The Directors are pleased to present the Strategic Report of the Group for the year to 31 December 2024.
The Madic Group of Companies in the UK comprises Madic Technologies Limited and Madic Dynamics Limited.
Madic Technologies Ltd specialises in providing electronic point of sale (EPOS) solutions designed to enhance retail operations, whilst also providing fuel dispensers and outdoor payment terminals. Madic Technologies Ltd offers a range of EPOS solutions that cater to various sectors, including small format grocery, convenience and fuel retail. The company prides itself on innovation and integration capabilities, working with numerous partners to deliver enhanced solutions.
MADIC Dynamics is a leading Microsoft Solutions Partner specialising in Dynamics 365 Business Central solutions. Formerly Ocean Dynamics, the company rebranded in 2023 following its integration into the MADIC Group. With a team boasting over 325 years of combined experience, MADIC dynamics delivers tailored software solutions that streamline operations and drive efficiency, achieving a 95% client retention rate. Leveraging MADIC Group’s global expertise while maintaining a personalised approach, the company offers industry-specific solutions for sectors such as fashion, furniture, and hospitality. Committed to long-term partnerships, MADIC dynamics continues to provide innovative, customer-centric ERP solutions across the UK.
The Group Statement of Comprehensive Income as set out on page 7 shows turnover for the year of £20,489,699 (2023 £15,477,565) and operating profit of £1,470,560 (2023 £1,136,632). The retained earnings are £1,452,235 (2023 £1,163,499)
The global EPOS market is projected to continually grow, driven by the increasing demand for streamlined payment processes, inventory management, and enhanced customer experience and whilst highly competitive, includes the demand for:
Digital Transformation: Businesses are adopting digital solutions for improved efficiency.
Mobile Payments: The rise of mobile wallets and contactless payments is reshaping consumer expectations.
Cloud-Based Solutions: Increasing preference for cloud technology allows for flexible and scalable EPOS systems
The global ERP market is also experiencing sustained growth, driven by the increasing need for integrated business management solutions that enhance efficiency, streamline operations, and improve decision-making. While highly competitive, the market is shaped by key trends, including
Digital Transformation: Businesses are prioritising ERP solutions to modernise processes and drive operational agility.
Cloud Adoption: The shift towards cloud-based ERP systems enables scalability, accessibility, and cost efficiency.
Industry-Specific Solutions: Demand is rising for tailored ERP solutions that address sector-specific challenges and regulatory requirements.
The Group is well-positioned to capitalise on these trends.
Strengths:
Strong R&D capabilities leading to innovative product offerings.
Established brand presence in key markets including outside of the UK.
Securing large revenue generating clients whilst maintaining a large independent customer base
Extensive expertise in Microsoft Dynamics 365 Business Central, backed by a highly experienced team.
High client retention rate (95%), reflecting strong customer relationships and service quality.
Ability to deliver tailored, industry-specific ERP solutions across various sectors.
Strong parent company support through the wider MADIC Group, providing financial stability and global resources.
Weaknesses:
Limited marketing budget compared to larger competitors.
Dependency on a few key clients for revenue.
Limited brand awareness compared to larger ERP providers.
Dependence on Microsoft’s platform, requiring alignment with their updates and developments.
Competition with well-established ERP providers that have greater market penetration.
Opportunities:
Expanding into emerging markets where digital payment solutions are gaining traction.
Developing and strengthening partnerships with integration partners to enhance product and solution offerings.
Further expansion into the convenience retail markets.
Utilising MADIC Group companies to expand outside of the UK.
Continue increasing our subscription-based model for software services to generate recurring revenue.
Growth in cloud-based ERP adoption, enabling expansion into new industries and markets.
Increasing demand for digital transformation presenting opportunities for business process automation solutions.
Expansion of subscription-based services to drive recurring revenue and long-term customer engagement.
Threats:
Intense competition from established competitors and new entrants.
Rapid technological changes requiring continuous adaptation.
Economic pressures due to wage and national insurance increases, fuel costs and inflation rises on ourselves, our customers and our hardware supply chains
Economic challenges, including rising operational costs and budget constraints for potential clients.
Global chip shortages
Rapid technological advancements requiring continuous adaptation and investment.
Competitive ERP market with strong players offering alternative solutions.
Dependency on Microsoft’s strategic direction and pricing structures
KPI | 2024 | 2023 | Definition |
Growth in Sales | 32% | 49% | Year on year revenue growth (%) |
Gross Margin | 30% | 31% | Ratio of gross profit to revenue (%) |
Operating margin | 7% | 7% | Ratio of operating profit to revenue (%) |
Headcount | 139 | 117 | Year on year increase |
Market Expansion:
Continue to expand into the domestic convenience market
Deliver systems in Europe and the US by way of our parent company
Identify and target markets with growing retail and hospitality sectors.
Adapt product offerings to meet customer requirements and preferences
Strengthen presence in key UK, particularly fashion, furniture, and hospitality industries.
Identify current GP, NAV and BC users and target businesses undergoing digital transformation to expand client base.
Develop/enhance or adopt solutions that cater to emerging industry-specific ERP needs.
Product Development:
Continue to invest in R&D to enhance features such as AI-driven analytics and automation capabilities
Continue integration of MADIC Group company products and offer to UK market.
Expand cloud-based ERP offerings to provide scalable and flexible solutions.
Develop additional integrations with third-party applications to improve system interoperability.
Strengthen Marketing Efforts:
Increase digital marketing efforts to enhance brand awareness and generate leads
Increase participation at domestic and international industry trade shows and forums to showcase innovations and expertise
Leverage thought leadership content to position MADIC Dynamics as an authority in ERP solutions, particularly within our industry focus areas.
Partnerships and Collaborations:
Continue to form strategic partnerships with technology companies and integration providers Strengthen relationships with Microsoft and key technology partners to enhance solution capabilities.
Develop strategic partnerships with industry-specific software providers to broaden our appeal.
Focus on Customer Experience:
Enhance customer support services through improved training and resource allocation
Continue and expand customer feedback initiatives to improve, refine and develop products, services and solutions based on customer needs
Improve onboarding processes to ensure seamless implementation and adoption of solutions.
Offer proactive consultancy to help clients maximise the value of their ERP investments
Following the unusually high growth in revenues achieved during 2023 and 2024, to support the strategic initiatives, the Group will aim to grow revenue by 10%-20% over the next three years, contingent upon successful implementation of the outlined strategies.
Conclusion
The Madic Group of companies in the UK is well-positioned to capitalise on the growing demand for EPOS solutions. By leveraging its strengths, addressing weaknesses, and pursuing strategic opportunities, the company can achieve sustainable growth and strengthen its market position in the evolving landscape of electronic point of sale systems. The Group remains committed to constant development of the evolution suite of products and is confident that whilst economic pressures are evident across the retailing sectors, customers will continue to invest in technology that brings their businesses efficiencies.
The Group is also well-positioned to capitalise on the growing demand for cloud-based ERP solutions. By leveraging its expertise, strong client relationships, and support from the wider MADIC Group, the company can drive sustainable growth and expand its market presence. Addressing key challenges while pursuing opportunities in digital transformation and industry-specific ERP solutions will be crucial to its success.
The Group remains committed to continuous innovation in Microsoft Dynamics 365 Business Central, enhancing automation, analytics, and integration capabilities. Despite economic pressures, businesses will continue to invest in ERP solutions that improve efficiency, and MADIC dynamics is well-equipped to support them in achieving long-term success.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 12.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Madic Technologies Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for 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.
Our evaluation of the directors' assessment of the group and the company's ability to continue to be a going concern included:
Evaluating the director's assessment of going concern through analysis of the group and the company's management accounts and forecast, including assessing the underlying assumptions included in the forecasts, by reference to our knowledge of the group and the company
As part of this process, we have considered the impact of factors such as inflationary and supply-chain pressures.
We assessed the adequacy and appropriateness of the going concern disclosures with reference to the requirements of the financial reporting framework and our understanding of the business.
Based on the work we have performed, we have not identified any material uncertainties relating to the events or conditions that, individually or collectively may cast significant doubt on the group or the company's ability to continue to be a going concern.
Based on the most recent financial information, the group and the company are trading profitably and is projected to continue doing so and has the support of the parent company if required.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Key audit matters are those that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The value of stock has been an historical issue.
The valuation of the asset is therefore considered to be a significant audit risk & was subsequently revised by the client.
We performed an assessment of whether the company's valuation is consistent with reference to the principles of the standard.
Working with the stock reports supplied by management, we challenged the appropriateness of the valuation methodologies applied by management. We also considered the movement of the stock valuations of particular parts year-on-year.
We also tested the accuracy of the underlying data used in the valuation on a sample basis to source documentation such as cost invoices.
Based on the procedures performed, we considered the assumptions and judgments made by management to be reasonable.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Capability of the audit in detecting irregularities
As part of an audit in accordance with ISAs, we have exercised professional judgment and maintained professional scepticism throughout the audit. We have also:
Identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Concluded on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. We have concluded that a material uncertainty does not exist. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We have communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identified during our audit.
We also provided those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 an auditor's report 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,257,341 (2023 - £955,526 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Madic Technologies Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 28-31 The Stables, Wrest Park, Silsoe, Beds, MK45 4HR.
The group consists of Madic Technologies Limited and Madic Dynamics Limited.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Madic Technologies Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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. Amounts 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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 average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: