REGISTERED NUMBER: 07399286 (England and Wales)

Group Tyre Wholesale Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

N A Bush

R J Whittemore

S M Childs

REGISTERED OFFICE:

Group House

Park Street

Aylesbury

Buckinghamshire

HP20 1QN

REGISTERED NUMBER:

07399286 (England and Wales)

AUDITORS:

TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of our business. Our review is consistent with the size and nature of our business and in the context of risks and uncertainties we face.

Our key aim remains the delivery of great brands with unbeatable service levels, with our warehouses continuing to improve our corporate and environmental standards, service levels and overall efficiencies. In 2024 Group Tyre Wholesale Limited delivered a resilient performance, successfully navigating a year marked by significant currency volatility and extreme disruption in global freight markets. Despite the challenges posed by Far East sourcing complexities and heightened external pressures, the company achieved turnover growth of 4.3%, increasing revenue from £35.5 million in 2023 to £37.0 million in 2024, while maintaining healthy profitability.

This growth, achieved against a backdrop of industry-wide volatility, reflects the company's ability to safeguard its market position. Although profit after tax fell slightly and operating profit marginally declined, these reductions stemmed largely from margin compression caused by exchange rate swings and freight cost escalation, rather than internal inefficiencies.

Currency fluctuations were a defining factor in 2024. With non-premium products sourced primarily from the Far East and denominated in USD, the business faced considerable headwinds as the pound weakened at key purchasing points. Though some recovery was seen in the final quarter, volatility across the year created additional cost pressure and eroded margins on key product lines.

Equally challenging was the freight market, disrupted by the Red Sea crisis and global shipping diversions. Attacks on commercial vessels forced container reroutes via the Cape of Good Hope, extending delivery times and creating artificial shortages. During peak disruption, container rates surged well above normal levels, before gradually correcting towards the end of the year. While costs remained elevated, the company's proactive inventory strategy-securing stock at lower freight rates in early 2024 helped mitigate the worst effects.

Inventory levels rose modestly from £4.82 million to £4.88 million, reflecting a deliberate approach to cost control and risk management. Stock purchased ahead of cost spikes, combined with selective currency hedging, enabled greater resilience. This positioned the business advantageously against competitors whose procurement cycles exposed them to higher costs, allowing Group Tyre Wholesale to maintain service standards and strengthen customer relationships.

Management's response throughout the year was characterised by proactive sourcing and disciplined cost control. Administrative expenses rose just 6.5% despite inflationary pressures, while improved debtor collection reduced outstanding balances. Operational efficiency was maintained with a leaner workforce of 98 employees (down from 104 in 2023), while digital investment in warehouse management systems delivered productivity gains and supported service continuity.

The balance sheet remained robust, with shareholders' funds rising to £6.4 million from £6.04 million in 2023. Asset strength was underpinned by a property revaluation reserve of £3.26 million, while a stable current ratio reflected strong liquidity. Capital investment also increased significantly to £524,000, focused on renewing the vehicle fleet and upgrading warehouse equipment, laying the groundwork for future efficiency.

In light of the performance above, a dividend was paid to the shareholders of £500,000.

Our staff remain key to this and future performance which enables plans to be realised with hard work and skill in all parts of the business in 2024 and beyond. Staff development is pivotal to our success and great efforts will continually be made to improve staff, in training, effectiveness and improving our environment credentials to enable their and our, full potential to really shine.

In conclusion, Group Tyre Wholesale has demonstrated its ability to grow revenue, protect customer relationships, and preserve financial strength while managing significant external challenges. By combining proactive management with operational strength, the company has emerged well positioned to capitalise on opportunities in 2025 and beyond.

PRINCIPAL RISKS AND UNCERTAINTIES

By year-end, encouraging signs of recovery were evident. Freight costs began to normalise, sterling showed greater stability, and the wider industry adapted to alternative shipping routes. These improvements, coupled with the company's strong positioning, provide a platform for renewed growth. With a diversified supplier base, robust financial resources, and advanced warehouse systems, Group Tyre Wholesale enters 2025 with clear competitive advantages.

In 2025 the company's strategic priorities focus on market share expansion, margin recovery, and the completion of its digital transformation. Risk mitigation remains central, with ongoing currency hedging, supplier diversification, and enhanced stock management designed to protect against volatility. Sustainable growth will be pursued with the same financial discipline that underpinned performance through 2024.

Uncertainty surrounds the US/EU's approach to Anti-Dumping. The US has imposed sweeping changes to their import tariffs and this could be reciprocated in the UK and wider markets. The EU is due to initiate a trade protection investigation into tyres imports from China in 2025, with a focus on passenger car and light truck. Anti-dumping and countervailing duty procedures are likely to follow, so exploring alternative supply chains remains a key focus and challenge.

In general the public still prefers the automobile as its choice of mobility so whether the car boasts an internal combustion engine, a hydrogen powered engine or is powered electrically, in some way they all need tyres. Whilst the Company stays smart, nimble, green and alert, then the foreseeable future seems assured.

ON BEHALF OF THE BOARD:

S M Childs - Director

19 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 the distribution of tyres to the automotive industry within London, the Home Counties and the immediate surrounding areas.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £500,000.

DIRECTORS

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

N A Bush

R J Whittemore

Other changes in directors holding office are as follows:

G J Oliver - resigned 31 December 2024

S M Childs was appointed as a director after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S M Childs - Director

19 September 2025

Opinion

We have audited the financial statements of Group Tyre Wholesale Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

- we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

- we considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- we considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

- we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit, also all areas where fraud might occur in the financial statements and how;

- we considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors these programmes and controls;

- we considered how the directors and management respond to risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- we performed detailed analytical procedures to identify and unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Stephen Butler BA FCA (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

23 September 2025

TURNOVER

3

37,030,216

35,504,690

Cost of sales

29,171,576

27,909,989

GROSS PROFIT

7,858,640

7,594,701

Administrative expenses

6,565,187

6,122,856

OPERATING PROFIT

5

1,293,453

1,471,845

Interest payable and similar expenses

6

149,696

179,529

PROFIT BEFORE TAXATION

1,143,757

1,292,316

Tax on profit

7

288,346

382,434

PROFIT FOR THE FINANCIAL YEAR

855,411

909,882

PROFIT FOR THE YEAR

855,411

909,882

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

855,411

909,882

FIXED ASSETS

Tangible assets

9

5,877,366

5,808,900

Investments

10

-

-

5,877,366

5,808,900

CURRENT ASSETS

Stocks

11

4,883,256

4,818,507

Debtors

12

5,518,882

5,879,790

Cash at bank

105,860

121,111

10,507,998

10,819,408

CREDITORS

Amounts falling due within one year

13

9,613,208

9,987,762

NET CURRENT ASSETS

894,790

831,646

TOTAL ASSETS LESS CURRENT LIABILITIES

6,772,156

6,640,546

CREDITORS

Amounts falling due after more than one year

14

(49,374

)

(291,323

)

PROVISIONS FOR LIABILITIES

18

(325,198

)

(307,050

)

NET ASSETS

6,397,584

6,042,173

CAPITAL AND RESERVES

Called up share capital

19

1,000,000

1,000,000

Revaluation reserve

20

3,256,044

3,256,044

Retained earnings

20

2,141,540

1,786,129

SHAREHOLDERS' FUNDS

6,397,584

6,042,173

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2025 and were signed on its behalf by:

S M Childs - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

1,000,000

1,376,247

3,256,044

5,632,291

Changes in equity

Dividends

-

(500,000

)

-

(500,000

)

Total comprehensive income

-

909,882

-

909,882

Balance at 31 December 2023

1,000,000

1,786,129

3,256,044

6,042,173

Changes in equity

Dividends

-

(500,000

)

-

(500,000

)

Total comprehensive income

-

855,411

-

855,411

Balance at 31 December 2024

1,000,000

2,141,540

3,256,044

6,397,584

Cash flows from operating activities

Cash generated from operations

1

37,616

1,084,394

Interest paid

(108,099

)

(143,982

)

Interest element of hire purchase payments paid

(41,597

)

(35,547

)

Tax paid

(327,837

)

111,562

Net cash from operating activities

(439,917

)

1,016,427

Cash flows from investing activities

Purchase of tangible fixed assets

(523,558

)

(27,326

)

Sale of tangible fixed assets

513

2,532

Net cash from investing activities

(523,045

)

(24,794

)

Cash flows from financing activities

Increase in finance discounting

1,574,767

-

Loan repayments in year

(98,933

)

(723,064

)

Related party balances

262,454

671,423

Capital repayments in year

(290,577

)

(330,083

)

Equity dividends paid

(500,000

)

(500,000

)

Net cash from financing activities

947,711

(881,724

)

(Decrease)/increase in cash and cash equivalents

(15,251

)

109,909

Cash and cash equivalents at beginning of year

2

121,111

11,202

Cash and cash equivalents at end of year

2

105,860

121,111

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

2024

2023

£

£

Profit before taxation

1,143,757

1,292,316

Depreciation charges

453,407

425,002

Loss/(profit) on disposal of fixed assets

1,171

(114

)

Finance costs

149,696

179,529

1,748,031

1,896,733

(Increase)/decrease in stocks

(64,749

)

189,454

Decrease in trade and other debtors

360,908

432,643

Decrease in trade and other creditors

(2,006,574

)

(1,434,436

)

Cash generated from operations

37,616

1,084,394

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

105,860

121,111

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

121,111

11,202

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

121,111

(15,251

)

105,860

121,111

(15,251

)

105,860

Debt

Finance leases

(626,024

)

290,577

(335,447

)

Debts falling due within 1 year

(1,051,462

)

(1,488,774

)

(2,540,236

)

Debts falling due after 1 year

(12,941

)

12,941

-

(1,690,427

)

(1,185,256

)

(2,875,683

)

Total

(1,569,316

)

(1,200,507

)

(2,769,823

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared on a going concern basis which assumes that the company will continue to operate for the foreseeable future. Budgets and cash flow projections compiled indicate the company has sufficient reserves to continue to trade and the directors believe that support afforded, careful cashflow considerations is sufficient upon which to adopt the going concern basis.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the company's accounting policies. 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.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

In preparing these financial statements, the directors have made the following judgements:

- Determine whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

- A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability.

- Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

- Sales ledger debt provisions. Management review debts on a case by case basis to highlight deviation from terms and therefore possible provision requirement.

- Stock provisions/quantity rebate provisions. On a line by line basis of known rebate suppliers, management assess and provide against the recorded cost the assessment of the rebate due on those units held at the year end. This is reviewed and agreed on a quarterly basis throughout the year on predetermined quantity triggers at agreed rates.

- Depreciation and residual values. Management have reviewed the asset lives and associated residual values of all fixed asset classes and concluded that they are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of VAT and trade discounts.

Turnover arises from the company's principal activity and sales are made to customers on both credit terms and by way of cash. In the case of credit sales revenue is recognised for accounting purposes at the date of dispatch of the relevant goods. In the case of cash sales, revenue is recognised at the point of sale.

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.

Freehold property

-

not provided

Improvements to property

-

33% on cost and 20% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

33% on cost and 20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

20% on cost

The company operate a policy of not depreciating their freehold land and buildings. The Directors have assessed the difference between the residual value and the carrying cost of the building as being not material and have decided not to provide for any depreciation on the grounds that the aggregate depreciation to be provided over the life of the asset is not material. The company incurs expenses each year and ensures that they keep all freehold well maintained. They adopt a revaluation policy where revaluations occur with sufficient regularity to ensure that the carrying amount reflects the current market value.

Revaluation surpluses are recognised in other comprehensive income and accumulated in equity. However, the increase is recognised in profit and loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit and loss.

The decrease of an asset's carrying amount on revaluation is recognised in other comprehensive income up to the amount of the previously recognised revaluation surplus accumulated in equity, in respect of that asset. Any excess deficits are charged to the profit and loss account.

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is calculated using the weighted average method and includes all direct costs.

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 statement of financial position date.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the transactions, or at an average rate for the period if the rates do not fluctuate significantly. Monetary assets and liabilities are translated at year end exchange rates or, where appropriate, at rates of exchange fixed under the terms of the relevant transaction. The resulting exchange rate differences are charged to the profit and loss account.

Operating lease agreements

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the group recognises annual rent expense equal to amounts owed to the lessor. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.

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.

Derivatives

Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under the appropriate format heading depending on the nature of the derivative.

Fixed asset investments

Fixed asset investments are stated at cost less provision for diminution in value.

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

37,030,216

35,504,690

37,030,216

35,504,690

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,508,585

3,275,686

Social security costs

296,046

281,406

Other pension costs

80,734

75,373

3,885,365

3,632,465

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

2024

2023

Administration and management staff

21

21

Warehouse and distribution staff

77

83

98

104

2024

2023

£

£

Directors' remuneration

117,776

124,830

Directors' pension contributions to money purchase schemes

3,775

3,354

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

4,413

6,209

Depreciation - owned assets

178,405

177,250

Depreciation - assets on hire purchase contracts

275,003

247,752

Loss/(profit) on disposal of fixed assets

1,171

(114

)

Auditors' remuneration

20,500

15,550

Operating lease cost - land & buildings

244,959

205,157

Operating lease cost - motor vehicles

8,504

22,747

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

108,099

143,982

Hire purchase

41,597

35,547

149,696

179,529

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

270,198

327,837

Corporation tax prior year

-

(1,692

)

Total current tax

270,198

326,145

Deferred tax

18,148

56,289

Tax on profit

288,346

382,434