REGISTERED NUMBER: 03891188 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

K A WATTS PLUMBING & HEATING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Mr K A Watts

Mrs K R Watts

Mr R P Jenkins

SECRETARY:

Mrs K R Watts

REGISTERED OFFICE:

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

BUSINESS ADDRESS:

Unit 9

M3 Trade Park

Manor Way

Eastleigh

Hampshire

SO50 9YA

REGISTERED NUMBER:

03891188 (England and Wales)

SENIOR STATUTORY AUDITOR:

Graham Taylor

AUDITORS:

Langdowns DFK Limited

Statutory Auditor

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

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

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face

REVIEW OF BUSINESS

The Company continues to operate as an installer of plumbing and heating, primarily in new build properties, and supported by its maintenance division. The Company has continued to be successful in expanding its customer base and a good level of profitability has been achieved.

The EOT board entrust the management of the business to maintain growth and consults with the Colleague's Advisory council on a regular basis about the performance and running of the business and other important operational issues effecting the business.

We consider that the strength of the Balance Sheet will enable the Company to meet future financial requirements and growth plans. Together the Board and management are well positioned to continue to develop the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to have a good relationship with its suppliers, maintaining communication regarding all matters that relate to supply of goods and services, enabling the company to be in a position that issues are foreseen earlier to minimise the effects of supply chain issues.

DEVELOPMENT AND PERFORMANCE

The key financial performance indicators of turnover, gross margin and return on capital employed are used. in common with many similar businesses. Turnover increased to £20,014,318 in 2024 (2023 £18,809,233), output was in line with what the management team anticipated in last year's forecasts.

This was in part due to the micro-economic landscape and a loosening of the credit marketplace. The underlying market remains resilient and the National housebuilders continue with resilient build programmes.

The gross profit percentage increased due to a more stable cost environment, bringing the Gross Profit percentage to 17% in 2024 from 16% 2023. The Directors and management continue to work hard on improving contract terms and performance with their customers and this has to date been successful, which has resulted in Gross profit increase next year.

ON BEHALF OF THE BOARD:

Mr R P Jenkins - Director

2 October 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of plumbing and heating repair and installation.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be Nil (2023: £nil).

RESEARCH AND DEVELOPMENT

The company specialises in energy-efficient, large scale heating, ventilation and plumbing projects. The company's activities include the in-house design, development, installation and commission of complex bespoke systems that support green technologies in order to make full use of renewable energy sources.

FUTURE DEVELOPMENTS

The directors aim to maintain the existing management policies which have resulted in the company's present financial position and to ensure that management are well positioned to continue to develop the business.

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 K A Watts

Mrs K R Watts

Mr R P Jenkins

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.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr R P Jenkins - Director

2 October 2025

Opinion

We have audited the financial statements of K A Watts Plumbing & Heating Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of 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 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

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:

As part of our audit planning procedures we identify the significant laws and regulations applicable to the company based upon our knowledge of the company, the industry in which it operates and from making enquiries with management. We consider those laws and regulations where non-compliance may have a material effect on the financial statements and those which have a direct impact on the financial statements. We identified that the most significant laws and regulations applicable during the year were compliance with the requirements of the Companies Act 2006, compliance with health and safety regulations and compliance with regulations in connection with plumbing and heating systems installation.

Audit procedures performed by the engagement team in relation to laws and regulations include making enquiries of management as to any known or suspected instances of non-compliance, maintaining awareness throughout the course of the audit as to any indications of instances of non-compliance, undertaking a review of the accident logs, reviewing legal and professional invoices for any indications of instances of non-compliance and undertaking a review of the disclosures in the financial statements to supporting information and to disclosure checklists.

We also consider areas that are at a higher risk of causing material misstatement in the financial statements due to irregularities, including those resulting from fraud and how such fraud may occur. We discuss with senior management the key controls in place to mitigate the risk of fraud and enquire as to whether they are aware of, or suspect, any fraudulent activities having taken place.

Throughout the audit, we maintain an appropriate level of professional scepticism when provided with information and explanations. We consider the appropriateness of significant accounting journals that were processed during the year, assess the reasonableness of any significant accounting estimates and consider whether there were any indications of bias by management during the year that represents a risk of material misstatement due to fraud. We also carry out analytical procedures to identify any unusual or unexpected variances to expectations as these may be an indication of management over-ride or management bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Graham Taylor (Senior Statutory Auditor)

for and on behalf of Langdowns DFK Limited

Statutory Auditor

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

21 October 2025

TURNOVER

4

20,014,318

18,809,233

Cost of sales

16,586,253

15,720,777

GROSS PROFIT

3,428,065

3,088,456

Administrative expenses

2,024,925

2,011,263

OPERATING PROFIT

6

1,403,140

1,077,193

Interest receivable and similar income

5,759

11,755

1,408,899

1,088,948

Interest payable and similar expenses

7

22,538

22,456

PROFIT BEFORE TAXATION

1,386,361

1,066,492

Tax on profit

8

360,990

252,299

PROFIT FOR THE FINANCIAL YEAR

1,025,371

814,193

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,025,371

814,193

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

528,954

503,559

528,954

503,559

CURRENT ASSETS

Stocks

11

270,010

375,713

Debtors

12

4,583,040

3,887,870

Cash at bank and in hand

1,071,069

1,001,378

5,924,119

5,264,961

CREDITORS

Amounts falling due within one year

13

4,526,721

3,900,707

NET CURRENT ASSETS

1,397,398

1,364,254

TOTAL ASSETS LESS CURRENT LIABILITIES

1,926,352

1,867,813

CREDITORS

Amounts falling due after more than one year

14

(277,477

)

(358,828

)

PROVISIONS FOR LIABILITIES

18

(117,014

)

(101,495

)

NET ASSETS

1,531,861

1,407,490

CAPITAL AND RESERVES

Called up share capital

19

1,074

1,074

Share premium

20

12,439

12,439

Retained earnings

20

1,518,348

1,393,977

SHAREHOLDERS' FUNDS

1,531,861

1,407,490

The financial statements were approved by the Board of Directors and authorised for issue on 2 October 2025 and were signed on its behalf by:

Mr R P Jenkins - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

1,074

1,959,784

12,439

1,973,297

Changes in equity

Total comprehensive income

-

814,193

-

814,193

Contributions to Employee Ownership Trust

-

(1,380,000

)

-

(1,380,000

)

Balance at 31 December 2023

1,074

1,393,977

12,439

1,407,490

Changes in equity

Total comprehensive income

-

1,025,371

-

1,025,371

Contributions to Employee Ownership Trust

-

(901,000

)

-

(901,000

)

Balance at 31 December 2024

1,074

1,518,348

12,439

1,531,861

Cash flows from operating activities

Cash generated from operations

1

1,508,417

2,005,002

Interest paid

(22,538

)

(22,456

)

Tax refunded / (paid)

(222,326

)

(19,936

)

Net cash from operating activities

1,263,553

1,962,610

Cash flows from investing activities

Purchase of tangible fixed assets

(17,885

)

(29,941

)

Sale of tangible fixed assets

2,274

72,238

Interest received

5,759

11,755

Net cash from investing activities

(9,852

)

54,052

Cash flows from financing activities

Capital repayments in year

(91,630

)

(134,689

)

Amount withdrawn by directors

(24,713

)

-

(Outflow)/Inflow from bank loans

(166,667

)

(166,667

)

Contributions - Employee-Ownership Trust

(901,000

)

(1,380,000

)

Net cash from financing activities

(1,184,010

)

(1,681,356

)

Increase in cash and cash equivalents

69,691

335,306

Cash and cash equivalents at beginning of year

2

1,001,378

666,072

Cash and cash equivalents at end of year

2

1,071,069

1,001,378

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

2024

2023

£

£

Profit before taxation

1,386,361

1,066,492

Depreciation charges

139,682

126,004

Loss/(profit) on disposal of fixed assets

3,887

(13,793

)

Finance costs

22,538

22,456

Finance income

(5,759

)

(11,755

)

1,546,709

1,189,404

Decrease/(increase) in stocks

105,703

(175,488

)

(Increase)/decrease in trade and other debtors

(701,679

)

819,976

Increase in trade and other creditors

557,684

171,110

Cash generated from operations

1,508,417

2,005,002

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

1,071,069

1,001,378

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,001,378

666,072

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

1,001,378

69,691

1,071,069

1,001,378

69,691

1,071,069

Debt

Finance leases

(320,428

)

91,630

(153,353

)

(382,151

)

Debts falling due

within 1 year

(166,667

)

166,667

(83,333

)

(83,333

)

Debts falling due

after 1 year

(83,333

)

-

83,333

-

(570,428

)

258,297

(153,353

)

(465,484

)

Total

430,950

327,988

(153,353

)

605,585

1.	STATUTORY INFORMATION

K A Watts Plumbing & Heating Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

The company's principal place of business is Unit 9, M3 Trade Park, Manor Way, Eastleigh, Hampshire, SO50 9YA.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

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 value of assets and liabilities that are not readily apparent from other sources. The estimates and the 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.

The company receives revenue through contracts that span over a period of time and over the year end. The company has a policy to review each contract at the year end to determine level of completion and profitability. Using actual and forecast information the company is able to determine the level of revenue to include for each contract at the year end and calculate any year end debtors, creditors and work-in-progress that should be included in the Balance Sheet. Some of the contracts are carried out over a long period of time and therefore management have to use their skills and knowledge of the industry to make the judgements and estimates on each contract. The company also has to consider any liability that could arise as a result of remedial work on projects. The company uses previous knowledge of time spent by individuals undertaking the remedial work to include a liability in the Balance Sheet for potential future costs.

The trade debtor value at the balance sheet date of £3,523,033 is after allowing for a provision for potential unrecoverable trade debtors.The company has a policy in place to consider unrecoverable trade debtors. The company considers the trade debtors on an individual basis and uses its knowledge of the customer and the length of time that the debt has been overdue. Based on this analysis, the company then applies a provision against specific trade debtor balances.

Turnover

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

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

When the outcome of a long-term contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business, is amortised at rates calculated to write off the asset on a straight basis over its estimated useful economic life. Impairment of goodwill is reviewed where circumstances indicate that the carrying value may not be fully recoverable.

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

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Office equipment

-

15% straight line

All fixed assets are initially recorded at cost.

Stocks

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

Stock is valued on the basis of purchase and delivery costs.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

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.

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

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.

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.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income.

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made.

Contributions to Employee Ownership Trust

The Employee Ownership Trust has a controlling interest in the company. Controlling interest is measured by having more than 50% of the ordinary share capital, the voting rights, entitlement to profits available for distribution and assets on winding up. The shares are held for the benefit of all eligible employees (as a group) in accordance with the trust deed and law. The contribution to the Employee Ownership Trust is accounted for as a deduction within equity and is funded out of distributable reserves.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Rendering of services

20,014,318

18,809,233

20,014,318

18,809,233

Turnover, consists entirely of revenues arising from one class of business in the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,740,901

2,648,020

Social security costs

275,952

255,827

Other pension costs

58,654

54,457

3,075,507

2,958,304

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

2024

2023

Direct

44

45

Admin

19

21

63

66

The key management personnel of the company are considered to be the directors.

2024

2023

£

£

Directors' remuneration

245,874

239,192

Directors' pension contributions to money purchase schemes

11,120

10,329

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

107,288

103,926

Pension contributions to money purchase schemes

4,059

3,898

6.	OPERATING PROFIT

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

2024

2023

£

£

Depreciation - owned assets

26,727

40,799

Depreciation - assets on hire purchase contracts

112,955

85,205

Loss/(profit) on disposal of fixed assets

3,887

(13,793

)

Auditors' remuneration

8,300

7,900

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

18,508

22,456

Interest on taxation

4,030

-

22,538

22,456

8.

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

345,738

229,102

Over/under provision in prior period

(267

)

-

Total current tax

345,471

229,102

Deferred tax

15,519

23,197

Tax on profit

360,990

252,299

UK corporation tax has been charged at 25% (2023 - 23.52%).