REGISTERED NUMBER: 13425592 (England and Wales)

Rochemont Care 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

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

T Nagendran

D Leonard

REGISTERED OFFICE:

61 Cambridge Park

Wanstead

London

E11 2PR

REGISTERED NUMBER:

13425592 (England and Wales)

AUDITORS:

SKS Audit LLP

3 Sheen Road

Richmond Upon Thames

TW9 1AD

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

REVIEW OF BUSINESS

The directors are satisfied with the performance during the year, having seen a consistent demand for beds and average occupancy broadly in-line with the previous year. The directors considered the growth in average fees to be generally positive. Energy cost remains a concern along with other inflationary price increases.

Management is dedicated to developing quality environments and high standards of care. The company is dependent upon attracting and retaining quality team members with the right skills and attitude and relies on their professionalism and caring nature in satisfying both the needs of residents and health and safety issues. Training is undertaken to develop the team, deliver high quality relationship-centred care and mitigate operational risk associated with providing care to older people.

The company operates care home in Leighton Buzzard. The care home is purpose-built, elegantly decorated and equipped with en-suite facilities and beautifully landscaped gardens. The company is committed to providing high-quality care tailored to the individual needs of its residents, ensuring a homely and relaxed atmosphere with a high standard of comfort and personal care.

The company has delivered a positive growth and achieved revenue growth of 7% compared to the previous year. This growth reflects the company�s commitment to excellence in care and its ability to adapt and expand its services to meet the evolving needs of its residents.

Looking ahead, the company aims to continue this upward trajectory by focusing on innovation in care services, expanding its facilities and maintaining a strong emphasis on resident-centred care. The company is well-positioned to build on its successes and deliver even greater value to its residents and stakeholders in the years to come.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties the company faces, are reviewed in detail by the directors and no material additional risk or uncertainty has been identified other than those detailed below. These risks are broadly accompanied with competitive, operational and financial risks. The directors risk management objectives consist of identifying and monitoring those risks which could have an adverse impact on the company assets, profitability or cash flows.

The company is exposed to financial risks including credit risk and liquidity risk, arising from the company's normal business activities. These risks and the company's approach to dealing with them are discussed below.

Competitive risk

The company operates in providing nursing care services. The markets remain competitive with price and margin fluctuation, which are dependent on relationships with residents.

Operational risk

The main operational risk relating to the company's operations of nursing care services are through relationships with the customers and compliance with CQC regulations. The overall risk is mitigated by ensuring that better quality nursing care services are provided and in compliance to regulations in place, to enable operations to grow.

Price risk

The company faces uncertainties in relation to average weekly fee increases for the provision of care services. The average weekly fee rates are also given by the number of residence funded by local authorities and by private fee payers.

Credit risk

The company's principal financial assets are bank balances, trade and other receivables. The company's credit risk is primarily attributable to its trade receivables and balances from the related parties. The company gives significant attention to credit risk and manages the risk though credit control procedures to ensure that credit risk is at an acceptable level for its future operations.

Liquidity risk

Liquidity risk is the risk that insufficient working capital will be generated by the company's business activities and that in this event suitable sources of funding may not be available. The company has a facility arrangement which is secured and guaranteed against the assets of the company. The company ensures that sufficient cash is available to fund on- going operations and has sufficient cash reserves for its operations. The company controls this risk by maintaining prudent liquidity management policies that include regular cash flow forecasts to monitor liquidity and compliance to the facility. Strong working relationships are maintained with a banking partner to facility the regular provision of compliance, reporting and oversight of key issues impacting the business.

FINANCIAL INSTRUMENTS

The company only has basic financial instruments and does not enter into any foreign currency forward contracts or formal hedging activities.

KEY PERFORMANCE INDICATORS

The directors of the company use a variety of financial performance indicators, including turnover, total operating profit, profit/(loss) after tax and shareholders funds. These are reviewed and assessed quarterly by the board and appropriate action taken to ensure growth targets are being achieved. The company's key financial and non-performance indicator for the year are as follows:

2024

2023

£

£

Turnover

3,506,996

3,272,683

Operating profit

749,816

803,440

Profit/(loss) after tax

217,037

946,679

Shareholders funds

960,095

743,058

ON BEHALF OF THE BOARD:

T Nagendran - Director

25 September 2025

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

PRINCIPAL ACTIVITY

The company's principal activity during the year continued to be that of running a Care Home.

DIVIDENDS

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

DIRECTORS

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

T Nagendran

D Leonard

J Leonard (resigned on 22 January 2024)

GOING CONCERN

The directors have, at the time of approving the financial statements, reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future. The directors have made this assessment for a period at least one year from the date of approving of these financial statements. In particular, the directors have considered, the companies forecast and projections and accordingly they continue to adopt the going concern basis in preparing annual report and financial statement.

DISCLOSURE IN THE 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 Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of financial instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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;

- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- 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, SKS Audit LLP, were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed has been approved by the Board.

ON BEHALF OF THE BOARD:

T Nagendran - Director

25 September 2025

Opinion

We have audited the financial statements of Rochemont Care 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.

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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements.

During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

-Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

-It is considered that non-compliance of Health & Safety laws and Care Quality Commission regulations may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Paul Craggs (Senior Statutory Auditor)

for and on behalf of SKS Audit LLP

3 Sheen Road

Richmond Upon Thames

TW9 1AD

26 September 2025

TURNOVER

2

3,506,995

3,272,683

Cost of sales

(1,959,863

)

(1,807,327

)

GROSS PROFIT

1,547,132

1,465,356

Administrative expenses

(801,227

)

(670,382

)

745,905

794,974

Other operating income

3,911

8,466

OPERATING PROFIT

4

749,816

803,440

Income from shares in group undertakings

-

700,000

749,816

1,503,440

Interest payable and similar expenses

5

(413,464

)

(416,358

)

PROFIT BEFORE TAXATION

336,352

1,087,082

Tax on profit

6

(119,315

)

(140,403

)

PROFIT FOR THE FINANCIAL YEAR

217,037

946,679

PROFIT FOR THE YEAR

217,037

946,679

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

217,037

946,679

FIXED ASSETS

Intangible assets

8

100,470

106,380

Tangible assets

9

5,894,810

6,066,028

Investments

10

552,164

552,164

6,547,444

6,724,572

CURRENT ASSETS

Stocks

11

5,683

3,000

Debtors

12

1,693,427

2,545,057

Cash at bank and in hand

21,157

113,178

1,720,267

2,661,235

CREDITORS

Amounts falling due within one year

13

(978,078

)

(1,316,364

)

NET CURRENT ASSETS

742,189

1,344,871

TOTAL ASSETS LESS CURRENT LIABILITIES

7,289,633

8,069,443

CREDITORS

Amounts falling due after more than one year

14

(6,281,263

)

(7,267,533

)

PROVISIONS FOR LIABILITIES

15

(48,275

)

(58,852

)

NET ASSETS

960,095

743,058

CAPITAL AND RESERVES

Called up share capital

16

400

400

Merger relief reserve

17

552,064

552,064

Retained earnings

17

407,631

190,594

SHAREHOLDERS' FUNDS

960,095

743,058

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

T Nagendran - Director

Called up

Merger

share

Retained

relief

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

400

293,915

552,064

846,379

Changes in equity

Dividends

-

(1,050,000

)

-

(1,050,000

)

Total comprehensive income

-

946,679

-

946,679

Balance at 31 December 2023

400

190,594

552,064

743,058

Changes in equity

Total comprehensive income

-

217,037

-

217,037

Balance at 31 December 2024

400

407,631

552,064

960,095

Cash flows from operating activities

Cash generated from operations

1

318,912

1,292,702

Interest paid

(413,464

)

(416,358

)

Tax paid

43,477

(241,225

)

Net cash from operating activities

(51,075

)

635,119

Cash flows from investing activities

Purchase of tangible fixed assets

(40,946

)

(177,974

)

Dividends received

-

700,000

Net cash from investing activities

(40,946

)

522,026

Cash flows from financing activities

Equity dividends paid

-

(1,050,000

)

Net cash from financing activities

-

(1,050,000

)

(Decrease)/increase in cash and cash equivalents

(92,021

)

107,145

Cash and cash equivalents at beginning of year

2

113,178

6,033

Cash and cash equivalents at end of year

2

21,157

113,178

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

2024

2023

£

£

Profit before taxation

336,352

1,087,082

Depreciation charges

218,073

197,074

Finance costs

413,464

416,358

Finance income

-

(700,000

)

967,889

1,000,514

Increase in stocks

(2,683

)

-

Decrease/(increase) in trade and other debtors

778,507

(126,869

)

(Decrease)/increase in trade and other creditors

(1,424,801

)

419,057

Cash generated from operations

318,912

1,292,702

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

21,157

113,178

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

113,178

6,033

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

113,178

(92,021

)

21,157

113,178

(92,021

)

21,157

Total

113,178

(92,021

)

21,157

1.	ACCOUNTING POLICIES

STATUTORY INFORMATION

Rochemont Care Limited is private company limited by shares incorporated in England and Wales. The registered office is 61 Cambridge Park, Wanstead, London, England, E11 2PR.

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with FRS 102 �The Financial Reporting Standard applicable in the UK and Republic of Ireland� (�FRS 102�) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

The financial statements contain information about Rochemont Care Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, net of discounts, in the normal course of business.

Turnover includes revenue earned from rendering of nursing care services and is recognised when the services have been provided.

INTANGIBLE FIXED ASSET

Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.

Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

TANGIBLE FIXED ASSET

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Land and building

2% Straight line method

Plant and machinery

25% Reducing method

Fixtures, fittings, tools and equipment

33% Straight line method

FIXED ASSET INVESTMENTS

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

IMPAIRMENT OF FIXED ASSETS

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

STOCKS

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

TRADE AND OTHER DEBTORS

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loan from group companies that are classified as debt, are initially recognised at a transaction price, unless the arrangement constitutes of financial transaction where the debt instrument is measured at the present value of the future payments, discount of market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

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

TRADE AND OTHER CREDITORS

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

GOVERNMENT GRANTS

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

TAXATION

Currrent tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company�s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

PROVISIONS

Provisions (i.e liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

LEASES

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.

EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee�s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described above, 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 as included in the financial statement and its underlying assumptions are reviewed on an on going 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.

2.

TURNOVER

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

All turnover arose within the United Kingdom.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,797,023

1,603,945

Social security costs

159,486

148,475

Other pension costs

31,555

32,951

1,988,064

1,785,371

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

2024

2023

Staff

71

62

Directors

2

3

73

65

2024

2023

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Depreciation - owned assets

212,164

191,164

Goodwill amortisation

5,910

5,910

Auditors' remuneration

10,584

10,080

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

413,464

416,156

PAYE interest

-

202

413,464

416,358

6.

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

129,892

97,193

Deferred tax

(10,577

)

43,210

Tax on profit

119,315

140,403

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:

2024

2023

£

£

Profit before tax

336,352

1,087,082

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%)

84,088

255,464

Effects of:

Expenses not deductible for tax purposes

2,088

1,538

Income not taxable for tax purposes

-

(164,500

)

Depreciation in excess of capital allowances

33,139

47,901

Total tax charge

119,315

140,403

7.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Final

-

1,050,000