REGISTERED NUMBER: 04153056 (England and Wales)

J&J CRUMP & SON LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTOR:

S J Crump

REGISTERED OFFICE:

1A Nethermore Lane

Killamarsh

Sheffield

South Yorkshire

S21 1BZ

REGISTERED NUMBER:

04153056 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

The director presents his strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

The results for the year and financial position of J&J Crump & Son Ltd ("the Company") are shown in the annexed financial statements.

The Company is a privately owned entity, specialising in the insulation and heating of residential housing within the energy efficiency industry. The Company has grown and evolved over the past three decades and is now one of the biggest ECO installing companies in the UK.

CURRENT BUSINESS AND PERFORMANCE REVIEW

The Company has achieved growth in the current period as a result of conducting work under the ECO4 scheme, an energy efficiency scheme launched in 2022 to improve measures across low income, vulnerable and fuel poor households.

Challenges in the year included cost inflation, with increases in the cost of raw materials and labour. All sectors within the company attempted to pass on cost increases in a reasonably disciplined manner in order to minimise the erosion of gross margins. The fluctuations in raw material and energy price inflation remain as major uncertainties. The Company also had to write off a large sum relating to fees conducted by external surveyors that did not convert to successful installation fees - trade with this entity has since haulted. Despite the challenges faced, the Company have achieved turnover growth, gross profit growth and, excluding the exceptional surveyor fee write off, operating profit growth. Both affect sales margins and are a risk to the profitability of our business.The directors believe that the business has performed solidly and remains well positioned in the marketplace for continued improvement.

We have increased the key customer base with innovative and positive supply chain solutions working with our sales team, suppliers, customers and workforce to provide a comprehensive 'end to end' service that our clients have requested. We have also provided our customers new and innovative products that enhance the range of services we can offer in the industry sector. The ongoing working relationship with our customer base is key and we are striving to provide a consistent and profitable partnership going forward.

FUTURE REVIEW

The Company is well poised to capitalise on any future potential revenue streams and is committed to supporting the communities that we work in and wherever we can, we employ local people to deliver these projects ensuring we do our bit to make communities sustainable.

FINANCIAL KEY PERFORMANCE INDICATORS

2024

2023

Turnover

£16,606,298

£14,891,212

Gross Profit Margin

56.56%

55.47%

Operating Profit

£1,003,889

£2,146,529

Bank and Cash Balances

£1,466,326

£1,786,110

Net Current Assets

£3,448,972

£4,037,723

Net Assets

£3,666,996

£4,234,367

Turnover increased £1.72m (11.52%%) from the prior year, an impact of the ECO4 scheme which has provided additional work and installations under the scheme. The gross profit figure remained consistent with the prior.Operating profit fell from 14.41% to 6.00% due to a large write off of pre-year end surveyor fees that didn't materialise post year-end. With this exceptional item excluded, operating profit would be comparable to the prior year at 15.63%.

Going concern

Whilst the Report of the directors and Financial Statements are focused on the financial results from 2024, the company's directors are mindful of the impacts of the macroeconomic conditions on the short to medium term resilience of the company. The ECO4 scheme is set to end March 2026 and is expected to be replaced by ECO5. Due to the uncertainty caused by the macroeconomic landscape, the directors have looked at the resilience of the company to stay in business over the next 12 months. Three key measures have been looked at to determine if that position is reasonable, namely, income, expenditure, and cash flow. Based on a forecast of the likely activity in each of these areas the directors are satisfied that this position remains appropriate. A more detailed assessment of the situation is given below.

Cash flow

Based on the forecasted income and expenditure cash flow remains at a level above which is required to meet the debts of the company as they fall due.

The company's activities expose it to a number of financial risks including cash flow risk, credit risk, liquidity risk and price risk.

The use of financial derivatives is governed by the company's policies approved by the board of directors, which provide principles on the use of financial derivatives to manage these risks. The company does not use derivative financial instruments for speculative purposes.

PRINCIPAL RISKS AND UNCERTAINTIES FACING THE COMPANY

Sales and profit risk

The company operates in a competitive market place and is also under pressure to deliver on time and in line with industry requirements. As the business increases it is vital that the same levels of service currently being provided are maintained. It is for this reason that we are investing more time and effort into recruiting more office and operational staff and looking to relocate to more suitable premises to accommodate the next phase of growth. It is vital that we understand the new government backed schemes and work with our customers to deliver innovative and energy saving services and products. This is why going forward we are looking to also enhance the product range provided by the company. Managing this growth is going to be the key priority going forward.

Debt risk

The company does not have a large customer base so the risk of losing a customer could potentially impact the business. The processes in place for credit control are robust and have proved successful over a number of years and it is a system that works well alongside the requirements of our clients. As our core clients are major industry names we also benefit from their liquidity.

Cash flow risk

The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company uses foreign exchange forward contracts to hedge these exposures.

Credit risk

The company's principal financial assets are the bank balances and cash, and trade and other receivables. The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the Balance Sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term debt finance.

Price risk

The company is exposed to commodity price risk. The company does not manage its exposure to commodity price risk due to cost benefit considerations.

EVENTS SUBSEQUENT TO YEAR-END

There were no other significant events worth of mention after the end of the financial year 2024.

ON BEHALF OF THE BOARD:

S J Crump - Director

7 October 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £1,275,000.

DIRECTORS

S J Crump has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

R W J McGee - appointed 19 December 2024

B G McGee - appointed 19 December 2024

B G McGee and R W J McGee ceased to be directors after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

S J Crump - Director

7 October 2025

Opinion

We have audited the financial statements of J&J Crump & Son Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2024 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Director.

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

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

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

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

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to building regulations and corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procures performed by the engagement team include:

- Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;

- Evaluation of management's controls designed to prevent and detect irregularities;

- Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

- Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

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

- Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through 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.

Andrew Cribb FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

9 October 2025

TURNOVER

16,606,298

14,891,212

Cost of sales

7,214,308

6,630,772

GROSS PROFIT

9,391,990

8,260,440

Administrative expenses

8,388,101

6,113,911

OPERATING PROFIT

4

1,003,889

2,146,529

Interest receivable and similar income

-

14

1,003,889

2,146,543

Interest payable and similar expenses

6

32,379

20,061

PROFIT BEFORE TAXATION

971,510

2,126,482

Tax on profit

7

263,881

499,670

PROFIT FOR THE FINANCIAL YEAR

707,629

1,626,812

PROFIT FOR THE YEAR

707,629

1,626,812

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

707,629

1,626,812

FIXED ASSETS

Tangible assets

9

375,259

289,551

Investments

10

85

85

375,344

289,636

CURRENT ASSETS

Stocks

11

982,316

1,321,184

Debtors

12

1,796,360

2,826,892

Cash at bank and in hand

1,466,326

1,786,110

4,245,002

5,934,186

CREDITORS

Amounts falling due within one year

13

796,030

1,896,462

NET CURRENT ASSETS

3,448,972

4,037,724

TOTAL ASSETS LESS CURRENT LIABILITIES

3,824,316

4,327,360

CREDITORS

Amounts falling due after more than one year

14

(63,505

)

(22,665

)

PROVISIONS FOR LIABILITIES

17

(93,815

)

(70,328

)

NET ASSETS

3,666,996

4,234,367

CAPITAL AND RESERVES

Called up share capital

18

280

280

Retained earnings

19

3,666,716

4,234,087

SHAREHOLDERS' FUNDS

3,666,996

4,234,367

The financial statements were approved by the director and authorised for issue on 7 October 2025 and were signed by:

S J Crump - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

280

3,805,440

3,805,720

Changes in equity

Dividends

-

(1,198,165

)

(1,198,165

)

Total comprehensive income

-

1,626,812

1,626,812

Balance at 31 December 2023

280

4,234,087

4,234,367

Changes in equity

Dividends

-

(1,275,000

)

(1,275,000

)

Total comprehensive income

-

707,629

707,629

Balance at 31 December 2024

280

3,666,716

3,666,996

Cash flows from operating activities

Cash generated from operations

1

1,805,193

822,692

Interest paid

(27,326

)

(14,951

)

Interest element of hire purchase payments paid

(5,053

)

(5,110

)

Tax paid

(697,900

)

(582,021

)

Net cash from operating activities

1,074,914

220,610

Cash flows from investing activities

Purchase of tangible fixed assets

(178,635

)

(75,245

)

Sale of tangible fixed assets

15,650

12,499

Interest received

-

14

Net cash from investing activities

(162,985

)

(62,732

)

Cash flows from financing activities

Loan repayments in year

-

696,328

Capital repayments in year

62,045

(924

)

Amount introduced by directors

-

40

Amount withdrawn by directors

(18,758

)

-

Equity dividends paid

(1,275,000

)

(1,198,165

)

Net cash from financing activities

(1,231,713

)

(502,721

)

Decrease in cash and cash equivalents

(319,784

)

(344,843

)

Cash and cash equivalents at beginning of year

2

1,786,110

2,130,953

Cash and cash equivalents at end of year

2

1,466,326

1,786,110

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

2024

2023

£

£

Profit before taxation

971,510

2,126,482

Depreciation charges

78,141

69,129

Profit on disposal of fixed assets

(863

)

(170

)

Finance costs

32,379

20,061

Finance income

-

(14

)

1,081,167

2,215,488

Decrease/(increase) in stocks

338,868

(354,839

)

Decrease/(increase) in trade and other debtors

1,030,532

(1,988,479

)

(Decrease)/increase in trade and other creditors

(645,374

)

950,522

Cash generated from operations

1,805,193

822,692

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,466,326

1,786,110

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,786,110

2,130,953

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,786,110

(319,784

)

1,466,326

1,786,110

(319,784

)

1,466,326

Debt

Finance leases

(45,768

)

(62,045

)

(107,813

)

(45,768

)

(62,045

)

(107,813

)

Total

1,740,342

(381,829

)

1,358,513

1.	STATUTORY INFORMATION

J&J Crump & Son Ltd 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 Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The presentational and functional currency of these financial statements is sterling. Values are rounded to the nearest pound.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, management is 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.

Management is of the opinion that any instances of application of judgements are not expected to have a significant effect on the amounts recognised in the financial statements apart from those involving estimation (see below).

- Tangible fixed assets are depreciated over their useful lives taking in to account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors; technological innovation, product life cycles and maintenance programmes are taken in to account. Residual value assessments consider issues such as future market conditions, the remaining life of the assets and the projected disposal values.

- Bad debt provision is provided on a customer by customer basis depending on the likelihood of the recoverability of the debt.

Key sources of estimation uncertainty

Management is of the opinion that there are no key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

Turnover

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

Turnover represents:

- invoiced product sales after turnover rebates, excluding value added tax and is recognised upon . completion of installation. Turnover rebates are recognised according to customer contracts. Management make estimates taking unto account customer performance, sales volume and agreed terms to determine total amounts earned and to be recorded as deductions from revenue.

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.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks and wip

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

WIP constitutes unbilled installations and fees owing to the company. Only upon job completion, post sign-off can the Company raise an invoice for the relevant work. sometimes resulting in delayed billing and ultimately creating a WIP balance.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Financial liabilities, equity and assets

Financial liabilities and equity are classified according to the substance of the financial instruments contractual obligations, rather than the financial instruments legal form. Financial liabilities, excluding any derivatives, are initially measured at transaction price (including transaction costs) and subsequently held at amortised cost. Derivative financial instruments, where significant, are carried at fair value with movements recognised in the statement of Comprehensive Income as they have not been designed as hedges for hedge accounting purposes.

Financial assets, other than derivatives, are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,397,451

2,176,424

Social security costs

258,093

223,644

Other pension costs

49,838

42,312

2,705,382

2,442,380

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

2024

2023

Direct Labour - fitters etc

40

37

Office Staff

18

14

Directors

1

1

59

52

2024

2023

£

£

Directors' remuneration

29,900

28,717

4.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

202,007

164,618

Depreciation - owned assets

60,809

51,162

Depreciation - assets on hire purchase contracts

17,332

17,967

Profit on disposal of fixed assets

(863

)

(170

)

5.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

12,500

11,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Other interest

27,326

14,951

Hire purchase

5,053

5,110

32,379

20,061