REGISTERED NUMBER: 02975547 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

ADVANTAGE PARTS SOLUTIONS LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

T W Scharnberg

A M Smith

SECRETARY:

T W Scharnberg

REGISTERED OFFICE:

Lyndale House

Ervington Court

Meridian Business Park

Leicester

LE19 1WL

REGISTERED NUMBER:

02975547 (England and Wales)

AUDITORS:

Magma Audit LLP (part of the Dains Group)

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

INTRODUCTION

The Directors present their strategic report for Advantage Parts Solutions Ltd for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company throughout the year continued to be that of providing a marketing service to the automotive industry and the sourcing of automotive parts on behalf of body shops and insurance companies.

BUSINESS REVIEW

The Board are delighted to report another robust year of trading for the company.

This is pleasing against strong macro economic headwinds, particularly around significant cost inflation, and a number of fundamental challenges facing both the automotive and insurance markets which the company serves.

In light of these, the company has proactively evolved its own business to ensure it continues to deliver unparalleled service levels to its customers, which, as always, continues to underpin the company's key strategic objective for sustainable and profitable, ongoing growth.

As a result, Turnover for the year under review is reported at £27.5m (2023: £21.9m) with the company continuing to deliver healthy profit margins, achieving profit before tax of £0.9m (2023: £1.0m).Total returns to shareholders equalled £0.8m, with cash held at the year-end of £1.5m (2023: £2.7m). Shareholders' funds remained solid at the year end at £4.6m (2023: £4.7m), after the aforementioned return to shareholders. As a result, the Board believe the company's financial position to be robust and healthy, ensuring its capability to maximise market opportunities as and when they arise.

The company's continued focus is on winning profitable contracts and the delivery of unparalleled service levels to its customer base. This strategy has proven successful and is the cornerstone of the company's continued growth, which is particularly pleasing against an uncertain macro-economic landscape and during a well- publicised period of significant inflationary pressure, along with market challenges.

The Board consider that sustained cash generation and the existence of immaterial long term debt in the business to be the foundation on which the success of the company has been built to date and will be the firm foundation of its future development.

The company has continued to be perform well after the year end and the Board look forward to publishing positive and profitable results in the future.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board recognise that there are a number of risks and uncertainties faced by the company, both within the markets they operate and the broader economy, which may impact on performance. The Board meet regularly to review these risks and where necessary incorporate processes and changes to mitigate these as far as possible to ensure the continued success of the business.

ECONOMIC IMPACT OF GLOBAL EVENTS

UK businesses are currently facing many uncertainties such as environmental sustainability and geopolitical events such as the Russian invasion of Ukraine and in the Middle East. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.

The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy.

The Directors have taken account of these potential impacts in their going concern assessment. Advantage Parts Solutions Ltd continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

GOING CONCERN

After reviewing the company's forecasts and projections, the Directors have a reasonable expectation that the company can remain a viable, going concern for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing the financial statements.

ON BEHALF OF THE BOARD:

A M Smith - 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 providing a marketing service to the automotive industry and the sourcing of automotive parts on behalf of body shops and insurance companies.

DIVIDENDS

The profit for the year, after taxation, amounted to £658,377 (2023 - £771,785).

The directors paid a dividend of £380,000 per ordinary share (2023: £1,250,000) totalling £760,000 during the year (2023: £2,500,000).

DIRECTORS

T W Scharnberg 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:

D A Clark - resigned 2 October 2024

A M Smith - appointed 21 November 2024

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

-

make judgements and accounting estimates that are reasonable and prudent;

-

state whether applicable UK 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 to 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.

ON BEHALF OF THE BOARD:

A M Smith - Director

29 September 2025

Opinion

We have audited the financial statements of Advantage Parts Solutions Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of 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:

Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included:

-

Enquiries with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

-

Challenging assumptions made by management in their accounting estimates, in particular in relation to the depreciation of fixed assets and impairment of trade debtors balances.

-

Identifying and testing material journal entries, in particular those journal entries posted with unusual account combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific defined descriptions.

There are inherent limitations in the audit procedures described above. The more removed non-compliance with laws and regulations is, from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by forgery or intentional misrepresentation, for example, or through collusion.

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.

Luke Turner FCA FCCA (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP (part of the Dains Group)

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

29 September 2025

TURNOVER

4

27,112,100

21,944,812

Cost of sales

(24,686,037

)

(19,374,281

)

GROSS PROFIT

2,426,063

2,570,531

Administrative expenses

(1,706,721

)

(1,669,041

)

719,342

901,490

Other operating income

5

22,911

22,911

OPERATING PROFIT

7

742,253

924,401

Interest receivable and similar income

8

206,944

145,191

949,197

1,069,592

Interest payable and similar expenses

9

(39,823

)

(46,689

)

PROFIT BEFORE TAXATION

909,374

1,022,903

Tax on profit

10

(250,997

)

(251,118

)

PROFIT FOR THE FINANCIAL YEAR

658,377

771,785

Other comprehensive income

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

658,377

771,785

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

695,278

726,267

695,278

726,267

CURRENT ASSETS

Debtors

14

5,861,295

4,707,656

Cash at bank

15

1,540,348

2,695,597

7,401,643

7,403,253

CREDITORS

Amounts falling due within one year

16

(3,193,793

)

(3,000,366

)

NET CURRENT ASSETS

4,207,850

4,402,887

TOTAL ASSETS LESS CURRENT LIABILITIES

4,903,128

5,129,154

CREDITORS

Amounts falling due after more than one year

17

(263,038

)

(382,639

)

PROVISIONS FOR LIABILITIES

19

(6,209

)

(11,011

)

NET ASSETS

4,633,881

4,735,504

CAPITAL AND RESERVES

Called up share capital

20

2

2

Retained earnings

21

4,633,879

4,735,502

SHAREHOLDERS' FUNDS

4,633,881

4,735,504

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:

A M Smith - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

2

6,463,717

6,463,719

Changes in equity

Profit for the year

-

771,785

771,785

Total comprehensive income

-

771,785

771,785

Dividends

-

(2,500,000

)

(2,500,000

)

Balance at 31 December 2023

2

4,735,502

4,735,504

Changes in equity

Profit for the year

-

658,377

658,377

Total comprehensive income

-

658,377

658,377

Dividends

-

(760,000

)

(760,000

)

Balance at 31 December 2024

2

4,633,879

4,633,881

Cash flows from operating activities

Cash generated from operations

1

(114,692

)

2,257,036

Interest paid

(39,823

)

(46,689

)

Tax paid

(232,910

)

(247,806

)

Net cash from operating activities

(387,425

)

1,962,541

Cash flows from investing activities

Purchase of tangible fixed assets

(3,339

)

(19,595

)

Sale of tangible fixed assets

-

703

Interest received

59,868

13,131

Net cash from investing activities

56,529

(5,761

)

Cash flows from financing activities

Loan repayments in year

(64,353

)

(30,058

)

Equity dividends paid

(760,000

)

(2,500,000

)

Net cash from financing activities

(824,353

)

(2,530,058

)

Decrease in cash and cash equivalents

(1,155,249

)

(573,278

)

Cash and cash equivalents at beginning of year

2

2,695,597

3,268,875

Cash and cash equivalents at end of year

2

1,540,348

2,695,597

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit for the financial year

658,377

771,785

Depreciation charges

34,328

35,280

Finance costs

39,823

46,689

Finance income

(206,944

)

(145,191

)

Taxation

250,997

251,118

776,581

959,681

(Increase)/decrease in trade and other debtors

(1,006,562

)

3,836,867

Increase/(decrease) in trade and other creditors

115,289

(2,539,512

)

Cash generated from operations

(114,692

)

2,257,036

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

1,540,348

2,695,597

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

2,695,597

3,268,875

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

2,695,597

(1,155,249

)

1,540,348

2,695,597

(1,155,249

)

1,540,348

Debt

Debts falling due within 1 year

(38,567

)

(55,248

)

(93,815

)

Debts falling due after 1 year

(382,639

)

119,601

(263,038

)

(421,206

)

64,353

(356,853

)

Total

2,274,391

(1,090,896

)

1,183,495

1.	GENERAL INFORMATION

Advantage Parts Solutions Ltd, registered number 02975547, is a private company, limited by shares and incorporated in England and Wales. The address of its registered office is disclosed on the company information page of these financial statements.

The principal activity of the company throughout the year continued to be that of providing a marketing service to the automotive industry and the sourcing of automotive parts on behalf of bodyshops and insurance companies.

The presentational currency of the financial statements is pound sterling which is the functional currency of the company and the financial statements are rounded to the nearest £. The financial information of the current period relates to the year ended 31 December 2024 and the comparative information relates to the year ended 31 December 2023.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

Going concern

After reviewing the company's forecasts and projections, the Directors have a reasonable expectation that the company can remain a viable, going concern for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

-

the company has transferred the significant risks and rewards of ownership to the buyer;

-

the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-

the amount of turnover can be measured reliably;

-

it is probable that the company will receive the consideration due under the transaction; and

-

the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-

the amount of turnover can be measured reliably;

-

it is probable that the company will receive the consideration due under the contract;

-

the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-

the costs incurred and the costs to complete the contract can be measured reliably.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

-

Computer software

-

3 years

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following annual basis:

-

Freehold property

-

50 years

-

Freehold property improvements

-

15 years

-

Fixtures & fittings

-

3 1/3 to 5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

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.

Operating leases

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

Pensions

Defined contribution plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

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

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

-

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-

Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. For the carrying amount of the property plant and equipment, and the tangible assets see accounting policy for the useful economic lives for each class of assets.

Impairment of debtors

The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

4.

TURNOVER

The whole of the turnover is attributable to the principal activity of the Company.

All turnover arose within the United Kingdom.

5.	OTHER OPERATING INCOME

2024

2023

£

£

Rental income

22,911

22,911

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,540,809

1,639,847

Social security costs

226,834

176,775

Other pension costs

68,519

50,888

1,836,162

1,867,510

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

2024

2023

Directors

2

1

Sales

21

23

Admin

7

9

30

33

2024

2023

£

£

Directors' remuneration

140,688

143,297

Directors' pension contributions to money purchase schemes

2,878

2,400

During the year retirement benefits were accruing to 2 Directors (2023 - 1) in respect of defined contribution pension schemes.

7.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Depreciation on tangible fixed assets

34,328

35,280

Foreign currency exchange differences

-

129

Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:

2024

2023

£

£

Fees payable to the Company's auditors for the audit of the Company's financial statements

20,000

19,250

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

2024

2023

£

£

Interest receivable

206,944

145,191

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest payable

34,468

36,089

Group interest payable

5,355

10,600

39,823

46,689

10.

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

255,799

251,922

Deferred tax charge

(4,802

)

(804

)

Tax on profit

250,997

251,118