REGISTERED NUMBER: SC044008

BEATSON'S BUILDING SUPPLIES LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Strategic Report

1

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

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

REVIEW OF BUSINESS

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

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

The company continues to develop its business model in response to customer requirements through its range and availability of products with the support of key suppliers.

Key performance indicators (KPIs)

Our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole and are turnover, gross margin, operating profit and return on capital employed.

The company's turnover increased by £1,313,938 from £35,589,000 to £36,902,938 a increase of 4% (2023: -4%). Gross margin increased by £1,115,692 from £11,429,847 to £12,545,539 with a gross profit percentage for the year of 34% (2023: 32.12%).

Operating profit increased to £2,441,125 from £1,054,452 . Return on capital employed has increased to 18.38% (2023: 10.77%). Return on capital employed is calculated as profit before interest and tax, divided by capital employed, which constitutes total assets less current liabilities, less investments, less cash, plus overdrafts and other short term borrowings. Net assets at 31 December 2024 increased to £13,608,652 from £10,433,471 at 31 December 2023.

PRINCIPAL RISKS AND UNCERTAINTIES

The company considers the economy presents challenges with cost of living crisis and the ongoing global uncertainties arising from the conflict in the Ukraine. The company intends to deal with these challenges by continuing to maintain excellent relationships with key suppliers to ensure continuity of its supply chain.

FINANCIAL INSTRUMENTS

The company has adopted the disclosure and presentational requirements of FRS 102. When a financial asset or liability is disclosed initially it is measured at its fair value plus or minus transaction costs and subsequently at the undiscounted cash or other consideration expected to be paid or received. The company regularly monitors its exposure to risks including pricing, credit, liquidity and cash flow.

The company has tightened up controls over collection of trade debtors and has agreed payment terms with its suppliers.

The company is satisfied with the level of cash flow being maintained after taking into consideration the timing aspect of debtor recoverability and the payment of trade creditors and other business expenses.

The bank is currently satisfied with the company's financial performance and the directors do not consider there to be any risk of their facilities being withdrawn. The company's deposits are all in place with major UK financial institutions which are regulated by the Financial Conduct Authority.

FUTURE DEVELOPMENTS

The company intends to continue to focus on its core activities whilst continuing its membership of the H&B Buying Group. Whilst the company is still operating in a challenging sector, it is in a strong position to invest in new opportunities as appropriate.

ON BEHALF OF THE BOARD:

J Marshall Jnr - Director

18 September 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 during the year was the supply of building materials.

DIVIDENDS

The total dividend declared for the year ended 31 December 2024 was £415,000.

DIRECTORS

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

J Marshall Jnr

J R Marshall

S J A Gibson

A R J Shiels

Other changes in directors holding office are as follows:

K L Murray - appointed 1 April 2024

POLITICAL DONATIONS AND EXPENDITURE

During the year, the company made no political donations nor incurred any political expenditure.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of financial instruments and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors, the Strategic Report and the financial statements in accordance with applicable laws 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 the affairs of the company and of the profit and 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;

- state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

ON BEHALF OF THE BOARD:

J Marshall Jnr - Director

18 September 2025

Opinion

We have audited the financial statements of Beatson's Building Supplies Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 three, 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:

Our approach to identifying and assessing the risks of material misstatement 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 knowledge of the construction retail sector;

-

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, FRS102, taxation legislation and Sale of Goods Act. We also considered those laws and regulations having an indirect impact but nonetheless significant, including, GDPR, anti-bribery, employment, environmental 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

-

identified laws and regulations were communicated within the audit team regularly and the team 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, 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.

Auditors' responsibilities for the audit of the financial statements - continued

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 set out in Note 2 were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions and reviewed transactions processed outwith normal business hours.

To address the risks associated with income recognition we:

-

performed analytical procedures to identify unusual relationships;

-

vouched a sample of sales orders to sales invoices within the sales ledger;

-

performed cut off testing and reviewed credit notes processed post year end;

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

-

agreeing financial statement 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 regulations 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 to 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 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.

Colette Callaghan FCCA (Senior Statutory Auditor)

for and on behalf of Armstrong Watson Audit Limited

Caledonia House

89 Seaward Street

Glasgow

G41 1HJ

18 September 2025

TURNOVER

2

36,902,938

35,589,000

Cost of sales

24,357,399

24,159,153

GROSS PROFIT

12,545,539

11,429,847

Administrative expenses

10,591,873

10,481,115

1,953,666

948,732

Other operating income

3

237,459

105,720

Gain/loss on revaluation of investment property

250,000

-

OPERATING PROFIT

5

2,441,125

1,054,452

Interest receivable and similar income

38,809

44,768

2,479,934

1,099,220

Interest payable and similar expenses

6

20,203

27,455

PROFIT BEFORE TAXATION

2,459,731

1,071,765

Tax on profit

7

669,717

278,253

PROFIT FOR THE FINANCIAL YEAR

1,790,014

793,512

OTHER COMPREHENSIVE INCOME

Revalued heritable property

1,385,167

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,385,167

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,175,181

793,512

FIXED ASSETS

Tangible assets

9

7,729,861

6,440,646

Investments

10

100,000

-

7,829,861

6,440,646

CURRENT ASSETS

Stocks

11

2,158,684

2,038,035

Debtors

12

5,684,809

4,109,327

Cash at bank and in hand

1,540,968

1,768,548

9,384,461

7,915,910

CREDITORS

Amounts falling due within one year

13

3,247,287

2,837,824

NET CURRENT ASSETS

6,137,174

5,078,086

TOTAL ASSETS LESS CURRENT LIABILITIES

13,967,035

11,518,732

CREDITORS

Amounts falling due after more than one year

14

(297,951

)

(650,613

)

PROVISIONS FOR LIABILITIES

17

(475,432

)

(434,648

)

NET ASSETS

13,193,652

10,433,471

CAPITAL AND RESERVES

Called up share capital

18

315,000

315,000

Revaluation reserve

19

1,766,491

460,952

Non-distributable reserve

19

172,720

-

Retained earnings

19

10,939,441

9,657,519

SHAREHOLDERS' FUNDS

13,193,652

10,433,471

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:

J Marshall Jnr - Director

Called up

share

Retained

Revaluation

Non-distributable

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

315,000

9,269,093

614,690

-

10,198,783

Changes in equity

Dividends

-

(558,824

)

-

-

(558,824

)

Total comprehensive income

-

947,250

(153,738

)

-

793,512

Balance at 31 December 2023

315,000

9,657,519

460,952

-

10,433,471

Changes in equity

Dividends

-

(415,000

)

-

-

(415,000

)

Total comprehensive income

-

1,696,922

1,305,539

172,720

3,175,181

Balance at 31 December 2024

315,000

10,939,441

1,766,491

172,720

13,193,652

Cash flows from operating activities

Cash generated from operations

1

1,984,787

2,701,477

Interest element of hire purchase payments paid

(20,203

)

(27,455

)

Tax paid

(604,063

)

(620,475

)

Net cash from operating activities

1,360,521

2,053,547

Cash flows from investing activities

Purchase of tangible fixed assets

(280,131

)

(639,372

)

Purchase of fixed asset investments

(100,000

)

30,750

Sale of tangible fixed assets

136,899

154,999

Interest received

38,809

44,768

Net cash from investing activities

(204,423

)

(408,855

)

Cash flows from financing activities

Capital repayments in period

(360,893

)

(233,475

)

Amount introduced by directors

509,967

351,336

Amount withdrawn by directors

(1,117,752

)

(665,700

)

Equity dividends paid

(415,000

)

(558,824

)

Net cash from financing activities

(1,383,678

)

(1,106,663

)

(Decrease)/increase in cash and cash equivalents

(227,580

)

538,029

Cash and cash equivalents at beginning of year

2

1,768,548

1,230,519

Cash and cash equivalents at end of year

2

1,540,968

1,768,548

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

2024

2023

£

£

Profit before taxation

2,459,731

1,071,765

Depreciation charges

524,900

644,132

Profit on disposal of fixed assets

(35,716

)

(11,740

)

Gain on revaluation of fixed assets

(250,000

)

-

Finance costs

20,203

27,455

Finance income

(38,809

)

(44,768

)

2,680,309

1,686,844

(Increase)/decrease in stocks

(120,649

)

312,108

(Increase)/decrease in trade and other debtors

(756,489

)

884,447

Increase/(decrease) in trade and other creditors

181,616

(181,922

)

Cash generated from operations

1,984,787

2,701,477

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,540,968

1,768,548

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,768,548

1,230,519

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

1,768,548

(227,580

)

1,540,968

1,768,548

(227,580

)

1,540,968

Debt

Finance leases

(1,009,495

)

360,893

(648,602

)

(1,009,495

)

360,893

(648,602

)

Total

759,053

133,313

892,366

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Beatson's Building Supplies Limited is a private company, limited by shares, incorporated in Scotland. The registered office is The Whins, Alloa, FK10 3TA.

The 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. There were no material departures from that standard. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in Sterling (£).

Going concern

There is the potential for shortages in key supplies which could result in increased prices in the marketplace. The company maintains an excellent relationship with its supplier base to ensure continuity of supply and has a high level of membership involvement with the H&B Buying Group which enables it to secure supplies at an advantageous price.

The directors have taken steps to mitigate the impact of a shortage in key supplies by buying in bulk before prices were raised.

Forecasts include the following key assumptions: there has been no increase in price, including an inflationary increase and current trading levels will continue; debtor collection rates to continue at the current level and no reduction of variable business overheads.

After consideration of the forecasts and the various measures already implemented and with the continued support of the bank, the directors have formed the opinion, the company has adequate resources to continue in operational existence for at least 12 months from approval of the financial statements.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. In preparing these financial statements, the directors have made the following judgements:-

- To determine whether leases entered into by the company as a lessee are operating leases, finance leases or hire purchase agreements. These decisions depend on the assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Information and key sources of estimation uncertainty

In the application of the company's accounting policies the directors are required to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The directors consider the key sources of estimation uncertainty to be as follows:-

- Tangible fixed assets (see note 9) are depreciated over their estimated useful lives. The actual lives of the assets are assessed at the end of each reporting period and may vary depending on a number of factors. In re-assessing asset lives, factors such as level of usage and maintenance programmes are taken into account. The directors assessed that no changes were required to the estimated useful lives of the tangible fixed assets and therefore, determined that the stated depreciation policies applied in prior years remain appropriate.

1. ACCOUNTING POLICIES - continued

Information and key sources of estimation uncertainty continued..

To determine whether there are any indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset concerned. The directors have assessed there are no concerns in this regard.

Turnover

Turnover comprises the invoiced cost of goods sold during the year, excluding value added tax. Revenue is recognised when the company retains no continuing involvement or control over the goods and the amount of revenue can be measured reliably. Revenue relating to sales are recognised on sale to the customer, which is considered the point of delivery.

Rebates

Rebates received from suppliers mainly comprise volume related rebates on the purchase of inventories. Contractual volume related rebates are accrued and recognised in profit and loss based on the applicable percentage where it is probable the rebates will be received.

Tangible fixed assets

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

Heritable property

-

2% straight line

Leasehold improvements

-

straight line over life of lease

Plant and machinery

-

15% on cost

Furniture and fittings

-

33% on cost, 15% on cost and straight line over term of lease

Motor vehicles

-

20% on reducing balance

Plant and equipment are included in the financial statements at cost less accumulated depreciation and accumulated impairment losses.

Land and buildings are carried at their revalued amounts, being fair value at the date of valuation less any subsequent depreciation and impairment losses. Land included within heritable property has not been depreciated. Revaluations are performed by professionally qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Any revaluation increase in the carrying amount of land and buildings is recognised in other comprehensive income and included in a non-distributable reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in the profit or loss, in which case the increase is credited to the profit and loss to the extent of the decrease previously expended. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the non-distributable reserve in equity: decreases exceeding the balance in the non-distributable reserve relating to an asset are recognised in the profit and loss. At each reporting date the difference between depreciation based on the revalued carrying amount of the asset recognised in profit or loss and depreciation based on the asset's original cost is transferred from the non-distributable reserve to retained earnings.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like property, plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Fixed asset investments

Fixed asset investments are valued at cost less any provision for impairment.

Inventory

Inventories are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Cost is determined using the FIFO method. Costs includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition.

At the end of the reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account. Replacement cost of inventory would not be materially different.

Taxation

Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred taxation is measured on a non-discounted basis at the average tax rates that would apply when the timing differences are expected to reverse, based on tax rates and laws that have been enacted by the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

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.

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

Rentals receivable under operating leases are credited to the profit and loss account on a straight-line basis, in accordance with the lease agreement.

Pension costs and other post-retirement benefits

The company operates defined contribution pension schemes for the directors and staff of the company. The assets of the scheme are held separately from those of the company in independently administered funds. Contributions payable for the period are charged in the profit and loss account.

Investment properties

The company holds investment properties for rental purposes. Investment properties are accounted for as follows:

(i) Investment properties are initially recognised at cost which includes purchase cost and any directly attributable expenditure.

(ii) Thereafter, investment properties are revalued at each balance sheet date to their fair value, where this can be measured reliably.

(iii) Subsequently the surplus or deficit arising on revaluation to fair value in the reporting period is recognised in the profit and loss account for that period. Revaluation gains and losses are accumulated in the profit and loss account reserve, unless the revaluation amount exceeds original cost in which case, a transfer is made of the surplus to a non distributable reserve in the balance sheet.

(iv) Deferred taxation is provided on any gains at the rate expected to apply when a property is sold.

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 accounts receivable and payable and loans from banks and other third parties and loans to related parties.

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

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in the profit and loss account.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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

Provisions

Provisions are recognised where the company has a legal or constructive obligation at the reporting date resulting from a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Employee benefits

Short term employee benefits are recognised as an expense in the period in which they are incurred.

2.

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

£

£

Sale of goods

36,902,938

35,589,000

36,902,938

35,589,000

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

36,902,938

35,589,000

36,902,938

35,589,000