REGISTERED NUMBER: 03780780 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

REMIX DRY MORTAR LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTOR:

R M P P Reef

REGISTERED OFFICE:

C5 Premier Business Centre

Newgate Lane

Fareham

Hampshire

PO14 1TY

REGISTERED NUMBER:

03780780 (England and Wales)

AUDITORS:

TC Group

Suite 4

2nd Floor

New Kings Court

Eastleigh

SO53 3LG

The directors present their strategic report together with the audited financial statements for the year ended 31 December 2024.

BUSINESS REVIEW AND FUTURE DEVELOPMENTS

2024 and 2025 have seen a further increased focus on integrating the Clubb companies into the Agar group, and exploring further synergies that can be made across the group. After the reporting date, we saw the exit of the Remix Dry Mortars Ltd's Managing Director Ben Rawson, the Senior Leadership team of the Clubb businesses, led by Larry Dale as Managing Director, now heads up all three trading business within the group including Remix Dry Mortar Ltd. This has cascaded down with management of the Transport, Compliance and Operations functions all now being managed as group functions. This is in addition to Finance which became a group managed function in 2023.

2024 presented significant challenges for our operations, particularly with recurring plant breakdowns that have impacted productivity and efficiency. These disruptions required swift responses, resource reallocation, and strategic planning to ensure minimal downtime while maintaining service levels.

Despite these setbacks, our team demonstrated resilience and adaptability, working diligently to diagnose issues, implement solutions, and reinforce preventive maintenance measures. We've gained valuable insights into our operational vulnerabilities, which will guide future investments in infrastructure improvements and process optimisation.

Moving forward, our focus will be on strengthening equipment reliability, enhancing workforce training, and integrating smarter maintenance protocols to mitigate similar issues. While 2024 was demanding, it has also provided opportunities for growth, learning, and reinforcing our commitment to operational excellence.

Despite these issues Remix managed to maintain profitability although at slightly below budget due to the increased maintenance costs.

With regards to the UK housing market going into 2025 it is showing mixed signals, with some challenges but also signs of resilience.

- Buyer interest has declined, reflecting affordability concerns and tight borrowing conditions.

- Prices have remained relatively stable, with a slight dip in April. However, longer-term expectations suggest prices may return to growth over the year ahead.

- The market has transitioned from a seller's market to a buyer's market, particularly in London and the South-East.

- While more low-deposit mortgages are available, securing lower rates requires a substantial deposit. Affordability remains a sticking point, especially for first-time buyers.

- The Bank of England is expected to implement deeper interest rate cuts than previously anticipated, which could improve affordability and buyer confidence.

- The expiry of the stamp duty holiday has influenced buyer behaviour, with a rush to complete purchases before the deadline.

Overall, while the UK housing market faces affordability pressures and economic uncertainty, there are signs of improvement, particularly with potential interest rate cuts and increased buyer confidence in the long term.

PRINCIPAL RISKS AND UNCERTAINTIES

Any business faces risks, and these are reviewed thoroughly and regularly by the directors. These reviews consider only the principal risks and uncertainties that the company faces:

- Market volatility

- Contraction of Housing Market

- Reduction in demand for bagged products

The company has contingency plans in place to deal with any downturn in the UK economy.

Reserves of land-based sand still continue to contract with sand pits becoming exhausted and few replacement reserves coming online. Whilst obtaining sufficient sand supplies is not regarded as an issue there will be continued price increases as sand is sourced and transported from greater distances.

The company's policy in respect of credit risk is to require credit checks on potential customers before sales are made. Outstanding debts are monitored closely by the company's credit controller. All credit control procedures have been tightened and all existing customers are having regular reviews of their account and payment history.

The directors feel confident of managing these risks and remain optimistic for the future as the company remains well positioned and able to participate in major development opportunities.

KEY PERFORMANCE INDICATORS

The most important key performance indicators for the company are:

- Turnover

- Gross margin

- Bulk tonnage

- Bagged tonnage

- Sales price per ton bulk

- Sales price per ton bagged.

- Utilization ratio of transportation capacity

These key performance indicators are monitored by both local management and the directors of the company and any key adjustments to operations are made as necessary.

ON BEHALF OF THE BOARD:

R M P P Reef - Director

30 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

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

FINANCIAL RISK MANAGEMENT

Details of the financial risk management objectives and policies, exposure to price/credit/liquidity/cash flow risk and future developments is included in the strategic report.

PRINCIPAL ACTIVITY

The company's principal activity is the manufacture of dry mortar products, both bulk and bagged, at two production plants.

DIVIDENDS

The profit for the year, after taxation, amounted to £3,374,509 (2023 - £4,480,365).

The total distribution of dividends for the year ended 31 December 2024 will be £1,635,281 (2023 - £5,650,000)

DIRECTORS

R M P P Reef 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:

B J Rawson ceased to be a director after 31 December 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company has various financial instruments such as trade debtors and trade creditors which arise directly from operations. The company does not enter into derivative transactions. The main financial risks arising from the company's activities are credit risk. The associated risk is monitored by the board of directors and are mitigated to an acceptable level. Other associated risks are exposure to foreign exchange movements and interest rate changes, which are deemed to be low risk due to low level of trade in currencies other than UK Sterling and there being no debt leveraged in the business.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the 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.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R M P P Reef - Director

30 September 2025

Opinion

We have audited the financial statements of Remix Dry Mortar Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on pages four and five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the

company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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.

Richard Gillespie FCCA (Senior Statutory Auditor)

for and on behalf of TC Group

Suite 4

2nd Floor

New Kings Court

Eastleigh

SO53 3LG

30 September 2025

TURNOVER

4

32,994,640

32,872,428

Cost of sales

26,558,328

24,507,550

GROSS PROFIT

6,436,312

8,364,878

Administrative expenses

3,330,959

3,138,329

3,105,353

5,226,549

Other operating income

5

265,328

119,886

OPERATING PROFIT

7

3,370,681

5,346,435

Interest receivable and similar income

3,828

-

PROFIT BEFORE TAXATION

3,374,509

5,346,435

Tax on profit

8

529,687

866,070

PROFIT FOR THE FINANCIAL YEAR

2,844,822

4,480,365

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,844,822

4,480,365

FIXED ASSETS

Tangible assets

10

1,809,828

1,344,323

CURRENT ASSETS

Stocks

11

1,161,476

1,483,417

Debtors

12

5,443,124

4,223,169

Cash at bank

1,813,321

1,495,694

8,417,921

7,202,280

CREDITORS

Amounts falling due within one year

13

2,425,063

2,125,617

NET CURRENT ASSETS

5,992,858

5,076,663

TOTAL ASSETS LESS CURRENT LIABILITIES

7,802,686

6,420,986

PROVISIONS FOR LIABILITIES

15

267,247

95,088

NET ASSETS

7,535,439

6,325,898

CAPITAL AND RESERVES

Called up share capital

16

500,001

500,001

Retained earnings

17

7,035,438

5,825,897

SHAREHOLDERS' FUNDS

7,535,439

6,325,898

The financial statements were approved by the director and authorised for issue on 30 September 2025 and were signed by:

R M P P Reef - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

500,001

6,995,532

7,495,533

Changes in equity

Dividends

-

(5,650,000

)

(5,650,000

)

Total comprehensive income

-

4,480,365

4,480,365

Balance at 31 December 2023

500,001

5,825,897

6,325,898

Changes in equity

Dividends

-

(1,635,281

)

(1,635,281

)

Total comprehensive income

-

2,844,822

2,844,822

Balance at 31 December 2024

500,001

7,035,438

7,535,439

1.	STATUTORY INFORMATION

Remix Dry Mortar Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.The nature of the company's operations and its principal activity are set out in the directors' report.

There are two principal places of business, there are:

Mark Lane

Gravesend

DA12 2QB

Junction Cut

Avonmouth

Bristol

BS11 9DH

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The presentational and functional currency of these financial statements is GBP. Values are rounded to the nearest pound.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Agar Dry Mortar Holding Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will have sufficient funds available to enable it to continue to trade for a period of at least 12 months from the date of signing this report. In making their assessment that this assumption is correct the directors have considered operational capacity, demand for products and finances. The directors have prepared forecasts which considered different scenarios based on differing volumes of business.

After due consideration of these forecasts, current and forecast cash resources. It is anticipated that cash flow will be sufficient to meet expected working capital movements. For this reason the financial statements have been prepared on a going concern basis.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised on dispatch which is when all of the following conditions are considered to be 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 revenue 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.

Tangible fixed assets

Tangible fixed assets under the cost model are initially stated at cost and subsequently carried at 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.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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 basis:

Plant and machinery

6.67% - 25% on cost

Motor vehicles

25% on cost

Computer equipment

10% - 33% on cost

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 within 'administrative expenses' in the statement of income and retained earnings.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use.

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 value of stock sold is recognised as an expense in the period in which the related revenue is recognised.

Machine parts are held within stock and held for internal use in the maintenance and servicing of equipment. They are stated at the lower of cost and net realisable value.

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 bank and other third parties, loan's to related parties and investments in ordinary shares.

Short term debtors and creditors are measured at the transaction price. Other financial instruments, including loans, 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.

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Financial assets and liabilities are offset and 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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 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 income and retained earnings when they fall due. Amounts unpaid at year end are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

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.

Operating leases

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

The key judgement made by management in respect of revenue is the point at which revenue should be recognised. Management consider the underlying contract terms and conclude upon the most appropriate point of the cycle at which to recognise revenue based upon these terms and in particular where the risks and rewards of ownership transfers.

Operating lease commitments

The company has entered into commercial lease contracts and as a lessee it obtained use of the property, plant and equipment. The classification of such leases as either an operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains the significant risks and rewards of ownership of the leased asset. Then accordingly whether an asset and a corresponding liability should be recognised on the Balance Sheet.

Tangible fixed assets

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

4.

TURNOVER

All turnover in the year arose in the the United Kingdom and is attributable to the principal activity of

the company.

5.	OTHER OPERATING INCOME

2024

2023

£

£

Group recharges

265,328

119,886

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,345,983

2,961,428

Social security costs

337,424

307,517

Other pension costs

245,956

248,469

3,929,363

3,517,414

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

2024

2023

Production

66

62

Administration

16

16

Sales

7

7

89

85

2024

2023

£

£

Directors' remuneration

112,140

83,990

Directors' pension contributions to money purchase schemes

11,102

15,118

7.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

332,375

699,781

Depreciation - owned assets

682,716

594,982

Profit on disposal of fixed assets

(57,361

)

(34,389

)

Foreign exchange differences

25,196

12,870

Fees payable to the company's auditor for the audit of the company's annual financial statements

17,325

17,325

Operating lease expense

116,182

116,182

Hire of plant and machinery

332,375

699,781

8.

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

357,528

841,600

Deferred tax

172,159

24,470

Tax on profit

529,687

866,070

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

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

3,374,509

5,346,435

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

843,627

1,257,482

Effects of:

Expenses not deductible for tax purposes

11,079

10,102

Capital allowances in excess of depreciation

(140,832

)

(7,165

)

Adjustments to tax charge in respect of previous periods

53,509

(5,537

)

Group relief

(399,016

)

(402,371

)

Deferred tax

172,159

24,470

Other

(10,839

)

(10,911

)

Total tax charge

529,687

866,070

9.

DIVIDENDS

2024

2023

£

£

Ordinary shares of £1 each

Final

1,635,281

5,650,000

10.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 January 2024

7,403,379

291,852

168,985

7,864,216

Additions

1,045,060

111,169

2,553

1,158,782

Disposals

(481,175

)

(48,464

)

-

(529,639

)

At 31 December 2024

7,967,264

354,557

171,538

8,493,359

DEPRECIATION

At 1 January 2024

6,246,866

133,255

139,772

6,519,893

Charge for year

594,815

67,481

20,420

682,716

Eliminated on disposal

(481,173

)

(37,905

)

-

(519,078

)

At 31 December 2024

6,360,508

162,831

160,192

6,683,531

NET BOOK VALUE

At 31 December 2024

1,606,756

191,726

11,346

1,809,828

At 31 December 2023

1,156,513

158,597

29,213

1,344,323

11.

STOCKS

2024

2023

£

£

Finished goods

978,056

1,387,774

Machine parts

183,420

95,643

1,161,476

1,483,417

The difference between the purchase price or production cost of stocks and their replacement cost is not material.

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

4,013,085

3,569,289

Amounts owed by group undertakings

138,572

900

VAT

1,105

-

Directors' loan accounts

6,449

-

Corporation tax

1,070,084

439,072

Prepayments and accrued income

213,829

213,908

5,443,124

4,223,169

The impairment loss recognised in profit or loss for the year in respect of bad and doubtful trade debtors was £24,940 (2023 - £45,612).

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

1,957,953

1,575,377

Amounts owed to group undertakings

-

58,591

Social security and other taxes

90,673

81,060

VAT

-

40,699

Accrued expenses

376,437

369,890

2,425,063

2,125,617

14.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

149,319

116,182

Between one and five years

207,922

264,037

357,241

380,219

15.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

267,247

95,088