REGISTERED NUMBER: 02699174 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MASSARELLA RESTAURANTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

Mr M S Massarella

Mr M J Massarella

Mr S R Massarella

Mrs D M Massarella

REGISTERED OFFICE:

Thurcroft Hall

Brookhouse

Sheffield

S25 1XZ

REGISTERED NUMBER:

02699174 (England and Wales)

AUDITORS:

Sowerby

Chartered Accountants and Statutory Auditors

Beckside Court

Annie Reed Road

Beverley

East Yorkshire

HU17 0LF

BANKERS:

Barclays Bank PLC

Sheffield 2 City Office

South Yorkshire Group

The directors present their strategic report for the year ended 31 December 2024.

PRINCIPAL ACTIVITIES AND REVIEW OF THE BUSINESS

The principal activity of the company throughout the year was to continue to operate its hospitality services across its estate spanning, Shopping centres, Department stores and Garden centres.

The company continued with its strategy of organic growth through its current estate and to meet its objectives to achieve sales growth. Directors focus remains on potential growth of our selected brands in leasehold sites.

The company continues to adapt itself to the current market conditions and to review the estate and to monitor underperforming sites where it can exit. In the meantime, it continues to work with its Landlords/store clients to achieve the best outcomes for all parties.

Energy and food prices continue to be a main priority as pressures are expected to continue with these two commodities.

Wage cost are now the highest cost base for the company and steps are being implemented to improve efficiencies of service standards and focus on training to alleviate these pressures.

Gross margins have remained positive, and the company has continued to benefit from the business rates incentive from the councils.

The company's key financial performance indicators during the year were as follows:

2024

2023

Gross profit margin

18.45%

16.13%

EBITDA

1,259,280

970,299

The directors believe the key risks of the company include:

Overheads - Product costs and energy costs in its leasehold sites, and escalation of wage reviews especially MLW. The company has managed to maintain its gross margin and continues to review it supplier list and to work closely with its supplier network.

Staffing - the company continues to maintain a positive relationship with its staff and to support them through difficult periods. Whilst the company has many loyal and long serving employees, it still has a high turnover of leavers and new starters in certain parts of the country. However, the company has been rewarded with staff loyalty, which has ensured that the group has been able to maintain its customer facing services at a high level.

Cash Reserves - the company has maintained it cashflows, and removed all none essential costs, and has reviewed its management structure. However, capital expenditure for existing sites is likely to increase over the next 2/3 years with the desire to renew contracts, impacting on the company reserves if profits are not maintained.

Competitive retail pricing - This remains the focus for Directors, to ensure we do not lose sight of fair and sensitive price reviews which have been required to maintain margins and customer loyalty.

In managing the business the directors have established controls to enable them to respond to and mitigate the impact of such risks and having reviewed the company's cost base are making positive strides to mitigate excessive overheads and risks,

ON BEHALF OF THE BOARD:

Mr M S Massarella - Director

30 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

FUTURE DEVELOPMENTS

Directors focus will now centre on replacing some of the closed sites with new locations in leasehold premises or with new opportunities with its store clients.

DIRECTORS

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

Mr M S Massarella

Mr M J Massarella

Mr S R Massarella

Mrs D M Massarella

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise trade debtors, trade creditors, bank balances, bank overdrafts and hire purchase agreements. The main purpose of these instruments is to raise funds to finance the company's operations.

The company's approach to managing risks applicable to the financial instruments is shown below.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

The company is a lessee in respect of finance leased assets. The monthly repayments on finance lease agreements are fixed and liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

EMPLOYEES

The company's employment policy provides equal opportunity, irrespective of sex, religion, race or marital status. Applications by persons with disabilities are given full and fair consideration and, wherever practicable, provision is made for their special needs. The same criteria for training and promotion apply to persons with disabilities as to any other employee. If employees become disabled, every effort is made to ensure their continued employment.

The company places considerable value on the involvement of its employees and has continued its previous practice of keeping them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings and briefings. Employee representatives are consulted regularly on a wide range of matters affecting the current and future interest of the employees.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO 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 company'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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr M S Massarella - Director

30 September 2025

Opinion

We have audited the financial statements of Massarella Restaurants Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

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 misrepresentations, or through collusion.

The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

However, in identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- we also obtained an understanding of the legal and regulatory frameworks that the company operates in and determined that the most significant are those that relate to the reporting framework, FRS 102, the Companies Act 2006 and the relevant tax laws and regulations in the UK. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, relating in majority to general health and safety, quality control and employee matters;

- we reviewed results of our enquiries of management about their own identification and assessment of the risks of irregularities; and assessed how the entity identifies, evaluates and complies with laws and regulations and whether management were aware of any instances of non-compliance. We corroborated our enquiries through our review of board minutes and consideration of the results of our audit procedures across the company;

- we also considered how the entity detects and responds to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and;

- we considered the controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors those controls

- the internal controls established to mitigate risks of non-compliance with laws and regulations were also investigated.

- we also considered the existence of performance targets and their potential influence on management to manage earnings.

- where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk.

These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

We reviewed financial statement disclosures and performed testing to supporting documentation to assess compliance with applicable laws and regulations.

We also tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. There was a focus on manual journals and journals indicating large or unusual transactions; enquiries of company management; and challenging the assumptions and judgements made by management by reviewing third party evidence wherever possible.

The results of our procedures did not identify any instances or irregularities, including fraud.

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.

Elizabeth Blanchard BA (Hons) BFP ACA PGCE (Senior Statutory Auditor)

for and on behalf of Sowerby

Chartered Accountants and Statutory Auditors

Beckside Court

Annie Reed Road

Beverley

East Yorkshire

HU17 0LF

30 September 2025

TURNOVER

16,871,649

17,336,058

Cost of sales

13,759,414

14,540,493

GROSS PROFIT

3,112,235

2,795,565

Distribution costs

681,218

762,749

Administrative expenses

1,568,096

1,597,568

2,249,314

2,360,317

OPERATING PROFIT

4

862,921

435,248

Interest receivable and similar income

98,329

-

961,250

435,248

Interest payable and similar expenses

5

-

9,712

PROFIT BEFORE TAXATION

961,250

425,536

Tax on profit

6

259,688

78,416

PROFIT FOR THE FINANCIAL YEAR

701,562

347,120

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

701,562

347,120

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

1,298,453

1,392,231

1,298,453

1,392,231

CURRENT ASSETS

Stocks

10

310,372

328,003

Debtors

11

1,371,917

1,675,680

Cash in hand

4,848,651

4,085,817

6,530,940

6,089,500

CREDITORS

Amounts falling due within one year

12

3,596,058

3,946,264

NET CURRENT ASSETS

2,934,882

2,143,236

TOTAL ASSETS LESS CURRENT LIABILITIES

4,233,335

3,535,467

PROVISIONS FOR LIABILITIES

15

234,636

238,330

NET ASSETS

3,998,699

3,297,137

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

3,998,599

3,297,037

SHAREHOLDERS' FUNDS

3,998,699

3,297,137

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

Mr M S Massarella - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

3,249,917

3,250,017

Changes in equity

Dividends

-

(300,000

)

(300,000

)

Total comprehensive income

-

347,120

347,120

Balance at 31 December 2023

100

3,297,037

3,297,137

Changes in equity

Total comprehensive income

-

701,562

701,562

Balance at 31 December 2024

100

3,998,599

3,998,699

1.	STATUTORY INFORMATION

Massarella Restaurants Limited is a private company, limited by shares and incorporated and domiciled in England. It has its registered office at Thurcroft Hall, Sheffield, S25 1XZ.

The principle activity of the company is that of the provision of catering services.

The presentational currency of the financial statements is 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.

Having regard to liquidity risk, current market conditions and other factors affecting the company, including the impact of increased wages costs, the use of the going concern basis of accounting is appropriate as, in the opinion of the directors, there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

The financial statements have been prepared on a going concern basis.

The directors have considered the impact of the economy on the company's business operations and the future prospects of the company. The company's financial forecasts, taking into consideration the current environment, show that the company is expected to make profit and generate positive cashflows going forward. These positive cashflows and current strong cash holding give the company the ability to continue to operate for the foreseeable future.

Based on these facts and the current financial position, forecasts and cash flows of the company, the directors have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

The company has a mix of sites operating within the retail sector and Garden centre environment. The company has continued to maintain positive relationship with all it stores clients and landlords, whilst also entering into contract extensions on a number of its current sites. The company has maintained it cashflows, and removed all none essential costs to ensure it maintains and grows a cash surplus within the company to ensure it is able to weather any unforeseen events. It is now in a strong position to make new investments to expand its portfolio and to commence with a measured refurbishment strategy for existing sites to assist with organic growth.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

No key sources of estimation uncertainty are noted by management that have a significant effect on the amounts recognised in the financial statements.

Turnover

Turnover is the amount derived from ordinary activities, measured at the fair value of the consideration received or receivable. Turnover excludes value added tax and trade discounts.

Sales are recognised at the point which the company has fulfilled its contractual obligations and the risks and rewards attached to the product, have been transferred to the customer.

Goodwill

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of 10 years.

Tangible fixed assets

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

Short leasehold

-

over the period of the lease

Plant and machinery

-

10% on cost

Assets are recognised under the historical cost model.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks

Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

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.

The assets of the scheme are held separately from those of the company in an independent administered fund.

Short-term employee benefits are recognised as an expense in the period they are incurred.

Accounting period

The company's accounting reference period date is 31 December. Financial statements are made up for a 52 or 53 week period ending on a Sunday adjacent to 31 December in each year. The financial statements are for a 52 week period ending 31 December 2024. The comparative figures are for a 53 week period.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such case the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Impairment of financial assets

Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that have occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Interest bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Related parties

For the purposes of these financial statements, a party is considered to be related to the company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company;

(ii) the company and the party are subject to common control;

(iii) the party is an associate of the company or a joint venture in which the company is a venture

(iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company

(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

6,358,094

6,816,840

Social security costs

370,626

369,524

Other pension costs

98,499

109,223

6,827,219

7,295,587

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

2024

2023

Selling

445

559

Management and administration

2

2

447

561

2024

2023

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Depreciation - owned assets

352,273

400,643

Loss on disposal of fixed assets

44,086

134,408

Auditors' remuneration

31,920

30,770

Director's remuneration costs are borne by another group company of which this entity is a member.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

-

9,712

6.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

253,696

136,521

(Over)/under provision in prior years

9,686

-

Total current tax

263,382

136,521

Deferred tax

(3,694

)

(58,105

)

Tax on profit

259,688

78,416

UK corporation tax was charged at 25%) in 2023.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

961,250

425,536

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

240,313

106,384

Effects of:

Expenses not deductible for tax purposes

2,372

-

Depreciation in excess of capital allowances

25,752

69,955

Adjustments to tax charge in respect of previous periods

9,686

-

Group relief

(14,741

)

(31,230

)

Deferred Tax charged to profit

(3,694

)

(58,105

)

Change in tax rate

-

(8,588

)

Total tax charge

259,688

78,416

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. In the year to 31 December 2024, deferred tax is charged at 25% (2023 - 25%).

7.

DIVIDENDS

2024

2023

£

£

Interim

-

300,000

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2024

and 31 December 2024

146,000

AMORTISATION

At 1 January 2024

and 31 December 2024

146,000

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-

9.	TANGIBLE FIXED ASSETS

Short

Plant and

leasehold

machinery

Totals

£

£

£

COST

At 1 January 2024

46,672

6,621,447

6,668,119

Additions

-

302,577

302,577

Disposals

(46,672

)

(3,985,266

)

(4,031,938

)

At 31 December 2024

-

2,938,758

2,938,758

DEPRECIATION

At 1 January 2024

46,672

5,229,216

5,275,888

Charge for year

-

352,273

352,273

Eliminated on disposal

(46,672

)

(3,941,184

)

(3,987,856

)

At 31 December 2024

-

1,640,305

1,640,305

NET BOOK VALUE

At 31 December 2024

-

1,298,453

1,298,453

At 31 December 2023

-

1,392,231

1,392,231

10.

STOCKS

2024

2023

£

£

Goods for resale and consumables

310,372

328,003

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

753,630

602,591

Amounts owed by group undertakings

460,877

924,092

Prepayments and accrued income

157,410

148,997

1,371,917

1,675,680

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

1,630,141

1,699,023

Amounts owed to group undertakings

86,629

466,268

Tax

253,696

190,897

Social security and other taxes

145,614

136,081

VAT

720,441

674,341

Accruals and deferred income

759,537

779,654

3,596,058

3,946,264

13.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

195,530

409,995

Between one and five years

625,500

431,364

In more than five years

110,417

180,417

931,447

1,021,776

14.	FINANCIAL INSTRUMENTS

All financial instruments are measured at amortised cost.

15.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

Accelerated capital allowances

234,636

238,330