REGISTERED NUMBER: 03780024 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2025

for

Hammonds Of Knutsford Plc

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

J Hammond

Mrs S L H Hammond

SECRETARY:

J Hammond

REGISTERED OFFICE:

Warford Grange Farm

Pedley House Lane, Great Warford

Knutsford

Cheshire

WA16 7SP

REGISTERED NUMBER:

03780024 (England and Wales)

SENIOR STATUTORY AUDITOR:

Philip Harrison

AUDITORS:

Xeinadin Audit Limited

116 Duke Street

Liverpool

Merseyside

L1 5JW

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

The principal activity of the company in the year under review was that of wholesalers of beer, wine and spirits.

REVIEW OF BUSINESS

During the year turnover was £37,665,068(2024 - £36,8733,112) and the gross profit generated was £4,969,212 (2024 - £5,927,060).

The directors will continue to expand the product range and customer base across the UK by attracting high calibre sales staff to add to the current team. The company aims to build long term relationships with customers, and the business model is not reliant on one particular sector or group of customers.

The company's cash position continues to be satisfactory so it is not vulnerable to interest rate movements and it also enables the group to take advantage of any opportunities to purchase stock that is available at special prices, which in the current economic climate puts the group in a strong position.

The company will continue to sustain a healthy margin that will fund organic growth and if necessary cover any unforeseen circumstances that may arise in the years to come.

Key performance indicators

2025

2024

Gross profit margin

13.19%

16.09%

Operating profit before tax

3,043,646

4,137,705

R.O.C.E

32.64%

29.14%

Net Current Assets

9,324,357

14,199,206

The retained profit for the year is £1,987,616 before paying out a dividend of £5,000,000 (2024 - £2,931,937), which the directors consider as adequate to fund the future growth of the business and cover any unforeseen circumstances in the next twelve months. The reserves have decreased to £11,971,472 after the dividend (2024 - £14,983,856) and cash balances were £916,289 (2024 - £5,619,582).

PRINCIPAL RISKS AND UNCERTAINTIES

Credit risk

The company mitigates external credit risk by selling to a large and varied customer base. In addition, when appropriate, the company undertakes credit checks and reviews references. The company also has a robust credit control policy and will not supply to customers in default of agreed terms. The company is a member of the credit protection association.

Employee relations and involvement

The company is committed to the principle of employee involvement and keeps staff informed of all progress and development, and consequently has a very low turnover of staff.

The company's financial instruments consist of investments in publicly traded entities, items arising directly from operations such as trade debtors and trade creditors, and other debtors and creditors . The main risks arising from these financial instruments are the liquidity risk. These are managed and any necessary impairment reflected in these financial statements.

SECTION 172(1) STATEMENT

This section of the strategic report describes how the director has had regards to the matters set out in section 172 (1) (a) to (f) and forms the director's statements required under section 414CZA of the Companies Act 2006.

The director understands that the group's relationships with its stakeholders are dynamic, and that stakeholders' interests may change over time. In response to this, the director keeps himself informed of the group's key stakeholders' interests through a combination of both direct and indirect engagement. The director always recognises his responsibility to the group's stakeholders when discharging his duties.

The Director has identified the key stakeholders' suppliers, customers, and employees.

SUPPLIERS

The director recognises that supplier involvement is central to the quality of the group's service and to ensure that as a business we meet the high standards of conduct that we set for ourselves. The group continues to build strong relationships with its key suppliers and continually monitor supplier payment days. The group has a clear process for selecting and managing its suppliers. For key suppliers we perform due diligence around their working practices and code of ethics as well as their financial viability.

CUSTOMERS

The director understands that what's important to customers is key to our long-term success. We continue to build strong relationships with our customers. The group has a clear process for selecting and managing its

customers. For all customers we perform due diligence and code of ethics as well as their financial stability and viability

EMPLOYEES

The director recognises that the importance of a highly engaged and motivated workforce is fundamental and core to our business and to the delivery of our strategic ambitions.

RESEARCH AND DEVELOPMENT

The company has been engaged in research and development activities to improve their stock and accounting software. The directors believe strongly that this will enhance the company's capabilities.

ASSESSMENT OF PROSPECTS AND VIABILITY

Based on the director's assessment of prospects and viability, the directors confirm that they have a reasonable expectation that the company will be able to continue in operation and meet its liabilities.

FUTURE DEVELOPMENTS

In the following year the company expects to invest further in the development of their bespoke stock and accounting software, which will potentially improve accuracy and efficiency.

ON BEHALF OF THE BOARD:

J Hammond - Director

30 September 2025

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

DIVIDENDS

An interim dividend of £133.25 per share was paid on 31 March 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £ 5,000,000 .

DIRECTORS

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

J Hammond

Mrs S L H Hammond

DISCLOSURE IN THE STRATEGIC REPORT

The strategic report contains information on future developments, financial risk and exposure and research and development activities.

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;

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

-	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.

AUDITORS

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

ON BEHALF OF THE BOARD:

J Hammond - Director

30 September 2025

Opinion

We have audited the financial statements of Hammonds Of Knutsford Plc (the 'company') for the year ended 31 March 2025 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 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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 four, 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:

Identifying and Assessing Potential Risks Related to Irregularities

Enquiring of management, including obtaining and reviewing supporting documentation concerning the company's policies and procedures relating to:

Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud

the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations

discussing among the engagement team including relevant internal specialists, including tax, valuations, pensions and IT regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006, Pension legislation, Tax legislation, and Health and Safety requirements.

Audit Response to Risks Identified

In addition to the above, our procedures to respond to risks identified included the following:

reviewing the Financial Statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

enquiring of management concerning actual and potential litigation and claims;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

in addressing the risk of fraud through management override of controls, testing 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.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Philip Harrison (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

116 Duke Street

Liverpool

Merseyside

L1 5JW

30 September 2025

TURNOVER

37,665,068

36,833,112

Cost of sales

32,695,856

30,906,052

GROSS PROFIT

4,969,212

5,927,060

Administrative expenses

2,102,418

2,006,587

2,866,794

3,920,473

Other operating income

176,852

217,232

OPERATING PROFIT

4

3,043,646

4,137,705

Income from fixed asset investments

21,630

82,929

Interest receivable and similar income

249,020

102,087

270,650

185,016

3,314,296

4,322,721

Gain/loss on revaluation of investments

(10,722

)

90,649

3,303,574

4,413,370

Interest payable and similar expenses

5

19,065

81,436

PROFIT BEFORE TAXATION

3,284,509

4,331,934

Tax on profit

6

1,296,893

1,399,997

PROFIT FOR THE FINANCIAL YEAR

1,987,616

2,931,937

PROFIT FOR THE YEAR

1,987,616

2,931,937

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,987,616

2,931,937

FIXED ASSETS

Tangible assets

8

3,157,854

933,676

Investments

9

1

1

Investment property

10

99,003

99,003

3,256,858

1,032,680

CURRENT ASSETS

Stocks

11

4,849,721

5,731,606

Debtors

12

12,199,012

13,072,991

Investments

13

2,273,488

1,770,125

Cash at bank and in hand

916,289

5,619,582

20,238,510

26,194,304

CREDITORS

Amounts falling due within one year

14

10,827,445

11,995,097

NET CURRENT ASSETS

9,411,065

14,199,207

TOTAL ASSETS LESS CURRENT LIABILITIES

12,667,923

15,231,887

PROVISIONS FOR LIABILITIES

16

696,451

248,031

NET ASSETS

11,971,472

14,983,856

CAPITAL AND RESERVES

Called up share capital

17

37,524

37,524

Capital redemption reserve

18

12,476

12,476

Retained earnings

18

11,921,472

14,933,856

SHAREHOLDERS' FUNDS

11,971,472

14,983,856

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:

J Hammond - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

37,524

12,001,919

12,476

12,051,919

Changes in equity

Total comprehensive income

-

2,931,937

-

2,931,937

Balance at 31 March 2024

37,524

14,933,856

12,476

14,983,856

Changes in equity

Dividends

-

(5,000,000

)

-

(5,000,000

)

Total comprehensive income

-

1,987,616

-

1,987,616

Balance at 31 March 2025

37,524

11,921,472

12,476

11,971,472

Cash flows from operating activities

Cash generated from operations

1

(2,588,151

)

5,568,092

Interest paid

(19,065

)

(81,436

)

Tax paid

(1,358,510

)

298,895

Taxation refund

-

(842,667

)

Net cash from operating activities

(3,965,726

)

4,942,884

Cash flows from investing activities

Purchase of tangible fixed assets

(2,419,792

)

(316,683

)

Purchase of investment property

-

(99,003

)

Sale of tangible fixed assets

7,143

65,580

Purchase of current asset investments

(514,085

)

(560,739

)

Disposal of current asset investments

-

8,503,815

Interest received

249,020

102,087

Dividends received

21,630

82,929

Net cash from investing activities

(2,656,084

)

7,777,986

Cash flows from financing activities

Group undertakings

457,552

(11,388,373

)

Amount introduced by directors

8,372,230

2,358,349

Amount withdrawn by directors

(1,906,126

)

(46,100

)

Equity dividends paid

(5,000,000

)

-

Net cash from financing activities

1,923,656

(9,076,124

)

(Decrease)/increase in cash and cash equivalents

(4,698,154

)

3,644,746

Cash and cash equivalents at beginning of year

2

5,614,443

1,969,697

Cash and cash equivalents at end of year

2

916,289

5,614,443

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

31.3.25

31.3.24

£

£

Profit before taxation

3,284,509

4,331,934

Depreciation charges

188,471

183,424

Profit on disposal of fixed assets

-

(12,232

)

Loss on revaluation of fixed assets

10,722

-

G/L on revaluation of current assets

-

(90,649

)

Finance costs

19,065

81,436

Finance income

(270,650

)

(185,016

)

3,232,117

4,308,897

Decrease in stocks

881,885

118,398

Decrease in trade and other debtors

416,427

2,953,682

Decrease in trade and other creditors

(7,118,580

)

(1,812,885

)

Cash generated from operations

(2,588,151

)

5,568,092

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 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

916,289

5,619,582

Bank overdrafts

-

(5,139

)

916,289

5,614,443

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

5,619,582

2,080,977

Bank overdrafts

(5,139

)

(111,280

)

5,614,443

1,969,697

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

5,619,582

(4,703,293

)

916,289

Bank overdrafts

(5,139

)

5,139

-

5,614,443

(4,698,154

)

916,289

Liquid resources

Current asset investments

1,770,125

503,363

2,273,488

1,770,125

503,363

2,273,488

Total

7,384,568

(4,194,791

)

3,189,777

1.	STATUTORY INFORMATION

Hammonds Of Knutsford Plc is a public limited company, limited by shares, registered in England and Wales. The company's registered number is 03780024 and the registered office is Warford Grange Farm, Pedley House Lane, Great Warford, Knutsford, Cheshire WA16 7SP.

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

The principal activity of the company is that of wholesalers of beers, wines and spirits.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

There 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 other than current asset investments which are held at fair value.

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 carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on experience and other factors considered to be relevant. Actual results may differ from these estimates.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Estimated useful lives and residual values of fixed assets

As described in the accounting policies, depreciation and amortisation of tangible and intangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised if necessary. The carrying amount of fixed assets at the end of the reporting period was £3,157,855 after a depreciation charge of £188,471.

Impairment of slow moving and obsolete stock

As stated in the accounting policy stock is valued at the lower of cost and net realisable value with an allowance for slow moving and obsolete stock. This allowance is reviewed annually by the directors and is based on historical sales, future orders and age of the stock. At the year end the stock provision has decreased by £379,502 to £344,318.

Turnover

Turnover represents net invoiced sales from the supply of beers, wines and spirits and is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Income is recognised at the time the goods are despatched, delivered or collected by customers.

Tangible fixed assets

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

Freehold property

-

2% on cost

Improvements to property

-

10% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Fixed assets are recorded at cost less depreciation and provisions for impairment if applicable.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Inventories are stated at the lower of cost and estimated selling price less costs to sell. Inventories are recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition.

At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment

charge is recognised in the profit and loss account.

Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Financial instruments

Financial assets that are measured at 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 profit and loss.

Other investments are managed listed investments. They are initially recognised at cost then subsequently held at fair value. An annual impairment review is carried out with any aggregate surplus or deficit arising being recognised in the profit and loss account.

Trade debtors and other debtors are recognised initially at fair value and subsequently measured at amortised cost less provision for impairment. A provision for impairment in trade debtors is established when there is evidence that the company will not be able to collect all amounts due.

Trade creditors represent outstanding invoices due to suppliers for purchases made, trade creditors are paid within the terms given by the supplier.

Director's loans and intercompany loans (being repayable on demand), are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

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.

Research and development

Expenditure on research and development, which is made up of wages costs, is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash at bank and in hand is represented by amounts deposited at the company bank accounts, cash is available immediately on request.

Loans and advances

Loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the company provides money directly to a customer with no intention of trading the receivable. Loans and receivables are measured at amortised cost using the effective interest method.

Fixed asset investments

All fixed asset investments are initially recognised at cost. An annual impairment review is carried out with any aggregate surplus or deficit arising from changes in fair value being recognised in the profit or loss.

Current asset investments

All current asset investments are stated at fair value, which is market value. Any changes in value of investments are written to the profit and loss account in the year it is incurred.

3.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

1,066,290

952,851

Social security costs

92,857

73,909

Other pension costs

84,713

77,795

1,243,860

1,104,555

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

31.3.25

31.3.24

Directors

2

2

Administration

33

33

35

35

The company operates a defined contribution pension scheme that all employees in that company are entitled to join. The cost for the year amounted to £24,713 (2024 - £17,795). Included in other creditors at the year end is £8,606 (2024 - £4,205) relating to pension contributions unpaid at the year end.