REGISTERED NUMBER: 02654994 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

MERIDIAN IT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Profit and loss account

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

T J Patronik

A Haley

REGISTERED OFFICE:

Forward House

17 High Street

Henley-in-Arden

West Midlands

B95 5AA

REGISTERED NUMBER:

02654994 (England and Wales)

AUDITORS:

Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

BANKERS:

National Westminster

Commercial Banking

1st Floor, Rowan House

Westwood Business Park

Westwood Way

Coventry

CV4 8LE

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

FY25 proved to be as challenging as it had been predicted to be, in the FY24 Business Review. Overall, the results were within range of expectations and therefore the overarching strategy of balancing the business between growth in Managed Services and Hybrid Cloud and the deployment of hardware and software on client premises will not change.

Reflecting on the years financial performance, Meridian IT experienced a continuation of a number of challenges that had been present in the business towards the end of FY24. These include a rise in data centre operational costs of nearly 12% during the year. In addition, the investment cost and Cost of Sale increases, associated with the deployment of 2 significant contracts (won in FY24) meant that the Gross Margin decreased by 6% on Revenue which had increased by 1%. Although within the forecasted range for the year, the reduction in GM impacted our Key Performance Indicators.

Investments made during the year include the opening of a new Security Operations Centre (SOC) to support new and ongoing cyber security services; the launch of a Dublin based private cloud platform to support the migration of new European IBMi workloads and a 20% increase in operational consultants to support the deployment of new managed services contracts. Overall average staff numbers increased from 49 in FY24 to 73 in FY25. Despite this the careful management of administrative expenses allowed the business to maintain an EBITDA % of over 10%.

Cash generated by operations was extremely positive throughout the year and this allowed the business to pay a dividend to shareholders of £1,997,475.

These investments will deliver long term growth in Managed Services, our strategic direction, both in the UK and in Europe by FY27.

KEY PERFORMANCE INDICATORS

The Key Performance Indicators used by the Directors and Senior Management Team to determine the health of the business are Gross Profit, Operating Profit and EBITDA and their respective % against revenues. The Gross Margin reduction of 6% compared with the previous year impacted each of these Key Performance Indicators. Gross Profit being £5,166,932, Operating Profit being £1,314,324 and EBITDA being £2,061,583. Managed Services Revenue increased by 6.75% to £16,267,89 and services represented 82.49% of the overall GP; Cash reserves at the end of the year increased by 38.29% to £6,292,142 with cash generated by operations increasing from £281,114 in FY24 to £5,530,720; EBITDA as a % of revenue held up at 10.45%.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks to the business continues to be driven by uncertainty in both domestic and global markets. This is leading to delays in both capital and operating cost investments by our client base. In addition, the business continues to be impacted by an increasing Cost of Sale associated with data centre operations, high energy costs and increasing software as a service costs. The Senior Management Team are undertaking initiatives to drive down costs wherever possible. But we expect Gross Margins will remain suppressed. The slowdown of IBM Power 10 servers ahead of the launch of IBM's new class of enterprise server will likely interrupt product revenues this year also.

The implementation of 2 large managed services contracts is expected to last throughout FY26 and as such will impact the Cost of Sale. But both contracts are expected to contribute significantly more to the FY26 Profit and Loss than they did in FY25.

FUTURE FORECAST

Despite the Principal Risks and Uncertainties, the business continues to forecast longer term strong financial performance, with the FY26 financial result being on a par with that of FY25 and returning to growth in FY27. The launch of IBM's Power 11 enterprise servers is expected to lead to an increase in future product revenues. The business is forecasting continued growth in hybrid cloud managed services as a result of investments made in the cloud and services infrastructure in FY25. In addition, through the investment made in the Security Operation Centre we are anticipating further growth to be driven by the deployment and management of security network solutions with SOC and NOC services. The return to growth by FY27 will also include increasing revenue originating from Meridian ITs automation and AI services business.

APPROVED AND SIGNED BY ORDER OF THE BOARD:

A Haley - Director

11 July 2025

The directors present their annual report with the audited financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activities of the company during the course of the year were the provision of IT solutions based around four IT competencies; Managed Cloud Services, IT Professional Services, Security and IT infrastructure deployment. This portfolio is being further enhanced and supported by a strategy to increase the services revenue of the business by supporting clients IT infrastructure with managed services and the opportunity to supply Meridian Groups International customers through an internal 'cross sell' model.

DIVIDENDS

Dividends declared for the year ended 31 March 2025 were £1,997,475, (2024: £nil).

FUTURE DEVELOPMENTS

The future developments of the company are addressed in the Strategic Report.

DIRECTORS

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

T J Patronik

A Haley

FINANCIAL RISK MANAGEMENT AND OBJECTIVES

The IT industry is in a state of constant change and as such the company actively reviews its areas of practice to ensure that the solutions offered to our customers reflect the latest technologies and associated services as appropriate to their needs. In this way as technology change reduces business volumes in one area we are already benefiting from increased revenues from new technologies.

The company is exposed to a number of financial risks the main risk is the granting of credit to customers. The company manages its major credit risk with customers, substantial transactions, by the approval of the credit granted specifically for a transaction at the time of execution. Customers credit worthiness is assessed on a case by case basis.

The granting of credit by suppliers is supported by our strong balance sheet, profitable trading and the quality of our customer base with which we trade.

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company retains sufficient cash reserves.

GOING CONCERN

The going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern. In light of the company's existing cash resources and contracts in place, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statement.

.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

(a) so far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware; and

(b) the director has taken all the steps that he ought to have taken as a director to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Auditors

The auditors, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

APPROVED AND SIGNED BY ORDER OF THE BOARD:

A Haley - Director

11 July 2025

Opinion

We have audited the financial statements of Meridian IT Limited (the 'company') for the year ended 31 March 2025 which comprise the Profit and loss account, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

Under the Companies Act 2006 we are required to report in respect of the following matters 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.

We have nothing to report in respect of these matters.

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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Robyn Liddell (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited

Chartered Certified Accountants

Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

15 July 2025

TURNOVER

3

19,718,908

19,460,262

Cost of sales

14,551,976

13,121,132

GROSS PROFIT

5,166,932

6,339,130

Administrative expenses

3,977,320

4,050,884

1,189,612

2,288,246

Other operating income

124,712

156,060

OPERATING PROFIT

5

1,314,324

2,444,306

Interest receivable and similar income

94,290

67,449

1,408,614

2,511,755

Interest payable and similar expenses

6

4,685

3,165

PROFIT BEFORE TAXATION

1,403,929

2,508,590

Tax on profit

7

378,268

643,057

PROFIT FOR THE FINANCIAL YEAR

1,025,661

1,865,533

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,025,661

1,865,533

FIXED ASSETS

Intangible assets

9

126,134

170,652

Tangible assets

10

2,266,659

1,336,312

2,392,793

1,506,964

CURRENT ASSETS

Debtors

11

3,423,648

6,307,254

Cash at bank

6,292,142

4,549,971

9,715,790

10,857,225

CREDITORS

Amounts falling due within one year

12

6,556,970

6,076,412

NET CURRENT ASSETS

3,158,820

4,780,813

TOTAL ASSETS LESS CURRENT LIABILITIES

5,551,613

6,287,777

PROVISIONS FOR LIABILITIES

14

528,030

292,380

NET ASSETS

5,023,583

5,995,397

CAPITAL AND RESERVES

Called up share capital

15

1,233,000

1,233,000

Share premium

16

696,652

696,652

Retained earnings

16

3,093,931

4,065,745

SHAREHOLDERS' FUNDS

5,023,583

5,995,397

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

A Haley - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2023

1,233,000

2,200,212

696,652

4,129,864

Changes in equity

Total comprehensive income

-

1,865,533

-

1,865,533

Balance at 31 March 2024

1,233,000

4,065,745

696,652

5,995,397

Changes in equity

Dividends

-

(1,997,475

)

-

(1,997,475

)

Total comprehensive income

-

1,025,661

-

1,025,661

Balance at 31 March 2025

1,233,000

3,093,931

696,652

5,023,583

Cash flows from operating activities

Cash generated from operations

19

5,530,720

281,114

Interest paid

(4,685

)

(3,165

)

Tax paid

(247,591

)

(472,837

)

Net cash from operating activities

5,278,444

(194,888

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(15,054

)

Purchase of tangible fixed assets

(1,633,088

)

(1,156,450

)

Interest received

94,290

67,449

Net cash from investing activities

(1,538,798

)

(1,104,055

)

Cash flows from financing activities

Equity dividends paid

(1,997,475

)

-

Net cash from financing activities

(1,997,475

)

-

Increase/(decrease) in cash and cash equivalents

1,742,171

(1,298,943

)

Cash and cash equivalents at beginning of year

20

4,549,971

5,848,914

Cash and cash equivalents at end of year

20

6,292,142

4,549,971

1.	STATUTORY INFORMATION

Meridian IT Limited is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal activities of the company during the course of the year were the provision of IT solutions based around four IT competencies; Managed Cloud Services, IT Professional Services, Security and IT infrastructure deployment. This portfolio is being further enhanced and supported by a strategy to increase the services revenue of the business by supporting clients IT infrastructure with managed services and the opportunity to supply Meridian Groups International customers through an internal 'cross sell' model.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared using the going concern basis of accounting as there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

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

•

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; and (d) it is probable that future economic benefits will flow to the entity.

Intangible assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight line basis over its useful economic life, which is 5 years. Provision is made for any impairment.

The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

Tangible fixed assets

Tangible fixed assets are recognised at cost less depreciation and impairment. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 33% on cost

Fixtures and fittings - 14% - 33% on cost

Computer equipment - 33% on cost

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, 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.

Taxation

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

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 scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price, excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of Financial Position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 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.

Critical judgements in applying the company's accounting policies

For critical judgements, the directors have considered the process of applying the company's accounting policies and have decided, in their opinion, there is no significant effect on the amounts recognised in the financial statements.

Key source of estimation uncertainty

The directors, in their opinion, believe there are no key sources of estimation or uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

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

2025

2024

£

£

Sale of goods

3,451,018

4,221,882

Rendering of services

16,267,890

15,238,380

19,718,908

19,460,262

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

18,422,319

17,651,363

Europe

1,056,322

1,462,019

United States of America

234,015

329,736

Asia

6,252

17,144

19,718,908

19,460,262

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,643,288

3,682,355

Social security costs

593,957

443,809

Other pension costs

83,577

54,962

5,320,822

4,181,126

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

2025

2024

Management

1

1

Office

4

4

Sales and technical

68

44

73

49

2025

2024

£

£

Directors' remuneration

237,502

288,488

Directors' pension contributions to money purchase schemes

1,321

1,321

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

237,502

288,488

Pension contributions to money purchase schemes

1,321

1,321

5.	OPERATING PROFIT

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

2025

2024

£

£

Other operating leases

190,136

167,977

Depreciation - owned assets

702,741

380,489

Goodwill amortisation

44,518

40,591

Auditors' remuneration

9,765

9,300

Auditors' remuneration for non audit work

8,660

5,594

Foreign exchange differences

4,450

(7,286

)

In addition to the above, the auditors received remuneration of £4,248 (2024: £5,594) for payroll services.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest payable

4,685

3,165

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

142,613

439,653

Over/under provision in prior

year

5

-

Total current tax

142,618

439,653

Deferred tax

235,650

203,404

Tax on profit

378,268

643,057

UK corporation tax has been charged at 25% (2024 - 25%).

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:

2025

2024

£

£

Profit before tax

1,403,929

2,508,590

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

350,982

627,148

Effects of:

Expenses not deductible for tax purposes

13,993

15,909

Depreciation in excess of capital allowances

13,288

-

Adjustments to tax charge in respect of previous periods

5

-

Total tax charge

378,268

643,057

The rate used for closing deferred tax balances is 25% (2024: 25%).

8.

DIVIDENDS

2025

2024

£

£

Interim

1,997,475

-