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

The Company operates a restaurant, known as Trenchers. The local competition is largely comprised of smaller companies and privately owned restaurants.

The Company continues to monitor changing trends and tastes and tailors its offerings and marketing activity to compete effectively with other operators in the market, and with the many other activities that compete for the disposable income of our target age customers. Recent general consumer confidence in the UK has been growing, largely due to the recent pandemic now being behind us and whilst our target customers appear less sensitive to economic downturn, the effects of recent increases in the general cost of living are yet to be fully realised. The restaurant sector however has continued to attract more of consumers disposable income over recent years and especially local to the restaurant, with the recent popularity of staycations. To capitalise on this the company has extended the courtyard of the restaurant, which was completed post year end, to enable us to seat more customers and increase trade.

The Company has continued to trade well in the restaurant sector, with a successful Summer period in particular, despite the poor weather. Cash flow from operating activities has been positive during the period and post year end, enabling the company to continue to service creditors as they became due. As a consequence, cash resources remain strong at the balance sheet date.

The principal risks and uncertainties that could affect the Company's business are summarised below:

Internal risks

High proportion of fixed overheads and variable revenues

A significant proportion of the Company's cost base remains constant notwithstanding changes to the level of revenues; therefore, any significant changes in the level of the Company's revenues could significantly affect the level of earnings and cash flows. While the Company considers it currently operates with a lean fixed cost base, this remains an area of continuing focus going forward.

Failure to ensure brands evolve in relation to changes in consumer taste

The market in which the Company operates is subject to changes in fashions and trends, and the Company is exposed to the risk that its innovations in venue format and content do not keep up with changes in consumer tastes. The Company continues to closely monitor changes in the marketplace and adapts its offering to protect and secure its future revenue opportunities.

Health and safety

Health and safety is taken very seriously by the Company. The risk of non-compliance with health and safety legislation is minimised through comprehensive training and an active in-house team who regularly review and develop policies and procedures to maintain standards. Furthermore, the Company carries substantial public and employer's liability insurance cover, in order to minimise the financial impact of any claim that might arise as a consequence of a failure in health and safety regulatory compliance.

External risks

Interest rate movements

Interest rates are currently not seen as a significant risk despite the incremental increases in the base rate recently. The level of interest rates is constantly monitored and it is the Company's intention to look to fix rates when it is believed they are at the lowest point in the cycle with the outlook being for increases.

Loss of licences

The Company has a dedicated and experienced central team to monitor all licensing related matters, working closely with the operations management team and local licensing authorities. This is backed up with centralised incident reporting and follow-up, including liaison with licensing authorities for early warning of potential issues. Every effort is made to ensure that managers and supervisors are fully conversant with current licensing legislation and their responsibilities under it.

Uncertainties

Economic uncertainty

The Company is competing for a share of the disposable income of its target customers so revenue is vulnerable to the impact of the unprecedented events such as the recent pandemic and economic uncertainty caused by unexpected pressures on household incomes.

Seasonality and weather

The number of admissions in the Company's venues is considerably increased during holiday periods, especially Christmas and New Year, and over bank holiday periods. Similarly the admissions and revenue levels are generally lower in the early months of the calendar year, compared to other periods. The Company's revenues can also be adversely impacted by extended periods of extreme weather conditions, which could deter customers from travelling to the area where the business is located.

With the lifting of covid restrictions and the continuing popularity of "staycations" throughout the current year and beyond, the company has been able to make a rapid recovery in turnover and profitability. The directors are now optimistic that without further unexpected events the company will continue to grow the level of trade during 2025.

The results for the Company for the year are shown in more detail on page 8, with the significant financial key performance indicators outlined below.

The Company undertakes comprehensive business planning to define long-term strategic objectives and goals. Operational plans are considered utilising financial and non-financial KPIs. Business performance, measured by KPIs which include monitoring of actual against previous comparative periods, is reported to the Board on a monthly basis.

The Company aims to achieve a healthy gross profit margin on all wet and dry sales. This is monitored monthly using independent stocktakers and throughout the majority of the financial period this has been achieved.

The key financial KPIs for the Company include:

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £57,746. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the annual report 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;

• 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Kymel Trading Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report 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 member, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Kymel Trading Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kymel House, Boker Lane, East Boldon, Tyne And Wear, United Kingdom, NE36 0RY. The principal place of business is Trenchers, New Quay Road, Whitby, North Yorkshire, YO21 1DH.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

At the time of approving the financial statementtrues, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The Company's forecasts and projections, taking account of reasonable, possible changes in trading performance, suggest the company is expected to continue to be profitable, cash generative and to have a sufficient level of financial resources. Therefore the directors believe that the Company is well placed to manage its business risks successfully. In particular, at the year end the Company had cash at bank of £895,000 and net assets of £3.7million.

Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to customers during the period. Turnover is recognised when the goods and services have been provided and paid for at the point of delivery. The turnover of the company is derived entirely from its principal activities carried out in the United Kingdom.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The directors carry out an annual appraisal of the carrying value of certain land and buildings. Their assessment is informed by engaging an independent, qualified surveyor from time to time to inform their valuation of these assets. The directors consider any changes between the market conditions at the date of the most recent valuation and the balance sheet date and if any significant change in market conditions is identified, then an adjustment to these assets is considered accordingly.

All turnover arises in the United Kingdom.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The above arose when Kymel Trading Limited acquired the trade and net assets of the Trenchers business from the administrator of Vimac Group Limited and subsidiary companies, with this amount being in excess of the fair value of the non monetary assets acquired. Vimac Group Limited was owned by Mr PA Mackings immediately prior to entering into administration. The Trenchers business is the operation of a restaurant and take-away in Whitby on the Yorkshire coast.

Freehold land and buildings with a carrying amount of £4,287,374 (2023 - £4,295,457) have been pledged to secure borrowings of the company.

Land and buildings with a carrying amount of £3,577,278 were revalued by the directors in December 2019 based on a valuation on the basis of market value provided at 20 March 2018 by Lambert Smith Hampton, independent valuers not connected with the company. The valuation conformed to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

In the opinion of the directors following a review of maket conditions, the fair value of land and buildings at the balance sheet date is unchanged.

If land and buildings were measured using the cost model, the carrying amounts would have been £2,466,862 (2023 - £2,467,715), being cost £2,557,293 (2023 - £2,548,045) and depreciation £90,431 (2023 - £80,330).

Included within other debtors are amounts due from directors of £42,540 (2023 - £220,790). The amounts due from directors are unsecured and subject to interest at a rate of 2.25% with no fixed repayment date.

The bank loans are secured by fixed charges and floating charges of the Company's freehold land and buildings.

The bank loan has a nominal interest rate of 1.9% above base rate. The loan is due to mature in December 2028 and attracts equal monthly instalments of £16,133 through to maturity with a lump sum repayment to pay the loan in full on the final repayment date.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

On 4 October 2013 the company issued one ordinary share at par value of £1, the proceeds of which remain unpaid.

On 1 May 2019 Kymel Trading Limited signed as a guarantor on behalf of Spanish City (NE) Limited, a related party, in respect of their rental lease of a building. The commencement date of the lease was the 30 September 2018. The lease has a term of 10 years from the commencement date, with a break date of 31 March 2021 which directors did not exercise. The total lease payments due on the remaining lease amount to £262,500.

Other costs for dilapidations that would become the responsibility of Kymel Trading Limited, should Spanish City (NE) Limited default, cannot be estimated.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

As disclosed in note 21, the company acts as guarantor on behalf of Spanish City (NE) Limited in respect of their rental lease of a building.

Advances or credits have been granted by the company to its directors as follows:

During the year one director sold a luxury car to the company for £429,730. The value was independently corroborated by a trade expert.

The company is a 100% subsidiary of Kymel Limited, which is the immediate parent company.

The ultimate parent company is Kymel Group Limited, the registered office of which is Kymel House, Boker Lane, Boldon, Tyne & Wear, NE36 0RY.

The ultimate controlling party is PA Mackings due to his majority shareholding in Kymel Group Limited.

The company's reserves have been amended to reflect the correct allocation of a deferred tax movement in 2022 which should be allocated against the revaluation reserve. The adjustment is a transfer between the revaluation reserve and profit and loss reserve only.