REGISTERED NUMBER: 01948833 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

POWELLS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr G R Wells

Mr P A Moulding

Mr R M J Munnery

Mr M V Higgins

Mr G Wells

Mr C M Paris

Mr K J Livingstone

REGISTERED OFFICE:

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

BUSINESS ADDRESS:

No 4 Mylen Business Centre

Beckett Road

Andover

Hampshire

SP10 3HR

REGISTERED NUMBER:

01948833 (England and Wales)

SENIOR STATUTORY AUDITOR:

Graham Taylor

AUDITORS:

Langdowns DFK Limited

Statutory Auditor

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

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

The results for the period and financial position of the company are shown in the annexed financial statements.

REVIEW OF BUSINESS

The principal activity of the company during the year continued to be that of shopfitting and undertaking interior fit outs for commercial customers.

The major influence of performance in 2024 was the on going effects from global economic uncertainty, the Ukraine war and the changing retail landscape, resulting in high inflation experienced in the UK economy. The shortfalls in supply experienced the previous years were no longer such a major concern but high prices for materials and concurrently labour were major drivers. However with the good management of supply chain issues stable profitability has been achieved and this has also resulted in limiting the increase in the cost of overheads in the current year, which have continued to increase year on year.

As a major shopfitting and interiors main contractor the company operates with regard to the key performance indicators of turnover, gross profit and level of overheads. The figures for these for the current year and previous two years are as follows:

2024

2023

2022

Y/e 31st Dec

Y/e 31st Dec

Y/e 31st Dec

£   's

£   's

£   's

Turnover

27,696

27,719

26,586

Gross Profit

3,852

4,109

3,672

Administrative expenses

3,196

3,069

2,708

Profit/(loss) before tax

768

1,158

1,028

Turnover is now higher than pandemic levels and is showing stability. Gross profit this year is also above pre Covid levels in amount and percentage terms although overheads has risen in terms of the figure and as a percentage of sales.

With continued increases in direct costs, overheads and a competitive industry market, costs have both eroded Gross Profit and Profit Before Tax. The business is investing in technology to gain efficiencies for future years.

The directors are confident that the company's cash reserves plus the vastly improved trading conditions together with on going contract work expected from existing clients in addition to continued support from the company's bankers and suppliers will enable the company to continue as a going concern for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES

The major threats to the company remains the increases in the costs of major materials as a consequence of the effects of the war in Ukraine and the continuing retail market insecurities. With regard to costs, many of our clients have long standing rates agreed for a period and these have not been adjusted to take into account current conditions and problems in the supply chain. However this effect is being mitigated by specific agreements being drafted into contracts to allow for variation claims based on changing supply conditions which could not have been foreseen at the time of the original agreement to rates.

Despite the fragilities in the retail sector as a whole, the London market, which is the largest area of activity for the company remains a large draw for companies especially those looking to start in the uk for the first time. Our good reputation in this area ensures that we continue to have a steady supply of potential work to quote on a continuing basis. In addition our continued policy of diversification into other areas gives the Directors confidence that the company can continue to thrive and grow in the future.

A lesser risk is the skill shortage within the construction sector as the effects of the implementation of the Brexit process continues to feed through. Continual use of long standing contacts within the labour market enable the company to maintain and expand the sub contractor pool available.

FUTURE DEVELOPMENTS AND RESEARCH AND DEVELOPMENT

The directors are seeking to maintain the existing management policies in the belief that this will maintain the excellent results reported in the year. The rigorous tendering process has ensured little exposure to risk related to design responsibilities this year and the monitoring of all contracts on a monthly basis by the surveying department has enabled timely action to be taken where any threats to targeted profitability has occurred.

As mentioned above we will progress our efforts to reach out to markets outside of our traditional sectors but will continue to fully support our current and future retail partners.

The company has continued its often innovative activities during the year as part of the creative and individual work it undertakes. Such pioneering work, enabling clients to expand their design boundaries, is part of the service we offer to clients and as such should continue into the future as part of the high end projects regularly undertaken.

BY ORDER OF THE BOARD:

Mr G R Wells - Director

18 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

An interim dividend of £274,052 was declared and paid on 21st May 2024. The directors recommend a final dividend of £160,000 for the year ended 31st December 2024.

Further details are included in Note 10 to the financial statements.

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 G R Wells

Mr P A Moulding

Mr R M J Munnery

Mr M V Higgins

Mr G Wells

Mr C M Paris

Other changes in directors holding office are as follows:

Mr K J Livingstone - appointed 1 January 2024

DISCLOSURE IN THE STRATEGIC REPORT

Items required under Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the Report of the Directors are set out in the Strategic Report in accordance with section 414C(11) of the Companies Act 2006.

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

BY ORDER OF THE BOARD:

Mr G R Wells - Director

18 September 2025

Opinion

We have audited the financial statements of Powells Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of 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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning procedures we identify the significant laws and regulations applicable to the company based upon our knowledge of the company, the industry in which it operates and from making enquiries with management. We consider those laws and regulations where non-compliance may have a material effect on the financial statements and those which have a direct impact on the financial statements. We identified that the most significant laws and regulations applicable during the year were compliance with Health and Safety regulations, compliance with ISO9001 and ISO14001 standards and compliance with the requirements of the Companies Act 2006 and FRS 102.

Audit procedures performed by the engagement team in relation to laws and regulations include making enquiries of management as to any known or suspected instances of non-compliance, maintaining awareness throughout the course of the audit as to any indications of instances of non-compliance, undertaking a review of the accident logs and the Health and Safety Executive website for notices or convictions, reviewing ISO audit report findings, reviewing legal invoices for costs that may relate to potential claims against the company and undertaking a review of the disclosures in the financial statements to supporting information and to disclosure checklists.

We also consider areas that are at a higher risk of causing material misstatement in the financial statements due to irregularities, including those resulting from fraud and how such fraud may occur. We discuss with senior management the key controls in place to mitigate the risk of fraud and enquire as to whether they are aware of, or suspect, any fraudulent activities having taken place.

Throughout the audit, we maintain an appropriate level of professional scepticism when provided with information and explanations. We consider the appropriateness of significant accounting journals that were processed during the year, assess the reasonableness of any significant accounting estimates and consider whether there were any indications of bias by management during the year that represents a risk of material misstatement due to fraud. We also carry out analytical procedures to identify any unusual or unexpected variances to expectations as these may be an indication of management over-ride or management bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Graham Taylor (Senior Statutory Auditor)

for and on behalf of Langdowns DFK Limited

Statutory Auditor

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

18 September 2025

TURNOVER

4

27,695,771

27,719,073

Cost of sales

23,843,276

23,610,108

GROSS PROFIT

3,852,495

4,108,965

Administrative expenses

3,195,979

3,068,709

656,516

1,040,256

Other operating income

5

40,207

41,419

OPERATING PROFIT

7

696,723

1,081,675

Interest receivable and similar income

78,218

82,225

774,941

1,163,900

Interest payable and similar expenses

8

7,063

5,786

PROFIT BEFORE TAXATION

767,878

1,158,114

Tax on profit

9

160,443

146,728

PROFIT FOR THE FINANCIAL YEAR

607,435

1,011,386

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

607,435

1,011,386

FIXED ASSETS

Tangible assets

11

92,321

105,900

CURRENT ASSETS

Stocks

12

100

100

Debtors

13

3,754,640

3,102,169

Cash at bank and in hand

4,668,451

4,446,516

8,423,191

7,548,785

CREDITORS

Amounts falling due within one year

14

5,777,671

5,080,686

NET CURRENT ASSETS

2,645,520

2,468,099

TOTAL ASSETS LESS CURRENT LIABILITIES

2,737,841

2,573,999

CREDITORS

Amounts falling due after more than one year

15

(75,383

)

(86,433

)

PROVISIONS FOR LIABILITIES

18

(13,977

)

(12,468

)

NET ASSETS

2,648,481

2,475,098

CAPITAL AND RESERVES

Called up share capital

19

70

70

Capital redemption reserve

20

30

30

Retained earnings

20

2,648,381

2,474,998

SHAREHOLDERS' FUNDS

2,648,481

2,475,098

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

Mr G R Wells - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

70

1,778,612

30

1,778,712

Changes in equity

Dividends

-

(315,000

)

-

(315,000

)

Total comprehensive income

-

1,011,386

-

1,011,386

Balance at 31 December 2023

70

2,474,998

30

2,475,098

Changes in equity

Dividends

-

(434,052

)

-

(434,052

)

Total comprehensive income

-

607,435

-

607,435

Balance at 31 December 2024

70

2,648,381

30

2,648,481

1.	STATUTORY INFORMATION

Powells 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.

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

The company's principal place of business is No 4 Mylen Business Centre, Beckett Road, Andover, Hampshire, SP10 3HR.

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 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.

Significant judgements and estimates

The following judgements (apart from those involving estimates) have been made in the process of applying the accounting policies below that have had the most significant effect on amounts recognised in the financial statements:

Valuing 'amounts recoverable on long term contracts' is a subjective area due to the fact that some contracts are carried out over a long period of time and some go on long after the financial year has ended. As a result there can be uncertainties with the final outcome of contracts. At the year end, amounts recoverable on contracts have been assessed at £437,122 and contract payments on account at £1,194,943.

The company ensures that ample time and skill is allocated to ensure that the judgements and estimates made are as accurate and reliable as possible.

The company has been in this industry for many years and as such has very good knowledge and understanding of the industry and business to be able to gauge accurately how contracts will end up and the future recoverability of debts.

Turnover and other income

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Shopfitting and construction contracts

When the outcome of a contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the accumulated costs to date as compared to the projected final cost as per the tender adjusted for variations.

When the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Interest receivable

Interest income is recognised in the period that is has accrued and accordingly that the company is entitled to its receipt.

Tangible fixed assets

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

Leasehold property

-

25% straight line

Equipment

-

33.33% straight line and 20% straight line

Motor vehicles

-

25% straight line

All fixed assets are initially recorded at cost and are subsequently recorded at cost less depreciation and any impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

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 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 exchange rate ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other employee benefits

The company operates a defined contribution pension scheme and contributes to other defined contribution pension schemes. Contributions payable are charged to the profit and loss account in the period to which they relate.

The company also pays employees holiday pay. The holiday year runs in line with the company financial year and so the cost of this is incurred throughout the year as holiday is taken by the employee. Where holiday entitlements are not fully used at the year end and are carried forwards into a later year, an appropriate accrual is included to reflect this timing difference between the performance of work and the payment of remuneration.

Certain employees are also provided company cars or are paid a car allowance to fully incentivise them to perform their job to the required standard. The company also provides private medical insurance to certain employees.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Intercompany loans are held on the balance sheet at cost with no interest charged on these.

Advances to the directors are held on the balance sheet at cost and are interest free.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

There are no lease incentives in relation to any operating leases in operation during the year.

Long term contracts

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the end of the financial reporting period. Full provision is made for losses on all contracts in the period in which they are first foreseen.

When total revenue recognisable on a contract at the balance sheet date is less than the amount invoiced to date, this excess being 'amounts recoverable on contracts' is included within debtors. When amounts invoiced to date on a contract exceed the total revenue recognisable on a contract this excess, being 'payments on account' is included within creditors.

4.

TURNOVER

The turnover and profit 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

£

£

Rendering of services

27,695,771

27,719,073

27,695,771

27,719,073

5.	OTHER OPERATING INCOME

2024

2023

£

£

Discounts received

3,927

-

Management charges receivable

36,280

41,419

40,207

41,419

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,452,984

2,313,616

Social security costs

311,239

283,457

Other pension costs

54,444

52,170

2,818,667

2,649,243

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

2024

2023

Administrative and management staff

19

21

Direct cost staff

20

21

39

42

2024

2023

£

£

Directors' remuneration

884,561

782,040

Directors' pension contributions to money purchase schemes

18,739

16,035

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

Money purchase schemes

7

6

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

277,639

262,472

Pension contributions to money purchase schemes

1,321

1,321

7.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Depreciation - owned assets

40,201

10,591

Auditors' remuneration

18,000

17,000

Foreign exchange differences

396

764

Operating lease costs : Land and buildings

61,652

70,671

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Loan

7,063

5,786

9.

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

224,749

134,260

Under/over provision in prior years

(65,815

)

-

Total current tax

158,934

134,260

Deferred tax

1,509

12,468

Tax on profit

160,443

146,728

UK corporation tax has been charged at 25% (2023 - 23.52%).

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

767,878

1,158,114

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

191,970

272,388

Effects of:

Expenses not deductible for tax purposes

37,092

45,399

Capital allowances in excess of depreciation

-

(24,420

)

Depreciation in excess of capital allowances

2,368

-

Utilisation of tax losses

-

(104,392

)

Adjustments to tax charge in respect of previous periods

(65,815

)

-

Timing difference on expenses

61

61

Deferred tax adjustment

1,509

12,468

Group relief adjustment

(6,742

)

(54,776

)

Total tax charge

160,443

146,728

The company is anticipating a Research and Development enhanced relief claim for the year ended 31st December 2023. However as the size of this could not yet be accurately assessed and no claim has been made, no adjustment has been reflected in these accounts.

The adjustment to the tax charge in respect of previous periods was as a result of the Research and Development claim for the year ended 31st December 2022 which resulted in taxable losses which were able to be utilised to reduce the corporation tax charge for the year ended 31st December 2023.

The UK corporation tax rate rose from 19% to 25% with effect from 1st April 2023. Therefore, the effective rate of tax for the comparative year was 23.52%.

10.

DIVIDENDS

2024

2023

£

£

Final dividend - Ordinary

160,000

315,000

Interim dividend - Ordinary

274,052

-

434,052

315,000

Dividends declared after the year end, not recognised as a liability in the financial statements, totalled £nil (2023: £274,052).

Where an obligation existed at the balance sheet date to declare and pay a dividend, an appropriate accrual has been included. At 31st December 2024 total accrued dividends amounted to £160,000 (2023: £315,000).

11.	TANGIBLE FIXED ASSETS

Leasehold

Motor

property

Equipment

vehicles

Totals

£

£

£

£

COST

At 1 January 2024

98,830

255,517

8,800

363,147

Additions

-

4,672

21,950

26,622

At 31 December 2024

98,830

260,189

30,750

389,769

DEPRECIATION

At 1 January 2024

98,830

149,800

8,617

257,247

Charge for year

-

39,103

1,098

40,201

At 31 December 2024

98,830

188,903

9,715

297,448

NET BOOK VALUE

At 31 December 2024

-

71,286

21,035

92,321

At 31 December 2023

-

105,717

183

105,900

12.

STOCKS

2024

2023

£

£

Stocks

100

100

Stocks comprise of raw materials.

13.

DEBTORS

2024

2023

£

£

Amounts falling due within one year:

Trade debtors

2,652,186

2,080,131

Amounts owed by group undertakings

9,978

45,366

Other debtors

32

-

Amounts recoverable on long term contracts

437,122

385,781

Directors' current accounts

415,299

415,299

Prepayments and accrued income

177,020

112,589

3,691,637

3,039,166