REGISTERED NUMBER: 05773858 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

NORTHGATE HEALTHCARE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

A K Haines

K Haines

M K Haines

SECRETARY:

K Haines

REGISTERED OFFICE:

White Gables

Cross Lane Head

Bridgnorth

Shropshire

WV16 4SJ

REGISTERED NUMBER:

05773858 (England and Wales)

AUDITORS:

BSS & Co (Accountancy Services) Limited

(Statutory Auditor)

75 Aston Road

Shifnal

Shropshire

TF11 8DU

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

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year-end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

REVIEW OF BUSINESS

Northgate Healthcare is a provider of residential care homes for the elderly. We currently own and operate five homes across the Midlands, following the acquisition of Ashcroft Hollow in October 2024. Each home is managed and assessed individually to ensure performance is measured effectively.

We pride ourselves on the quality of our homes and the care we provide. Within our group of five homes, we provide nursing care and specialist dementia care. Nursing care is provided at both Autumn House and Ashcroft Hollow, which also provide specialist dementia care along with our other three homes.

As part of our growth strategy, we continue to explore acquisition opportunities. During 2024, we acquired Ashcroft Hollow via a share purchase acquisition, which added to our nursing care capacity and, along with our residential care. This acquisition has allowed us to further concentrate on our core values, particularly the delivery of first-class care for all residents. Bed occupancy levels improved on 2023 figures, which was a key factor in overall income growth.

All of our homes were profitable in 2024, and this trend has continued into 2025. Total turnover rose compared with 2023, driven by a combination of increased fees and higher occupancy rates. this is a combination of increased fees and increased occupancy. We saw an increase in fees across all homes in the year, with the most notable improvements being at Meadowfields, where fee levels rose, and at Autumn House, where both occupancy and nursing care numbers increased, bringing the home close to full capacity.

We have continued with the ongoing program of repairs to all homes to ensure they are kept to the high standards which we continue to meet for all of our service users. This again has resulted in a higher than average spend on repairs and maintenance at The Firs refurbishment, coming to an end along with Lane House during this year. The refurbishment of Autumn House was coming to an end in 2024 with the home getting closer to full occupancy too. The refurbishment of Ashcroft Hollow commenced following the acquisition, with the main refurbishment costs scheduled for 2025 to ensure the home meets the high standards expected across the Northgate group. We expect overall maintenance expenditure to decrease across the other homes in 2025, apart from the usual cyclical refurbishment programme.

Residential nursing care is a growing sector within the industry, and the directors are satisfied that including this service at both Autumn House and now Ashcroft Hollow is worthwhile to the Northgate Healthcare group. This will ensure Northgate Healthcare can continue to provide residents with the level of care they require as their needs change.

Our staff are at the heart of the care we provide, and their dedication is central to our success. We recognise that attracting and retaining high-quality staff in the care sector remains a challenge. To support retention, we implemented wage increases in 2025 to remain competitive and to reward staff for their commitment. We also continue to invest in training and professional development to ensure our teams are skilled, motivated, and able to deliver the highest standard of care.

We are proud to maintain strong staff retention levels across our homes, which directly contributes to consistency of care, high resident satisfaction, and improved overall performance. By offering career progression, ongoing training, and a supportive working environment, we ensure our workforce feels valued and engaged.

We consider the key financial performance indicators to be those that communicate the financial performance and strength of the company as a whole, these being average occupancy rates, gross profit margin and earnings before interest, tax, depreciation and amortisation (EBITDA).

Occupancy levels improved in 2024 compared with 2023, and we are confident that this trend will continue in 2025, particularly as Ashcroft Hollow builds occupancy steadily throughout the year. Resident retention and satisfaction remain high across all homes.

The gross profit margin for the company as a whole has increased again to 39.56% over the 2024 figure of 38.07% for 2023. This is a testament to both the high standards of the homes and the care provided to our residents.

Following the new measures introduced a couple of years ago and which have continued since, this has assisted with achieving both higher occupancy rates and better profitability across all homes in the group, with both occupancy rates and profitability increasing overall.

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to face a number of external risks that could impact operations and financial performance, including:

- The effects of a further economic downturn, which could lead to further pressures on margins

- Changes in the availability of public sector funding, as a proportion of residents rely on government contributions to meet care fees.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control.

FINANCIAL RISK MANAGEMENT

The company's credit risk is low, being primarily attributed to its trade debtors. All credit risk, both publicly and privately funded, is managed by monitoring payments against contractual agreements. Even with interest rates falling from June 2024, there have been higher interest charges across the year as they have not fallen as quickly as they rose during 2022 and 2023. This has still impacted profitability, other measures put in place have outweighed this impact and is continuing to be managed by the directors to ensure continued profitability moving forward.

The company faces financial risk from the inflationary pressures from staff costs. Any future changes in the National Living Wage will have a significant impact on labour costs in the care sector as a whole. The company reviews upcoming changes to the National Living Wage and currently pays above this rate to ensure good quality care staff. The company plans future wage increases to ensure the financial stability of the company going forward and to ensure these increases do not overly impact cash flow and profitability.

ON BEHALF OF THE BOARD:

A K Haines - Director

29 September 2025

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

DIVIDENDS

Interim dividends totalling £7099.4808 per share were paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 709,948 .

FUTURE DEVELOPMENTS

The directors are confident about the continuing financial performance of the business and continue to seek opportunities to develop the business further.

DIRECTORS

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

A K Haines

K Haines

M K Haines

OUR PEOPLE

The company provides employees with information on matters of concern to them, consulting them regularly so that their views can be taken into account when making decisions that are likely to affect their interests.

DISABLED EMPLOYEES

The company is committed to a policy of recruitment and promotion based on the basis of aptitude and ability without discrimination of any kind. Particular attention is given to the training and promotion of disabled employees to ensure that their career development is not unfairly restricted by their disability, or perceptions to it.

The HR procedures make clear that full and fair consideration must be given to applications made by and the promotion of disabled persons. Where an employee becomes disabled whilst employed by the company, the HR procedures also require that reasonable effort is made to ensure they have the opportunity for continued employment within the company. Retaining of employees who become disabled whilst employed by the company is offered where appropriate.

DISCLOSURE IN THE STRATEGIC REPORT

A review of the business, principle risks and uncertainties and financial risk management are included in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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, BSS & Co (Accountancy Services) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A K Haines - Director

29 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for qualified opinion

The directors have not undertaken a formal assessment of property values at the balance sheet date to support their assertion that the values have not changed materially since previous revaluations and acquisitions. We were unable to satisfy ourselves by alternative means concerning property carrying values as at 31st December 2024, which are included in the balance sheet heading freehold property totalling £8,486,788 by using other audit procedures. Consequently, we were unable to determine whether any adjustment to the amounts were necessary.

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. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included - Confirming our understanding of management’s going concern assessment process and obtaining management’s assessment which Covers up to period 31 December 2025

- Challenging the key assumptions used by management in determining appropriateness of going concern assessment; and

- Assessing the appropriateness of the going concern disclosures by comparing their consistency with management’s assessment and for compliance with the relevant reporting requirements

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 five, 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:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting, taxation legislation, data protection, employment and health and safety legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to making enquiries of management and inspecting legal correspondence.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

· Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

· Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

· Performed analytical procedures to identify any unusual or unexpected relationships

· Tested the appropriateness of journal entries and other adjustments

· Assessed whether the judgements made in making accounting estimates were indicative of a potential bias

· Evaluated the business rationale of any significant transactions that were unusual or outside the normal course of business.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which

included, but were not limited to:

· Agreeing financial statement disclosures to underlying supporting documentation

· Enquiring of management as to actual and potential litigation and claims; and

· Reviewing correspondence with HMRC and any other relevant regulators as required.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to

become aware of it.

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.

Taheer Afzal A.C.A. (Senior Statutory Auditor)

for and on behalf of BSS & Co (Accountancy Services) Limited

(Statutory Auditor)

75 Aston Road

Shifnal

Shropshire

TF11 8DU

29 September 2025

TURNOVER

13,334,975

11,651,744

Cost of sales

8,001,921

7,215,979

GROSS PROFIT

5,333,054

4,435,765

Administrative expenses

2,290,032

2,094,800

3,043,022

2,340,965

Other operating income

-

29,970

OPERATING PROFIT

4

3,043,022

2,370,935

Interest receivable and similar income

31,650

8,672

3,074,672

2,379,607

Interest payable and similar expenses

5

524,791

519,951

PROFIT BEFORE TAXATION

2,549,881

1,859,656

Tax on profit

6

630,255

449,839

PROFIT FOR THE FINANCIAL YEAR

1,919,626

1,409,817

PROFIT FOR THE YEAR

1,919,626

1,409,817

OTHER COMPREHENSIVE INCOME

Revaluation surplus

(134,975

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(134,975

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,784,651

1,409,817

FIXED ASSETS

Intangible assets

8

32,000

81,153

Tangible assets

9

16,031,740

16,181,757

16,063,740

16,262,910

CURRENT ASSETS

Stocks

10

29,712

27,899

Debtors

11

1,605,503

1,034,671

Prepayments and accrued income

55,240

10,196

Cash at bank and in hand

2,045,402

1,520,316

3,735,857

2,593,082

CREDITORS

Amounts falling due within one year

12

2,384,158

2,199,702

NET CURRENT ASSETS

1,351,699

393,380

TOTAL ASSETS LESS CURRENT LIABILITIES

17,415,439

16,656,290

CREDITORS

Amounts falling due after more than one year

13

(6,525,614

)

(6,821,566

)

PROVISIONS FOR LIABILITIES

17

(1,955,996

)

(1,975,598

)

NET ASSETS

8,933,829

7,859,126

CAPITAL AND RESERVES

Called up share capital

18

100

100

Revaluation reserve

19

4,468,122

4,603,097

Retained earnings

19

4,465,607

3,255,929

SHAREHOLDERS' FUNDS

8,933,829

7,859,126

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 K Haines - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100

2,412,048

4,603,097

7,015,245

Changes in equity

Dividends

-

(565,936

)

-

(565,936

)

Total comprehensive income

-

1,409,817

-

1,409,817

Balance at 31 December 2023

100

3,255,929

4,603,097

7,859,126

Changes in equity

Dividends

-

(709,948

)

-

(709,948

)

Total comprehensive income

-

1,919,626

(134,975

)

1,784,651

Balance at 31 December 2024

100

4,465,607

4,468,122

8,933,829

Cash flows from operating activities

Cash generated from operations

1

3,804,774

2,447,872

Interest paid

(512,094

)

(509,471

)

Interest element of hire purchase payments paid

(12,697

)

(10,480

)

Tax paid

(589,279

)

(338,598

)

Net cash from operating activities

2,690,704

1,589,323

Cash flows from investing activities

Purchase of tangible fixed assets

(142,683

)

(392,688

)

Interest received

31,650

8,672

Net cash from investing activities

(111,033

)

(384,016

)

Cash flows from financing activities

Loan repayments in year

(331,991

)

(395,500

)

Inter company loan

(684,630

)

(2,640

)

Capital repayments in year

(30,309

)

179,855

Amount withdrawn by directors

(297,707

)

9,686

Equity dividends paid

(709,948

)

(565,936

)

Net cash from financing activities

(2,054,585

)

(774,535

)

Increase in cash and cash equivalents

525,086

430,772

Cash and cash equivalents at beginning of year

2

1,520,316

1,089,544

Cash and cash equivalents at end of year

2

2,045,402

1,520,316

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

31.12.24

31.12.23

£

£

Profit before taxation

2,549,881

1,859,656

Depreciation charges

178,626

189,899

Finance costs

524,791

519,951

Finance income

(31,650

)

(8,672

)

3,221,648

2,560,834

Increase in stocks

(1,813

)

(2,355

)

Decrease/(increase) in trade and other debtors

352,581

(165,035

)

Increase in trade and other creditors

232,358

54,428

Cash generated from operations

3,804,774

2,447,872

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

2,045,402

1,520,316

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,520,316

1,089,544

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,520,316

525,086

2,045,402

1,520,316

525,086

2,045,402

Debt

Finance leases

(189,455

)

30,309

(159,146

)

Debts falling due within 1 year

(395,497

)

63,507

(331,990

)

Debts falling due after 1 year

(6,662,804

)

268,483

(6,394,321

)

(7,247,756

)

362,299

(6,885,457

)

Total

(5,727,440

)

887,385

(4,840,055

)

1.	STATUTORY INFORMATION

Northgate Healthcare 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.

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 as modified by the revaluation of certain assets.

Critical accounting judgements and key sources of estimation uncertainty

In order to properly apply the company’s accounting policies, as described in note 1 above, the directors are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the directors on an ongoing basis.

Key sources of estimation uncertainty

The key sources of estimation uncertainty which have a significant effect on the amounts recognised in the financial statements are described below:

Property valuation

The care homes owned by the company have been revalued on a regular basis, the latest of these being based on professional valuations prepared in 2024 on two of the homes with the remaining two being in 2022. These have been reviewed each year by the directors. Although this complies with the relevant accounting standards there is a possibility that the realisable value of the homes may differ to the values used in the event of a sale.

Turnover

Turnover represents the fees derived from the provision of care services to residents during the year. Income is recognised on a daily basis for the provision of nursing care services.

Goodwill

Intangible assets

Intellectual property rights and books of account, being the amount paid in connection with the acquisition of a care home in 2010, are is being amortised evenly over its estimated useful economic life of 10 years. An annual impairment review has been carried out on the carrying value and an adjustment is made where necessary.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Fixtures fittings & equipment

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

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

Financial instruments

(i) Cash and cash Equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks, and bank overdrafts.

(ii) Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are stated at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Hire purchase and leasing commitments

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

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.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

6,861,249

6,223,123

Social security costs

494,275

393,523

Other pension costs

219,419

200,726

7,574,943

6,817,372

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

31.12.24

31.12.23

Lane House

47

50

The Firs

113

96

Meadowfields

89

82

Autumn House

115

114

364

342

31.12.24

31.12.23

£

£

Directors' remuneration

21,125

22,125

Directors' pension contributions to money purchase schemes

100,000

100,000

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.24

31.12.23

£

£

Hire of plant and machinery

53,515

69,643

Other operating leases

5,200

3,600

Depreciation - owned assets

129,473

140,744

Goodwill amortisation

49,153

49,153

Auditors' remuneration

9,300

8,040

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank loan interest

508,302

497,096

Other interest

3,792

12,375

Hire purchase

12,697

10,480

524,791

519,951

6.

TAXATION

Analysis of the tax charge

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

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

621,605

397,704

Deferred tax

8,650

52,135

Tax on profit

630,255

449,839

UK corporation tax has been charged at 25% (2023 - 23.52%).