REGISTERED NUMBER: 04179055 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

WASHROOM-WASHROOM LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

Mr P Blair

Mr T M Bowers

Mr P W Gay

Mr B J Langham

Mr J Plumb

Mr M I Read

Ms L Duffy

Mr T G Harvey

SECRETARY:

Mr T M Bowers

REGISTERED OFFICE:

Units 1-10 Hill Farm

Epping Lane

Abridge

Essex

RM4 1TU

REGISTERED NUMBER:

04179055 (England and Wales)

AUDITORS:

Xeinadin Audit Limited, Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

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

REVIEW OF BUSINESS

The result for the year is shown on page 10.

Gross profit has increased by £462,431 from £3,466,218 to £3,928,649. Sales for the year to 31 December 2024 has decreased to £21.8m compared to £23.5m in the previous year.

As shown in the profit and loss account, the operating profit for continuing operations for the year was £793,598 (2023: £1,814,605).

The company's EBIDTA was £925,159 (2023: £1,949,764).

The balance sheet on page 12 shows net assets of £4,976,958 (2023: £4,430,218) at the end of the year, with a positive cash position of £904,984 (2023: £3,936,749).

PRINCIPAL RISKS AND UNCERTAINTIES

The company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk.

The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the finance department.

Competition risk

The business environment in which the company operates continues to be very challenging and competitive pricing across the industry continues to put pressure on margins. However, the company's reputation for delivering high quality service and meeting tight deadlines where necessary has provided a crucial edge over competitors.

Price risk

The company is exposed to price risk due to normal inflationary increases in the purchase price of the goods and services purchased in the UK. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

Liquidity risk

The company actively maintains short-term debt finance that is designed to ensure that the company has sufficient available funds for operations and planned expansions.

Interest rate risk

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances which earn interest at fixed rate. The company has a policy of maintaining debt at a fixed rate to ensure certainty of future interest cash flows. The directors will revisit the appropriateness of this policy if the operations of the company change in size or nature.

CORPORATE SOCIAL RESPONSIBILITY

- Health and safety policy and performance is monitored and updated on an annual basis.

- The company delivers specialist recruitment services across the entire arena of healthcare and ensures that competent and qualified people are selected.

- Other examples of polices implemented by the company in order to comply with the spirit of the law and maintain the ethical standards are: equal opportunities, harassment, training and career development.

EMPLOYEES

Staffing levels have stabilized over the past 12 months and more self-employed personnel have been taken on to cover the increased workload in the year.

We do anticipate and increase of staffing by up to 5% in relation to directly employed staff over the next 12 months

The policy of the company is to employ the most suitably qualified persons regardless of age, religion, gender, sexual orientation or ethnic origin or any other grounds not related to a person's ability to work safely and effectively for the business. The company recognises the importance of ensuring that relevant business information is provided to the employees prior to the employee's commencement date. This is achieved through initial induction (Health Questionnaire, Health & Safety, Anti-Bribery Policy, Skills and Qualifications Assessment) and regular training as required per the Construction Industry Standards.

FUTURE CONTRACTS/ORDER BOOK

The company's level of activity has improved significantly in the last 12 months, the brand is going from strength to strength, and our reputation is growing with our 25th anniversary looming next March 2026, we are also finding we are securing larger projects, the industry is returning to pre-pandemic levels if not better. Staff returning to offices in London has been a positive event for us. The current order book for the next 12 months is looking to be larger than that of the previous 12 months, with secured work allocated until August 2026 with a value exceedingly more than £19m and tender bids in excess of £30m for potential projects starting in the Q4 2025 & Q1 2026.

GENERAL OVERVIEW

The construction industry in the foreseeable future seems to be buoyant and those that were able to overcome the difficulties due to the Coronavirus pandemic and the Russia/Ukraine war would have come out of that period in a much stronger position than before. Prices within the industry now seem to be stabilizing, making it easier to tender for projects without having the risk of sudden significant price rises in resources as well as lead times for delivery. All companies are seeing government legislation & Taxation appearing at times working against us, but we are not alone with that. We anticipate a strong performance for the next 12 months for the business.

KEY PERFORMANCE INDICATORS

- Customer satisfaction and retention - has improved over the years especially considering the relationships

developed with our existing client base which is reflected in the increase in new contracts with existing customers.

- Employee satisfaction - maintaining of staff morale has been a key factor in the company's growth. The company has introduced measures to evaluate and improve employee satisfaction.

- Gross profit margin - margin has been improving in the last few years due to constant monitoring and introduction of efficiencies.

2024

2023

Measure

Gross profit margin

18.05%

14.7%

Gross profit/turnover

- Debtor days - debtor days have increased due to the larger projects undertaken.

2024

2023

Measure

Debtor days

60 days

32 days

Trade debtors/turnover

- Creditor days - the decrease is due to better control of purchase ledger.

2024

2023

Measure

Creditor days

61 days

42 days

Trade creditors/cost of sales

ON BEHALF OF THE BOARD:

Mr M I Read - Director

23 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 construction services.

DIVIDENDS

An interim dividend of 225 per share was paid on . The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 135,000 .

AUDITORS

Xeinadin Audit Limited have expressed their willingness to continue in office.

DIRECTORS

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

Mr P Blair

Mr T M Bowers

Mr P W Gay

Mr B J Langham

Mr J Plumb

Mr M I Read

Ms L Duffy

Mr T G Harvey

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). 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;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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.

GOING CONCERN

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

ON BEHALF OF THE BOARD:

Mr M I Read - Director

23 September 2025

Opinion

We have audited the financial statements of Washroom-Washroom Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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.

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

- 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 construction sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, and health and safety legislation and building industry regulations;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence where necessary.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

- performed analytical procedures to identify any unusual or unexpected transactions;

- tested the appropriateness of journal entries;

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

- investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud, we:

- we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;

- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;

- tested a sample of revenue transactions to supporting evidence; and

- tested, on a sample basis, revenue related balances in the balance sheet.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Thurairatnam Sudarshan FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited, Statutory Auditor

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

23 September 2025

TURNOVER

21,769,370

23,562,495

Cost of sales

(17,840,721

)

(20,096,277

)

GROSS PROFIT

3,928,649

3,466,218

Administrative expenses

(3,243,486

)

(1,752,527

)

685,163

1,713,691

Other operating income

108,435

100,914

OPERATING PROFIT

4

793,598

1,814,605

Interest receivable and similar income

88,513

37,321

882,111

1,851,926

Interest payable and similar expenses

5

(27,448

)

(31,191

)

PROFIT BEFORE TAXATION

854,663

1,820,735

Tax on profit

6

(172,923

)

(326,824

)

PROFIT FOR THE FINANCIAL YEAR

681,740

1,493,911

PROFIT FOR THE YEAR

681,740

1,493,911

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

681,740

1,493,911

FIXED ASSETS

Tangible assets

8

328,877

453,090

CURRENT ASSETS

Stocks

9

702,218

678,982

Debtors

10

8,720,235

5,233,343

Cash at bank and in hand

11

904,984

3,936,748

10,327,437

9,849,073

CREDITORS

Amounts falling due within one year

12

5,601,954

5,716,702

NET CURRENT ASSETS

4,725,483

4,132,371

TOTAL ASSETS LESS CURRENT LIABILITIES

5,054,360

4,585,461

CREDITORS

Amounts falling due after more than one year

13

-

(55,723

)

PROVISIONS FOR LIABILITIES

16

(77,402

)

(99,520

)

NET ASSETS

4,976,958

4,430,218

CAPITAL AND RESERVES

Called up share capital

17

600

600

Retained earnings

18

4,976,358

4,429,618

SHAREHOLDERS' FUNDS

4,976,958

4,430,218

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

Mr M I Read - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

600

3,190,707

3,191,307

Changes in equity

Dividends

-

(255,000

)

(255,000

)

Total comprehensive income

-

1,493,911

1,493,911

Balance at 31 December 2023

600

4,429,618

4,430,218

Changes in equity

Dividends

-

(135,000

)

(135,000

)

Total comprehensive income

-

681,740

681,740

Balance at 31 December 2024

600

4,976,358

4,976,958

Cash flows from operating activities

Cash generated from operations

1

(2,403,169

)

5,015,536

Interest paid

(21,746

)

(19,655

)

Interest element of hire purchase payments paid

(5,702

)

(11,536

)

Tax paid

(463,353

)

(55,927

)

Net cash from operating activities

(2,893,970

)

4,928,418

Cash flows from investing activities

Purchase of tangible fixed assets

(25,308

)

(49,403

)

Sale of tangible fixed assets

25,000

22,000

Interest received

88,513

37,321

Net cash from investing activities

88,205

9,918

Cash flows from financing activities

Loan repayments in year

-

(548,333

)

Capital repayments in year

(65,298

)

(70,730

)

Amount introduced by directors

(25,701

)

-

Amount withdrawn by directors

-

(161,568

)

Equity dividends paid

(135,000

)

(255,000

)

Net cash from financing activities

(225,999

)

(1,035,631

)

(Decrease)/increase in cash and cash equivalents

(3,031,764

)

3,902,705

Cash and cash equivalents at beginning of year

2

3,936,748

34,043

Cash and cash equivalents at end of year

2

904,984

3,936,748

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

2024

2023

£

£

Profit before taxation

854,663

1,820,735

Depreciation charges

131,561

135,158

Profit on disposal of fixed assets

(7,040

)

(22,000

)

Finance costs

27,448

31,191

Finance income

(88,513

)

(37,321

)

918,119

1,927,763

(Increase)/decrease in stocks

(23,236

)

177,755

(Increase)/decrease in trade and other debtors

(3,486,892

)

2,516,687

Increase in trade and other creditors

188,840

393,331

Cash generated from operations

(2,403,169

)

5,015,536

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

904,984

3,936,748

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

3,936,748

34,043

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

3,936,748

(3,031,764

)

904,984

3,936,748

(3,031,764

)

904,984

Debt

Finance leases

(126,442

)

65,298

(61,144

)

(126,442

)

65,298

(61,144

)

Total

3,810,306

(2,966,466

)

843,840

1.	STATUTORY INFORMATION

Washroom-Washroom 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.

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

The items in the accounts where these judgements and estimates have been made, include:

- estimating the useful economic life of tangible fixed assets for the purpose of calculating the depreciation charge;

- assessing the recoverability of outstanding debtors; and

- estimating the level of completion of projects to calculate accrued income.

Turnover

Turnover is recognised based upon an internal assessment of the value of work carried out. This assessment is arrived at after due consideration of the performance against the programme of works, measurement of the works, evaluation of the costs incurred and comparison to certification of the work performed.

Long term contracts

Recognition of turnover and profit and loss on long term contracts requires management judgement regarding the anticipated final outcome of individual contracts and the proportion of the work completed at the year end. Regular management reviews of contract progress include a comparison on internal valuations to the application for payment made to ensure that estimates applied, and results determined on a consistent basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 15% on cost

Plant and machinery - 50% on cost and 20% on reducing balance

Fixtures and fittings - 20% on reducing balance and straight line over 3 years

Motor vehicles - 25% on cost

Stocks and work in progress

Stocks and work in progress are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

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

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans, that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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 the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. Rentals paid under operating leases are charged to the profit and loss account 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. A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with bank, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,555,389

1,690,067

Social security costs

183,306

150,541

Other pension costs

436,096

34,364

3,174,791

1,874,972

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

2024

2023

Total

58

43

2024

2023

£

£

Directors' remuneration

120,667

96,610

4.	OPERATING PROFIT

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

2024

2023

£

£

Other operating leases

89,025

59,558

Depreciation - owned assets

131,561

135,158

Profit on disposal of fixed assets

(7,040

)

(22,000

)

Auditors' remuneration

27,500

21,500

Foreign exchange differences

(2,160

)

(24,696

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Factoring charges

21,746

19,655

Hire purchase

5,702

11,536

27,448

31,191

6.

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

315,884

451,066

R&D tax refund and under/over

provision of tax

(120,843

)

(104,052

)

Total current tax

195,041

347,014

Deferred tax

(22,118

)

(20,190

)

Tax on profit

172,923

326,824

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:

2024

2023

£

£

Profit before tax

854,663

1,820,735

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.527%)

213,666

428,364

Effects of:

Expenses not deductible for tax purposes

77,794

4,126

Depreciation in excess of capital allowances

26,256

21,374

Structure and building allowance

(72

)

(68

)

Profit on disposal of assets

(1,760

)

(5,176

)

Balancing charge

-

2,446

R&D refund

(120,843

)

(104,052

)

Deferred taxation

(22,118

)

(20,190

)

Total tax charge

172,923

326,824

7.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Interim

135,000

255,000