REGISTERED NUMBER: 13024063 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

CRAGGS HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Mrs H L Bingham

C Bingham

M Crockett

J P Sharp

R S Wallace

REGISTERED OFFICE:

The Craggs Country Business Park

New Road

Cragg Vale

Hebden Bridge

West Yorkshire

HX7 5TT

REGISTERED NUMBER:

13024063 (England and Wales)

AUDITORS:

Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

The directors present their strategic report of the company and the group for the year ended 31st December 2024.

BUSINESS OVERVIEW

The Craggs Holdings Limited group is a leading distributor of oil and fuel products, supplying homes, farms, businesses, and public sector organisations with a wide range of liquid fuel products.

Operating as a 100% Employee-Owned Trust (EOT), the company is headquartered in Hebden Bridge, West Yorkshire, with additional bases in Padiham, Lancashire, and Okehampton, Devon.

The company rebranded during the period with the tagline "What matters to you matters to us" reflecting the Group’s purpose and focus on our customers and colleagues aligning with the EOT.

REVIEW OF BUSINESS AND PERFORMANCE

The directors are pleased with the continued growth in customers and volume despite a period of substantial change to internal systems and processes and a challenging economic environment. While these transitions have temporarily affected profitability, they are essential for ensuring the company’s long-term sustainability and growth.

The company continues to invest in growth and improve its operational capabilities and during the period merged its Moorland Fuels business with its Craggs Energy business to provide additional operational and process efficiencies.

Employee ownership continues to enhance colleague engagement and customer service. Beneficiaries received tax-free bonuses and additional benefits such as BUPA healthcare and life assurance, contributing to a positive and productive workplace culture.

We continue to closely monitor performance against internal forecasts and industry KPIs to ensure delivery of competitive, efficient products and services to our customers.

For the year ended 31 December 2024, the group reported a turnover of £69.1 million, an increase from £68.7 million in the prior year and generating a gross profit of £4.1 million a decrease from £5.1 million in the prior year. The increase in turnover reflects the ongoing growth in the business and combining with Moorland Fuels, and the reduction in gross margin highlights the increasingly competitive market place.

PRINCIPAL RISKS AND UNCERTAINTIES

The board regularly reviews risks inherent to the business and ensures that robust management practices are in place to mitigate them. Key risks include:

Credit Risk

The primary financial assets are cash, stock, and trade receivables. Credit risk is managed through strict credit checks on new and existing commercial customers and supported by credit insurance.

Commodity Price Risk

Price volatility in the wholesale fuel market presents a risk. This is mitigated through minimal stockholding, short lead times from purchase to delivery, and proactive daily pricing strategies.

Liquidity Risk

Liquidity is managed through careful cash flow management and access to sufficient banking facilities to meet operational and growth needs.

Environmental and Regulatory Risk

Given the nature of the industry, the company ensures full compliance with environmental and regulatory standards by employing qualified personnel and maintaining robust systems.

FINANCIAL KEY PERFORMANCE INDICATORS

Performance is tracked monthly using both financial and operational KPIs, with corrective action taken as necessary. Key KPIs include:

- Customer order volumes

- Delivery quantities

- Gross margin per litre by product

- Transport and operational costs

- Trade debtor balances and ageing profiles

- Stock levels

FUTURE DEVELOPMENTS

The Craggs Holdings Limited group will continue to serve its loyal customer base with traditional fuels while expanding its offering of greener alternatives such as HVO. Further investments in efficient vehicle fleets, IT systems, and employee development will support ongoing organic growth and help the company meet its long-term strategic objectives.

ON BEHALF OF THE BOARD:

J P Sharp - Director

26th June 2025

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2024.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £nil (2023: £1,099,999).

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Mrs H L Bingham

C Bingham

M Crockett

J P Sharp

R S Wallace

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Cresswells Accountants (UK) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J P Sharp - Director

26th June 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and parent company and determined that the most significant are those that relate to the reporting framework (Companies Act 2006) and the relevant tax compliance regulations in the jurisdictions in which the group and parent company operates. In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements and those laws and regulations relating to health and safety, employee matters, environmental, and bribery and corruption practices.

We understood how the group and parent company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes and papers provided to the audit team.

We assessed the susceptibility of the group and parent company's Financial Statements to material misstatement, including how fraud might occur, we utilised internal and external information to perform a fraud risk assessment. We considered the risk of fraud through management override and, in response, we incorporated a review of manual journal entries into our audit approach. We also considered the possibility of fraudulent or corrupt payments made through third parties.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above.

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

Use of our report

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

John Dakin BSc FCA (Senior Statutory Auditor)

for and on behalf of Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

12 Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

26th June 2025

TURNOVER

69,145,239

68,718,747

Cost of sales

65,027,276

63,617,931

GROSS PROFIT

4,117,963

5,100,816

Administrative expenses

4,656,339

4,571,221

(538,376

)

529,595

Other operating income

47,402

54,877

OPERATING (LOSS)/PROFIT

4

(490,974

)

584,472

Interest payable and similar expenses

5

210,936

209,673

(LOSS)/PROFIT BEFORE TAXATION

(701,910

)

374,799

Tax on (loss)/profit

6

8,387

31,816

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(710,297

)

342,983

(Loss)/profit attributable to:

Owners of the parent

(710,297

)

342,983

(LOSS)/PROFIT FOR THE YEAR

(710,297

)

342,983

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(710,297

)

342,983

Total comprehensive income attributable to:

Owners of the parent

(710,297

)

342,983

FIXED ASSETS

Intangible assets

9

3,113,595

3,552,534

Tangible assets

10

3,005,331

3,466,818

Investments

11

-

-

6,118,926

7,019,352

CURRENT ASSETS

Stocks

12

417,979

957,111

Debtors

13

5,024,055

8,319,705

Cash in hand

37

37

5,442,071

9,276,853

CREDITORS

Amounts falling due within one year

14

7,603,212

11,271,681

NET CURRENT LIABILITIES

(2,161,141

)

(1,994,828

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,957,785

5,024,524

CREDITORS

Amounts falling due after more than one year

15

(855,516

)

(1,229,361

)

PROVISIONS FOR LIABILITIES

19

(486,602

)

(469,199

)

NET ASSETS

2,615,667

3,325,964

CAPITAL AND RESERVES

Called up share capital

20

10,764

10,764

Share premium

21

3,293,417

3,293,417

Retained earnings

21

(688,514

)

21,783

SHAREHOLDERS' FUNDS

2,615,667

3,325,964

The financial statements were approved by the Board of Directors and authorised for issue on 26th June 2025 and were signed on its behalf by:

J P Sharp - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

5,182,030

5,182,030

5,182,030

5,182,030

CURRENT ASSETS

Debtors

13

3,893

3,893

CREDITORS

Amounts falling due within one year

14

1,881,742

1,881,742

NET CURRENT LIABILITIES

(1,877,849

)

(1,877,849

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,304,181

3,304,181

CAPITAL AND RESERVES

Called up share capital

20

10,764

10,764

Share premium

21

3,293,417

3,293,417

SHAREHOLDERS' FUNDS

3,304,181

3,304,181

Company's profit for the financial year

-

1,099,999

The financial statements were approved by the Board of Directors and authorised for issue on 26th June 2025 and were signed on its behalf by:

J P Sharp - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st January 2023

10,764

778,799

3,293,417

4,082,980

Changes in equity

Dividends

-

(1,099,999

)

-

(1,099,999

)

Total comprehensive income

-

342,983

-

342,983

Balance at 31st December 2023

10,764

21,783

3,293,417

3,325,964

Changes in equity

Total comprehensive income

-

(710,297

)

-

(710,297

)

Balance at 31st December 2024

10,764

(688,514

)

3,293,417

2,615,667

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st January 2023

10,764

-

3,293,417

3,304,181

Changes in equity

Dividends

-

(1,099,999

)

-

(1,099,999

)

Total comprehensive income

-

1,099,999

-

1,099,999

Balance at 31st December 2023

10,764

-

3,293,417

3,304,181

Changes in equity

Balance at 31st December 2024

10,764

-

3,293,417

3,304,181

Cash flows from operating activities

Cash generated from operations

1

2,350,607

(844,437

)

Interest paid

(183,968

)

(192,433

)

Interest element of hire purchase payments paid

(26,968

)

(17,240

)

Tax paid

(6,051

)

(61,931

)

Net cash from operating activities

2,133,620

(1,116,041

)

Cash flows from investing activities

Purchase of intangible fixed assets

(75,000

)

-

Purchase of tangible fixed assets

(125,294

)

(1,893,795

)

Sale of tangible fixed assets

34,920

531,069

Net cash from investing activities

(165,374

)

(1,362,726

)

Cash flows from financing activities

Loan repayments in year

-

(1,083,115

)

Capital repayments in year

(438,041

)

957,180

Equity dividends paid

-

(1,099,999

)

Net cash from financing activities

(438,041

)

(1,225,934

)

Increase/(decrease) in cash and cash equivalents

1,530,205

(3,704,701

)

Cash and cash equivalents at beginning of year

2

(2,917,757

)

786,944

Cash and cash equivalents at end of year

2

(1,387,552

)

(2,917,757

)

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

(Loss)/profit before taxation

(701,910

)

374,799

Depreciation charges

1,064,606

1,032,722

Loss on disposal of fixed assets

1,194

114,876

Finance costs

210,936

209,673

574,826

1,732,070

Decrease/(increase) in stocks

539,132

(146,065

)

Decrease/(increase) in trade and other debtors

3,295,650

(2,480,871

)

(Decrease)/increase in trade and other creditors

(2,059,001

)

50,429

Cash generated from operations

2,350,607

(844,437

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

37

37

Bank overdrafts

(1,387,589

)

(2,917,794

)

(1,387,552

)

(2,917,757

)

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

37

786,944

Bank overdrafts

(2,917,794

)

-

(2,917,757

)

786,944

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

37

-

37

Bank overdrafts

(2,917,794

)

1,530,205

(1,387,589

)

(2,917,757

)

1,530,205

(1,387,552

)

Debt

Finance leases

(1,679,364

)

438,041

(1,241,323

)

(1,679,364

)

438,041

(1,241,323

)

Total

(4,597,121

)

1,968,246

(2,628,875

)

1.	STATUTORY INFORMATION

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

The functional and presentation currency of Craggs Holdings Limited is considered to be pound sterling (£) because that is the currency of the primary economic environment in with the company operates. the financial statements have been prepared using round pounds only.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The group financial statements consolidate the financial statements of Craggs Holdings Limited and its subsidiary undertaking. The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired in the period are included in the consolidated profit and loss account from the date of acquisition.

No company profit and loss account is presented for Craggs Holdings Limited, as permitted by Section 408 of the Companies Act 2006.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported tor assets and liabilities as at the balance sheet date and the amounts reported for turnover and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

(i) Useful economic lives of tangible and intangible assets

The annual amortisation and depreciation charges for intangible and tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Stock provisions

In determining the need for the impairment of stock the directors have made significant judgements as to the saleability of the stock that is being held in the company, together with the costs to complete and make that sale.

(iii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the age ink profile of debtors and historical experience.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

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

Patents, licences and branding are being amortised evenly over their estimated useful life of ten years.

Costs incurred in respect of branding exercises are capitalised and amortised evenly over the estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

Over 3 to 20 years

Fixtures and fittings

-

Over 3 to 20 years

Motor vehicles

-

over 3 to 10 years

Computer equipment

-

over 3 to 10 years

Tangible fixed assets are initially recorded at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company only enters in basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised costs using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or finance at a rate of interest that is not a market rate or in the case of an out-right short-term loan nor at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortised costs, the impairment loss is measured as the difference between an assets carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an assets carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systemic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Finance costs

Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in the statement of comprehensive income in the year in which they are incurred.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,268,612

2,073,769

Social security costs

212,780

202,394

Other pension costs

38,886

32,274

2,520,278

2,308,437

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

2024

2023

Directors

7

5

Staff

54

52

61

57

The average number of employees by undertakings that were proportionately consolidated during the year was 57 (2023 - 53 ) .

2024

2023

£

£

Directors' remuneration

144,644

376,109

4.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging:

2024

2023

£

£

Other operating leases

49,949

39,912

Depreciation - owned assets

295,200

524,673

Depreciation - assets on hire purchase contracts

255,467

-

Loss on disposal of fixed assets

1,194

114,876

Goodwill amortisation

507,876

507,876

Patents, licences and branding amortisation

6,063

172

Auditors' remuneration

26,300

34,000