,064

)

Total comprehensive income

-

1,724,575

1,724,575

Balance at 31 December 2024

612

4,730,565

4,731,177

1.	STATUTORY INFORMATION

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

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

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 or by wholly owned companies within the group.

Significant judgements and estimates

In preparing these financial statements, the directors have made the following judgements:

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

ii. Goodwill is amortised over it's useful life. This is re-assessed annually depending on a number of factors, such as developments in the industry and future market conditions.

iii. Trade debtors are reviewed for impairment loss on an annual basis and provision is made for any balances where there is uncertainty against the recoverability of the balance. This methodology is applied on a customer by customer basis.

iv. Stocks are reviewed for impairment on a regular basis and provision of made for any stocks where there is uncertainty over the ability to sell the items. The methodology is applied on a stock line basis.

Turnover

Turnover represents invoiced sale of goods net of discounts and excluding value added tax. Turnover is recognised when the products are despatched to the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of the business in 2013, is being amortised evenly over its useful life of ten years, following a reassessment in an earlier year.

Goodwill is reviewed annually for impairment.

Goodwill was fully amortised in the year ended 31 December 2023.

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.

Intangible assets include business critical computer software being developed for use by the company.

The software is not yet in use as at the year end date, and so no amortisation has been recognised in the year.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on cost and 20% on reducing balance

Computer equipment

-

20% on cost

The directors have reviewed freehold property and the value of the land therein is immaterial. Therefore they do not deem it necessary to separate, and not depreciate, the land element. This will be reassessed if there are material changes in the land valuation.

Fixed assets are recognised at cost less any accumulated depreciation and impairment losses.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Stocks

Stocks are initially recognised at cost. Where stock items purchased receive a discount due to bulk buying or rebates, this discount is spread across all of the product types still held that this related to under the average cost method. Stock items are then reviewed against their net realisable value, and written down to this value where it is lower than the cost held.

Provisions are entered against obsolete, customer specific and slow moving items.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

Short- term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

Provisions for liabilities

Provisions are recognised when the company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises.

The company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,486,750

2,080,433

Social security costs

230,827

193,714

Other pension costs

24,670

23,413

2,742,247

2,297,560

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

2024

2023

Administrative

39

39

Operational

26

26

65

65

A retired director was paid a sum of £43,200 (2023: £40,200) in the year as part of an Employer-financed retirement benefit scheme.

2024

2023

£

£

Directors' remuneration

217,947

70,705

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

Money purchase schemes

1

1

Information regarding the highest paid director for the year ended 31 December 2024 is as follows:

2024

£

Emoluments etc

104,957

In addition to the salary disclosed above, directors received benefits in kind amounting to £3,596 in relation to the tax year ended 5 April 2024 (2023: £480).

5.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

45,667

47,225

Other operating leases

24,000

24,000

Depreciation - owned assets

53,980

49,884

Loss on disposal of fixed assets

13,654

-

Goodwill amortisation

-

40,834

Auditors' remuneration

10,876

13,200

Auditors' remuneration for compliance services

5,205

4,795

Auditors' remuneration for other non-audit services

6,450

9,162

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Interest on tax

804

-

Loan interest

-

34,251

804

34,251

7.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

522,000

595,400

Under/over provision of CT

(38

)

(1,487

)

Total current tax

521,962

593,913

Deferred tax

38,100

(2,500

)

Tax on profit

560,062

591,413

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

2,284,637

2,392,930

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.521%)

571,159

562,841

Effects of:

Expenses not deductible for tax purposes

691

9,940

Income not taxable for tax purposes

-

1,383

Capital allowances in excess of depreciation

(37,725

)

-

Depreciation in excess of capital allowances

-

19,749

Deferred tax

38,100

(2,500

)

Utilisation of group tax losses

(12,163

)

-

Total tax charge

560,062

591,413

The main UK corporation tax rate increased on 1 April 2023 to 25% for companies generating profits chargeable to corporation tax in excess of £250,000 per year. Therefore, there was a hybrid rate used for the year ended 31 December 2023.

8.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Interim

3,550,064

916,272

9.	INTANGIBLE FIXED ASSETS

Computer

Goodwill

software

Totals

£

£

£

COST

At 1 January 2024

700,000

-

700,000

Additions

-

127,636

127,636

At 31 December 2024

700,000

127,636

827,636

AMORTISATION

At 1 January 2024

and 31 December 2024

700,000

-

700,000

NET BOOK VALUE

At 31 December 2024

-

127,636

127,636

At 31 December 2023

-

-

-

The computer software addition in the year is still in the process of being developed at the year end. There is a capital commitment in relation to the completion of the project, which is expected to cost an estimated further £90,000 in the next financial year.