Axtell Limited Company accounts

COMPANY REGISTRATION NUMBER: 09073122

Axtell Limited

Financial Statements

31 December 2024

Axtell Limited

Financial Statements

Period from 1 July 2023 to 31 December 2024

Contents	Page

Strategic report	1

Directors' report	4

Independent auditor's report to the members	6

Statement of comprehensive income	10

Statement of financial position	11

Statement of changes in equity	12

Statement of cash flows	13

Notes to the financial statements	14

Axtell Limited

Strategic Report

Period from 1 July 2023 to 31 December 2024

The directors present their report for the period ended 31st December 2024. Business Review The principal activity of the company is through the expansion of its range of activities and continuing innovation in the production of concrete. The turnover increased from the previous year as the company recovered from Covid 19. The director and the management team are anticipating that the level of turnover will maintain a stable rate for the next year. Key financial performance indicators (KPI's) The key financial performance indicators of the company are turnover and profit/loss before tax which are summarised below:

	2024	2023
	£	£
Turnover	24,912,756	17,192,834
Profit before tax	99,920	–
Loss before tax	–	27,127

Key non-financial performance indicators (KPI's) Health, safety and environmental management The health and safety of all stakeholders is the company's number one priority. In order to control risk and prevent harm, the company is focused on demonstrating the highest standards of health and safety management. This is achieved by establishing robust health and safety procedures and ensuring that effective leadership, culture and organisational arrangements are in place. The company monitors significant health concerns, maintaining contingency plans to manage its operations and respond proportionately to any emerging risks, whilst always ensuring the health of all its stakeholders with whom it interfaces Going concern The directors have undertaken an assessment of whether the company was a going concern when the accounts were prepared, considering all available information about the future, covering a period of 12 months from the date of approval of the accounts. The directors are not aware of any material uncertainty arising from their assessment that would cast doubt on the company's ability to continue as a going concern. Future developments The company will continue to develop its business in line with current activities. Principal risks and uncertainties The construction industry is a volatile industry susceptible to changes in material prices, as well as changes in legislation, regulation and government policy which may affect the industry. Liquidity risks The company's view is that any exposure to liquidity risk is low. The cash flow and working capital requirement of the business are strictly monitored by the management team on a regular basis. Credit risks The company's credit risk is primarily attributable to its trade receivable with key customers. The financial reliability of customers is assessed periodically. They are considered to be low risk. Interest rate risks The company is exposed to interest rate risk through hire purchase agreements. The exposure to interest rate risk is mitigated by interest rates being fixed at the start of the hire purchase agreement.

This report was approved by the board of directors on 26 September 2025 and signed on behalf of the board by:

Mr A T Axtell

Director

Registered office:

5 Godalming Business Centre

Woolsack Way

Godalming

Surrey

GU7 1XW

Axtell Limited

Directors' Report

Period from 1 July 2023 to 31 December 2024

The directors present their report and the financial statements of the company for the period ended 31 December 2024 .

Principal activities

The principal activity of the company during the year was: Manufacture of ready-mixed concrete, collection of non-hazardous waste The company's principal activity during the year was the supply of ready mixed concrete, plant hire and related operations. Results and dividends The income statement is set out on page 11 and shows a loss for the financial year of £71,797 (2023: profit of £29,700). The directors recommend a dividend of £nil (2023: £40k) Going concern Having made appropriate enquiries and having reviewed the company's forecasts and projections, the directors have a reasonable expectation that the company has sufficient resources to support both its current business activities and the growth of the business into the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the financial statements.

Directors

The directors who served the company during the period were as follows:

Mr A T Axtell
Mr R W Axtell

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial period. 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 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 judgments 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 26 September 2025 and signed on behalf of the board by:

Mr A T Axtell

Director

Registered office:

5 Godalming Business Centre

Woolsack Way

Godalming

Surrey

GU7 1XW

Axtell Limited

Independent Auditor's Report to the Members of Axtell Limited

Period from 1 July 2023 to 31 December 2024

Qualified opinion

We have audited the financial statements of Axtell Limited (the 'company') for the period ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, 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 loss for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

We were not appointed as auditor of the company until after 30 June 2023 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventories quantities held at 30 June 2023, which were included in the balance sheet at £221,814, by using other audit procedures. Consequently we are unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the inventory balance to be required, the Strategic report would also need to be amended. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Independence 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.

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 included in the Annual Report, other than the financial statements and our auditor's report 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. 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. As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £221,814 held at 30 June 2023. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales or profit, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the 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.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified section of our report, 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. Arising solely from the limitation on the scope of our work relating to inventory, referred to above: - we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and - we were unable to determine whether adequate accounting records have been kept 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, in our opinion: - 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.

Responsibilities of directors

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.

Auditor's 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 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We obtained an understanding of the Company's business, controls, legal and regulatory frameworks, laws and regulations and assessed the susceptibility of the Company's financial statements to material misstatement from irregularities, including fraud and instances of non compliance with laws and regulations. - Based on this understanding we designed our audit procedures to detecting irregularities, including fraud. Testing undertaken included making enquiries on the management; journal entry testing; review of bank letters, review of board minutes and any correspondence received from regulatory bodies; reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. These procedures were designed to provide reasonabl e assurance that the financial statements were free from fraud or error. - We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. An auditor conducting an audit in accordance with ISAs (UK) is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error and in our audit procedures described above. Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Foster

(Senior Statutory Auditor)

For and on behalf of

Moore Kingston Smith LLP

Chartered accountants & statutory auditor

5 Godalming Business Centre

Woolsack Way

Godalming

Surrey

United Kingdom

GU7 1XW

26 September 2025

Axtell Limited

Statement of Comprehensive Income

Period from 1 July 2023 to 31 December 2024

		Period from
		1 Jul 23 to	Year to
		31 Dec 24	30 Jun 23
			(restated)
Note		£	£
Turnover	4	24,912,756	17,192,834

Cost of sales	( 21,442,263)	( 15,582,226)
	-------------	-------------
Gross profit	3,470,493	1,610,608

Administrative expenses		( 2,880,584)	( 1,524,687)
Other operating income	5	71,898	242,116
		------------	------------
Operating profit	6	661,807	328,037

Other interest receivable and similar income	10	17,185	166
Interest payable and similar expenses	11	( 579,072)	( 355,330)
		------------	------------
Profit/(loss) before taxation		99,920	( 27,127)

Tax on profit/(loss)	12	( 171,717)	56,827
		---------	--------
(Loss)/profit for the financial period and total comprehensive income		( 71,797)	29,700
		---------	--------

All the activities of the company are from continuing operations.

Axtell Limited

Statement of Financial Position

31 December 2024

	31 Dec 24	30 Jun 23
		(restated)
Note	£	£

Fixed assets

Tangible assets	15	4,267,354	4,182,161

Current assets

Stocks	16	216,578	221,814
Debtors	17	2,779,660	2,699,291
Cash at bank and in hand		271,597	186,895
		------------	------------
		3,267,835	3,108,000

Creditors: amounts falling due within one year	19	( 4,757,698)	( 4,352,197)
		------------	------------
Net current liabilities		( 1,489,863)	( 1,244,197)
		------------	------------
Total assets less current liabilities		2,777,491	2,937,964

Creditors: amounts falling due after more than one year	20	( 1,396,236)	( 1,656,629)

Provisions	22	( 563,223)	( 391,506)
		------------	------------
Net assets		818,032	889,829
		------------	------------

Capital and reserves

Called up share capital	28	2	2
Profit and loss account	29	818,030	889,827
		---------	---------
Shareholders funds		818,032	889,829
		---------	---------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 26 September 2025 , and are signed on behalf of the board by:

Mr A T Axtell

Director

Company registration number: 09073122

Axtell Limited

Statement of Changes in Equity

Period from 1 July 2023 to 31 December 2024

		Called up share capital	Profit and loss account	Total
		£	£	£
At 1 July 2022		2	900,127	900,129

Profit for the period			29,700	29,700
		----	---------	---------
Total comprehensive income for the period		–	29,700	29,700

Dividends paid and payable	13	–	( 40,000)	( 40,000)
		----	---------	---------
Total investments by and distributions to owners		–	( 40,000)	( 40,000)

At 30 June 2023		2	889,827	889,829

Loss for the period			( 71,797)	( 71,797)
		----	---------	---------
Total comprehensive income for the period		–	( 71,797)	( 71,797)

		----	---------	---------
At 31 December 2024		2	818,030	818,032
		----	---------	---------

Axtell Limited

Statement of Cash Flows

Period from 1 July 2023 to 31 December 2024

	31 Dec 24	30 Jun 23
		(restated)
Note	£	£

Cash flows from operating activities

(Loss)/profit for the financial period	( 71,797)	29,700

Adjustments for:
Depreciation of tangible assets	1,706,752	1,179,841
Amortisation of intangible assets	–	21,678
Government grant income	( 240)	( 8,016)
Other interest receivable and similar income	( 17,185)	( 166)
Interest payable and similar expenses	579,072	355,330
(Gains)/loss on disposal of tangible assets	( 193,154)	9,617
Tax on profit/(loss)	171,717	( 56,827)
Accrued (income)/expenses	( 3,796)	7,993

Changes in:
Stocks	5,236	95,507
Trade and other debtors	( 80,369)	( 1,022,418)
Trade and other creditors	( 50,277)	464,468
	------------	------------
Cash generated from operations	2,045,959	1,076,707

Interest paid	( 579,072)	( 355,330)
Interest received	17,185	166
Tax received	52,841	56,657
	------------	------------
Net cash from operating activities	1,536,913	778,200
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 1,889,131)	( 875,000)
Proceeds from sale of tangible assets	290,340	201,560
	------------	------------
Net cash used in investing activities	( 1,598,791)	( 673,440)
	------------	------------

Cash flows from financing activities

Government grant income	240	8,016
Payments of finance lease liabilities	115,302	( 209,813)
Dividends paid	–	( 40,000)
	------------	------------
Net cash from/(used in) financing activities	115,542	( 241,797)
	------------	------------

Net increase/(decrease) in cash and cash equivalents		53,664	( 137,037)
Cash and cash equivalents at beginning of period		(821,933)	(684,896)
		---------	---------
Cash and cash equivalents at end of period	18	( 768,269)	( 821,933)
		---------	---------

Axtell Limited

Notes to the Financial Statements

Period from 1 July 2023 to 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 5 Godalming Business Centre, Woolsack Way, Godalming, Surrey, GU7 1XW.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

Having made appropriate enquiries and having reviewed the company forecasts and projections, the directors have a reasonable expectation that the company have adequate resources to continue in operational existence for the foreseeable future (at least 12 months from the date the accounts are signed and approved). The company therefore continue to adopt the going concern basis in preparing the financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Allowance for doubtful debts The company maintains allowances for doubtful accounts for estimated losses resulting from the subsequent inability of customers to make required payments. If the financial conditions of customers were to deteriorate, resulting in an impairment of their ability to make payments, then additional allowances may be required in future periods. Impairment of assets Non-current assets are reviewed for impairment if an event or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount of an asset or cash generating unit is determined based on value-in-use calculations prepared on the basis of management's assumptions and estimates. The carrying value of non-current assets at the year end is £4,267,354 (2023: £4,182,161). No impairments have been recognised during the year.

Revenue recognition

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between fair value of the consideration and the nominal amount received is recognised as interest income. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be measured reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. When the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is is probable will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Software	-	3 years straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	3-10 years straight line
Fixtures and fittings	-	3 years straight line
Motor vehicles	-	4 years straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Sale of goods	24,912,756	17,192,834
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Government grant income	240	8,016
Other operating income	71,658	234,100
	--------	---------
	71,898	242,116
	--------	---------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Amortisation of intangible assets	–	21,678
Depreciation of tangible assets	1,706,752	1,179,841
(Gains)/loss on disposal of tangible assets	( 193,154)	9,617
Impairment of trade debtors	13,702	12,660
Foreign exchange differences	2	–
	------------	------------

7. Auditor's remuneration

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Fees payable for the audit of the financial statements	17,775	17,775
	--------	--------

8. Staff costs

The average number of persons employed by the company during the period, including the directors, amounted to:

	31 Dec 24	30 Jun 23
	No.	No.
Administrative staff	64	71
	----	----

The aggregate payroll costs incurred during the period, relating to the above, were:

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Wages and salaries	4,799,713	3,108,631
Social security costs	499,170	331,938
Other pension costs	100,292	68,145
	------------	------------
	5,399,175	3,508,714
	------------	------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Remuneration	37,807	25,448
	--------	--------

10. Other interest receivable and similar income

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Interest on cash and cash equivalents	188	166
Other interest receivable and similar income	16,997	–
	--------	----
	17,185	166
	--------	----

11. Interest payable and similar expenses

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Interest on obligations under finance leases and hire purchase contracts	179,906	79,363
Invoice finance interest payable	154,014	75,598
Other interest payable and similar charges	245,152	200,369
	---------	---------
	579,072	355,330
	---------	---------

12. Tax on profit/(loss)

Major components of tax expense/(income)

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£

Deferred tax:

Origination and reversal of timing differences	171,717	( 56,827)
	---------	--------
Tax on profit/(loss)	171,717	( 56,827)
	---------	--------

Reconciliation of tax expense/(income)

The tax assessed on the profit/(loss) on ordinary activities for the period is higher than (2023: lower than) the standard rate of corporation tax in the UK of 0.25 % (2023: 0.21 %).

	Period from
	1 Jul 23 to	Year to
	31 Dec 24	30 Jun 23
		(restated)
	£	£
Profit/(loss) on ordinary activities before taxation	99,920	( 27,127)
	--------	--------
Profit/(loss) on ordinary activities by rate of tax	24,980	( 5,561)
Effect of expenses not deductible for tax purposes	92,976	4,284
Effect of capital allowances and depreciation	( 154,887)	( 44,776)
Unused tax losses	36,931	46,053
Deferred tax movement	171,717	( 56,827)
	---------	--------
Tax on profit/(loss)	171,717	( 56,827)
	---------	--------

13. Dividends

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Dividends paid during the period (excluding those for which a liability existed at the end of the prior period )	–	40,000
	----	--------

14. Intangible assets

	Website
	£
Cost
At 1 July 2023 (as restated) and 31 December 2024	65,511
	--------
Amortisation
At 1 July 2023 and 31 December 2024	65,511
	--------
Carrying amount
At 31 December 2024	–
	--------
At 30 June 2023	–
	--------

15. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Assets under construction	Total
	£	£	£	£	£
Cost
At 1 July 2023 (as restated)	9,317,739	60,214	320,350	184,000	9,882,303
Additions	1,834,995	6,263	47,873	–	1,889,131
Disposals	( 989,397)	–	–	–	( 989,397)
	-------------	--------	---------	---------	-------------
At 31 December 2024	10,163,337	66,477	368,223	184,000	10,782,037
	-------------	--------	---------	---------	-------------
Depreciation
At 1 July 2023	5,434,265	45,268	220,609	–	5,700,142
Charge for the period	1,634,019	9,641	63,092	–	1,706,752
Disposals	( 892,211)	–	–	–	( 892,211)
	-------------	--------	---------	---------	-------------
At 31 December 2024	6,176,073	54,909	283,701	–	6,514,683
	-------------	--------	---------	---------	-------------
Carrying amount
At 31 December 2024	3,987,264	11,568	84,522	184,000	4,267,354
	-------------	--------	---------	---------	-------------
At 30 June 2023	3,883,474	14,946	99,741	184,000	4,182,161
	-------------	--------	---------	---------	-------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 December 2024	2,924,914	49,254	2,974,168
	------------	--------	------------
At 30 June 2023	2,847,602	67,833	2,915,435
	------------	--------	------------

16. Stocks

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Raw materials and consumables	216,578	208,814
Work in progress	–	13,000
	---------	---------
	216,578	221,814
	---------	---------

17. Debtors

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Trade debtors	1,627,923	1,837,305
Prepayments and accrued income	87,746	79,160
Directors loan account	698,565	291,065
Other debtors	365,426	491,761
	------------	------------
	2,779,660	2,699,291
	------------	------------

18. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Cash at bank and in hand	271,597	186,895
Bank overdrafts	( 1,039,866)	( 1,008,828)
	------------	------------
	( 768,269)	( 821,933)
	------------	------------

19. Creditors: amounts falling due within one year

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Bank loans and overdrafts	1,039,866	1,008,828
Trade creditors	1,816,775	1,960,997
Accruals and deferred income	26,743	30,539
Corporation tax	109,501	56,660
Social security and other taxes	414,704	353,275
Obligations under finance leases and hire purchase contracts	1,312,792	937,097
Other creditors	37,317	4,801
	------------	------------
	4,757,698	4,352,197
	------------	------------

20. Creditors: amounts falling due after more than one year

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Obligations under finance leases and hire purchase contracts	1,396,236	1,656,629
	------------	------------

21. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Not later than 1 year	1,312,792	937,097
Later than 1 year and not later than 5 years	1,396,236	1,656,629
	------------	------------
	2,709,028	2,593,726
	------------	------------

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22. Provisions

	Deferred tax (note 23)
	£
At 1 July 2023 (as restated)	391,506
Additions	171,717
	---------
At 31 December 2024	563,223
	---------

23. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Included in provisions (note 22)	563,223	391,506
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Accelerated capital allowances	822,976	615,680
Unused tax losses	( 259,753)	( 222,974)
Pension plan obligations	–	( 1,200)
	---------	---------
	563,223	391,506
	---------	---------

24. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 100,292 (2023: £ 68,145 ).

25. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	31 Dec 24	30 Jun 23
		(restated)
	£	£

Recognised in other operating income:

Government grants released to profit or loss	240	8,016
	----	-------

26. Financial instruments

The carrying amount for each category of financial instrument is as follows:

	31 Dec 24	30 Jun 23
		(restated)
	£	£

Financial assets measured at fair value through profit or loss

Financial assets measured at fair value through profit or loss	1,899,520	2,024,200
	------------	------------

Financial liabilities measured at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss	2,893,958	2,974,626
	------------	------------

27. Prior period errors

A prior period adjustment was made to reclassify £184,000 of stock to assets under construction. There was no impact on the statement of comprehensive income or on retained profits.

28. Called up share capital

Issued, called up and fully paid

	31 Dec 24		30 Jun 23
			(restated)
	No.	£	No.	£
Ordinary shares of £ 1 each	2	2	2	2
	----	----	----	----

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

29. Reserves

Retained earnings reserve - This reserve represents retained earnings and accumulated losses.

30. Analysis of changes in net debt

	At 1 Jul 2023	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	186,895	84,702	271,597
Bank overdrafts	(1,008,828)	(31,038)	(1,039,866)
Debt due within one year	(937,097)	(375,695)	(1,312,792)
Debt due after one year	(1,656,629)	260,393	(1,396,236)
	------------	---------	------------
	( 3,415,659)	( 61,638)	( 3,477,297)
	------------	---------	------------

31. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	31 Dec 24	30 Jun 23
		(restated)
	£	£
Not later than 1 year	669,499	448,000
Later than 1 year and not later than 5 years	2,347,265	1,434,000
	------------	------------
	3,016,764	1,882,000
	------------	------------

32. Charges on assets

On 18 October 2023, Lloyds Bank PLC issued a debenture charge over all assets of the company.

On 3 October 2024, Investec Capital Solutions Limited issued a debenture charge over all assets of the company.

Axtell Limited

Notes to the Financial Statements (continued)

Period from 1 July 2023 to 31 December 2024

33. Directors' advances, credits and guarantees

During the period the directors entered into the following advances and credits with the company:

	31 Dec 24
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr A T Axtell	167,869	247,038	414,907
Mr R W Axtell	123,196	160,462	283,658
	---------	---------	---------
	291,065	407,500	698,565
	---------	---------	---------

	30 Jun 23
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr A T Axtell	–	167,869	167,869
Mr R W Axtell	39,731	83,465	123,196
	--------	---------	---------
	39,731	251,334	291,065
	--------	---------	---------

At 31 December 2024 the directors owed £698,565 (2023: £291,065) to the company. The loan is repayable on demand.

34. Related party transactions

During the year the company entered into the following transactions with related parties: At the year end the company was owed £Nil by Surrey Oak Barns Limited (2023: £Nil), a company with Directors and Shareholders in common.

35. Controlling party

The directors consider that the company is not under the control of any one individual .