REGISTERED NUMBER: 00401414 (England and Wales)

DAVID JENKINS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTOR:

R Jenkins

REGISTERED OFFICE:

The Millennium Coast Bakery

South Avenue

Trostre Business Park

Llanelli

Carmarthenshire

SA14 9UU

REGISTERED NUMBER:

00401414 (England and Wales)

AUDITORS:

Bevan Buckland LLP

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

The director presents his strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

The Company operates as a chain of 28 (2023: 28) retail outlets in South Wales and the principal activity is that of the production and retail distribution of bread, confectionery, savouries and associated products.

The trading activities of the company continued to generate a good levels of profits, with turnover increasing by 5% and a profit before taxation of £4,116,466 being generated (2023: £1,830,671).

The profit before taxation includes £2,000,000 of exceptional income (2023: nil) in relation to the proceeds from a Share Protection insurance plan received following the death of D K Jenkins (director and shareholder) and is after exceptional costs of £110,000 (2023: £288,000).

The profit before exceptional items and taxation is £2,226,466 (2023: £2,118,671). The director is satisfied with the result for the year and it is encouraging that the company has performed consistently over the last four years despite challenging and volatile trading conditions.

The turnover and gross profit trends are as follows:

2024

2023

2022

2021

2020

Turnover (£   )

15,110

14,381

12,615

10,815

6,961

Gross Profit Margin

69%

69%

71%

73%

72%

Turnover increased by 5% in 2024 compared with 2023 as a result of an increase in customer numbers together with price increases which had to be implemented to offset increases in raw material, wages and energy costs.

The high inflation in the UK during 2022, 2023 and 2024 has had a significant effect on the company's cost base and, in addition to increasing its selling prices to offset some of the cost increases, the company has continued to focus on initiatives to reduce costs and improve operating efficiency.

The company invested £105,069 in 2024 (2023: £444,956) in capital expenditure.The capital expenditure was primarily in relation to the replacement of bakery plant, machinery and equipment.

The company continues to maintain its community focus and has undertaken a number of initiatives to raise funds for national charities including Cancer Research UK and The Children's Trust. The company also supports food banks and contributes to a number of other local charities in the communities in which we operate.

FUTURE PLANS

The strong sales performance in 2024 has been largely maintained in 2025. However, the economic environment in the UK continues to be volatile and challenging and, in addition, the company operates in a very competitive retail sector with other businesses introducing extended opening hours and offering delivery services to customers. The company continues to focus on ensuring that its products are of the highest quality in order to distinguish itself and its customer offering from that of its competitors. In addition, the company regularly reviews its operating structures to ensure that it continues to provide the high quality service appropriate for the communities it operates in. The company has a loyal customer base in South Wales and is grateful for the continuing support of its customers.

The continuing cost inflation in the UK - in particular wages and energy costs - has continued to put significant inflationary pressure on the company's cost base. The company is continuing to focus on its operating efficiency in order to minimise the impact of cost increases and limit the extent to which customer price increases have to be increased.

The director considers that, despite the challenging economic environment, the company is well placed to continue to operate profitably and to respond to growth opportunities to develop its shop portfolio further.

The company also plans to refurbish a number of its retail outlets and is continuing to upgrade its plant, machinery and equipment in the bakery and in the retail outlets.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risks

The company uses various financial instruments which include cash and other items such as trade creditors that arise directly from its operations. The main risks arising from the company's financial instruments are liquidity risk and credit risk. The directors review and agree policies for managing the principal risks as summarised below.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company has built up its cash reserves to the point where borrowings such as overdraft facilities are not relied upon for short-term flexibility.

The company does finance some of its investments in tangible fixed assets through hire purchase contracts. The maturity of these obligations is set out in the notes to the financial statements.

Interest rate risk

The company manages its exposure to interest rate fluctuation on its hire purchase agreements by entering into fixed rate agreements. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

Pricing risk

See comments in Future Plans. We do have some fixed price contracts for some key ingredients and, where appropriate, agree fixed price agreements for energy.

Trading Risks

Health & Safety

The company has in place a rigorous and far-reaching health & safety policy and is committed to adhering to all legislation requirements imposed on it through enforcing authorities.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE RESPONSIBILITIES

The company is committed to its environmental, social and governance responsibilities. We are proactive in continuously working to reduce the impact of our activities on the environment by monitoring energy consumption in each of our locations and undertaking initiatives to reduce consumption wherever possible. This involves investing in energy efficient plant and equipment and managing our baking activities in an efficient way. The communities our shops service are important to us and they are supported by various fund raising and sponsorship events. We engage with our customers on various social media platforms and react to any comments received from customers or employees in order to ensure that we continue to provide an exceptional service in all of the communities we are based. The director is proud of being the third generation to own and manage the business and that the business has operated successfully in South West Wales for over 100 years. We remain focused on managing the business in a sustainable and efficient way in order to safeguard and secure the company and its stakeholders' future success and prosperity.

ON BEHALF OF THE BOARD:

R Jenkins - Director

15 September 2025

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

DIVIDENDS

No interim or final dividend was paid during this year. (During 2023 an interim dividends of £1,000 per share (£850,000) and a final dividend of £500 per share (£425,000) were paid.)

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

R Jenkins held office during the whole of the period from 1 January 2024 to the date of this report.

D K Jenkins, who was a director at 1 January 2024, sadly died suddenly on 5 February 2024.

FUTURE DEVELOPMENTS IN THE BUSINESS

The Company will continue to seek out retail opportunities that fit with its current existing business model.

EMPLOYMENT POLICY

The company attaches paramount importance to the well being of its workforce and is committed to their support development and motivation. The company is an equal pay employer. We provide equal opportunities and are committed to the principle of equality regardless of race, national origin, religious belief, political opinion or affiliation, gender, marital status, sexual orientation, gender reassignment, age or disability.

We apply employment policies that are fair, equitable and consistent with the skills and abilities of our employees and the needs of the business. We implement these policies to ensure all employees are accorded equal opportunity for recruitment, training and promotion and, in all jobs of like work, on equal terms of employment. All of our employment policies are monitored to ensure compliance with current legislation and best practice.

Applications for employment of disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff being disabled every effort is made to ensure that their employment within the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled people should, as far as possible, be identical to that of other employees.

Employees and Community

The Director pride themselves in the contribution that the Company provides to the local community. This includes its valued employees, customers and local supply chain.

Many of the Company's outlets are in the heart of the local communities and being a locally based business means that we can get involved in local matters and support good causes.

The Company has been Investors in People accredited since 2004 and recruits and retains employees who share its values and is proud to have a large number of employees with long service. The future for organisations lies in people and the challenge is to develop skilled, flexible and committed people who can adapt to new ways of working.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

R Jenkins - Director

15 September 2025

Opinion

We have audited the financial statements of David Jenkins Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the 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 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 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 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 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 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 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 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 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, 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 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 Statement of Director's Responsibilities set out on pages four and five, 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 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 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:

enquiring of management, including obtaining and reviewing support documentation, concerning the company's

policies and procedures relating to:

-

identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.

-

obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

In addition to the above, our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

-

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

-

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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.

HENRY LLOYD DAVIES (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

15 September 2025

REVENUE

15,110,275

14,381,569

Cost of sales

4,632,243

4,421,836

GROSS PROFIT

10,478,032

9,959,733

Administrative expenses

8,750,154

8,253,870

1,727,878

1,705,863

Other operating income

2,098,070

38,920

OPERATING PROFIT

4

3,825,948

1,744,783

Interest receivable and similar income

293,244

91,693

4,119,192

1,836,476

Interest payable and similar expenses

6

2,726

5,805

PROFIT BEFORE TAXATION

4,116,466

1,830,671

Tax on profit

7

550,155

481,795

PROFIT FOR THE FINANCIAL YEAR

3,566,311

1,348,876

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,566,311

1,348,876

FIXED ASSETS

Intangible assets

9

-

-

Property, plant and equipment

10

2,278,546

2,530,766

Investments

11

1,072

1,072

2,279,618

2,531,838

CURRENT ASSETS

Inventories

12

273,869

284,412

Debtors

13

280,481

227,523

Cash at bank and in hand

8,401,696

4,427,320

8,956,046

4,939,255

CREDITORS

Amounts falling due within one year

14

1,543,708

1,287,082

NET CURRENT ASSETS

7,412,338

3,652,173

TOTAL ASSETS LESS CURRENT LIABILITIES

9,691,956

6,184,011

CREDITORS

Amounts falling due after more than one year

15

-

(2,004

)

PROVISIONS FOR LIABILITIES

18

(433,433

)

(474,233

)

ACCRUALS AND DEFERRED INCOME

19

(11,602

)

(27,164

)

NET ASSETS

9,246,921

5,680,610

CAPITAL AND RESERVES

Called up share capital

20

850

850

Capital redemption reserve

21

1,150

1,150

Retained earnings

21

9,244,921

5,678,610

SHAREHOLDERS' FUNDS

9,246,921

5,680,610

The financial statements were approved by the director and authorised for issue on 15 September 2025 and were signed by:

R Jenkins - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

850

5,604,734

1,150

5,606,734

Changes in equity

Dividends

-

(1,275,000

)

-

(1,275,000

)

Total comprehensive income

-

1,348,876

-

1,348,876

Balance at 31 December 2023

850

5,678,610

1,150

5,680,610

Changes in equity

Total comprehensive income

-

3,566,311

-

3,566,311

Balance at 31 December 2024

850

9,244,921

1,150

9,246,921

Cash flows from operating activities

Cash generated from operations

1

4,279,944

2,010,185

Interest paid

(1,912

)

(2,787

)

Interest element of hire purchase payments paid

(814

)

(3,018

)

Tax paid

(449,042

)

(620,734

)

Net cash from operating activities

3,828,176

1,383,646

Cash flows from investing activities

Purchase of tangible fixed assets

(105,069

)

(444,956

)

Purchase of fixed asset investments

-

(40

)

Sale of tangible fixed assets

-

24,500

Interest received

293,244

91,693

Net cash from investing activities

188,175

(328,803

)

Cash flows from financing activities

Capital repayments in year

(41,975

)

(64,732

)

Equity dividends paid

-

(1,275,000

)

Net cash from financing activities

(41,975

)

(1,339,732

)

Increase/(decrease) in cash and cash equivalents

3,974,376

(284,889

)

Cash and cash equivalents at beginning of year

2

4,427,320

4,712,209

Cash and cash equivalents at end of year

2

8,401,696

4,427,320

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

2024

2023

£

£

Profit before taxation

4,116,466

1,830,671

Depreciation charges

357,289

351,540

Profit on disposal of fixed assets

-

(8,402

)

Government grants

-

(17,143

)

Finance costs

2,726

5,805

Finance income

(293,244

)

(91,693

)

4,183,237

2,070,778

Decrease in inventories

10,543

80,650

Increase in trade and other debtors

(52,958

)

(53,933

)

Increase/(decrease) in trade and other creditors

139,122

(87,310

)

Cash generated from operations

4,279,944

2,010,185

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

8,401,696

4,427,320

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,427,320

4,712,209

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

4,427,320

3,974,376

8,401,696

4,427,320

3,974,376

8,401,696

Debt

Finance leases

(43,999

)

41,975

(2,024

)

(43,999

)

41,975

(2,024

)

Total

4,383,321

4,016,351

8,399,672

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Presentational and functional currency

The presentational and functional currency is £ sterling.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results in the future may differ from these estimates.

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 and in any future periods affected.

Significant management judgements

The following are management judgements in applying the accounting policies of the company that have the most significant effect on the amounts recognised in the financial statements.

Useful life of assets

Tangible fixed assets, other than investment properties, are depreciated over their useful economic lives based on various factors. The actual lives of the assets are re-assessed on a periodic basis and may vary depending on the standard of the asset.

Provisions and accruals

Management bases its judgements on the circumstances relating to each specific event and upon currently available information. However, given the inherent difficulties in the estimation of liabilities in these areas, it cannot be guaranteed that additional costs will not be incurred beyond the amounts accrued.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised at the point of sale.

Other income

Rental income arising from leases is accounted for on a straight line basis over the lease term.

Goodwill

Goodwill is an amount paid in connection with the acquisition of shops.

Goodwill has been fully amortised over three years with a full year charged in the period of acquisition.

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.

Property, plant and equipment

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

Freehold property

-

2% on cost

Improvements to property

-

10% on cost

Plant and Machinery

-

10% - 25% Reducing Balance

Fixtures and fittings

-

10% - 25% Reducing Balance

Motor vehicles

-

25% reducing balance

If there is an indication that there has been a significant change in depreciation rate or residual value of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations.

Freehold land is not depreciated.

Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition of the item.

A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. 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 credited or charged to the income statement.

Impairment of fixed assets

The company performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement.

Investments

Investments are shown at fair value and are not re-valued where valuation is below trivial.

Inventories

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

The company provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans.

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

Grant income

Grant income is recognised when the grant is awarded and the amount can be measured reliably. For any grant income that does not run co-terminus with the accounting period, the income relating to future periods will be deferred

Capital grants received are deferred and released over the life of the assets to which they relate.

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3.	EMPLOYEES AND DIRECTORS

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

2024

2023

All categories

298

294

The average monthly number of employees on a full time equivalent basis was as follows:

2024

2023

All categories

216

212