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

During the financial period to 31 December 2024 CheckFire Ltd continued to be a specialist supplier of fire safety products. As a nationwide wholesale distributor, CheckFire Ltd serves a wide range of market sectors and customer types throughout the UK.

The demands and needs of the customer and industry sectors served by the Company require a dynamic and accessible approach. To provide for this, CheckFire Ltd continues to embrace two separate trading models.

CheckFire Trade, the core business entity, continues its position at the forefront of its market, providing the UK Fire Trade with a dependable and innovative supply partner. As a specialist manufacturer and importer of quality fire-fighting and safety equipment and ancillary products, CheckFire Ltd maintains vast stocks in the UK and operates a responsive and tailored distribution model. Working closely with its customers, and responding quickly to industry trends and legislative changes, CheckFire Ltd retains its position as the most progressive and innovative company in the UK Fire Trade market.

In addition, our successful fire door and fire-stopping products business, trading under the brand of FireSealsDirect, provides fire protection products and materials to a wide customer base, predominately in the construction, fit-out and refurbishment trades, and provides solutions for the facilities maintenance sector. This rapidly growing business is becoming a go-to source for an increasingly diverse market and has expanded its direct-to-trade operations during 2024 to build on the incredible success of its already well-established e-commerce business.

Recent and upcoming legislative changes mean an increasing focus on product refining and development, along with proactive supply chain intelligence and management. The Fire Industry is heavily regulated and justifiably surrounded by rigorous legislation and standards, and CheckFire invests significant resources into ensuring it remains at the forefront of our industry sector. The Company is in a great position to respond rapidly to market and legislative changes, resulting in a dynamic and on-point product portfolio, underpinned by a best-in-class warehousing and distribution operation.

Global Volatility

Volatility in global markets have required special focus on supply chain management. The sea freight challenges during the year required significant resource and attention, but disruption and cost oscillation were successfully managed throughout the year. Similar challenges have been faced with regards to foreign exchange fluctuations and uncertainty in the UK linked to government policy and budgetary uncertainty. The Directors have successfully monitored and managed these risks, with CheckFire becoming even more resilient as we continue to grow and expand.

Linked to the continued growth of the business, the Company recruited high-level commercial and operational management resource during the year to establish a Senior Leadership Team. Investment in senior talent in Sales, Operations, Finance and HR sets the Company in a strong position with experienced competencies across all functional areas of the business.

In response to the ever-increasing demand from the industry to provide reliable and effective facilities for disposal of end-of-life extinguishers, CheckFire Ltd relocated its extinguisher dismantling and recycling operation to a new site. This new facility ensures the operation can be carried out in accordance with legislative requirements, and ensure compliance with environmental responsibilities, while allowing for the increasing volume of units being received for processing.

Financial Performance

The Directors and professional advisors to the Board remain proactive in the management of all financial aspects of the business.  Robust, effective, and on-time reporting and access to relevant management information result in agile and effective decision-making and response to demands. The important primary financial performance metrics, including key ratios, profitability, stock levels and availability, cash, direct and indirect costs, along with foreign exchange rates and trends are continuously reviewed and any variance from budgets and forecasts plan are promptly investigated and appropriate action undertaken in response.

The year saw a significant move forward in terms of revenue growth and investment in our premises and colleagues, ensuring we’re in a great place to build for the future. The Directors are satisfied with the results achieved and have a very positive outlook for the future of the Company.

The Directors are pleased to report that sales revenue for the year was £38,997,852 (2023: £33,063,402) resulting in the generation of £2,984,793 (2023: £3,350,547) of profit before tax.

The Board monitor financial performance closely throughout the year, with key financial information and metrics reported to the Board and Senior Leadership Team monthly.

KPI Summary

Strategic Acquisition

In addition, we are pleased to report that post year-end on March 31st, 2025, CheckFire Ltd completed the acquisition of PJ Fire Limited, a long-standing business partner based in Chesterfield. Completed in April 2025, this acquisition secures PJ Fire’s manufacturing capabilities for CO₂ products and expands CheckFire Ltd’s footprint in northern England.

CheckFire Ltd continues its commitment to outstanding customer care, and further investment in the Customer Experience Team during the year ensures excellence is provided to all customers. Establishing key relationships and supporting customers’ often unique requirements demands a special approach, for which the Company is well known.

The Directors and Senior Leadership Team are committed to the maintenance of real-time assessment of the risks and uncertainties faced by the Company. The Directors report that these risks are generally similar to those that are experienced by other businesses in the markets and sectors in which the Company operates.   

CheckFire’s key strategic risks include:

• Regulatory Risk & Compliance
  PFAS restrictions are accelerating. The company has mitigated this by phasing out PFAS products (by October 2024) and introducing compliant alternatives.

• Technological & Fire Risk Landscape
  Increased use of lithium-ion battery-powered devices creates novel fire hazards. The LFX range directly addresses this emerging threat.

• Operational Integration & Capacity
  The integration of PJ Fire’s operations will introduce challenges in aligning processes, quality standards, and establishing synergies.

• Sustainability Pressures
  Market demand for eco-responsible practices is growing; ongoing commitment to end-of-life product processing and green innovation will remain essential.

Environmental, Social & Governance (ESG)

ESG considerations remain central to our strategy and day-to-day operations. During the year, we continued to reduce our environmental footprint by improving energy efficiency across our sites, investing in lower-carbon technologies and electrical charging points, and enhancing our waste reduction and recycling programmes.

On the social front, we are committed to creating an inclusive workplace where colleagues feel valued and supported; this year we launched new initiatives focused on employee wellbeing and mental health awareness.

From a governance perspective, we continue to develop our oversight structures to ensure accountability, ethical conduct and compliance in all its forms. ESG factors are embedded into our decision-making processes, reflecting our belief that responsible business practices are integral to long-term value creation.

Premises and Facilities 

The company continues to invest and acquire additional premises and facilities in its quest to strengthen its sustainability and positioning in the market.  The Northern Depot, opened during 2023, has proved successful as a regionally based facility for customers in the north of the UK, and improving logistical and operational performance.   

The new Extinguisher Recycling facility in Caerphilly, South Wales is fully functional. Operating with licenced waste processors, CheckFire Recycling provides the Fire Trade with a safe, compliant and efficient solution to the challenges of disposing of end-of-life extinguishers.

The new headquarters facility in Bedwas, South Wales is now fully operational and brings together the various operational and commercial teams into a dynamic workspace. The benefit of this has been clearly demonstrated during the year, and numerous customers have visited the showroom and facilities.

Liquidity

CheckFire Ltd monitors and manages its cash and borrowing requirements with a view to maximising interest income and keeping interest expense as low as possible. This vigilance ensures the entity has adequate liquid resources to meet the operational needs of the business. 

2025 Outlook

The Directors remain fully confident that the Company operates in a responsible and professional manner, and that the ongoing program of investment in people, processes and facilities provides a solid platform for continued sustainable growth in 2025 and beyond.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of supply of fire protection products to the trade.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £817,418. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

During the year, the company purchased 14 Ordinary £1 shares (1 of each class Ordinary B to Ordinary O) for the consideration of £14. Upon the purchase, these shares were immediately cancelled. The maximum number of shares owned by the company in the year was 14, with a nominal value of £14.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, risk management objectives and policies, and exposure to risks.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

The directors are responsible for preparing the annual report 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; and

• 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.

We have audited the financial statements of Checkfire Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and ISO 9001:2015. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Checkfire Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 15 Pantglas Industrial Estate, Bedwas, CAERPHILLY, Mid Glamorgan, Wales, CF83 8DR.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Change in accounting estimate

During the year ended 31 December 2024 it was decided the depreciation period of motor vehicles would be updated to reflect the useful economic lives of vans included within this category of 2 years instead of 5.

This change has been applied from 1 January 2024 onwards. The change affects the depreciation charge within the tangible assets and the Profit and Loss expense account. If there had been no change, the depreciation charge for motor vehicles the year ended 31 December 2024 would be £25,182. With the change applied, the depreciation charge is now £49,544.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

In determining the estimated useful life the directors consider the expected usage (capacity and physical output) of the asset, expected physical wear and tear of the asset and expected technical advances in the industry that could lead to obsolescence of the asset. Each year the directors review the above to establish if there is any change in expected useful life of tangible assets.

Included within provisions is an estimate for costs that the directors expect to incur in relation to the resoration of leased premises as at the determination of applicable leases. At 31 December 2024 the value of this estimate was £150,000 (2023: £110,000).

Where estimated selling price less costs to complete and sell is lower than cost, a stock provision will be recorded. The estimated selling price is determined with reference to market values. At 31 December 2024, the stock provision totalled £108,772 (2023: £291,769).

The directors review outstanding debtor balances on an ongoing basis, and recognise a provision for balances where recovery is in doubt. At 31 December 2024 the doubtful debts provision totalled £67,681 (2023: £20,029).

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023 - 7).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

Obligations under finance leases of £262,737 (2023: £12,653) are secured over the assets to which the liabilities relate.

Obligations under finance leases of £783,450 (2023: £1,102) are secured over the assets to which the liabilities relate.

The loans are secured by the company, and are repayable within 12 months of the initial loan being drawn down. The interest rate on loans is 3% above the bank's sterling base rate.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £13,258 (2023: £10,209) were payable to the scheme at the end of the year.

During the year, the company purchased 14 Ordinary £1 shares (1 of each class Ordinary B to Ordinary O) for the consideration of £14. Upon the purchase, these shares were immediately cancelled. The remaining 100 Ordinary shares of £1 each were subsequently designated to 10 of each class Ordinary A to Ordinary J shares.

Ordinary shares carry full voting and equity rights, and rank higher priority than other share classes with respect to dividend rights. Other share classes do not carry voting rights to capital distributions, but may be considered separately by the directors when considering dividends.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

Since the end of the financial year, the company has purchased 100% of the shareholding of an unconnected third party, at a cost of £3.6 million.

The remuneration of key management personnel is as follows.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

Directors

During the year the company maintained a loan account with the directors. Interest of £34,439 was charged on the balance, there are no set repayment terms and the loan is unsecured. At the balance sheet date the amount due to the directors is £380,681 (2023: £352,342).

Checkfire Partnership

During the year the company maintained a loan account with a partnership in which the directors are partners. Interest of £1,063 was charged on the balance, there are no set repayment terms and the loan is unsecured. At the balance sheet date the amount due to the partnership is £1,986 (2023: £20,232).

Dividends totalling £599,702 (2023 - £372,485) were paid in the year in respect of shares held by the company's directors.