REGISTERED NUMBER: 12489437 (England and Wales)

A & V SQUIRES HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

to

6

Consolidated Statement of Comprehensive Income

7

Consolidated Statement of Financial Position

8

Company Statement of Financial Position

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Statement of Cash Flows

12

Notes to the Consolidated Statement of Cash Flows

13

Notes to the Consolidated Financial Statements

14

to

22

DIRECTOR:

R N Squires

SECRETARY:

Mrs S M Squires

REGISTERED OFFICE:

Vivienne House

Race Course Road

Crew Lane Industrial Estate

Southwell

Nottinghamshire

NG25 0TX

REGISTERED NUMBER:

12489437 (England and Wales)

SENIOR STATUTORY AUDITOR:

Rachel Rudkin FCCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

PRINCIPLE ACTIVITY

The principal activity of the group in the year under review was that of contract bulk earth moving, civil engineering and other related infrastructure support services and plant hire.

REVIEW OF BUSINESS

The director aims to present a balanced and comprehensive review of the development and performance of the group during the year and its position at the year end. The net assets of the group continued to grow to £3.62M compared to £3.38M in the previous year.

The director is happy with the progress being made to invest and upgrade the fleet of operated and non-operated plant with the latest available technology on the market.

The group continues to secure new contract works that this investment has enabled.

Some areas of the group are expected to be hit by a downturn in revenue due to market trends however the director and senior managers are hopeful that by maintaining strong relationships with existing customers the future will be positive.

KEY PERFORMANCE INDICATORS

It is considered that the key financial performance indicators are those that communicate the performance and strength of the business as a whole, these being turnover and margins. A table showing these key indicators over the last three years has been included below:

2024

2023

2022

Revenue £

10,398,926

15,195,056

13,273,411

Gross profit £

1,545,342

2,116,651

1,730,378

Gross profit %

14.86%

13.93 %

13.04%

Net profit before tax %

3.70%

4.20 %

2.35 %

The above KPIs are calculated and reviewed on a regular basis by the director and used to monitor and manage the group's performance.

FUTURE DEVELOPMENTS

The group continues to achieve and maintain a number of internationally recognised, externally accredited safety, quality and environmental standards, affording it a more enhanced standing thereby enabling the business to enter into new commercial markets affording the opportunity to successfully secure long term service contract works with highly respected customers. New areas of income generation are continuously being explored. Diversifying the business to suit the market is also an option.

PRINCIPAL RISKS AND UNCERTAINTIES

The director continuously monitors the key risks facing the group together with assessing the controls used for managing these risks. These are discussed with other members of senior management on a monthly basis.

The principal risks and uncertainties facing the group continue to be those derived from general economic uncertainty which could potentially lead to cash flow difficulties. The group is deemed to have sufficient financial headroom with bank finance well below the authorised limits and all outstanding plant and equipment hire purchase creditors being secured.

As described in future developments, the enhanced standing of the group has so far enabled it to continue to attract new, profitable contracts.

Failure to comply with existing legislation could materially affect the group's ability to operate. In addition, changes in government policy or legislation could adversely affect group operating costs.

ON BEHALF OF THE BOARD:

R N Squires - Director

29 September 2025

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

DIVIDENDS

An interim dividend of £7.27 per share was paid on 6 April 2024. The director recommends that no final dividend be paid.

DIRECTOR

R N Squires held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

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

ON BEHALF OF THE BOARD:

R N Squires - Director

29 September 2025

Opinion

We have audited the financial statements of A & V Squires Holdings 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 Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 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 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 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 Group 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 Group 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 Group 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 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 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 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 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 page three, 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 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 director either intends to liquidate the group or the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Vehicle operating licences, and Employment laws. This inspection included a review of the business operating licences for any evidence of non-compliance, in addition to the assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations

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.

Rachel Rudkin FCCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

14 London Road

Newark

Nottinghamshire

NG24 1TW

29 September 2025

TURNOVER

10,398,926

15,195,056

Cost of sales

8,853,584

13,078,405

GROSS PROFIT

1,545,342

2,116,651

Administrative expenses

1,229,519

1,305,861

315,823

810,790

Other operating income

121,538

63,675

OPERATING PROFIT

4

437,361

874,465

Interest payable and similar expenses

5

284,354

235,669

PROFIT BEFORE TAXATION

153,007

638,796

Tax on profit

6

(617,709

)

228,051

PROFIT FOR THE FINANCIAL YEAR

770,716

410,745

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

770,716

410,745

Profit attributable to:

Owners of the parent

770,716

410,745

Total comprehensive income attributable to:

Owners of the parent

770,716

410,745

FIXED ASSETS

Tangible assets

9

6,323,738

8,540,896

Investments

10

-

-

6,323,738

8,540,896

CURRENT ASSETS

Stocks

11

37,988

44,593

Debtors

12

2,842,984

2,647,826

Cash at bank and in hand

252,535

109,468

3,133,507

2,801,887

CREDITORS

Amounts falling due within one year

13

4,633,828

4,430,885

NET CURRENT LIABILITIES

(1,500,321

)

(1,628,998

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,823,417

6,911,898

CREDITORS

Amounts falling due after more than one year

14

(340,408

)

(2,337,292

)

PROVISIONS FOR LIABILITIES

19

(312,044

)

(948,857

)

NET ASSETS

4,170,965

3,625,749

CAPITAL AND RESERVES

Called up share capital

20

31,000

31,000

Other reserves

21

139,000

139,000

Retained earnings

21

4,000,965

3,455,749

SHAREHOLDERS' FUNDS

4,170,965

3,625,749

The financial statements were approved by the director and authorised for issue on 29 September 2025 and were signed by:

R N Squires - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

2,500,000

2,500,000

2,500,000

2,500,000

CURRENT ASSETS

Debtors

12

1,091,089

1,100,009

Cash at bank

451

944

1,091,540

1,100,953

NET CURRENT ASSETS

1,091,540

1,100,953

TOTAL ASSETS LESS CURRENT LIABILITIES

3,591,540

3,600,953

CAPITAL AND RESERVES

Called up share capital

20

31,000

31,000

Other reserves

2,469,000

2,469,000

Retained earnings

1,091,540

1,100,953

SHAREHOLDERS' FUNDS

3,591,540

3,600,953

Company's profit for the financial year

216,087

298,669

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 29 September 2025 and were signed by:

R N Squires - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

31,000

3,210,004

139,000

3,380,004

Changes in equity

Dividends

-

(165,000

)

-

(165,000

)

Total comprehensive income

-

410,745

-

410,745

Balance at 31 December 2023

31,000

3,455,749

139,000

3,625,749

Changes in equity

Dividends

-

(225,500

)

-

(225,500

)

Total comprehensive income

-

770,716

-

770,716

Balance at 31 December 2024

31,000

4,000,965

139,000

4,170,965

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

31,000

967,284

2,469,000

3,467,284

Changes in equity

Dividends

-

(165,000

)

-

(165,000

)

Total comprehensive income

-

298,669

-

298,669

Balance at 31 December 2023

31,000

1,100,953

2,469,000

3,600,953

Changes in equity

Dividends

-

(225,500

)

-

(225,500

)

Total comprehensive income

-

216,087

-

216,087

Balance at 31 December 2024

31,000

1,091,540

2,469,000

3,591,540

Cash flows from operating activities

Cash generated from operations

1

1,880,130

1,679,127

Interest paid

(21,056

)

(21,386

)

Interest element of hire purchase payments paid

(260,768

)

(211,845

)

Finance costs paid

(2,530

)

(2,438

)

Net cash from operating activities

1,595,776

1,443,458

Cash flows from investing activities

Purchase of tangible fixed assets

(1,119,497

)

(4,110,112

)

Sale of tangible fixed assets

2,318,541

2,027,921

Net cash from investing activities

1,199,044

(2,082,191

)

Cash flows from financing activities

Loan repayments in year

(300,263

)

(18,114

)

Capital repayments in year

(2,626,108

)

724,133

Amount withdrawn by directors

500,118

90

Equity dividends paid

(225,500

)

(165,000

)

Net cash from financing activities

(2,651,753

)

541,109

Increase/(decrease) in cash and cash equivalents

143,067

(97,624

)

Cash and cash equivalents at beginning of year

2

109,468

207,092

Cash and cash equivalents at end of year

2

252,535

109,468

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

2024

2023

£

£

Profit before taxation

153,007

638,796

Depreciation charges

1,065,761

1,569,229

Profit on disposal of fixed assets

(47,648

)

(248,294

)

Finance costs

284,354

235,669

1,455,474

2,195,400

Decrease in stocks

6,605

59,047

Increase in trade and other debtors

(206,194

)

(230,470

)

Increase/(decrease) in trade and other creditors

624,245

(344,850

)

Cash generated from operations

1,880,130

1,679,127

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

252,535

109,468

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

109,468

207,092

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

109,468

143,067

252,535

109,468

143,067

252,535

Debt

Finance leases

(3,925,332

)

2,626,108

(1,299,224

)

Debts falling due within 1 year

(13,911

)

13,911

-

Debts falling due after 1 year

(297,392

)

297,392

-

(4,236,635

)

2,937,411

(1,299,224

)

Total

(4,127,167

)

3,080,478

(1,046,689

)

1.	STATUTORY INFORMATION

A & V Squires Holdings 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.	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.

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

The director has reasonable expectations that the group has adequate resources to continue in existence for the foreseeable future. The group has therefore adopted the going concern basis in preparing its consolidated financial statements.

Basis of consolidation

The group financial statements consolidate A&V Squires Plant Co Limited at the reporting date.

Significant judgements and estimates

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no critical accounting judgements or estimation uncertainty that, in the opinion of the director, will have a material effect on the consolidated financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no critical accounting judgements or estimation uncertainty that, in the opinion of the director, will have a material effect on the consolidated financial statements.

Revenue

Revenue is recognised at the fair value of the consideration received or receivable, taking into account the amount of any trade discounts, prompt settlement discounts and volume rebates. Revenue is recognised when the risks and rewards in connection with the ownership of the goods are transferred to the buyer. Revenue is recognised for services by reference to the stage of completion at the end of the reporting period. Contracting revenue represents the value of work executed during the year, once attributable profit can be reliably measured.

Property, plant and equipment

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

life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

Not provided

Plant and machinery

-

25% on reducing balance and 20% on reducing balance

Motor Vehicles

-

25% on reducing balance

Office equipment

-

20% on reducing balance

The group bases depreciation on the useful economic life of each asset or, if held under a finance lease, over the lease term, whichever is shorter. The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-measured annually.

Inventories

Inventories are stated at the lower of cost incurred in bringing each product to its present location and condition, and fair value less costs to complete and sell, after making due allowance for obsolete and slow-moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. Inventories are accounted for on a first-in-first-out basis.

Financial instruments

The group has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement off financial position. 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, whichever is the shorter.

Leases are recognised at amounts equal to the fair value of the leased asset or, if lower, the present value of minimum lease payments determined at the inception of the lease.

The lease payments are apportioned between finance charge and the reduction of the outstanding liability using the effective interest method. The finance charge is allocated each year so that there is a constant periodic rate of interest on the remaining balance of the liability.

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

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate.

Investment in subsidiary

The consolidated financial statements incorporate the financial statements of its subsidiary from the date of control. Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of the subsidiary are included in total comprehensive income from the effective date of acquisition using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,751,153

3,064,916

Social security costs

311,733

343,026

Other pension costs

99,766

103,807

3,162,652

3,511,749

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

2024

2023

Management

7

5

Admin

3

5

Production

49

60

Health and safety

1

1

60

71

2024

2023

£

£

Director's remuneration

12,826

12,584

Director's pension contributions to money purchase schemes

39,194

39,190

4.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

626,048

688,998

Depreciation - owned assets

119,417

101,869

Depreciation - assets on hire purchase contracts

946,345

1,467,360

Profit on disposal of fixed assets

(47,648

)

(248,294

)

Auditors' remuneration

15,500

15,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

17,496

20,687

Director's loan interest

3,560

699

Hire purchase interest

260,768

211,845

Other loan interest

2,530

2,438

284,354

235,669

6.

TAXATION

Analysis of the tax (credit)/charge

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

2024

2023

£

£

Current tax:

UK corporation tax

19,104

-

Deferred tax

(636,813

)

228,051

Tax on profit

(617,709

)

228,051

7.	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.

8.

DIVIDENDS

2024

2023

£

£

Ordinary A shares of £1 each

Interim

225,500

165,000