REGISTERED NUMBER: 05655549 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

ADONAI HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

B Oozageer

R Oozageer

REGISTERED OFFICE:

Unit 14

Hoddesdon Enterprise Centre

Pindar Road

Hoddesdon

Hertfordshire

EN11 0FJ

REGISTERED NUMBER:

05655549 (England and Wales)

AUDITORS:

Trevor Jones & Partners Ltd

Statutory Auditor

Unit 14

Hoddesdon Enterprise Centre

Pindar Road

Hoddesdon

Hertfordshire

EN11 0FJ

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

REVIEW OF BUSINESS

During the year ended 31 December 2024, the group achieved a small increase in turnover to £6,797,866 (2023: £6,646,385). While overall revenues have remained steady, the care sector continues to present operational challenges, and the group has focused on maintaining quality of service and cost efficiency.

Operating profit for the year was £1,339,601 (2023: £1,574,372), with profit before tax of £1,265,279 (2023: £1,493,006). After tax, the group generated a net profit of £933,331 (2023: £1,119,547). The reduction compared with the prior year reflects increased cost pressures and normal fluctuations in operating margins within the sector.

The group’s balance sheet remains strong, with total assets less current liabilities of £11,919,733 (2023: £11,562,925). Shareholders’ funds increased to £11,032,659 (2023: £10,333,328), driven by retained profits. This provides a sound platform for continued operations and investment in the care homes portfolio.

Overall, while profitability was lower than in the prior year due to higher costs and margin pressures, the group has maintained turnover growth, delivered positive results, and strengthened its net asset position. The directors remain confident that the business model and sector focus provide resilience and opportunities for future development.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk is the continued adherence to the regulations within the care sector. Any significant breaches of such regulations could lead to a care home closure.

ON BEHALF OF THE BOARD:

B Oozageer - Director

26 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of care homes.

DIVIDENDS

An interim dividend of £234.00 per share was paid on 31 December 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 234,000 .

FUTURE DEVELOPMENTS

The group's aim is to continue to provide a strong platform to allow for sustained growth whilst adhering to the required regulations within the care sector.

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

B Oozageer has held office during the whole of the period from 1 January 2024 to the date of this report.

FINANCIAL INSTRUMENTS

The company's and the group's principal financial instruments comprise the bank, bank loans and trade debtors. The main purpose of these instruments is to finance the company and the group's operations.

In respect of bank balances, the liquidity risk is managed by maintaining a cash balance throughout the year

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts

presented in the balance sheet are net of allowances for doubtful debtors.

The liquidity risk in respect of the bank loans is managed by ensuring that there are sufficient funds to meet the repayments.

The company and the group operate in a highly regulated environment particularly in relation to the Care Quality Commission standards. The company and the group have established an effective system of internal control to ensure compliance with all legal and regulatory requirements.

DISCLOSURE IN THE STRATEGIC REPORT

Where the group has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the group's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 it must be stated in the directors' report that it has done so. This includes information that would have been included in the business review and the principal risks and uncertainties.

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). 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, Trevor Jones & Partners Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B Oozageer - Director

26 September 2025

Opinion

We have audited the financial statements of Adonai Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 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 31 December 2024 and of the group's 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 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management,

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3

were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC.

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.

Christopher James Whale (Senior Statutory Auditor)

for and on behalf of Trevor Jones & Partners Ltd

Statutory Auditor

Unit 14

Hoddesdon Enterprise Centre

Pindar Road

Hoddesdon

Hertfordshire

EN11 0FJ

26 September 2025

TURNOVER

6,797,866

6,646,385

Cost of sales

3,940,954

3,643,418

GROSS PROFIT

2,856,912

3,002,967

Administrative expenses

1,525,986

1,434,124

1,330,926

1,568,843

Other operating income

8,675

5,529

OPERATING PROFIT

4

1,339,601

1,574,372

Interest receivable and similar income

21,100

15,595

1,360,701

1,589,967

Interest payable and similar expenses

5

95,422

96,961

PROFIT BEFORE TAXATION

1,265,279

1,493,006

Tax on profit

6

331,948

373,459

PROFIT FOR THE FINANCIAL YEAR

933,331

1,119,547

Profit attributable to:

Owners of the parent

933,331

1,119,547

PROFIT FOR THE YEAR

933,331

1,119,547

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

933,331

1,119,547

Total comprehensive income attributable to:

Owners of the parent

933,331

1,119,547

FIXED ASSETS

Intangible assets

9

2,355,852

2,385,852

Tangible assets

10

4,293,697

4,378,479

Investments

11

1,722,179

1,722,179

8,371,728

8,486,510

CURRENT ASSETS

Debtors

12

2,376,027

1,663,621

Cash at bank and in hand

2,769,127

2,592,487

5,145,154

4,256,108

CREDITORS

Amounts falling due within one year

13

1,676,549

1,179,693

NET CURRENT ASSETS

3,468,605

3,076,415

TOTAL ASSETS LESS CURRENT LIABILITIES

11,840,333

11,562,925

CREDITORS

Amounts falling due after more than one year

14

807,674

1,229,597

NET ASSETS

11,032,659

10,333,328

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Revaluation reserve

17

632,000

632,000

Other reserves

17

35,000

35,000

Retained earnings

17

10,364,659

9,665,328

SHAREHOLDERS' FUNDS

11,032,659

10,333,328

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

B Oozageer - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

604,979

604,979

Investments

11

2,659,463

2,659,463

3,264,442

3,264,442

CURRENT ASSETS

Debtors

12

2,051,259

-

Cash at bank

1,370,126

1,737

3,421,385

1,737

CREDITORS

Amounts falling due within one year

13

552,978

2,313,649

NET CURRENT ASSETS/(LIABILITIES)

2,868,407

(2,311,912

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,132,849

952,530

CREDITORS

Amounts falling due after more than one year

14

610,514

1,000,814

NET ASSETS/(LIABILITIES)

5,522,335

(48,284

)

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Retained earnings

5,521,335

(49,284

)

SHAREHOLDERS' FUNDS

5,522,335

(48,284

)

Company's profit for the financial year

5,804,619

176,231

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

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

B Oozageer - Director

Called up

share

Retained

Revaluation

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 January 2023

1,000

8,779,781

632,000

35,000

9,447,781

Changes in equity

Dividends

-

(234,000

)

-

-

(234,000

)

Total comprehensive income

-

1,119,547

-

-

1,119,547

Balance at 31 December 2023

1,000

9,665,328

632,000

35,000

10,333,328

Changes in equity

Dividends

-

(234,000

)

-

-

(234,000

)

Total comprehensive income

-

933,331

-

-

933,331

Balance at 31 December 2024

1,000

10,364,659

632,000

35,000

11,032,659

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000

8,485

9,485

Changes in equity

Dividends

-

(234,000

)

(234,000

)

Total comprehensive income

-

176,231

176,231

Balance at 31 December 2023

1,000

(49,284

)

(48,284

)

Changes in equity

Dividends

-

(234,000

)

(234,000

)

Total comprehensive income

-

5,804,619

5,804,619

Balance at 31 December 2024

1,000

5,521,335

5,522,335

Cash flows from operating activities

Cash generated from operations

1

1,094,231

1,697,610

Interest paid

(95,422

)

(96,961

)

Tax paid

(144,751

)

(191,728

)

Net cash from operating activities

854,058

1,408,921

Cash flows from investing activities

Purchase of tangible fixed assets

(42,143

)

(19,921

)

Sale of intangible fixed assets

8,599

-

Sale of tangible fixed assets

14,032

-

Interest received

21,100

15,595

Net cash from investing activities

1,588

(4,326

)

Cash flows from financing activities

Capital repayments in year

(442,108

)

(433,623

)

Amount withdrawn by directors

(2,898

)

(1,101,456

)

Equity dividends paid

(234,000

)

(234,000

)

Net cash from financing activities

(679,006

)

(1,769,079

)

Increase/(decrease) in cash and cash equivalents

176,640

(364,484

)

Cash and cash equivalents at beginning of year

2

2,592,487

2,956,971

Cash and cash equivalents at end of year

2

2,769,127

2,592,487

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

1,265,279

1,493,006

Depreciation charges

145,525

148,684

Profit on disposal of fixed assets

(8,599

)

-

Finance costs

95,422

96,961

Finance income

(21,100

)

(15,595

)

1,476,527

1,723,056

Increase in trade and other debtors

(712,406

)

(170,075

)

Increase in trade and other creditors

330,110

144,629

Cash generated from operations

1,094,231

1,697,610

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

2,769,127

2,592,487

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,592,487

2,956,971

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

2,592,487

176,640

2,769,127

2,592,487

176,640

2,769,127

Debt

Debts falling due within 1 year

(346,392

)

17,553

(328,839

)

Debts falling due after 1 year

(1,229,597

)

421,923

(807,674

)

(1,575,989

)

439,476

(1,136,513

)

Total

1,016,498

616,116

1,632,614

1.	STATUTORY INFORMATION

Adonai 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.

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 accounts of Adonai Holdings Limited and all of its subsidiary undertakings made up to 31 December 2021; the group statement of comprehensive income includes the results of all subsidiary undertakings for the period.

Turnover and profits arising on trading between group companies are excluded.

Where the group has an investment in an entity which is sufficient to give the group a participating interest, and over which it is in a position to exercise significant influence, the entity is treated as an associated undertaking and is accounted for using the equity method of accounting.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic 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 future investments, economic utilisation and the physical condition of the assets.

(ii) Useful economic life of intangible fixed asset

The annual amortisation charge for the intangible fixed asset is sensitive to changes in the estimated useful economic life and residual value of the asset. The useful economic life and residual value is re-assessed annually. It is amended when necessary to reflect current estimates, based on utilisation of the asset.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts.

Revenue from the sale of services is recognised when the significant risks and rewards of ownership have transferred to the buyer; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its 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.

Freehold property

-

2% on cost and not provided

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

Reducing balance over 3 years

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

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

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 profit or loss on a straight line basis over the period of the lease.

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.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,674,592

3,385,959

Other pension costs

52,254

97,009

3,726,846

3,482,968

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

2024

2023

Direct

133

129

Directors

1

2

134

131

The average number of employees by undertakings that were proportionately consolidated during the year was 133 (2023 - 131 ) .

2024

2023

£

£

Directors' remuneration

17,628

18,365

Directors' pension contributions to money purchase schemes

-

60,000

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

Money purchase schemes

1

2