REGISTERED NUMBER: 00656996 (England and Wales)

SARVAL (Hartshill) Limited

Strategic Report, Report of the Directors and

Audited 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

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

R Poskitt

T B Versterre

B O Jeewooth

SECRETARY:

B O Jeewooth

REGISTERED OFFICE:

Ings Road

Doncaster

South Yorkshire

DN5 9TL

REGISTERED NUMBER:

00656996 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ian Parsons FCA

AUDITORS:

Paylings

Unit 2 Silkwood Park

Fryers Way

Ossett

West Yorkshire

WF5 9TJ

BANKERS:

HSBC plc

City Office

33 Park Row

Leeds

West Yorkshire

LS1 1LD

SOLICITORS:

Ramsdens Solicitors

7 King Street

Mirfield

West Yorkshire

WF14 8AW

Business Overview

SARVAL (Hartshill) Limited (SARVAL) is a wholly owned subsidiary of SARIA Limited (SARIA); SARIA operates in a wide range of sectors associated with the food chain, renewable energy, and recycling.

SARVAL operates the Group's main Category 3 mammalian rendering plant, converting raw animal by-products (ABP) collected from abattoirs, cutting plants, other meat plants and retail butchers' shops into tallow and processed animal proteins (PAP). Tallow is sold into downstream markets such as biodiesel production, organic chemical manufacturing whilst the PAP is sold to pet food manufacturers in the UK and International markets for incorporation into dried pet food products.

Key Performance Indicators (KPIs)

The company's performance continues to be affected by the availability and price of raw materials, energy costs and the global volatility in finished product values.

As shown in the company's income statement on page 9, the company has made a loss of (£11,386,744) from a loss of (£9,385,417) in the previous year. At the year end the shareholder's funds were (£34,884,393), 2023 - (£23,497,649)

SARIA manages its operations on a divisional basis. For this reason, the company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance, or position of the business.

Risk

With businesses active across a wide variety of sectors and operating large-scale processing businesses always entails risk. Beside market developments, we are also affected by global events such as commodity market price changes driven by weather patterns; such events entail risks but also present us with new opportunities.

The Group is faced with challenges when conducting analyses and making decisions. If we do not incorporate market developments or if we evaluate them incorrectly, they may pose serious business risks. The risks affecting SARVAL are largely dealt with on a group basis, apart from the ones highlighted below:

Business Unit / Area

Risk

Mitigation Factor

Pet food Ingredient manufacturing

Reduction in the availability of mammalian-based proteins.

Expand processing of poultry-based proteins.

Legislative changes to animal by-product categorisation

Reduced demand for 'wet' protein ingredients for pet food.

Operate processing plants for dried pet food ingredient.

High risk moves to low risk.

Operate category 3 rendering plants to benefit from switch from Category 1 (high risk).

Low risk moves to edible co-product.

Operate edible co-product production/trading businesses to benefit from switch from animal by-product to food status.

Health & Safety

Health & safety incidents could result in harm to the company's employees, contractors or local communities. Ensuring safety and wellbeing is an ethical obligation for the company. Poor safety records or serious accidents could have a serious impact on the company's production and reputation.

The company focuses on identifying, mitigating and managing the safety risks inherent across its operations. The company's objective is to create a safety culture through regular training and awareness campaigns for employees and contractors. The company operates a 'best practice' system of in-house training to develop an embedded health & safety culture.

Employees

Details of the number of employees can be found in note 4 to the financial statements on page 16.

The company participates in the group's policies and practices about Health and Safety at work, pension, and health care schemes.

Future developments

The directors anticipate that they will continue to develop the company's established activities and will continue to invest in plant modernisation to deliver reduced operating costs with enhanced environmental performance.

ON BEHALF OF THE BOARD:

B O Jeewooth - Director

20 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 a collector and processor of mammalian industry by-products to produce meal and tallow. These products are used for animal feed, in the oleo chemical industry and is blended with other ingredients to use as an alternative to fuel in power generation.

DIVIDENDS

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

DIRECTORS

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

Other changes in directors holding office are as follows:

J G Braide - resigned 31 December 2024

A R Smith - resigned 31 July 2024

R V Ratcliffe - resigned 7 June 2024

T B Versterre - appointed 3 October 2024

B O Jeewooth was appointed as a director after 31 December 2024 but prior to the date of this report.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

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, Paylings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B O Jeewooth - Director

20 August 2025

Opinion

We have audited the financial statements of SARVAL (Hartshill) Limited (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 loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 Auditor's that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to

identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and

from our commercial knowledge and experience of the industry;

- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements

or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery,

employment and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management

and inspecting legal correspondence; and

- We remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual,

suspected and alleged fraud; and

- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions;

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

and

- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we identified procedures which included, but were not limited to:

- Agreeing financial statements disclosures to underlying supporting documentation;

- Reading the minutes of meetings of those charged with governance;

- Enquiring of management as to actual and potential litigation and claims; and

- Reviewing correspondence with HMRC, relevant regulators and the Company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulation s are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of your Report of the Auditor's.

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.

Ian Parsons FCA (Senior Statutory Auditor)

for and on behalf of Paylings

Unit 2 Silkwood Park

Fryers Way

Ossett

West Yorkshire

WF5 9TJ

28 August 2025

TURNOVER

3

21,986,391

29,782,885

Changes in stocks of finished goods and work in progress

(516,895

)

54,865

21,469,496

29,837,750

Other operating income

135,596

214,275

21,605,092

30,052,025

Raw materials and consumables

14,121,297

21,811,013

Other external expenses

502,589

276,521

14,623,886

22,087,534

6,981,206

7,964,491

Staff costs

4

4,757,150

4,943,554

Depreciation

1,297,182

2,241,883

Other operating expenses

9,793,351

10,089,051

15,847,683

17,274,488

OPERATING LOSS

5

(8,866,477

)

(9,309,997

)

Interest payable and similar expenses

6

1,639,778

696,125

LOSS BEFORE TAXATION

(10,506,255

)

(10,006,122

)

Tax on loss

7

880,489

(620,705

)

LOSS FOR THE FINANCIAL YEAR

(11,386,744

)

(9,385,417

)

LOSS FOR THE YEAR

(11,386,744

)

(9,385,417

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(11,386,744

)

(9,385,417

)

FIXED ASSETS

Tangible assets

8

4,976,454

6,016,708

CURRENT ASSETS

Stocks

9

1,183,732

1,685,602

Debtors

10

3,289,204

3,008,007

Cash at bank

74,486

306,080

4,547,422

4,999,689

CREDITORS

Amounts falling due within one year

11

44,408,269

34,514,046

NET CURRENT LIABILITIES

(39,860,847

)

(29,514,357

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(34,884,393

)

(23,497,649

)

CAPITAL AND RESERVES

Called up share capital

15

10,500

10,500

Retained earnings

16

(34,894,893

)

(23,508,149

)

SHAREHOLDERS' FUNDS

(34,884,393

)

(23,497,649

)

The financial statements were approved by the Board of Directors and authorised for issue on 20 August 2025 and were signed on its behalf by:

B O Jeewooth - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

10,500

(14,122,732

)

(14,112,232

)

Changes in equity

Total comprehensive income

-

(9,385,417

)

(9,385,417

)

Balance at 31 December 2023

10,500

(23,508,149

)

(23,497,649

)

Changes in equity

Total comprehensive income

-

(11,386,744

)

(11,386,744

)

Balance at 31 December 2024

10,500

(34,894,893

)

(34,884,393

)

1.	STATUTORY INFORMATION

SARVAL (Hartshill) 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. The presentational currency is GBP and the financial statements are rounded to the nearest pound.

Going concern

The company's performance has been severely affected during the current and prior period, by a range of factors involving the availability and price of raw materials, energy costs and the global volatility in finished product values affecting fats and proteins.

The company remains an integral part of the group operations and whilst it continues to have a large deficiency of assets at the balance sheet date, management are confident that this performance can be turned around and profits realised as we have seen in recent years.

The company is dependent upon the financial support of its parent undertaking, however the directors of the parent entity have confirmed this support for at least 12 months from the date of signing the accounts.

On this basis the directors consider it appropriate to prepare the financial statements on the going concern basis and the financial statements therefore, do not include any adjustments that would result from the company ceasing to trade.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption 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.

Related party exemption

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

Significant judgements and estimates

In respect of depreciation, the entity is largely governed by the Rethmann accounting policies (issued by the parent group). These policies/rates are followed, to the extent that they are reflective of the average economic consumption of the asset type. Where the actual consumption of a class of asset differs materially from this policy, a more appropriate rate is applied.

The Rethmann policy of bad debt provision is applied, being 100% for debts over 365 days old, 50% for debts over 180 days old and 1% against all other debts.

Stock ageing is reviewed regularly by management to assess the requirement for a slow moving/obsolescence provision, however any such provision is not currently deemed necessary.

Turnover

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

Turnover is recognised on the sale of goods, on despatch of those goods from our sites when the significant risks and rewards of ownership are transferred to our customers.

Turnover is recognised on the performance of services, as and when those services are carried out.

Other income

Other income arises from the recharge of operating costs incurred by an entity, where the facility of that entity is used by other group companies.

Straight recharge of costs that can be allocated directly to another group company are treated as recharges only, and the cost is passed directly to the other entity. No income is recognised in this instance.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

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

Plant & machinery - 2 - 10 years straight line

Fixtures & fittings - 3 - 10 years straight line

Motor vehicles - 16.67% - 25% on reducing balance, and 5 - 11 years straight line

Assets under - not provided

construction

Stocks

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

For manufactured goods, the absorption cost method of valuation is used incorporating all production overheads.

If this results in a value higher than net realisable value for any stock item, then the selling price of that item is applied.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforecable 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

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

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

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 posting the transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company has members in the SARIA Group Pension Schemes, funded defined benefit schemes.

The above defined benefit schemes have been closed to new members. Alternative provision is made for new employees in the form of a defined contribution scheme.

The pension charge represents contributions payable to the funds in respect of the accounting period.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Sale of own goods

20,570,360

28,434,011

Collection charges

1,416,031

1,348,874

21,986,391

29,782,885

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

18,339,996

24,115,195

Europe

197,795

110,281

Asia

3,448,600

5,557,409

21,986,391

29,782,885

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

4,130,209

4,243,375

Social security costs

404,505

389,412

Other pension costs

222,436

310,767

4,757,150

4,943,554

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

2024

2023

Office & management

14

12

Collection & processing

67

61

81

73

2024

2023

£

£

Directors' remuneration

-

-

The wages and salaries figure includes £269,024 of temporary staff costs (2023: £325,068).

5.	OPERATING LOSS

The operating loss is stated after charging:

2024

2023

£

£

Hire of plant and machinery

392,358

365,967

Depreciation - owned assets

1,278,405

2,240,854

Loss on disposal of fixed assets

18,778

1,028

Auditors' remuneration

18,360

17,000

Foreign exchange differences

38,914

45,866

Operating leases

108,171

116,832

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

-

1,033

Intercompany interest

1,546,267

550,335

Other interest

93,511

144,757

1,639,778

696,125

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the loss for the year was as follows:

2024

2023

£

£

Deferred tax:

Deferred tax

876,029

(627,379

)

Under/(over)provision

4,460

6,674

Total deferred tax

880,489

(620,705

)

Tax on loss

880,489

(620,705

)

Reconciliation of total tax charge/(credit) included in profit and loss

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

2024

2023

£

£

Loss before tax

(10,506,255

)

(10,006,122

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

(2,626,564

)

(2,353,440

)

Effects of:

Expenses not deductible for tax purposes

3,011

3,265

Adjustments to tax charge in respect of previous periods

4,460

6,674

Change in rate from a previous period

-

(37,181

)

Superdeduction

-

(2,206

)

Deferred tax assets not recognised

3,562,680

1,762,183

Other matters leading to a reduction in the tax charge

(63,098

)

-

Total tax charge/(credit)

880,489

(620,705

)

8.	TANGIBLE FIXED ASSETS

Fixtures

Assets

Plant &

and

Motor

under

machinery

fittings

vehicles

construction

Totals

£

£

£

£

£

COST

At 1 January 2024

47,093,914

2,004,447

2,633,434

177,734

51,909,529

Additions

293,688

32,218

49,000

5,299

380,205

Disposals

(2,325,739

)

-

(27,835

)

(73,333

)

(2,426,907

)

Reclassification/transfer

90,722

-

(38,150

)

(104,400

)

(51,828

)

At 31 December 2024

45,152,585

2,036,665

2,616,449

5,300

49,810,999

DEPRECIATION

At 1 January 2024

42,586,602

1,758,095

1,548,124

-

45,892,821

Charge for year

1,054,157

69,316

154,932

-

1,278,405

Eliminated on disposal

(2,313,681

)

-

(3,115

)

-

(2,316,796

)

Reclassification/transfer

-

-

(19,885

)

-

(19,885

)

At 31 December 2024

41,327,078

1,827,411

1,680,056

-

44,834,545

NET BOOK VALUE

At 31 December 2024

3,825,507

209,254

936,393

5,300

4,976,454

At 31 December 2023

4,507,312

246,352

1,085,310

177,734

6,016,708

Transfers of assets between group companies have been done using gross cost and gross depreciation, rather than using net book value as the cost to the acquirer. This has been done in order to preserve historical information in relation to the properties of the group, in particular previous revaluations. This is considered to be the most appropriate method both from an accounting and tax perspective.

9.

STOCKS

2024

2023

£

£

Other Stocks

124,692

100,547

Raw materials

8,880

18,000

Finished goods

1,050,160

1,567,055

1,183,732

1,685,602

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

2,657,329

1,583,297

Other debtors

123,857

(1,512

)

Retention account

37,650

49,144

Deferred tax asset

404,185

1,284,674

Prepayments

66,183

92,404

3,289,204

3,008,007