REGISTERED NUMBER: SC533323 (Scotland)

Group Strategic Report,

Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

K C Holdings (Scotland) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTOR:

D W Milne

REGISTERED OFFICE:

South Suite

5 Seaward Place

Glasgow

G41 1HH

REGISTERED NUMBER:

SC533323 (Scotland)

AUDITORS:

TB Dunn & Co

Statutory Auditor

Ground Floor (part)

8000 Academy Business Park

51 Gower Street

GLASGOW

G51 1PR

The director presents his strategic report of the company and the group 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 £12 million and maintaining a strong profit before tax of over £830,000. 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

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 director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

No interim dividend was paid during the year. The director recommends a final dividend of 18p per share.

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

DIRECTOR

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

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group'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 Holdings (Scotland) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

12,742,252

12,796,510

Cost of sales

10,013,141

10,149,988

GROSS PROFIT

2,729,111

2,646,522

Administrative expenses

1,987,718

1,946,765

741,393

699,757

Other operating income

36,648

74,239

OPERATING PROFIT

5

778,041

773,996

Interest receivable and similar income

62,796

3,572

840,837

777,568

Interest payable and similar expenses

6

5,106

29,778

PROFIT BEFORE TAXATION

835,731

747,790

Tax on profit

7

252,389

233,245

PROFIT FOR THE FINANCIAL YEAR

583,342

514,545

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

583,342

514,545

Profit attributable to:

Owners of the parent

583,342

514,545

Total comprehensive income attributable to:

Owners of the parent

583,342

514,545

FIXED ASSETS

Intangible assets

10

220,000

330,000

Tangible assets

11

301,223

338,334

Investments

12

-

-

521,223

668,334

CURRENT ASSETS

Debtors

13

1,333,705

1,818,240

Cash at bank

3,756,757

3,220,263

5,090,462

5,038,503

CREDITORS

Amounts falling due within one year

14

2,183,259

2,755,955

NET CURRENT ASSETS

2,907,203

2,282,548

TOTAL ASSETS LESS CURRENT LIABILITIES

3,428,426

2,950,882

CREDITORS

Amounts falling due after more than one year

15

(57,841

)

(72,188

)

PROVISIONS FOR LIABILITIES

18

(55,498

)

(56,949

)

NET ASSETS

3,315,087

2,821,745

CAPITAL AND RESERVES

Called up share capital

19

5,000

5,000

Capital redemption reserve

20

5,000

5,000

Retained earnings

20

3,305,087

2,811,745

SHAREHOLDERS' FUNDS

3,315,087

2,821,745

The financial statements were approved by the director and authorised for issue on 24 September 2025 and were signed by:

D W Milne - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

2,233,700

2,233,700

2,233,700

2,233,700

CURRENT ASSETS

Debtors

13

26,834

32,525

CREDITORS

Amounts falling due within one year

14

100,721

99,478

NET CURRENT LIABILITIES

(73,887

)

(66,953

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,159,813

2,166,747

CAPITAL AND RESERVES

Called up share capital

19

5,000

5,000

Retained earnings

20

2,154,813

2,161,747

SHAREHOLDERS' FUNDS

2,159,813

2,166,747

Company's profit for the financial year

83,066

493,916

The financial statements were approved by the director and authorised for issue on 24 September 2025 and were signed by:

D W Milne - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

5,000

2,344,199

5,000

2,354,199

Changes in equity

Dividends

-

(46,999

)

-

(46,999

)

Total comprehensive income

-

514,545

-

514,545

Balance at 31 December 2023

5,000

2,811,745

5,000

2,821,745

Changes in equity

Dividends

-

(90,000

)

-

(90,000

)

Total comprehensive income

-

583,342

-

583,342

Balance at 31 December 2024

5,000

3,305,087

5,000

3,315,087

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

5,000

1,714,830

1,719,830

Changes in equity

Dividends

-

(46,999

)

(46,999

)

Total comprehensive income

-

493,916

493,916

Balance at 31 December 2023

5,000

2,161,747

2,166,747

Changes in equity

Dividends

-

(90,000

)

(90,000

)

Total comprehensive income

-

83,066

83,066

Balance at 31 December 2024

5,000

2,154,813

2,159,813

Cash flows from operating activities

Cash generated from operations

1

1,000,915

1,447,127

Interest paid

-

(20,759

)

Interest element of hire purchase payments paid

(5,106

)

(9,019

)

Tax paid

(306,242

)

(158,331

)

Net cash from operating activities

689,567

1,259,018

Cash flows from investing activities

Purchase of tangible fixed assets

(35,579

)

(117,115

)

Interest received

62,796

3,572

Net cash from investing activities

27,217

(113,543

)

Cash flows from financing activities

Loan repayments in year

-

(549,845

)

Capital repayments in year

(14,455

)

(14,455

)

Amount withdrawn by directors

(834

)

-

Related party debtor

(75,001

)

-

Equity dividends paid

(90,000

)

(46,999

)

Net cash from financing activities

(180,290

)

(611,299

)

Increase in cash and cash equivalents

536,494

534,176

Cash and cash equivalents at beginning of year

2

3,220,263

2,686,087

Cash and cash equivalents at end of year

2

3,756,757

3,220,263

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

2024

2023

£

£

Profit before taxation

835,731

747,790

Depreciation charges

182,691

169,012

Finance costs

5,106

29,778

Finance income

(62,796

)

(3,572

)

960,732

943,008

Decrease in trade and other debtors

560,369

1,074,792

Decrease in trade and other creditors

(520,186

)

(570,673

)

Cash generated from operations

1,000,915

1,447,127

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

3,756,757

3,220,263

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

3,220,263

2,686,087

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

3,220,263

536,494

3,756,757

3,220,263

536,494

3,756,757

Debt

Finance leases

(86,643

)

14,455

(72,188

)

(86,643

)

14,455

(72,188

)

Total

3,133,620

550,949

3,684,569

1.	STATUTORY INFORMATION

K C Holdings (Scotland) 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 General 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.

The group consists of K C Holdings (Scotland) Limited and all of its subsidiaries.

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

The consolidated financial statements incorporate those of K C Holdings (Scotland) Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

The consolidated financial statements are made up to 31 December 2024.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies.

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.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

-

20% on cost and 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 Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

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.

Debtors

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

Cash and cash equivalents

Cash is represented by cash and deposits with financial institutions repayable without penalty on notice of not more than twenty four hours. Cash equivalents are highly liquid investments that mature in no more than three months 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 fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Fixed asset impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

11,042,559

10,976,801

Europe

667,459

781,156

Rest of the world

1,032,234

1,038,553

12,742,252

12,796,510

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