REGISTERED NUMBER: 04982644 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

PURE AUDIO VISUAL LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

R Lister

P J Sutton

E T Hamilton

A Mariani

T I Stuart

SECRETARY:

R Lister

REGISTERED OFFICE:

362 Leach Place

Walton Summit

Preston

Lancashire

PR5 8AS

REGISTERED NUMBER:

04982644 (England and Wales)

AUDITORS:

Wallwork Nelson & Johnson

Chartered Accountants & Statutory Auditors

Chandler House

7 Ferry Road Office Park

Riversway

Preston

Lancashire

PR2 2YH

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

REVIEW OF BUSINESS

Trading performance and financial position results for the year ended 31 December 2024 are disclosed in the annexed financial statements and summarised below, alongside other KPIs:

Key Performance Indicator

2024

2023

Variance

Revenue

£26.2m

£25.5m

+2.9%

Gross Profit Margin

12.1%

11.8%

+2.5%

EBITDA

£890k

£1,149k

-22.6%

Operating Profit

£607k

£949k

-36.0%

Shareholder's Funds

£3.8m

£3.3m

+13.2%

The acquisition by Ricoh UK Limited on 1 June 2022 has significantly bolstered our financial stability and capacity for future growth.

The Company prides itself on the service quality provided by its specialist team of designers, engineers, project managers and programmers. Working proactively alongside client in-house teams and third-party contractors, they deliver well-coordinated, seamless integration and bring maximum value to projects.

With a commitment to quality and control in its work, the Company is ISO 9001, ISO 14001 and ISO 45001 compliant and holds ISO 27001 and Cyber Essentials certification.

Continuous investment in people and AVIXA certified training ensures Pure Audio Visual Limited ('Pure AV') continues to offer an industry-leading service.

During the year, the Company has marginally improved turnover and gross profit levels, despite a significant downturn in trade within the Higher Education sector (see 'Principal Risks and Uncertainties' below). Between August 2024 to December 2024, this has resulted in a 50% reduction in turnover within the Higher Education sector, when compared with the same period last year.

The Company's reduction in Operating Profit during the year ended 31 December 2024 is predominantly attributable to a 27% increase in Administrative Expenses.

Administrative Expenses have largely increased as a result of the Company's commencement of a new trading premises lease in Dunstable (Rent and Rates costs have increased by 85%), associated capital improvement costs (Depreciation charges have increased by 126%) and increased intra-group Royalties payable (101% increase on 2023).

PRINCIPAL RISKS AND UNCERTAINTIES

The Company manages its financial instruments in order to finance its operations and to mitigate its exposure to the principal risks and uncertainties facing the Company's activities, being, in no particular order:

Market Risk

2024 revealed nearly four out of ten Universities are in a critical financial state due to the reduction in non-UK students taking places in the UK. We envisage that this situation is likely to continue for the next 12 months with early signs that the market will gain stability in 2026 when the Universities will have right sized their Courses and Estates to match the reduced student intake.

The political landscape for 2025 is causing perceived impacts on NHS and Government contracts, with uncertainty around budget allocations for institutions in the new fiscal year. This has resulted in delays in planning for new Audio Visual deployments from April 2025 onwards, but we will continue to closely monitor the situation with our clients.

Early in 2025 we retained a position on two significant Higher Education frameworks that should have positioned us well for the opportunities that emanate from the University sector.

During the previous year, the Company's supply chains were detrimentally impacted as result of the Ukraine-Russia conflict. Whilst this risk has been mitigated, as far as possible, by the Directors, utilising their extensive knowledge of and contacts within the industry, the Company remains exposed to supply chain disruption, given the ongoing conflict in Europe and wider global instability. The Company continue to manage this risk through proactive stock management and communication with suppliers.

People Risk

Talent acquisition and retention remain key to the stability of the business, and as such we recognise that employees have increased opportunities to either move employment or charge more for their services with employers in the past 12 months. We remain committed to defining a clearer structure and reward programme but recognise that salary expectations must be balanced against the overall financial performance of the business.

Liquidity Risk

The Directors consider the liquidity risks facing the Company to be low, with the Company being part of a global cash structure within the Ricoh Group.

FUTURE DEVELOPMENTS

Despite a reduction in forecast revenue growth, the Directors believe that the Company is well positioned to capitalise on projected opportunities in the UK, whilst noting the need to withstand the volatile, uncertain, complex and ambiguous landscape of the UK market in 2025.

Retained focus from Ricoh Company Limited ('RCL') in the expansion of the Workplace Experience sector has a direct correlation to the support and investment required in achieving RCL's aspiration to become the largest Communication Services Integrator globally. Pure AV are key to that development in the UK and Ireland markets and we expect to head back to growth in the second half of 2025.

During 2025, the Board and senior leadership team will work with Ricoh at a UK and European level to leverage synergies and maximise customer and vendor relationships. Headcount within the business will continue to increase to support joint customer opportunities, and the senior management team will be pivotal in mapping the future structure.

In 2024 the Company experienced a good level of enquiry and whilst assessing the market and customer expectations, the Board are confident of retaining their position in the market and planning to capitalise on increased levels of enquiry in the latter part of 2025 and into 2026.

ON BEHALF OF THE BOARD:

P J Sutton - Director

24 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the Company in the year under review was that of Audio Visual and IT Communication integrators.

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.

R Lister

P J Sutton

E T Hamilton

A Mariani

Other changes in directors holding office are as follows:

P J Keoghan - resigned 30 June 2024

T I Stuart was appointed as a director after 31 December 2024 but prior to the date of this report.

N C Downing ceased to be a director after 31 December 2024 but prior to the date of this report.

STRATEGIC REPORT

The Company has chosen in accordance with Companies Act 2006, s 414C(11) to set out in the Company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Report of the Directors. It has been done in respect of :

- business review

- future developments

- financial risk management objectives and policies (see principal risks and uncertainties)

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Wallwork Nelson & Johnson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P J Sutton - Director

24 September 2025

Opinion

We have audited the financial statements of Pure Audio Visual 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 and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

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 five, 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:

Enquiry of management about any known or suspected instances of fraud and about any actual or potential litigation and claims.

Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.

Enquiry of entity staff to identify any instances of non-compliance with laws and regulation.

Reviewing financial statement disclosures and testing against both supporting and, where applicable, contradictory documentation to assess compliance with applicable laws and regulations.

Auditing the risk of management override of controls, including reviewing journals entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

Assessing accounting estimates which have a material impact on the financial statements for indications of management bias.

Substantive sample testing on all material revenue streams, reviewing consistency with revenue recognition accounting policies and vouching to third party audit evidence to ensure income has been recognised completely and in the correct financial year.

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.

I M Johnson (Senior Statutory Auditor)

for and on behalf of Wallwork Nelson & Johnson

Chartered Accountants & Statutory Auditors

Chandler House

7 Ferry Road Office Park

Riversway

Preston

Lancashire

PR2 2YH

24 September 2025

TURNOVER

3

26,241,689

25,493,883

Cost of sales

23,074,956

22,494,587

GROSS PROFIT

3,166,733

2,999,296

Administrative expenses

2,450,028

1,934,027

716,705

1,065,269

Other operating income

15,499

13,755

OPERATING PROFIT

5

732,204

1,079,024

Interest payable and similar expenses

6

125,065

129,690

PROFIT BEFORE TAXATION

607,139

949,334

Tax on profit

7

166,293

228,645

PROFIT FOR THE FINANCIAL YEAR

440,846

720,689

FIXED ASSETS

Intangible assets

8

3,173

3,425

Tangible assets

9

625,418

424,451

628,591

427,876

CURRENT ASSETS

Stocks

10

721,895

2,456,186

Debtors

11

7,070,552

5,558,246

Cash at bank

-

29,811

7,792,447

8,044,243

CREDITORS

Amounts falling due within one year

12

4,592,484

5,034,576

NET CURRENT ASSETS

3,199,963

3,009,667

TOTAL ASSETS LESS CURRENT LIABILITIES

3,828,554

3,437,543

CREDITORS

Amounts falling due after more than one year

13

(10,026

)

(13,669

)

PROVISIONS FOR LIABILITIES

17

(34,462

)

(80,654

)

NET ASSETS

3,784,066

3,343,220

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

3,783,966

3,343,120

SHAREHOLDERS' FUNDS

3,784,066

3,343,220

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2025 and were signed on its behalf by:

P J Sutton - Director

E T Hamilton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

2,622,431

2,622,531

Total comprehensive income

-

720,689

720,689

Balance at 31 December 2023

100

3,343,120

3,343,220

Total comprehensive income

-

440,846

440,846

Balance at 31 December 2024

100

3,783,966

3,784,066

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

Monetary amounts in these financial statements are rounded to the nearest £.

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.

The Company is a wholly owned subsidiary of Ricoh Europe Holdings PLC and its results are included in the consolidated financial statements.

The consolidated financial statements of Ricoh Europe Holdings PLC are prepared in accordance with International Financial Reporting Standards, are available to the public, and may be obtained from 20 Triton Street, London, NW1 3BF.

In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this Financial Reporting Standard) and has applied the exemptions available under FRS 102 in respect of the below disclosures.

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows;

- the requirements of paragraph 33.7 Key Management Personnel Compensation

Related party exemption

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

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

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

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Revenue/Debtors

The Company is required to assess the completion stage of service projects for revenue recognition purposes. The Company applies estimation techniques based on the experience and expertise of key management personnel, including reference to internal reporting and known/expected project completion dates.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax, adjusted for the movement in value of services performed, which remain uninvoiced as at the Balance Sheet date and movement in stocks.

Revenue from the provision of services, excluding maintenance and service contracts, is recognised by reference to the stage of completion of the project, provided that both this and the value of the contract can be assessed with reasonable certainty and where it is probable that the economic benefits associated with the transaction will flow to the company.

Revenue from the provision of maintenance and service contracts is recognised evenly over the period of the contract.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of twenty 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.

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.

Short leasehold

-

20% on cost

Plant and machinery

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and any provision for impairment in value.

The Directors consider that Short Leasehold Property assets should be depreciated at a rate of 20% on a straight line basis, as opposed to 25%. This change of accounting estimate was effected prospectively on 1 January 2024 by the directors in order to more accurately reflect the useful economic life of such assets. The effect of this change has been to reduce the depreciation charge of such assets in the financial statements for the year ended 31 December 2024 by £15,053. Without the change of accounting estimate, the net book value of Short Leasehold Property assets would be £324,178.

Stocks

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

Stocks are valued on a first in first out ('FIFO') basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

A basic financial instrument is a contract that gives rise to a financial asset in one entity and a financial liability or equity instrument of another entity.

The following assets and liabilities are classified as financial instruments; cash and bank balances, trade and other debtors, trade creditors, bank loans, hire purchase contracts and other creditors.

Trade and other debtors are measured at the undiscounted amount of cash or other consideration expected to be received.

Financial assets are assessed at the end of the reporting period for objective evidence of impairment and if applicable is recognised as appropriate.

Trade and other creditors are measured at the undiscounted amount of cash or other consideration expected to be paid.

Hire purchase contracts and loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.

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.

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 the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or 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 plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid, the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Profit and Loss and Other Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Going concern

The Directors believe that the Company has sufficient trade and financial resources to continue in operational existence for the foreseeable future. Thus the going concern basis of accounting in preparing the annual financial statements has been adopted.

Dilapidation provision

Provisions for dilapidations are recognised on a lease by lease basis and are based on the Company's best estimate of the likely committed cash outflow.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31/12/24

31/12/23

£

£

Sales of goods

20,197,860

18,578,446

Sales of services

6,043,829

6,915,437

26,241,689

25,493,883

4.	EMPLOYEES AND DIRECTORS

31/12/24

31/12/23

£

£

Wages and salaries

4,938,917

4,247,827

Social security costs

573,656

498,656

Other pension costs

95,331

79,418

5,607,904

4,825,901

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

31/12/24

31/12/23

Cost of sales

88

77

Administrative

11

8

99

85

31/12/24

31/12/23

£

£

Directors' remuneration

260,663

238,850

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

31/12/24

31/12/23

£

£

Emoluments etc

132,863

120,050

Contributions paid to money purchase schemes for 2 Directors: £2,642 (2023: £1,321).

5.	OPERATING PROFIT

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

31/12/24

31/12/23

£

£

Depreciation - owned assets

145,942

51,005

Depreciation - assets on hire purchase contracts

11,310

18,609

(Profit)/loss on disposal of fixed assets

(19,445

)

2

Goodwill amortisation

252

252

Auditors' remuneration

9,000

9,000

Foreign exchange differences

(15,499

)

(13,755

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31/12/24

31/12/23

£

£

Bank interest

123,343

127,488

Other interest

66

-

Hire purchase

1,656

2,202

125,065

129,690

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31/12/24

31/12/23

£

£

Current tax:

UK corporation tax

174,142

183,565

Prior year tax over/under

provision

43,973

-

Total current tax

218,115

183,565

Deferred tax

(51,822

)

45,080

Tax on profit

166,293

228,645

Reconciliation of total tax 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

£

£

Profit before tax

607,139

949,334

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

151,785

223,283

Effects of:

Expenses not deductible for tax purposes

4,373

(490

)

Capital allowances in excess of depreciation

-

(39,228

)

Depreciation in excess of capital allowances

17,984

-

Adjustments to tax charge in respect of previous periods

43,973

-

Timing differences

(51,822

)

45,080

Total tax charge

166,293

228,645

On 14 October 2022, the Government announced an increase to the UK corporation tax rate, from 19% to 25%, effective 1 April 2023.

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2024

and 31 December 2024

5,000

AMORTISATION

At 1 January 2024

1,575

Amortisation for year

252

At 31 December 2024

1,827

NET BOOK VALUE

At 31 December 2024

3,173

At 31 December 2023

3,425

9.	TANGIBLE FIXED ASSETS

Short

Plant and

Motor

Computer

leasehold

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

206,227

26,584

334,678

229,870

797,359

Additions

217,888

12,559

-

127,777

358,224

Disposals

-

(6,250

)

(85,570

)

-

(91,820

)

At 31 December 2024

424,115

32,893

249,108

357,647

1,063,763

DEPRECIATION

At 1 January 2024

24,666

9,075

178,793

160,374

372,908

Charge for year

60,218

4,966

48,045

44,023

157,252

Eliminated on disposal

-

(6,249

)

(85,566

)

-

(91,815

)

At 31 December 2024

84,884

7,792

141,272

204,397

438,345

NET BOOK VALUE

At 31 December 2024

339,231

25,101

107,836

153,250

625,418

At 31 December 2023

181,561

17,509

155,885

69,496

424,451

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2024

17,800

31,000

48,800

Transfer to ownership

-

(31,000

)

(31,000

)

At 31 December 2024

17,800

-

17,800

DEPRECIATION

At 1 January 2024

297

16,146

16,443

Charge for year

3,560

7,750

11,310

Transfer to ownership

-

(23,896

)

(23,896

)

At 31 December 2024

3,857

-

3,857

NET BOOK VALUE

At 31 December 2024

13,943

-

13,943

At 31 December 2023

17,503

14,854

32,357

10.

STOCKS

31/12/24

31/12/23

£

£

Stock

721,895

2,456,186