REGISTERED NUMBER: 10792115 (England and Wales)

KERNOW FIXINGS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

R J Prisgrove

P J Prisgrove

N Prisgrove

A J Furse

D Furse

A Prisgrove

REGISTERED OFFICE:

Manfield Way

St Austell

Cornwall

PL25 3HQ

REGISTERED NUMBER:

10792115 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

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

OVERVIEW

The company is a UK supplier of fixings, fasteners, supports, and pre-fabricated services, primarily serving mechanical & electrical contractors and construction contractors.

The company generated turnover of £10.47m (2023: £10.86m), representing a modest reduction of 3.6% compared with the prior year. Despite the decline in top-line revenue, careful margin management and operational discipline enabled the business to deliver a slight increase in gross profit, rising from £3.70m to £3.80m.

Cost control initiatives have been effective, resulting in a small improvement in profit before taxation of £15.6k to £632.3k (2023: £616.6k), despite the challenging trading environment.

Turnover decreased by £0.39m against the previous year. This was partly due to reduced trading days at the year end, due to an early shutdown to carry out a comprehensive stocktake, and timing differences in customer demand where significant customers have ongoing capital expenditure projects.

Gross profit increased by £0.10m as a result of efficiency in procurement and revised pricing strategies.

Profit before tax Increased to £632.2k (2023: £616.6k). The uplift reflects disciplined overhead management and efficiency savings, offsetting the revenue decline.

This performance demonstrates resilience in the business model and management's ability to protect profitability in a more challenging trading environment.

REVIEW OF BUSINESS

Market Conditions

The trading year was marked by continuing difficult economic trading conditions in the UK, with higher inflation and interest rates than have been seen in recent history. This has dampened some demand for capital expenditure within the customer base. These conditions contributed to pressure on sales volumes; however, the company adapted through proactive cost and margin management.

Operational Achievements

Maintained gross margins despite revenue pressures.

Implemented tighter cost control measures, leading to reduced overhead expenditure.

Focused on efficiency projects to drive sustainable profit performance.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company, like all businesses faces a number of operating risks and uncertainties. The most fundamental to the Company are:

- Volatility in customer demand across core markets;

- Credit risk of customers;

- Inflationary pressures impacting input costs; and

- Retention and recruitment of skilled staff.

Mitigation strategies are in place, including closer customer engagement, flexible supplier arrangements, and ongoing staff recruitment and development programmes.

FUTURE DEVELOPMENTS

Looking forward, the company's strategy is focused on:

- Driving revenue growth through targeted market expansion.

- Continued emphasis on efficiency and cost discipline.

- Investment into people and processes to strengthen quality standards.

- Exploring investment in technology and systems to enhance reporting, scalability, and customer experience.

- Strengthening resilience against macroeconomic pressures through prudent financial management.

KEY PERFORMANCE INDICATORS (KPIs)

Management monitors a range of KPIs to assess business performance:

- Revenue reduction of -3.6% on prior year.

- Gross profit margin improved year-on-year by 2 percentage points

- Profit before tax increased by £15.6k on prior year.

- Cash generation of £283k and an improvement in the current ratio of 11 percentage points to 128%.

ON BEHALF OF THE BOARD:

D Furse - Director

29 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 a specialist supplier of fixings, fasteners, supports and advice to the building services and construction industries including design, cutting and pre-fabrication services.

DIVIDENDS

The total distribution of dividends for the period ended 31 December 2024 will be £162,000 (2023: £265,500).

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 J Prisgrove

P J Prisgrove

N Prisgrove

A J Furse

D Furse

A Prisgrove

Other changes in directors holding office are as follows:

L Prisgrove - resigned 5 February 2024

E Furse - resigned 5 February 2024

S Furse - resigned 5 February 2024

S Prisgrove - resigned 5 February 2024

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, WP Audit Services LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Furse - Director

29 September 2025

Opinion

We have audited the financial statements of Kernow Fixings 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 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. This is the first year that an audit has been required, and as such, the comparatives are unaudited

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 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 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Objectives

The objectives of our audit in respect of fraud, are;

- to identify and assess the risks of material misstatement of the financial statements due to fraud;

- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and

- to respond appropriately to instances of fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Audit Approach

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Consumer Rights Act, the Consumer Protection (Distance Selling) Regulations, the Companies Act 2006, FRS 102, and UK taxation legislation.

- We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance, as well a review of relevant correspondence and certifications.

- We assessed the risk of material misstatement of the financial statements and how it might occur (including the risk of material misstatement due to fraud), by holding discussions with management and those charged with governance.

- We used our knowledge of the Company and the industry in which it operates to determine if management's explanations were consistent with our own conclusions.

- Based on our understanding developed from the above, we designed specific appropriate audit procedures to identify instances of non-compliance with the key laws and regulations which may result in potential fraud. This included making enquiries of management and those charged with governance, investigating unusual or unexpected relationships or movements in figures disclosed in the accounts and remaining alert for any transactions that appeared to be outside the normal course of business.

- Furthermore, as required by auditing standards, and taking into account our overall knowledge of the control environment, we have performed procedures to address the risks of management override of controls and the risk of fraudulent revenue recognition. Procedures such as a review of journal entries and assessing estimates for management bias have enabled us to conclude in this area.

No instances of fraud were identified from the above procedures.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control environment relevant to the audit, in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.

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.

Mrs Stephanie Williams (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chartered Accountant & Statutory Auditor

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

29 September 2025

TURNOVER

10,468,003

10,860,879

Cost of sales

(6,658,030

)

(7,154,872

)

GROSS PROFIT

3,809,973

3,706,007

Administrative expenses

(3,186,607

)

(3,131,380

)

623,366

574,627

Other operating income

36,750

52,513

OPERATING PROFIT

5

660,116

627,140

Interest receivable and similar income

3,247

10,006

663,363

637,146

Interest payable and similar expenses

6

(31,090

)

(20,512

)

PROFIT BEFORE TAXATION

632,273

616,634

Tax on profit

7

(174,900

)

(204,546

)

PROFIT FOR THE FINANCIAL YEAR

457,373

412,088

PROFIT FOR THE YEAR

457,373

412,088

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

457,373

412,088

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

1,044,240

1,095,297

1,044,240

1,095,297

CURRENT ASSETS

Stocks

11

972,906

942,234

Debtors

12

1,635,926

1,841,558

Cash at bank and in hand

432,889

150,258

3,041,721

2,934,050

CREDITORS

Amounts falling due within one year

13

2,373,867

2,517,310

NET CURRENT ASSETS

667,854

416,740

TOTAL ASSETS LESS CURRENT LIABILITIES

1,712,094

1,512,037

CREDITORS

Amounts falling due after more than one year

14

(148,087

)

(210,403

)

PROVISIONS FOR LIABILITIES

17

(149,000

)

(182,000

)

NET ASSETS

1,415,007

1,119,634

CAPITAL AND RESERVES

Called up share capital

18

11,000

11,000

Revaluation reserve

19

-

4,700

Retained earnings

19

1,404,007

1,103,934

SHAREHOLDERS' FUNDS

1,415,007

1,119,634

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

D Furse - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

11,000

955,779

6,267

973,046

Changes in equity

Dividends

-

(265,500

)

-

(265,500

)

Total comprehensive income

-

413,655

(1,567

)

412,088

Balance at 31 December 2023

11,000

1,103,934

4,700

1,119,634

Changes in equity

Dividends

-

(162,000

)

-

(162,000

)

Total comprehensive income

-

462,073

(4,700

)

457,373

Balance at 31 December 2024

11,000

1,404,007

-

1,415,007

Cash flows from operating activities

Cash generated from operations

1

1,123,639

600,248

Interest element of hire purchase payments paid

(31,090

)

(20,512

)

Tax paid

(150,000

)

(29,646

)

Net cash from operating activities

942,549

550,090

Cash flows from investing activities

Purchase of tangible fixed assets

(286,905

)

(329,297

)

Sale of tangible fixed assets

232,962

50,760

Interest received

3,247

10,006

Net cash from investing activities

(50,696

)

(268,531

)

Cash flows from financing activities

Capital repayments in year

(274,220

)

(112,574

)

Amount introduced by directors

1,053

38,202

Amount withdrawn by directors

(336,055

)

(323,075

)

Net cash from financing activities

(609,222

)

(397,447

)

Increase/(decrease) in cash and cash equivalents

282,631

(115,888

)

Cash and cash equivalents at beginning of year

2

150,258

266,146

Cash and cash equivalents at end of year

2

432,889

150,258

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

2024

2023

£

£

Profit before taxation

632,273

616,634

Depreciation charges

256,037

233,354

Profit on disposal of fixed assets

(21,947

)

(6,925

)

Finance costs

31,090

20,512

Finance income

(3,247

)

(10,006

)

894,206

853,569

Increase in stocks

(30,672

)

(97,429

)

Decrease in trade and other debtors

205,632

283,487

Increase/(decrease) in trade and other creditors

54,473

(439,379

)

Cash generated from operations

1,123,639

600,248

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

432,889

150,258

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

150,258

266,146

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

150,258

282,631

432,889

150,258

282,631

432,889

Debt

Finance leases

(479,377

)

274,220

(129,090

)

(334,247

)

(479,377

)

274,220

(129,090

)

(334,247

)

Total

(329,119

)

556,851

(129,090

)

98,642

4.	MAJOR NON-CASH TRANSACTIONS

Dividends voted in the year have not been included in the cash flow statement as a separate line entry as they were credited to the shareholder's loan accounts and taken as drawings instead. As a result, the dividends are included within the directors loan account drawings for the year.

1.	STATUTORY INFORMATION

Kernow Fixings 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 (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In preparing these financial statements, the directors have made the following judgements:

i. Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of these assets and residual values are assessed annually and may vary depending on a number of factors, such as their product life cycles and maintenance programmes. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

ii. Goodwill is amortised over it's useful life. This is re-assessed annually depending on a number of factors, such as developments in the industry and future market conditions.

iii. Trade debtors are reviewed for impairment loss on an annual basis and provision is made for any balances where there is uncertainty against the recoverability of the balance. This methodology is applied on a customer by customer basis.

iv. Stocks are reviewed for impairment on a regular basis and provision made for any stocks where there is uncertainty over the ability to sell the items. The methodology is applied on a stock line basis.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and the rendering of services. Turnover is recognised at the point the risks and rewards are passed onto the customer, which is approximated to the point of dispatch.

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 five years.

The goodwill is now fully amortised but is still shown within the notes and has not been disposed of, as the business acquired is still operational.

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.

Short leasehold

-

10% on cost

Improvements to property

-

not provided

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Stocks

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

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Leases

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is a finance lease or an operating lease based on the substances of the arrangement.

Finance leases / hire purchase arrangements

Leases of assets that transfer substantially all the risks and rewards of ownership to the Company are classified as finance leases or hire purchase arrangements as per the agreement.

Assets held under this category are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss.

Assets held under this category are included in tangible fixed assets and depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.

Operating leases

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

Short- term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

Provisions for liabilities

Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

The Company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary cost payable for the period of absence.

Grant income

Income received in relation to grants are classified either as relating to revenue or to assets.

Grants relating to revenue are recognised in other income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Where a timing difference arises, the income is held on the balance sheet. When received in arrears the expected income is recognises as a debtor so long as the relevant conditions have been satisfied. When received in advance of costs, the income is held as deferred income and systematically released to the profit and loss in the periods the cost is incurred.

Grants relating to assets are recognised initially as deferred income and released to other income on a systematic basis over the expected useful life of the asset.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,827,895

1,837,423

Social security costs

182,086

197,621

Other pension costs

27,621

26,772

2,037,602

2,061,816

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

2024

2023

Staff

48

47

Directors

6

10

54

57

2024

2023

£

£

Directors' remuneration

236,485

274,354

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

76,401

45,728

5.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

572

655

Other operating leases

114,802

114,396

Depreciation - owned assets

256,037

233,354

Profit on disposal of fixed assets

(21,947

)

(6,925

)

Auditors' remuneration

9,900

-

Preparation of accounts

4,250

8,100

Tax compliance

500

750

Other non- audit services

9,875

7,404

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Hire purchase

31,090

20,512

7.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

184,400

126,546

Over/under provision of CT

23,500

-

Total current tax

207,900

126,546

Deferred tax

(33,000

)

78,000

Tax on profit

174,900

204,546