REGISTERED NUMBER: SC121685 (Scotland)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

HOME HARDWARE (SCOTLAND) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

C J McEwan

F Leary

D J O'Ware

REGISTERED OFFICE:

26A Dalry Road

Ardrossan

Ayrshire

KA22 7GQ

REGISTERED NUMBER:

SC121685 (Scotland)

AUDITORS:

Galbraith Pritchards

Chartered Accountants & Statutory Auditor

20 Barns Street

Ayr

Ayrshire

KA7 1XA

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

REVIEW OF BUSINESS

The company continues to operate as a wholesaler in the hardware and general household goods sector. The buying group and its members trade under the banner Home Hardware as hardware and general household goods providers. We maintain a comprehensive buying and marketing solution for our members backed by our extensive use of warehousing technology and systems.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company are continued uncertainty about consumer confidence, in tandem with Government legislation, in relation to ongoing high inflation and a continued contraction in consumer spending in the wider economy. The supply chain has now recovered following issues relating to the pandemic and more latterly shipping delays due to threats to container ships in the Middle East. We can now see a much-improved stock availability. There continued to be pressure on consumer spending from ongoing pressures on energy, food and housing costs. This has clearly affected consumer spending and has become normalised as a longer-term situation and consumer mind-set, which is also marked by geo-political instability, both of which undermine business development and investment.

On costs for consumers reflect similar rises in the cost of doing business with large increases in energy, insurance, cost of goods, and cost of materials to businesses showing a marked increase since 2020. Most critically the cost of manpower and the cost of doing business has continued to increase well above the rate of inflation, and well above sales growth, which has been led by Government legislation. This increased cost of manpower will inevitably lead to a reduction in manpower and a need for further efficiencies within all business.

The Spring season started slowly but was boosted by sustained hot and sunny weather throughout May. The latter part of the year was muted, especially in response to the Budget in Oct, indicating extreme cost pressures and longer- term caution heaped onto households due to the compounding impact of high interest rates, higher proposed taxation, food, energy and housing costs. This was seen to impact equally across the geographic spread of the Home Hardware membership. The most pressing issues for 2025 are the additional costs of doing business enforced by the Government, which have been set to increase again far above the rate of inflation and likely sales growth in 2025, and we anticipate the same in 2026.

Key performance indicators for the company include comparing current and past turnover on a monthly basis by both members and sales category and maintaining our exceptional stock availability to our members.

The company assesses cash flow on a weekly basis together with reviewing members' sales ledger balances to ensure adequate cash resources are available and debtor default minimised.

ON BEHALF OF THE BOARD:

F Leary - Director

25 September 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

C J McEwan

F Leary

D J O'Ware

Other changes in directors holding office are as follows:

B Ferguson ceased to be a director after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

F Leary - Director

25 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and, enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

Marguerite Roos BAcc CA (Senior Statutory Auditor)

for and on behalf of Galbraith Pritchards

Chartered Accountants & Statutory Auditor

20 Barns Street

Ayr

Ayrshire

KA7 1XA

25 September 2025

TURNOVER

10,299,637

11,034,687

Cost of sales

8,534,352

9,081,417

GROSS PROFIT

1,765,285

1,953,270

Distribution costs

1,036,450

1,037,561

Administrative expenses

1,135,196

1,066,070

2,171,646

2,103,631

(406,361

)

(150,361

)

Other operating income

367,051

347,315

OPERATING (LOSS)/PROFIT

4

(39,310

)

196,954

Interest receivable and similar income

18,327

8,363

(20,983

)

205,317

Interest payable and similar expenses

5

7,167

9,392

(LOSS)/PROFIT BEFORE TAXATION

(28,150

)

195,925

Tax on (loss)/profit

6

(2,510

)

48,842

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(25,640

)

147,083

(LOSS)/PROFIT FOR THE YEAR

(25,640

)

147,083

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(25,640

)

147,083

FIXED ASSETS

Tangible assets

7

898,097

883,776

Investments

8

17,100

17,100

915,197

900,876

CURRENT ASSETS

Stocks

9

3,702,385

4,001,876

Debtors

10

1,317,912

1,560,268

Cash at bank and in hand

679,285

402,941

5,699,582

5,965,085

CREDITORS

Amounts falling due within one year

11

1,507,783

1,283,598

NET CURRENT ASSETS

4,191,799

4,681,487

TOTAL ASSETS LESS CURRENT LIABILITIES

5,106,996

5,582,363

CREDITORS

Amounts falling due after more than one year

12

(3,127,213

)

(3,586,792

)

PROVISIONS FOR LIABILITIES

16

(51,233

)

(41,381

)

NET ASSETS

1,928,550

1,954,190

CAPITAL AND RESERVES

Called up share capital

17

50,000

50,000

Other reserves

18

145,176

148,476

Retained earnings

18

1,733,374

1,755,714

SHAREHOLDERS' FUNDS

1,928,550

1,954,190

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

F Leary - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

50,000

1,535,310

221,797

1,807,107

Changes in equity

Total comprehensive income

-

220,404

(73,321

)

147,083

Balance at 31 December 2023

50,000

1,755,714

148,476

1,954,190

Changes in equity

Total comprehensive income

-

(22,340

)

(3,300

)

(25,640

)

Balance at 31 December 2024

50,000

1,733,374

145,176

1,928,550

Cash flows from operating activities

Cash generated from operations

1

434,937

(167,834

)

Interest paid

(4,104

)

(7,637

)

Interest element of hire purchase payments paid

(3,063

)

(1,755

)

Tax paid

(58,014

)

(69,245

)

Net cash from operating activities

369,756

(246,471

)

Cash flows from investing activities

Purchase of tangible fixed assets

(145,955

)

(41,713

)

Purchase of fixed asset investments

-

(2,000

)

Sale of tangible fixed assets

3,000

-

Interest received

18,327

8,363

Net cash from investing activities

(124,628

)

(35,350

)

Cash flows from financing activities

Loan repayments in year

(62,500

)

(62,500

)

Capital repayments in year

93,716

(24,751

)

Net cash from financing activities

31,216

(87,251

)

Increase/(decrease) in cash and cash equivalents

276,344

(369,072

)

Cash and cash equivalents at beginning of year

2

402,941

772,013

Cash and cash equivalents at end of year

2

679,285

402,941

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

31/12/24

31/12/23

£

£

(Loss)/profit before taxation

(28,150

)

195,925

Depreciation charges

123,822

102,704

Loss on disposal of fixed assets

4,812

-

Amount owed to group undertakings

224,256

(264,659

)

Amounts owed by group undertakings

(168,698

)

(285,653

)

Finance costs

7,167

9,392

Finance income

(18,327

)

(8,363

)

144,882

(250,654

)

Decrease in stocks

299,491

218,343

Decrease in trade and other debtors

30,462

85,468

Decrease in trade and other creditors

(39,898

)

(220,991

)

Cash generated from operations

434,937

(167,834

)

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

679,285

402,941

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

402,941

772,013

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

402,941

276,344

679,285

402,941

276,344

679,285

Debt

Finance leases

-

(93,716

)

(93,716

)

Debts falling due within 1 year

(62,500

)

36,458

(26,042

)

Debts falling due after 1 year

(26,042

)

26,042

-

(88,542

)

(31,216

)

(119,758

)

Total

314,399

245,128

559,527

1.	STATUTORY INFORMATION

Home Hardware (Scotland) Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

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

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in this note, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS

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

Freehold property

-

2% on cost and not provided

Plant and machinery

-

at varying rates on cost and at variable rates on reducing balance

Fixtures and fittings

-

at varying rates on cost and at variable rates on reducing balance

Motor vehicles

-

33% on reducing balance and 25% on reducing balance

Computer equipment

-

25% on cost

A review of impairment is carried out at each reporting date. 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.

STOCKS

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

TAXATION

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

Current or deferred taxation assets and liabilities are not discounted.

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

DEFERRED TAX

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

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

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

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

HIRE PURCHASE AND LEASING COMMITMENTS

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or lease terms, whichever is shorter.

The interest element of these obligations is charged to the profit and loss over the relevant period. The capital element of the future payments is treated as a liability.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

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

The company has purchased a trust for the benefit of employees and certain of their dependants. Monies held in this trust are held by independent trustees and managed at their discretion.

Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds to employees in respect of past services is declared and that date that assets of the trust vest in identified individuals.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS102 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.

Basic financial assets

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.

Impairment of financial assets

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 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 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 occuring after the impairment was recognised, the impairment is reversed. The reversal is such that the 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 bin it's entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

Basic financial 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.

Derecognition of financial liabilities

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

EQUITY INSTRUMENTS

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.

3.	EMPLOYEES AND DIRECTORS

31/12/24

31/12/23

£

£

Wages and salaries

1,076,836

1,055,695

Social security costs

100,834

96,082

Other pension costs

18,991

17,420

1,196,661

1,169,197

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

31/12/24

31/12/23

Administration

17

18

Distribution

22

25

39

43

31/12/24

31/12/23

£

£

Directors' remuneration

155,217

150,763

4.	OPERATING (LOSS)/PROFIT

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

31/12/24

31/12/23

£

£

Depreciation - owned assets

97,611

94,293

Depreciation - assets on hire purchase contracts

26,211

8,411

Loss on disposal of fixed assets

4,812

-

Auditors' remuneration

9,960

8,625

Foreign exchange differences

712

4,739

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31/12/24

31/12/23

£

£

Bank interest

4,104

7,637

Hire purchase

3,063

1,755

7,167

9,392

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

31/12/24

31/12/23

£

£

Current tax:

UK corporation tax

(12,362

)

58,014

Deferred tax

9,852

(9,172

)

Tax on (loss)/profit

(2,510

)

48,842

RECONCILIATION OF TOTAL TAX (CREDIT)/CHARGE INCLUDED IN PROFIT AND LOSS

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/12/24

31/12/23

£

£

(Loss)/profit before tax

(28,150

)

195,925

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 23.520% (2023 - 23.520%)

(6,621

)

46,082

Effects of:

Expenses not deductible for tax purposes

-

283

Capital allowances in excess of depreciation

(5,741

)

-

Depreciation in excess of capital allowances

-

11,678

Marginal relief

-

(29

)

Deferred tax

9,852

(9,172

)

Total tax (credit)/charge

(2,510

)

48,842