REGISTERED NUMBER: 13144878 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 January 2025

for

Portico TTA Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

G J Clayton

O C Hart

Mrs F Williams

REGISTERED OFFICE:

Unit 9 Woolpit Business Park

Windmill Ave

Woolpit

Bury St Edmunds

Suffolk

IP30 9UP

REGISTERED NUMBER:

13144878 (England and Wales)

AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

The directors present their strategic report of the company and the group for the year ended 31 January 2025.

REVIEW OF BUSINESS

Portico TTA Limited is a holding company that owns 100% of the share capital of Portico AS Limited. Portico AS Limited is a holding company which owns 100% of the share capital of Portico GB Limited.

Portico GB Limited is therefore the main trading entity within the group structure. Portico GB Limited offer a comprehensive national coverage to supply and install windows and wardrobes with a focus on supplying new build residential developments. Portico GB Limited aims to provide high quality products backed by exemplary levels of customer service. The company continually aims to invest in an ever expanding team to ensure this quality is maintained and can consistently be improved wherever possible.

The company's focus on quality, and customer satisfaction has seen the company grow in recent years however this year has seen a challenging year with global events putting pressure on cost price increases for all material and supplies. This created difficult trading conditions that were being experienced all over the construction industry. The directors feel the company has adapted and coped well with the challenges faced. The overall impact on the business has been mitigated and the directors are happy with the turnover and profit levels achieved. The year ended 31 January 2025 has seen turnover increase by 16% to £12,383,147 (2024: £10,723,099) with gross profit margins increasing to 24% (2024: 22%).

The net balance sheet of the group shows a strong financial position of £2,111,768 (2024: £1,574,475). This balance sheet provides the group with a strong support to grow in the future.

Overall the challenges faced during the year ended 31 January 2025 have caused trading issues across all industries, however the directors are confident that the company has adapted well to the changing situation and has continued to provide a high quality service to its customers.

PRINCIPAL RISKS AND UNCERTAINTIES

As with many businesses the ongoing economic turbulence is a risk for the group however the group is fully prepared for the future and has taken the necessary steps to prepare financially for the challenges ahead. The group has a strong balance sheet and the directors are confident that the group will continue to grow going forward.

ON BEHALF OF THE BOARD:

Mrs F Williams - Director

22 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 January 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 January 2025.

DIRECTORS

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

G J Clayton

O C Hart

Mrs F Williams

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Knights Lowe Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs F Williams - Director

22 September 2025

Opinion

We have audited the financial statements of Portico TTA Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the companies operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation ;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

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

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

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

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions; and

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC and the company's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

James Knights ACA (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

26 September 2025

TURNOVER

12,387,147

10,723,099

Cost of sales

9,367,227

8,347,712

GROSS PROFIT

3,019,920

2,375,387

Administrative expenses

2,050,611

1,788,137

OPERATING PROFIT

4

969,309

587,250

Interest receivable and similar income

33,211

18,212

1,002,520

605,462

Interest payable and similar expenses

5

174,893

120,799

PROFIT BEFORE TAXATION

827,627

484,663

Tax on profit

6

290,334

179,618

PROFIT FOR THE FINANCIAL YEAR

537,293

305,045

Profit attributable to:

Owners of the parent

537,293

305,045

PROFIT FOR THE YEAR

537,293

305,045

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

537,293

305,045

Total comprehensive income attributable to:

Owners of the parent

537,293

305,045

FIXED ASSETS

Intangible assets

9

944,099

1,090,056

Tangible assets

10

319,031

326,762

Investments

11

-

-

1,263,130

1,416,818

CURRENT ASSETS

Stocks

12

527,697

663,779

Debtors

13

3,074,297

2,236,102

Cash at bank and in hand

2,249,958

2,333,968

5,851,952

5,233,849

CREDITORS

Amounts falling due within one year

14

2,190,527

1,756,536

NET CURRENT ASSETS

3,661,425

3,477,313

TOTAL ASSETS LESS CURRENT LIABILITIES

4,924,555

4,894,131

CREDITORS

Amounts falling due after more than one year

15

(2,728,169

)

(3,240,130

)

PROVISIONS FOR LIABILITIES

19

(84,618

)

(79,526

)

NET ASSETS

2,111,768

1,574,475

CAPITAL AND RESERVES

Called up share capital

20

1,654

1,654

Share premium

21

884,729

884,729

Retained earnings

21

1,225,385

688,092

SHAREHOLDERS' FUNDS

2,111,768

1,574,475

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by:

Mrs F Williams - Director

G J Clayton - Director

O C Hart - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

1,124,891

1,124,891

1,124,891

1,124,891

CURRENT ASSETS

Debtors

13

827

70,827

CREDITORS

Amounts falling due within one year

14

13,800

83,800

NET CURRENT LIABILITIES

(12,973

)

(12,973

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,111,918

1,111,918

CAPITAL AND RESERVES

Called up share capital

20

1,654

1,654

Share premium

21

884,729

884,729

Retained earnings

21

225,535

225,535

SHAREHOLDERS' FUNDS

1,111,918

1,111,918

Company's profit for the financial year

-

70,000

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by:

Mrs F Williams - Director

G J Clayton - Director

O C Hart - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 February 2023

1,654

453,047

884,729

1,339,430

Changes in equity

Dividends

-

(70,000

)

-

(70,000

)

Total comprehensive income

-

305,045

-

305,045

Balance at 31 January 2024

1,654

688,092

884,729

1,574,475

Changes in equity

Total comprehensive income

-

537,293

-

537,293

Balance at 31 January 2025

1,654

1,225,385

884,729

2,111,768

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 February 2023

1,654

225,535

884,729

1,111,918

Changes in equity

Dividends

-

(70,000

)

-

(70,000

)

Total comprehensive income

-

70,000

-

70,000

Balance at 31 January 2024

1,654

225,535

884,729

1,111,918

Changes in equity

Balance at 31 January 2025

1,654

225,535

884,729

1,111,918

Cash flows from operating activities

Cash generated from operations

1

866,762

1,441,205

Interest paid

(33,058

)

(45,753

)

Interest element of hire purchase payments paid

(4,553

)

(3,338

)

Tax paid

(184,828

)

(89,015

)

Net cash from operating activities

644,323

1,303,099

Cash flows from investing activities

Purchase of intangible fixed assets

(14,920

)

(43,073

)

Purchase of tangible fixed assets

(100,307

)

(95,173

)

Sale of tangible fixed assets

2,042

26,975

Interest received

33,211

18,212

Net cash from investing activities

(79,974

)

(93,059

)

Cash flows from financing activities

Loan repayments

(596,656

)

(805,441

)

New hire purchase loans

52,705

-

Hire purchase capital repayments in year

(34,408

)

(8,324

)

Amount withdrawn by directors

(70,000

)

-

Net cash from financing activities

(648,359

)

(813,765

)

(Decrease)/increase in cash and cash equivalents

(84,010

)

396,275

Cash and cash equivalents at beginning of year

2

2,333,968

1,937,693

Cash and cash equivalents at end of year

2

2,249,958

2,333,968

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

2025

2024

£

£

Profit before taxation

827,627

484,663

Depreciation charges

253,350

261,740

Loss/(profit) on disposal of fixed assets

13,524

(983

)

Finance costs

174,893

120,799

Finance income

(33,211

)

(18,212

)

1,236,183

848,007

Decrease in stocks

136,081

250,366

(Increase)/decrease in trade and other debtors

(838,195

)

595,081

Increase/(decrease) in trade and other creditors

332,693

(252,249

)

Cash generated from operations

866,762

1,441,205

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

2,249,958

2,333,968

Year ended 31 January 2024

31.1.24

1.2.23

£

£

Cash and cash equivalents

2,333,968

1,937,693

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.2.24

Cash flow

At 31.1.25

£

£

£

Net cash

Cash at bank and in hand

2,333,968

(84,010

)

2,249,958

2,333,968

(84,010

)

2,249,958

Debt

Finance leases

(45,859

)

(18,297

)

(64,156

)

Debts falling due within 1 year

(604,201

)

(60,108

)

(664,309

)

Debts falling due after 1 year

(3,215,893

)

519,482

(2,696,411

)

(3,865,953

)

441,077

(3,424,876

)

Total

(1,531,985

)

357,067

(1,174,918

)

1.	STATUTORY INFORMATION

Portico TTA 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.

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.

Significant judgements and estimates

In the application of the Company's accounting policies, which are described below, 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 estimated and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that and future periods.

The following are critical judgements including those involving estimations, that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Depreciation of tangible fixed assets - property, plant and machinery

Tangible fixed assets are recognised at cost and depreciated on the basis appropriate to charge to the profit and loss the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors knowledge of the reduction in the residual value of trading assets and estate property on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of the economic lives of the assets.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised at 25% reducing balance.

Tangible fixed assets

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.

Improvements to property

-

Straight line over 15 years

Plant & equipment

-

25% on reducing balance

Fixtures & fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

4 years straight line

Stocks

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

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable or other related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

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

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

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 profit or loss in the period to which they relate.

Revenue recognition

Revenue is measured at fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed and value added taxes.

Revenue is recognised when the significant risks and rewards of ownership have been transfered to the buyer, the amount of revenue can be measured reliably and its probable that future economic benefits will flow to the entity.

Retentions which relate to an element of revenue that is recognised at the point of sale but not receivable until specifics of total contracts are completed are disclosed as amounts recoverable on contracts.

Impairment review

At each reporting date, goodwill and other fixed assets, including tangible fixed assets and investments but excluding investment properties, are assessed to determine whether there is an indication that the carrying amount of an asset may be more than its recoverable amount and that the asset should be impaired. If there is an indication of possible impairment, the recoverable amount of an asset, which is the higher of its value in use and its net realisable value, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is written down to its estimated recoverable amount and an impairment loss is recognised in the income statement.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,053,199

2,150,419

Social security costs

33,629

35,551

Other pension costs

27,786

12,879

2,114,614

2,198,849

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

2025

2024

Employees

53

56

The average number of employees by undertakings that were proportionately consolidated during the year was 53 (2024 - 56 ) .

2025

2024

£

£

Directors' remuneration

257,330

290,645

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

94,689

103,424

4.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

19,904

18,905

Depreciation - owned assets

71,836

96,029

Depreciation - assets on hire purchase contracts

20,636

12,874

Loss/(profit) on disposal of fixed assets

13,524

(983

)

Goodwill amortisation

149,977

149,977

Computer software amortisation

10,900

2,860

Auditors' remuneration

11,000

11,000