REGISTERED NUMBER: 10046388 (England and Wales)

Group Strategic Report,

Report of the Directors and

Audited Consolidated Financial Statements

for the Year Ended 31 December 2024

for

LIFTING GEAR UK GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

Directors:

A C Harrison

C B Fredlund

M E Jaginder

Registered office:

Unit 1D Maple Court

White Moss Business Park

Skelmersdale

Lancashire

WN8 9TW

Registered number:

10046388 (England and Wales)

Auditors:

Rödl & Partner Limited

170 Edmund Street

Birmingham

B3 2HB

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

Review of business

As the parent company of the Lifting Gear group, the company continues to undertake management activities for the group companies. The group has continued its principal activities of the hire, sale and service of lifting equipment, contract lifting and bespoke fabrication.

The group remains part of the wider Axel Johnson group and benefits from the financial and operational strength this brings.

The aim of the directors is to maintain and enhance the group's reputation as the one stop provider for a complete lifting and handling equipment service throughout the UK. The business has grown year on year such that it can service the whole of the UK from a strong branch network and, in addition, the group offers a full range of height safety equipment and solutions for most eventualities.

The group continues to use ISO9001, as it is a globally recognised standard, to improve its internal management, reduce waste, increase efficiency and therefore productivity, allowing it to provide consistent outcomes, which are measured and monitored to improve customer experience, retention and acquisition.

There continues to be significant investment in the hire fleet to support the specific customer requirements, with a total capital investment of just over £1.6 million in the year ended 31 December 2024.

The directors believe that the key performance indicators for the group continue to be turnover, gross profit and EBITDA. These figures for the year ended 31 December 2024 and the period ended 31 December 2023 are set out below :

Year ended 31.12.24

Year ended 31.12.23

Turnover

£14,318,882

£13,937,270

Gross profit

£7,831,251

£7,983,571

Gross profit %

54.7%

57.3%

EBITDA

£2,296,618

£2,903,555

The directors are pleased with the results for the year and with the growth in hire and contract lifting revenues.

Future developments

The directors are confident that the growth projections for the current year are achievable. With a strong branch network and an excellent range of services the group will continue to identify new contracts and opportunities for the future expansion of the business.

Following a number of large investments during 2023 in purchasing a Hiab, 200T Hydraulic Jacking system and 21T Valla crane, the group is looking to invest further in large plant items to increase the scope within contract lifting and machinery moving projects.

In order to further enhance the group's own scope of works and market share, the directors are continually looking to strategically acquire companies which share the culture of delivering safe and superior lifting solutions.This strategy, twinned with targeting sustainable organic growth, should see the market position in the UK continue to grow.

Principal risks and uncertainties

The group operates in a competitive market and there is the commercial risk of losing market share to its competitors. To guard against this, the directors and key staff carry out regular assessments of competitor activity, customer behaviour and general market conditions to ensure they can identify and react to commercial risks as and when they arise.

The group also faces risks from not complying with Health and Safety legislation. To address this risk, it implements the highest possible safety standards and meets all its legislative requirements.

The group is a member of The Fleet Operator Recognition Scheme (FORS) which is a voluntary accreditation scheme for fleet operators which aims to raise the level of quality within fleet operations, and to demonstrate which operators are achieving exemplary levels of best practice in safety, efficiency, and environmental protection.The aim is to improve this accreditation further by attaining FORS Gold at a number of the group's depots at the earliest opportunity.

Financial risk management objectives and policies

The group's activities expose it to a number of financial risks including credit risk and liquidity risk.

The risks of the group are managed internally by holding regular senior managers meetings and board meetings, supported by external providers of advice to the directors where necessary.

Credit risk

The group's credit risk primarily relates to trade receivables. The amounts presented in the balance sheet are presented net of any allowances for doubtful receivables. The group seeks to minimise its credit risk by undertaking regular credit checks on new and existing customers and by insuring receivables against non-payment.

Liquidity risk

As part of Axel Johnson, the group has access to an internal treasury department, which enables it to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments.

Employee matters

The group's most important resource is its people, and their knowledge and experience are crucial to meeting customer requirements. The retention of key staff is crucial, and the group looks to promote from within where possible.

The group invests considerably in training and development. It is committed to achieving excellence in Health & Safety, welfare and protection of its employees.

Employment within the group is based on the person's ability to work and not on the basis of race, individual characteristics, creed or political opinion.

Environmental policy

The group recognises its corporate responsibility to carry out its operations whilst minimising its impact on the environment. The directors continued aim is to reduce waste wherever possible and comply with all environmental legislation.

On behalf of the board:

A C Harrison - Director

11 September 2025

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

Principal activities

The principal activities of both the company and the group are disclosed in the Strategic Report.

Dividends

An interim dividend of £200 per share was paid on the Ordinary £1 shares on 4 September 2024. No dividends were paid on any other classes of shares.

The total distribution of dividends for the year ended 31 December 2024 will be £ 200,000 .

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 C Harrison

C B Fredlund

M E Jaginder

Disclosure in the strategic report

The disclosures in respect of the business review, future developments and the financial risk management, objectives and policies are included in the Group Strategic Report.

Directors' responsibilities statement

The directors are responsible for preparing the Group 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), 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

Auditors

The auditors, Rödl & Partner Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

A C Harrison - Director

11 September 2025

Opinion

We have audited the financial statements of Lifting Gear UK Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 Directors' Responsibilities Statement 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 group's and the parent 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 group or the parent 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:

- Enquiry of management, those charged with governance around actual and potential litigation and claims;

- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing 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.

Imran Farooq (Senior Statutory Auditor)

for and on behalf of Rödl & Partner Limited

170 Edmund Street

Birmingham

B3 2HB

11 September 2025

TURNOVER

5

14,318,882

13,937,270

Cost of sales

6,487,631

5,953,699

GROSS PROFIT

7,831,251

7,983,571

Administrative expenses

6,866,682

6,107,450

OPERATING PROFIT

8

964,569

1,876,121

Interest receivable and similar income

2,970

3,117

PROFIT BEFORE TAXATION

967,539

1,879,238

Tax on profit

9

295,474

495,937

PROFIT FOR THE FINANCIAL YEAR

672,065

1,383,301

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

672,065

1,383,301

Profit attributable to:

Owners of the parent

672,065

1,383,301

Total comprehensive income attributable to:

Owners of the parent

672,065

1,383,301

FIXED ASSETS

Intangible assets

12

2,169,061

2,361,100

Tangible assets

13

5,198,367

4,856,896

Investments

14

-

-

7,367,428

7,217,996

CURRENT ASSETS

Stocks

15

376,697

304,132

Debtors

16

3,381,156

3,561,654

Cash at bank and in hand

817,623

520,472

4,575,476

4,386,258

CREDITORS

Amounts falling due within one year

17

1,650,424

1,922,816

NET CURRENT ASSETS

2,925,052

2,463,442

TOTAL ASSETS LESS CURRENT LIABILITIES

10,292,480

9,681,438

PROVISIONS FOR LIABILITIES

19

1,188,571

1,049,594

NET ASSETS

9,103,909

8,631,844

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

9,102,909

8,630,844

SHAREHOLDERS' FUNDS

9,103,909

8,631,844

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2025 and were signed on its behalf by:

A C Harrison - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

6,184,998

6,184,998

6,184,998

6,184,998

CURRENT ASSETS

Debtors

16

3,031,673

2,519,725

Cash at bank

27,698

17,985

3,059,371

2,537,710

CREDITORS

Amounts falling due within one year

17

1,768,021

1,119,404

NET CURRENT ASSETS

1,291,350

1,418,306

TOTAL ASSETS LESS CURRENT LIABILITIES

7,476,348

7,603,304

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

7,475,348

7,602,304

SHAREHOLDERS' FUNDS

7,476,348

7,603,304

Company's profit for the financial year

73,044

16,540

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2025 and were signed on its behalf by:

A C Harrison - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000

7,447,543

7,448,543

Changes in equity

Dividends

-

(200,000

)

(200,000

)

Total comprehensive income

-

1,383,301

1,383,301

Balance at 31 December 2023

1,000

8,630,844

8,631,844

Changes in equity

Dividends

-

(200,000

)

(200,000

)

Total comprehensive income

-

672,065

672,065

Balance at 31 December 2024

1,000

9,102,909

9,103,909

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000

7,785,764

7,786,764

Changes in equity

Dividends

-

(200,000

)

(200,000

)

Total comprehensive income

-

16,540

16,540

Balance at 31 December 2023

1,000

7,602,304

7,603,304

Changes in equity

Dividends

-

(200,000

)

(200,000

)

Total comprehensive income

-

73,044

73,044

Balance at 31 December 2024

1,000

7,475,348

7,476,348

Cash flows from operating activities

Cash generated from operations

1

1,826,783

2,876,603

Tax paid

(95,784

)

(374,748

)

Net cash from operating activities

1,730,999

2,501,855

Cash flows from investing activities

Purchase of tangible fixed assets

(1,606,789

)

(2,979,125

)

Sale of tangible fixed assets

167,374

182,026

Interest received

2,970

3,117

Net cash from investing activities

(1,436,445

)

(2,793,982

)

Cash flows from financing activities

Amounts repaid by parent undertaking

202,597

302,403

Equity dividends paid

(200,000

)

(200,000

)

Net cash from financing activities

2,597

102,403

Increase/(decrease) in cash and cash equivalents

297,151

(189,724

)

Cash and cash equivalents at beginning of year

2

520,472

710,196

Cash and cash equivalents at end of year

2

817,623

520,472

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

31.12.24

31.12.23

£

£

Profit before taxation

967,539

1,879,238

Depreciation charges

1,332,049

1,070,669

Profit on disposal of fixed assets

(42,066

)

(43,235

)

Finance income

(2,970

)

(3,117

)

2,254,552

2,903,555

(Increase)/decrease in stocks

(72,565

)

4,618

Increase in trade and other debtors

(22,099

)

(408,730

)

(Decrease)/increase in trade and other creditors

(333,105

)

377,160

Cash generated from operations

1,826,783

2,876,603

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

817,623

520,472

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

520,472

710,196

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

520,472

297,151

817,623

520,472

297,151

817,623

Total

520,472

297,151

817,623

1.	STATUTORY INFORMATION

Lifting Gear UK Group 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 General Information page.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historic cost convention, modified to include certain items at fair value.

The financial statements are presented in Sterling (£).

The group financial statements consolidate the financial statements of Lifting Gear UK Group Limited and all its subsidiary undertakings for the period ended 31 December 2024.

In preparing it's individual financial statements, which are presented alongside the consolidated financial statements, Lifting Gear UK Group Limited has taken advantage of the disclosure exemptions available in respect of the presentation of a cash flow statement.

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

The results of subsidiaries acquired or sold are consolidated from or to the date on which control passes. On consolidation, all intra-group transactions and balances are eliminated in full.

Business combinations are accounted for using the purchase method. The consideration in respect of the business combination is measured at the aggregate of the fair values of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the subsidiary undertaking.

Investments

In the company balance sheet, the cost of investment in subsidiaries is measured at the fair value of all consideration given, at the date the investment is made.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of consideration received or receivable. Where a contract has only been partially completed at the balance sheet date, turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date.

Intangible assets - goodwill

Goodwill arising on consolidation is amortised over its estimated useful economic life of 20 years. Provision is made for any impairment.

Purchased goodwill is amortised over its estimated useful economic life of 10 years. Provision is made for any impairment.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life, using rates between 5% and 90%.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost is calculated by reference to the most recent purchase price.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

Impairment

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the income statement.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect if discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter sated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the group’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.

The following are considered the significant areas of judgements, estimates or assumptions in the financial statements.

Useful economic life and residual value of tangible fixed assets

The useful life of tangible fixed assets are judged at the point the expenditure is incurred and then re-assessed at each reporting date. The residual values are assessed on the same basis. Judgements are based upon management's experience of the industry and their knowledge of the demand for, and market price of, second hand assets.

Useful economic life of intangible fixed assets

The group establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

5.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

31.12.24

31.12.23

£

£

Rendering of services

11,603,390

10,610,757

Sale of goods

2,715,492

3,326,513

14,318,882

13,937,270

Other than sales amounting to £37,000 (2023 : £178,000), all of the group's sales were made to UK customers.

6.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

5,456,720

4,718,846

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

31.12.24

31.12.23

Operational

69

60

Administrative

65

53

134

113

7.	DIRECTORS' EMOLUMENTS

The directors total remuneration from group companies in the period was £113,410 (2023 : £99,344). This included social security costs of £12,650 (2023 : £10,944)

In addition, the group made pension contributions of £1,320 (2023 - £1,320) in respect of directors who held office during the period. At both the current and previous period end dates, there was one serving director for whom pension benefits continue to accrue in money purchase schemes.

8.	OPERATING PROFIT

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

31.12.24

31.12.23

£

£

Depreciation - owned assets

1,140,010

878,630

Profit on disposal of fixed assets

(42,066

)

(43,235

)

Goodwill amortisation

192,039

192,039

Auditors' remuneration

24,172

23,800

The company has entered into a liability limitation agreement with the company's auditor which was approved on 28 October 2024. The principal terms of the agreement are fair and reasonable.

9.

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

156,497

134,206

Deferred tax

138,977

361,731

Tax on profit

295,474

495,937

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

Reconciliation of total tax charge included in profit and loss

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

31.12.24

31.12.23

£

£

Profit before tax

967,539

1,879,238

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

241,885

441,997

Effects of:

Expenses not deductible for tax purposes

53,684

45,644

Income not taxable for tax purposes

(54

)

-

Capital allowances in excess of depreciation

(128,543

)

(353,435

)

enhanced tax relief

development enhanced tax

Deferred tax

138,977

361,731

Profit on Disposal

(10,475

)

-

Total tax charge

295,474

495,937

10.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.