REGISTERED NUMBER: 03697289 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

FOR

FOXDOWN CONSTRUCTION LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

D Hiscock

D Randall

SECRETARY:

A C Hiscock

REGISTERED OFFICE:

20 Havelock Road

Hastings

East Sussex

TN34 1BP

REGISTERED NUMBER:

03697289 (England and Wales)

SENIOR STATUTORY AUDITOR:

Simon Lawrence FCCA

AUDITORS:

Ashdown Hurrey Auditors Limited

Statutory Auditor

20 Havelock Road

Hastings

East Sussex

TN34 1BP

The directors present their strategic report for the year ended 28 February 2025.

Foxdown Construction Ltd carries out Groundwork & Civils for major developers and contractors within the Southeast of England. Its work is focused mainly on housing developments for both national and regional developers. Much of the workload is repeat business.

We offer groundwork services, including roads, sewers, foundations, retaining walls and all ancillaries thereto. We act on occasions as a Principal Contractor as and when required by our clients.

Our strategy is to maintain and increase organically as market conditions allow us to fulfill our clients' needs for groundworks services within our sector.

REVIEW OF BUSINESS

KEY PERFORMANCE INDICATORS

Turnover

Gross Profit

GP %

Bad Debts

Pre Tax Profit

Pre Tax %

2025

£31,305,264

£4,408,585

14.08%

£(320,159)

£2,008,513

6.42%

2024

£22,780,151

£4,039,519

17.73%

£1,607,999

£42,326

0.19%

2023

£14,322,167

£2,764,141

19.3%

£23,316

£979,158

6.84%

We have reallocated some of the previously centrally costed elements, where felt appropriate. These specific items serve more relevance to costs of goods sold and hence have been costed in this manner. This will mean a reduction on Gross Margin with a balancing reduction to our overheads. This approach will be maintained going forward.

In 2024, we set about recovering lost ground following the untimely demise of Ilke, as documented in our previous year's financial statements. We continued to see a further period of organic growth. We increased turnover and profit, enjoying successful trading for the whole of the financial period.

We have maintained our relationships with our customers and suppliers who we have been successfully trading with over an extended period. We have continued to decline further opportunities to expand by limiting our exposure to higher risk workflow and have continued a phase of consolidation, to build back up the reserves that we have previously maintained.

Growth potential within the industry was available, this had to be tailored to available resources and opportunity. Where we felt opportunities did not suit the business requirements, we declined. It is evident that margins are becoming increasingly constrained, and this reflects in the results attained within the trading period.

Labour and material increase demands remained throughout, although this was at more manageable levels than had been previously experienced. Some of these were unavoidable and had to be absorbed within the business. Likewise, heavy machinery again increased at rates well above inflation. Some of the additional costs were recoverable from clients, where fixed price agreements had expired, although we have experienced significant resistance to settlement from some.

Our tender strategy aimed to maintain our preferred margins and where this needed to be compromised, we declined the opportunity. We saw less requirements from clients to overly extend fixed price periods, perhaps this demonstrating a relaxation in increased cost pressure over the period. If the risk was unacceptable this again on occasions left us unwilling to compete with others, as in our view it was important to limit our exposure.

We maintained our plant purchasing policy, thereby leaving us well placed to self-service our sites with the correct equipment to successfully complete the work.

The market remains suppressed in terms of tender pricing. We will continue to consolidate throughout the ensuing period, focusing on retaining our current client base, coupled with an open mind to taking on new opportunities where they are right for our business. This will also spread the risk. Some clients have remained busy, whereas others have significantly restricted operations and we expect this trend to continue into next year. It is important that we only take on work which is at sensible and sustainable levels.

PRINCIPAL RISKS AND UNCERTAINTIES

In consideration of most business within our sector, we are exposed to macroeconomic factors. These include the slowing down in the housing open market, which tends to be a consequence of a lack of confidence and elevated interest rates. We have partially mitigated this by securing a forward order book which contains significant low-cost housing projects. This gives us the facility to maintain turnover and profitability, whilst operating at resource levels as we are usually accustomed to.

We do not have any extended fixed price schemes (more than one calendar year), without an agreed mechanism for price fluctuation adjustments. All tenders submitted are fixed to either within, or a couple of months in addition to the above.

We are, like all businesses, subject to the financial uncertainty of current times but feel confidently placed to review our overall position and adapt our outlook, as the country's macroeconomics unfold.

We are fortunate to have an extremely loyal and dedicated workforce and will look forward to maintaining the exceptionally low turnover rate of staff that we have become accustomed to over the years.

FUTURE DEVELOPMENTS

Inflation has reduced as an opportunity cost of a decrease in interest rates towards the end of our financial year. Until this element of the economy has stabilised further, it is felt further expansion opportunity is limited.

We are therefore looking to sustain turnover throughout the period, which will maintain positive cashflow and increase reserve for the business. This coupled with completing several schemes within the year ending February 2026 will release retentions, assisting with the working capital for the business.

Plant purchasing will continue, ensuring base lines levels of equipment are maintained. Some legislative changes are expected. By way of example new cabbed dumper requirements are due to be invoked, until the legislation is clear it is difficult to predict whether cab-less dumpers will be permitted in the future. All new purchases reflect the likely change to cabbed.

We enjoy a strong forward order book and will look forward to maintaining this with further sensible and sustainable contact awards. We will continue to actively look to expand our client base, to spread risk and maintain our strategy of organic growth when the market conditions permit, maintaining our medium to long term objectives.

ON BEHALF OF THE BOARD:

D Hiscock - Director

11 September 2025

The directors present their report with the financial statements of the company for the year ended 28 February 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineers, general builders and groundwork contractors.

DIVIDENDS

The total distributions of dividends for they year ended 29 February 2025 was £354,480 (2024: £278,180).

DIRECTORS

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

D Hiscock

D Randall

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, borrowings, operating leases and hire purchase. The main purpose of these instruments is to finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

The loans and hire purchase liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The company's operating lease commitments are in respect of the property from which the company operates. The liquidity risk in respect of these is managed in the same way as loans above.

The company's trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

CHARITABLE DONATIONS

During the year charitable donations totalled £18,049.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, Ashdown Hurrey Auditors Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Hiscock - Director

11 September 2025

Opinion

We have audited the financial statements of Foxdown Construction Limited (the 'company') for the year ended 28 February 2025 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 28 February 2025 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;

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

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

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

- Performed detailed substantive testing to address completeness and accuracy of sales;

- Assessed the appropriateness and application of the accounting policy concerning income recognition; and

- Performed detailed cut-off testing either side of the balance sheet date.

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

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

- Tested journal entries to identify unusual transactions;

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

- Investigated the rationale behind significant or unusual transactions.

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:

https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-audit ors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx

This description forms part of our auditor's report.

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.

Simon Lawrence FCCA (Senior Statutory Auditor)

for and on behalf of Ashdown Hurrey Auditors Limited

Statutory Auditor

20 Havelock Road

Hastings

East Sussex

TN34 1BP

12 September 2025

TURNOVER

3

31,305,264

22,780,151

Cost of sales

(26,896,679

)

(18,740,632

)

GROSS PROFIT

4,408,585

4,039,519

Administrative expenses

(2,398,532

)

(3,939,897

)

2,010,053

99,622

Other operating income

47,140

4,468

OPERATING PROFIT

5

2,057,193

104,090

Interest receivable and similar income

57,250

12,497

2,114,443

116,587

Interest payable and similar expenses

6

(105,930

)

(74,261

)

PROFIT BEFORE TAXATION

2,008,513

42,326

Tax on profit

7

(389,708

)

(125,031

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,618,805

(82,705

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR

1,618,805

(82,705

)

FIXED ASSETS

Tangible assets

9

4,113,982

2,935,105

CURRENT ASSETS

Stocks

10

22,547

22,547

Debtors

11

3,516,141

1,746,466

Cash at bank and in hand

3,829,567

2,748,999

7,368,255

4,518,012

CREDITORS

Amounts falling due within one year

12

5,350,347

4,403,248

NET CURRENT ASSETS

2,017,908

114,764

TOTAL ASSETS LESS CURRENT LIABILITIES

6,131,890

3,049,869

CREDITORS

Amounts falling due after more than one year

13

(1,114,954

)

(832,407

)

PROVISIONS FOR LIABILITIES

17

(2,243,711

)

(708,562

)

NET ASSETS

2,773,225

1,508,900

CAPITAL AND RESERVES

Called up share capital

18

4,560

4,560

Capital redemption reserve

19

6

6

Retained earnings

19

2,768,659

1,504,334

SHAREHOLDERS' FUNDS

2,773,225

1,508,900

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2025 and were signed on its behalf by:

D Hiscock - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 March 2023

4,560

1,865,219

6

1,869,785

Changes in equity

Dividends

-

(278,180

)

-

(278,180

)

Total comprehensive loss

-

(82,705

)

-

(82,705

)

Balance at 29 February 2024

4,560

1,504,334

6

1,508,900

Changes in equity

Dividends

-

(354,480

)

-

(354,480

)

Total comprehensive income

-

1,618,805

-

1,618,805

Balance at 28 February 2025

4,560

2,768,659

6

2,773,225

Cash flows from operating activities

Cash generated from operations

1

2,867,571

3,115,116

Interest paid

(12,999

)

(15,334

)

Interest element of hire purchase payments paid

(92,931

)

(58,927

)

Tax paid

-

8,437

Net cash from operating activities

2,761,641

3,049,292

Cash flows from investing activities

Purchase of tangible fixed assets

(328,615

)

(1,038,536

)

Sale of tangible fixed assets

671

23,092

Interest received

57,250

12,497

Net cash from investing activities

(270,694

)

(1,002,947

)

Cash flows from financing activities

Loan repayments in year

(145,007

)

(60,000

)

Capital repayments in year

(911,256

)

241,761

Amount introduced by directors

90,462

20,501

Amount withdrawn by directors

(90,098

)

(20,638

)

Equity dividends paid

(354,480

)

(278,180

)

Net cash from financing activities

(1,410,379

)

(96,556

)

Increase in cash and cash equivalents

1,080,568

1,949,789

Cash and cash equivalents at beginning of year

2

2,748,999

799,210

Cash and cash equivalents at end of year

2

3,829,567

2,748,999

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

28.2.25

29.2.24

£

£

Profit before taxation

2,008,513

42,326

Depreciation charges

749,227

529,809

Loss on disposal of fixed assets

444

5,399

Finance costs

105,930

74,261

Finance income

(57,250

)

(12,497

)

2,806,864

639,298

Decrease in stocks

-

6,000

(Increase)/decrease in trade and other debtors

(1,769,675

)

829,906

Increase in trade and other creditors

1,830,382

1,639,912

Cash generated from operations

2,867,571

3,115,116

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 28 February 2025

28.2.25

1.3.24

£

£

Cash and cash equivalents

3,829,567

2,748,999

Year ended 29 February 2024

29.2.24

1.3.23

£

£

Cash and cash equivalents

2,748,999

799,210

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

Other

non-cash

At 1.3.24

Cash flow

changes

At 28.2.25

£

£

£

£

Net cash

Cash at bank

and in hand

2,748,999

1,080,568

3,829,567

2,748,999

1,080,568

3,829,567

Debt

Finance leases

(1,233,034

)

911,256

(1,600,604

)

(1,922,382

)

Debts falling due

within 1 year

(60,000

)

60,000

-

-

Debts falling due

after 1 year

(85,007

)

85,007

-

-

(1,378,041

)

1,056,263

(1,600,604

)

(1,922,382

)

Total

1,370,958

2,136,831

(1,600,604

)

1,907,185

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The 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 £.

Going concern

In preparing the financial statements, the directors are required to make an assessment of the ability of the company to continue as a going concern. The directors have considered all available evidence for the company which covers the 12 month period from the date of signing these financial statements.

The company has positive net current assets and net assets, the directors are confident that the company has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. In reaching this conclusion they are satisfied that no material uncertainty exists. The directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements and that no material uncertainty exists in reaching this conclusion.

Significant judgements and estimates

In the application of the accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.

The key judgements that management have made in applying the accounting policies relate to the recoverability of debtors, both trade and other.

The estimates and underlying assumptions for debtors are based on historical experience and other factors that are considered to be relevant. In the case of companies which have gone into administration the company considers the likely recovery as indicated by the Administrators when providing for bad debts. 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover

Turnover is recognised when the work has been performed. Turnover represents amounts charged, net of value added tax, and adjusted for the value of work performed to date on contracts at the period end.

When the outcome of a construction 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 work completed to that date.

Where 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.

Tangible fixed assets

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

Plant and machinery

-

20% on reducing balance, 15% on reducing balance and 10% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks have been valued at the lower of cost and estimated selling price less costs to sell.

Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

Cash and cash equivalents

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 are shown within borrowings in current liabilities.

Impairment of financial assets

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 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.

Derecognition of financial assets

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.

Equity instruments

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

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.

Hire purchase and leasing commitments

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

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

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit before tax are generated wholly within the UK and attributable to the sole activity of the company.

4.	EMPLOYEES AND DIRECTORS

28.2.25

29.2.24

£

£

Wages and salaries

1,161,315

943,535

Social security costs

86,118

71,359

Other pension costs

131,554

18,823

1,378,987

1,033,717

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

28.2.25

29.2.24

Operations

4

6

Admin

16

13

Directors

2

2

22

21

28.2.25

29.2.24

£

£

Directors' remuneration

25,140

24,878

5.	OPERATING PROFIT

The operating profit is stated after charging:

28.2.25

29.2.24

£

£

Depreciation - owned assets

294,448

229,714

Depreciation - assets on hire purchase contracts

454,779

300,095

Loss on disposal of fixed assets

444

5,399

Auditors' remuneration

16,140

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

28.2.25

29.2.24

£

£

Bank loan interest

8,971

12,665

Other interest

4,028

2,669

Hire purchase

92,931

58,927

105,930

74,261

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

28.2.25

29.2.24

£

£

Current tax:

UK corporation tax

90,991

-

Deferred tax

298,717

125,031

Tax on profit

389,708

125,031

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:

28.2.25

29.2.24

£

£

Profit before tax

2,008,513

42,326

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 19%)

502,128

8,042

Effects of:

Expenses not deductible for tax purposes

2,107

2,425

Income not taxable for tax purposes

-

(2,375

)

Capital allowances in excess of depreciation

(137

)

(97,404

)

Utilisation of tax losses

-

89,312

Movement in deferred taxation provision

-

125,031

Losses b/f

(114,390

)

-

Total tax charge

389,708

125,031