REGISTERED NUMBER: SC110547 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

K C Group Shipping Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Balance Sheet

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

D W Milne

Mrs N Milne

REGISTERED OFFICE:

South Suite

5 Seaward Place

Glasgow

G41 1HH

REGISTERED NUMBER:

SC110547 (Scotland)

AUDITORS:

TB Dunn & Co

Statutory Auditor

Ground Floor (part)

8000 Academy Business Park

51 Gower Street

GLASGOW

G51 1PR

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

REVIEW OF BUSINESS

Introduction:

2024 was a year defined by heightened geopolitical tensions, escalating global conflict, and significant disruption to international supply chains. From conflict escalation in the Middle East to continued instability in Eastern Europe and strained trade corridors in the Red Sea and Suez Canal, the logistics sector faced immense operational and commercial pressures.

Despite these challenging global conditions, KC Group Shipping is pleased to report another year of resilient performance, delivering turnover exceeding £11 million and maintaining a strong profit before tax of over £890,000. This stable margin-despite increased operational volatility-reflects prudent financial management, strategic agility, and the unwavering commitment of our people.

Market and Geopolitical Impact:

In 2024, international shipping routes experienced significant disruption, particularly in strategic areas such as the Red Sea and Gulf of Aden, resulting in extended transit times, rerouting of cargo via the Cape of Good Hope, and increased insurance premiums and chartering costs. Port congestion in Asia and Europe resurfaced in peak periods, and ocean freight capacity was under renewed pressure as carriers restructured service loops and alliance schedules to manage risk exposure.

Energy price volatility, global inflationary pressures, and reduced consumer confidence across Europe also contributed to margin compression across the logistics sector. Despite these challenges, KC Group Shipping's lean cost base, diversified service model, and ability to pivot quickly across modes and markets enabled us to protect both service levels and bottom-line performance.

Strategic Highlights:

1. Service Diversification & Growth:

- Expanded project logistics operations within offshore energy and infrastructure sectors.

- Strengthened cross-trade and European road freight offerings, particularly into the Benelux region.

- Enhanced 24/7 critical cargo support and out-of-hours operations for key clients.

2. Financial Resilience & Controls:

- Maintained strong gross margins through strict cost control and route optimisation.

- Introduced enhanced pricing models with dynamic fuel and risk surcharges to absorb market shocks.

- Extended supplier payment terms where viable without impacting service continuity.

3. Technology & Compliance:

- Continued investment in proprietary tracking and documentation platforms.

- Rolled out customer-specific emissions reporting to support Scope 3 visibility.

- Strengthened cybersecurity and compliance systems in line with industry best practice.

4. Human Capital & Leadership:

- Reinforced finance and operational leadership structures to manage growth.

- Continued professional development through our bespoke KC Learning & Development Hub.

- Embedded a culture of commercial ownership and cross-departmental collaboration.

Outlook for 2025:

While global supply chains are expected to remain under pressure, early indicators suggest a stabilising freight market in the second half of 2025. However, geopolitical risks and interest rate uncertainty remain key threats. KC Group Shipping enters the new financial year with a robust balance sheet, a proven management team, and a strategic plan focused on:

- Strengthening our European footprint and cross-border compliance services.

- Exploring acquisition opportunities aligned with our core service model.

- Continuing EBITDA improvement through scale, efficiency, and service innovation.

REVIEW OF BUSINESS ( CONTINUED)

Conclusion:

KC Group Shipping has once again demonstrated the financial and operational resilience required to succeed in one of the most complex logistics environments in recent memory. We have not only protected our profitability, but also positioned ourselves for sustained growth.

KC Group Shipping continues to be a market-leading independent freight forwarding organisation, recognised for our agility, reliability, and customer-first approach. Through continual investment in our people, ongoing staff training, and the development of our bespoke online Learning & Development Hub, we are actively shaping the next generation of logistics professionals. Complemented by ongoing investment in IT infrastructure and logistics software, these initiatives ensure we remain at the forefront of global supply chain solutions, delivering value, visibility, and performance for our clients.

I extend my appreciation to our leadership team, staff, clients, and partners for their continued support and trust.

PRINCIPAL RISKS AND UNCERTAINTIES

As the Managing Director of KC Group Shipping Limited, it is imperative to provide a comprehensive overview of the principal risks and uncertainties that the company faces. This review aims to outline the strategies undertaken to mitigate these risks and navigate through uncertainties.

Currency Fluctuations:

One of the key risks affecting our operations is exposure to currency movements. With purchases conducted in both Euros and Dollars, the group faces potential fluctuations in currency exchange rates, particularly concerning Euros to Sterling and Dollars to Sterling. To mitigate this risk, the company has implemented proactive measures, which include financial instruments to hedge against adverse currency movements. These efforts contribute to stabilising our financial position and enhancing predictability in an ever-changing currency landscape.

Credit Risk Management:

The company's credit risk remains largely centred on trade debtors. This risk is managed meticulously through a multifaceted approach. Regular credit checks are conducted, encompassing both existing and prospective clients. The company diligently monitors payment patterns and credit levels, facilitating early detection of potential credit issues. This proactive approach to credit risk minimisation ensures that the company maintains a healthy balance between credit extension and risk containment.

Cash Flow Monitoring and Projection:

Cash flow stands as a lifeline of our operations. Our day-to-day procedures include rigorous cash flow monitoring and projection assessments on a monthly basis. This practice enables us to proactively address any liquidity challenges that may arise. Furthermore, ensuring the availability of adequate facilities to address unforeseen needs bolsters our financial resilience.

Navigating Global Market Conditions:

The ever-changing global market conditions, marked by escalating prices, have posed significant challenges. Despite this backdrop, the company has demonstrated resilience and adaptability. Through a steadfast commitment to excellent customer service, we have not only retained our market standing but have also worked in tandem with suppliers to ensure a consistent supply chain. This collaborative approach has not only contributed to operational stability but also strengthened our global market position.

In conclusion, KC Group Shipping Limited acknowledges and addresses the principal risks and uncertainties that are inherent in our business landscape. Our strategic measures to manage currency fluctuations, credit risks, and cash flow challenges, coupled with a customer-centric and collaborative approach, position us favourably to navigate the complexities of the global market.

ON BEHALF OF THE BOARD:

D W Milne - Director

24 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 in the year under review was that of international shipping, chartering and forwarding agents.

DIVIDENDS

An interim dividend of £18 per share was paid on 31 December 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 90,000 .

DIRECTORS

D W Milne has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mrs N Milne - appointed 1 December 2024

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, TB Dunn & Co, have expressed their willingness to continue in office.

ON BEHALF OF THE BOARD:

D W Milne - Director

24 September 2025

Opinion

We have audited the financial statements of K C Group Shipping Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 five, 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 is detailed below:

We identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following:

-

the nature of the industry and sector, control environment and business performance including the key drivers for Directors' remuneration, bonus levels and performance targets;

-

results of our enquiries of management about their own identification and assessment of the risks irregularities;

-

any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

-

the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we consider the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the cut-off of revenue recognition. In common with all audits under ISAs(UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosure in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK GAAP and the application of FRS 102 and HMRC tax compliance. We also considered key indirect laws and regulations, Health and Safety legislation, employment law and anti money laundering regulations.

In addition to the above, our procedures to respond to risks identified included the following:

-

assessing the adequacy of the company's related party disclosures in the financial statements;

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;

-

comparing information obtained during the course of the audit to external sources ( such as Companies House ) to identify potential undisclosed related parties;

-

enquiring of management concerning actual and potential litigation and claims;

-

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meeting of those charged with governance;

-

in addressing the fraud risk in revenue cut-off, we have tested a sample of revenue/purchases recorded pre year end and post year end and agreed to invoice, and purchase ledger records to assess timing or cut-off and ensure that revenue is only recognised when services are receivable; and

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations through the audit.

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.

Mark Blair (Senior Statutory Auditor)

for and on behalf of TB Dunn & Co

Statutory Auditor

Ground Floor (part)

8000 Academy Business Park

51 Gower Street

GLASGOW

G51 1PR

24 September 2025

TURNOVER

3

11,345,096

11,238,607

Cost of sales

8,875,123

8,990,419

GROSS PROFIT

2,469,973

2,248,188

Administrative expenses

1,836,227

1,782,988

633,746

465,200

Other operating income

202,995

396,639

OPERATING PROFIT

5

836,741

861,839

Interest receivable and similar income

62,781

3,572

899,522

865,411

Interest payable and similar expenses

6

5,106

11,564

PROFIT BEFORE TAXATION

894,416

853,847

Tax on profit

7

238,301

228,016

PROFIT FOR THE FINANCIAL YEAR

656,115

625,831

Retained earnings at beginning of year

2,356,903

2,246,072

Dividends

8

(90,000

)

(515,000

)

RETAINED EARNINGS AT END OF YEAR

2,923,018

2,356,903

FIXED ASSETS

Tangible assets

9

301,223

338,334

CURRENT ASSETS

Debtors

10

1,419,219

1,687,165

Cash at bank

3,595,441

2,981,050

5,014,660

4,668,215

CREDITORS

Amounts falling due within one year

11

2,269,526

2,510,509

NET CURRENT ASSETS

2,745,134

2,157,706

TOTAL ASSETS LESS CURRENT LIABILITIES

3,046,357

2,496,040

CREDITORS

Amounts falling due after more than one year

12

(57,841

)

(72,188

)

PROVISIONS FOR LIABILITIES

15

(55,498

)

(56,949

)

NET ASSETS

2,933,018

2,366,903

CAPITAL AND RESERVES

Called up share capital

16

5,000

5,000

Capital redemption reserve

17

5,000

5,000

Retained earnings

17

2,923,018

2,356,903

SHAREHOLDERS' FUNDS

2,933,018

2,366,903

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

D W Milne - Director

Cash flows from operating activities

Cash generated from operations

1

997,762

1,477,848

Interest paid

-

(2,545

)

Interest element of hire purchase payments paid

(5,106

)

(9,019

)

Tax paid

(301,012

)

(125,641

)

Net cash from operating activities

691,644

1,340,643

Cash flows from investing activities

Purchase of tangible fixed assets

(35,579

)

(117,115

)

Interest received

62,781

3,572

Net cash from investing activities

27,202

(113,543

)

Cash flows from financing activities

Loan repayments in year

-

(42,130

)

Capital repayments in year

(14,455

)

(14,455

)

Equity dividends paid

(90,000

)

(515,000

)

Net cash from financing activities

(104,455

)

(571,585

)

Increase in cash and cash equivalents

614,391

655,515

Cash and cash equivalents at beginning of year

2

2,981,050

2,325,535

Cash and cash equivalents at end of year

2

3,595,441

2,981,050

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

2024

2023

£

£

Profit before taxation

894,416

853,847

Depreciation charges

72,691

59,012

Finance costs

5,106

11,564

Finance income

(62,781

)

(3,572

)

909,432

920,851

Decrease in trade and other debtors

420,694

829,350

Decrease in trade and other creditors

(332,364

)

(272,353

)

Cash generated from operations

997,762

1,477,848

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

3,595,441

2,981,050

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,981,050

2,325,535

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,981,050

614,391

3,595,441

2,981,050

614,391

3,595,441

Debt

Finance leases

(86,643

)

14,455

(72,188

)

(86,643

)

14,455

(72,188

)

Total

2,894,407

628,846

3,523,253

1.	STATUTORY INFORMATION

K C Group Shipping Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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

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.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.

Turnover

Turnover represents services rendered to external customers. Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

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.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial instruments repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three month from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Financial instruments

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

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at the fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

9,645,403

9,442,873

Europe

667,459

758,854

Rest of the world

1,032,234

1,036,880

11,345,096

11,238,607

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,016,259

1,042,469

Social security costs

113,404

117,679

Other pension costs

150,884

50,317

1,280,547

1,210,465

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

2024

2023

Directors

1

1

Administration

28

30

29

31

2024

2023

£

£

Directors' remuneration

100,763

90,000

Directors' pension contributions to money purchase schemes

119,051

18,900

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

60,018

58,047

Other operating leases

25,062

20,199

Depreciation - owned assets

55,736

42,059

Depreciation - assets on hire purchase contracts

16,954

16,953

Auditors' remuneration

6,000

6,000

Foreign exchange differences

(23,014

)

2,495

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Interest paid

-

2,077

Loan

-

468

Hire purchase

5,106

5,106

Other interest

-

3,913

5,106

11,564

7.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

239,752

216,893

Prior year underprovision

-

6,622

Total current tax

239,752

223,515

Deferred tax

(1,451

)

4,501

Tax on profit

238,301

228,016

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

894,416

853,847

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

223,604

200,825

Effects of:

Expenses not deductible for tax purposes

12,021

8,977

Depreciation in excess of capital allowances

3,584

12,436

Group relief

(908

)

(850

)

Prior year underprovision

-

6,622

Rounding

-

6

Total tax charge

238,301

228,016