REGISTERED NUMBER: 01133706 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

AUDIO VISUAL SERVICES CORPORATION LTD

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

8

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

to

22

DIRECTORS:

Mr B E Erwin

Ms S Divkovic

Mr S K Bangar

REGISTERED OFFICE:

Union Business Park

Florence Way

Uxbridge

Middlesex

UB8 2LS

REGISTERED NUMBER:

01133706 (England and Wales)

AUDITORS:

Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

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

REVIEW OF BUSINESS

The company's key financial and performance indicators during the year were as follows:

2024

2023

Variance

£'000

£'000

%

Turnover

15,290

13,684

12

Profit/(Loss) before tax

(458

)

643

-2

Shareholders' funds

163

679

-76

During the year the company continued to provide the hire of audio visual equipment and services to customers in a number of different business sectors as well as overseas. 2024 was a year of revenue stabilisation post-COVID combined with investment in team members and equipment.

The company is grateful for our team members' enthusiasm in helping customers deliver great events. Although there was a slow start to the year, we won work from new clients and strengthened relationships with existing clients through adaption to their needs.

The business ended 2024 with confidence. Whilst Operating Profit was positive, the overall Profit/(Loss) figure before tax has been affected by increased intra-group charges, leading to a net loss. Trading in 2025 has been pleasing with revenues and profits remaining robust.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are as follows:

Competitor risks

The company has recognised competitive risks from alternative suppliers. The company seeks to differentiate itself from competitors, providing a premium service in addition to the supply of high quality equipment. The company constantly monitors its competitive offering and adjusts as challenges present themselves. The Company is investing in training and service excellence, including the introduction of Event Pulse powered by Medallia, to monitor customer satisfaction to ensure we remain the provider of choice for our venue partners and customers.

Foreign currency

Intercompany balances held in foreign currency, especially US dollars and Euros, affect the company's performance. The company will closely monitor these risks and take action where required.

General Economic Uncertainty

Post-covid inflationary pressures and supply chain difficulties are a risk to the company's operations as the availability of people (both salaried and freelance) and equipment is constrained. As part of a global organisation, the company is working with other group companies to obtain and share resources and exploring other solutions to these risks.

Following the COVID-19 pandemic and the global increase in interest rates, the directors have given consideration to the company's operations, including its going concern status.

The directors have concluded that the company continues to be a going concern due to expected future trading levels and the funding support achieved by the ultimate parent company for its subsidiaries, which has confirmed its continuing support.

Emissions and energy consumption

Disclosure in respect of greenhouse gas emissions, energy consumption and energy efficiency has not been included within this report as the company does not exceed the thresholds to disclose.

SECTION 172(1) STATEMENT

Section 172(1) disclosures

The following disclosure describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) and forms the directors' statement required under section 414CZA of The Companies Act 2006.

The directors consider that customers, investors, suppliers and workforce are key stakeholders and are considered in key decisions.

Customers

Our corporate culture of Purpose, Mission and Values are focussed on delivering value for our Customers. We consider delivering for our customer requirements as key to continued success.

Investors

We create value for our investors by generating strong and sustainable results. We set out KPIs in our Strategic Report. We discuss key decisions in regular meetings with management. Our investors have considered the funding requirements of the business for capital expenditure when determining that no dividend be paid from the 2024 results.

Suppliers

Our suppliers are important to our business success and each supplier has a named relationship contact person within the business for communication when required. We maintain good relationships with a range of suppliers to ensure the availability and flexibility that our customers require.

Workforce

Our workforce deliver great results for our stakeholders and are considered in all key decisions. We are committed to training and workforce welfare and monitor both training hours and employee engagement regularly. We communicate regularly with our workforce including in Town Halls where all staff can ask questions to management and Directors.

Community

We consider the wider needs of the communities in which we operate through a commitment to minimising our impact on the environment, upholding excellent standards of business conduct and, where possible, supporting local communities in which we operate.

Key Decisions

During the year under review, these stakeholders and factors were included the decision to award significant pay increases to team members and continue to increase the size of the workforce. This action was considered in the best long-term interests of our stakeholders.

During 2024, significant investment has been made in new equipment and training. This action was considered in the best long-term interests of our stakeholders.

The business also made the decision to not pursue any acquisition opportunities, again this being considered in the best long-term interests of our stakeholders.

ON BEHALF OF THE BOARD:

Mr S K Bangar - Director

30 September 2025

The directors of Audio Visual Services Corporation Limited (the company) present their report and financial statements for the year ended 31 December 2024.

RESULTS

The company's net profit/(loss) for the year after taxation amounted to £(516,000) (2023: £675,000).

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024 (2023: £nil).

FUTURE DEVELOPMENTS

Our strategy of on-going investment in infrastructure, product development and expansion of existing markets is aimed at maintaining continuous growth and our balance sheet is adequately resourced to support this.

DIRECTORS

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

Other changes in directors holding office are as follows:

Ms S Divkovic - appointed 4 March 2024

Mr S K Bangar was appointed as a director after 31 December 2024 but prior to the date of this report.

Mr D W J McEwan ceased to be a director after 31 December 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS

Details in relation to the financial risk management objectives and policies are disclosed within the strategic report.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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

In accordance with section 487(2) of the Companies Act 2006, a resolution is to be proposed at the Annual General Meeting to reappoint Seymour Taylor Limited as auditor of the company.

ON BEHALF OF THE BOARD:

Mr S K Bangar - Director

30 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the key drivers for directors' remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having made enquiries of management about their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate.

Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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.

Elizabeth Horton FCA FCCA (Senior Statutory Auditor)

for and on behalf of Seymour Taylor Limited, Statutory Auditor

First Floor North

40 Oxford Road

High Wycombe

Buckinghamshire

HP11 2EE

30 September 2025

TURNOVER

3

15,290

13,684

Cost of sales

13,179

11,429

GROSS PROFIT

2,111

2,255

Administrative expenses

3,221

2,181

(1,110

)

74

Other operating income

854

715

OPERATING (LOSS)/PROFIT

5

(256

)

789

Interest payable and similar expenses

6

202

146

(LOSS)/PROFIT BEFORE TAXATION

(458

)

643

Tax on (loss)/profit

7

1,121

(32

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,579

)

675

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,579

)

675

FIXED ASSETS

Tangible assets

8

1,008

794

CURRENT ASSETS

Debtors

9

2,577

5,953

Cash at bank

2,257

1,371

4,834

7,324

CREDITORS

Amounts falling due within one year

10

6,742

7,439

NET CURRENT LIABILITIES

(1,908

)

(115

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(900

)

679

CAPITAL AND RESERVES

Called up share capital

13

5,198

5,198

Retained earnings

14

(6,098

)

(4,519

)

SHAREHOLDERS' FUNDS

(900

)

679

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

Mr S K Bangar - Director

Called up

share

Retained

Total

capital

earnings

equity

£'000

£'000

£'000

Balance at 1 January 2023

5,198

(5,194

)

4

Changes in equity

Total comprehensive income

-

675

675

Balance at 31 December 2023

5,198

(4,519

)

679

Changes in equity

Total comprehensive income

-

(1,579

)

(1,579

)

Balance at 31 December 2024

5,198

(6,098

)

(900

)

Cash flows from operating activities

Cash generated from operations

1

2,316

277

Interest paid

(202

)

-

Net cash from operating activities

2,114

277

Cash flows from investing activities

Purchase of tangible fixed assets

(751

)

(349

)

Net cash from investing activities

(751

)

(349

)

Cash flows from financing activities

Intercompany loans due by the company

(477

)

23

Net cash from financing activities

(477

)

23

Increase/(decrease) in cash and cash equivalents

886

(49

)

Cash and cash equivalents at beginning of year

2

1,371

1,420

Cash and cash equivalents at end of year

2

2,257

1,371

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

31.12.24

31.12.23

£'000

£'000

(Loss)/profit before taxation

(458

)

643

Depreciation charges

537

348

Finance costs

202

146

281

1,137

Decrease/(increase) in trade and other debtors

2,255

(407

)

Decrease in trade and other creditors

(220

)

(453

)

Cash generated from operations

2,316

277

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£'000

£'000

Cash and cash equivalents

2,257

1,371

Year ended 31 December 2023

31.12.23

1.1.23

£'000

£'000

Cash and cash equivalents

1,371

1,420

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£'000

£'000

£'000

Net cash

Cash at bank

1,371

886

2,257

1,371

886

2,257

Total

1,371

886

2,257

1.	STATUTORY INFORMATION

Audio Visual Services Corporation Limited is a private company, limited by shares, registered in England and Wales. The registered office and principal place of business is Union Business Park, Florence Way, Uxbridge, Middlesex, UB8 2LS. The registered number is 01133706.

The principal activity of the company during the year was that of the provision of audiovisual, video, sound and special equipment hire and sales services in hotels.

The financial statements are presented in the currency of the primary economic environment in which the entity operates (its functional currency), as such, the results and statement of financial position are presented in Sterling (£   ). Monetary amounts in these financial statements are rounded to the nearest thousand unless otherwise stated.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis.

Going concern

The directors have assessed expected future cashflows, giving due consideration to all relevant factors affecting the company. The directors have considered the potential impact on the company as well as its capital resources and believe that the company has adequate resources in place to continue in operation for at least twelve months from the date of approval of the financial statements.

Although the company has net current liabilities of £1,908,000, the Company is supported by other Group companies. This is reflected in the balance owed to Group companies of £4,560,000 at 31 December 2024. This is supported by its parent company who has addressed its financing requirements through debt and equity financing, asset sales and rights offerings to existing shareholders.

The Directors believe that, with continued agreed funding support achieved by the ultimate parent company for its subsidiaries, which it has confirmed is ongoing, the company continues to be a going concern and the financial statements are prepared on this basis.

Consequently, the company continues to adopt the going concern basis in preparing these financial statements.

Critical judgements and estimates

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

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

The areas for which estimation has been applied are considered to be in calculating depreciation, impairments and provisions. Although these areas are subject to judgement, they are not considered to be subject to significant estimation.

Revenue recognition

Revenue is recognised to the extent that the company obtains right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales tax or duty. Revenue is recognised as follows:

Rendering of services

Customers hire equipment for a specific period of time. Orders are taken at the beginning of the hire period with income being recognised at the end of the hire period or on a monthly basis for hire periods longer than a month.

Tangible fixed assets

All tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such costs include costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost of each asset evenly over its expected useful life, as follows:

Leasehold improvements - over the term of the lease

Plant and machinery - 3 to 5 years

Fixtures and fittings - 3 to 5 years

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Financial instruments

The company has applied the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' of FRS 102 to all of its financial instruments.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Impairment of financial assets

At each period end date, the company reviews the carrying amounts of its financial 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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount, with the impairment recognised immediately in the statement of income and retained earnings.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset, if and when all conditions for retaining the tax allowances have been met, are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.

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

Foreign currencies

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

Pension costs and other post-retirement benefits

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

Termination benefits

Termination benefits are recognised as a liability and expense in profit or loss when the company is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy. The company is demonstrably committed to a termination only when there is a detailed formal plan from which there is no realistic possibility of withdrawal.

Termination benefits are measured at the best estimate of the expenditure that would be required to settle the obligation at the reporting date. In the case of an offer made to encourage voluntary redundancy, the measurement of termination benefits shall be based on the number of employees expected to accept the offer.

Leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

3.

TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.24

31.12.23

£'000

£'000

United Kingdom

15,159

13,315

United States of America

10

226

Rest of the world

121

143

15,290

13,684

4.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£'000

£'000

Wages and salaries

4,857

4,139

Social security costs

511

462

Other pension costs

452

437

5,820

5,038

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

31.12.24

31.12.23

Office and management

33

28

Sales and servicing

65

65

Directors

4

3

102

96

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024

2023

£'000

£'000

Aggregate compensation

-

-

The directors who served in the year were all remunerated by other companies within the group.

5.	OPERATING (LOSS)/PROFIT

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

31.12.24

31.12.23

£'000

£'000

Depreciation - owned assets

537

348

Auditors' remuneration

26

6

Auditors' remuneration for non audit work

18

4

Foreign exchange differences

2

-

Operating leases - land and buildings

443

274

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£'000

£'000

Intercompany interest

202

146

7.

TAXATION

Analysis of the tax charge/(credit)

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

31.12.24

31.12.23

£'000

£'000

Deferred tax

1,121

(32

)

Tax on (loss)/profit

1,121

(32

)

UK corporation tax has been charged at 25% (2023 - 23.50%).

Reconciliation of total tax charge/(credit) included in profit and loss

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

31.12.24

31.12.23

£'000

£'000

(Loss)/profit before tax

(458

)

643

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

(115

)

151

Effects of:

Expenses not deductible for tax purposes

2

-

Income not taxable for tax purposes

-

4

Capital allowances in excess of depreciation

-

(21

)

Utilisation of tax losses

-

(192

)

Tax losses carried forward

171

30

Change in tax rate

-

(4

)

Deferred tax not recognised

1,063

-

Total tax charge/(credit)

1,121

(32

)

Factors that may affect future tax

The main rate of corporation tax prevailing during the period was 25%.

Deferred tax balances included within the accounts have been calculated at 25% with reference to the rate expected to be applicable at the date of reversal (2023: 25%).

8.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£'000

£'000

£'000

£'000

COST

At 1 January 2024

49

2,183

627

2,859

Additions

-

590

161

751

At 31 December 2024

49

2,773

788

3,610

DEPRECIATION

At 1 January 2024

23

1,590

452

2,065

Charge for year

17

376

144

537

At 31 December 2024

40

1,966

596

2,602

NET BOOK VALUE

At 31 December 2024

9

807

192

1,008

At 31 December 2023

26

593

175

794