REGISTERED NUMBER: 03606689 (England and Wales)

Running Deep Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st January 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

C C Brown

C C Duke

R J Frostick

R Furley

B C George

L J Morton

M Tarbotton

L J Morrell

S J Turner

REGISTERED OFFICE:

The Deep

Tower Street

Hull

East Yorkshire

HU1 4DP

REGISTERED NUMBER:

03606689 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

BANKERS:

National Westminster Bank Plc

1st Floor

1 Humber Quays

Wellington Street West

Hull

HU1 2DG

SOLICITORS:

Wilkin Chapman Rollits LLP

Citadel House

58 High Street

Hull

HU1 1QE

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

PRINCIPAL ACTIVITY

The principal activity of the company continued to be to operate The Deep Visitor Attraction (an

aquarium) and The Deep Business Centre (a serviced business centre), both in Hull, on behalf of its

parent EMIH Limited.

REVIEW OF BUSINESS

2025

2024

£

£

Turnover

11,038,710

10,319,773

Gross Profit

9,726,604

9,097,227

Operating Profit

1,900,389

2,120,217

Profit for the financial year

2,117,675

2,361,969

Average number of employees

139

137

The profit for the financial year generated by the company over the year was £2,117,675 (2024: £2,361,969), being only one component of the financial statements of the EMIH Limited group off companies.The visitor numbers attracted increased slightly in 2025 when compared to 2024. During the year gift aid donations amount to £2,149,504 (2024: £2,133,508) have been made by the company to its parent, EMIH Limited. Full details of the performance of the group are set out in EMIH Limited's financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk and interest rate risk.

Price risk

At the start of each financial year, the company reviews its budget for the coming year, sets its expectations of visitor numbers and sets its admission prices to cover its forecasted expenditure.Compared to other national attractions, The Deep's current admission charge remains very competitive.

Credit risk

The majority of the company's income is received at the point of sale and so poses no credit risk. The exception to this is the income from tenants of The Deep Business Centre. However, all tenants are subject to external credit checks as part of their lease negotiations and are subject to ongoing credit checks. Furthermore, a deposit is taken from all tenants at the outset and rent is required to be paid in advance of the period to which it relates.

Liquidity risk

The company retains sufficient cash to ensure that it has sufficient available funds for operations. In August 2020, the company entered in a Coronavirus Business Interruption Loan Agreement with its bankers for a maximum facility of £700,000. As at the balance sheet date, the loan was fully drawn down and £455,000 of it has been repaid.

Interest risks

Any surplus cash that the company has available is invested with its bankers. Such investments include only cash balances, earning interest at fixed and variable rates.

The company does not use derivative financial instruments.

ON BEHALF OF THE BOARD:

Director

19th September 2025

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

DIVIDENDS

The profit for the year after taxation amounted to £2,117,675 (2024: £2,361,969). The directors do not

recommend a final dividend (2024: £nil). No interim dividends were paid in the year (2024: £nil).

RESEARCH AND DEVELOPMENT

Full details of the company's research and development activities are set out in the EMIH Limited financial statements.

FUTURE DEVELOPMENTS

It is important that sufficient visitors continue to be attracted to The Deep so that it can cover its operational costs and generate sufficient resources to maintain the quality of its facilities and provide their ongoing improvement.

DIRECTORS

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

C C Duke

R Furley

M Tarbotton

L J Morrell

Other changes in directors holding office are as follows:

C C Brown - appointed 20th July 2024

R J Frostick - appointed 20th September 2024

B C George - appointed 20th September 2024

L J Morton - appointed 28th January 2025

J A Parkes CBE - resigned 30th September 2024

S M Lockwood - resigned 21st November 2024

A W Kirkman - resigned 21st November 2024

D W Gemmell - resigned 31st March 2024

G Chesters - resigned 19th September 2024

S J Turner was appointed as a director after 31st January 2025 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company does not use derivate financial instruments.

GOING CONCERN

It is important that sufficient visitors continue to be attracted to The Deep so that it can cover its operational costs and generate sufficient resources to maintain the quality of its facilities (and provide for their ongoing improvement), whilst also enabling the organisation to continue to support conservation and marine research projects.

Whilst visitor numbers can be uncertain, the directors feel that their forecasts over the period to 31 January 2027 include a conservative estimate in relation to visitor numbers and that the overall forecasts are reliable in predicting future company revenue and cash flows. The directors believe that the company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

DISABLED EMPLOYEES

The company is accredited as a Disability Confident Employer and carries this branding on its employment literature throughout the employee journey. It is a Dementia Friends organisation as well as being recognised as a TIC Friendly Establishment, and disability awareness employee programmes over the last year have included Sighted Guide Training by Guide Dogs UK. The company gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job, and reasonable adjustments will be sought, working in liaison with Access to Work when appropriate. Links exist with organisations such as Worklink which supports disabled people and employers during the application, recruitment and training periods, and promotes the company’s vacancies and work experience placements to its clients. Student experience programmes are also run in conjunction with such as Ganton School in Hull to support career development and encourage disabled applicants to see the group as an employer of choice.

The company’s work in this field was recognised this year by the British & Irish Association of Zoos & Aquarium, as a ‘Runner Up’ in their Diversity and Inclusion awards. Opportunities, equal to those of their colleagues, are available to disabled employees for training, career development and promotion. To support employee health and wellbeing, the company has signed up to the Mental Health at Work Commitment, making a public commitment to supporting employee mental health; and is a member of Working Voices (NHS Hull). Where existing employees become disabled, it is the group’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide training and a comprehensive consideration of reasonable adjustments to achieve this aim.

The company’s detailed Access Guide is produced with VisitEngland’s Accessible and Inclusive Tourism Toolkit in mind, and is available online to all. This would help to inform any individual needs assessment and promotes the group’s commitment to accessibility.

EMPLOYEE INVOLVEMENT

The company operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. During the year, the policy of providing employees with information about the company has been continued through regular internal communication. Regular meetings are held between local management and employees to allow a free flow of information and ideas including department issues, specific project and policy planning. Whole group employee meetings are called at key points of action, change or development as necessary during the year.

The company’s Health, Safety & Wellbeing Committee includes representatives from each department alongside senior managers and the Competent Person. A key communication tool is also the Crew Brief newsletter which is circulated to all Crew Members every month and includes information such as group performance, customer feedback, policy updates and it responds to specific employee questions when necessary.

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). 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, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C C Duke - Director

19th September 2025

Opinion

We have audited the financial statements of Running Deep Limited (the 'company') for the year ended 31st January 2025 which comprise the Income Statement, Other 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 31st January 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 pages five and six, 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including United Kingdom Accounting Standards (FRS 102), the Companies Act 2006, and tax legislation. We considered those laws and regulations that have an indirect material effect on the financial statements including data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

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

-

investigated the rationale behind significant or unusual transactions.

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

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

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

-

reviewing correspondence with relevant regulators and the company's legal advisors.

Due to 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. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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.

Matthew Fox FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

19th September 2025

TURNOVER

4

11,038,710

10,319,773

Cost of sales

1,312,106

1,222,546

GROSS PROFIT

9,726,604

9,097,227

Administrative expenses

7,826,215

6,977,010

OPERATING PROFIT

7

1,900,389

2,120,217

Interest receivable and similar income

8

43,573

34,292

Other finance income

20

281,000

214,000

324,573

248,292

2,224,962

2,368,509

Interest payable and similar expenses

9

7,693

11,088

PROFIT BEFORE TAXATION

2,217,269

2,357,421

Tax on profit

10

99,594

(4,548

)

PROFIT FOR THE FINANCIAL YEAR

2,117,675

2,361,969

PROFIT FOR THE YEAR

2,117,675

2,361,969

OTHER COMPREHENSIVE INCOME

Actuarial (loss)/gain on pension scheme

(363,000

)

(229,000

)

Deferred tax on pension (loss)/gain

90,750

-

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(272,250

)

(229,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,845,425

2,132,969

FIXED ASSETS

Tangible assets

12

57,736

22,821

CURRENT ASSETS

Stocks

13

230,895

169,456

Debtors

14

3,973,176

4,231,095

Cash at bank and in hand

2,239,321

1,966,654

6,443,392

6,367,205

CREDITORS

Amounts falling due within one year

15

4,973,350

4,418,169

NET CURRENT ASSETS

1,470,042

1,949,036

TOTAL ASSETS LESS CURRENT LIABILITIES

1,527,778

1,971,857

CREDITORS

Amounts falling due after more than one year

16

105,000

245,000

NET ASSETS

1,422,778

1,726,857

CAPITAL AND RESERVES

Called up share capital

19

2

2

Retained earnings

1,422,776

1,726,855

SHAREHOLDERS' FUNDS

1,422,778

1,726,857

The financial statements were approved by the Board of Directors and authorised for issue on 19th September 2025 and were signed on its behalf by:

C C Duke - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st February 2023

2

1,727,394

1,727,396

Changes in equity

Payment to parent charity made

under gift aid scheme

-

(2,133,508

)

(2,133,508

)

Total comprehensive income

-

2,132,969

2,132,969

Balance at 31st January 2024

2

1,726,855

1,726,857

Changes in equity

Payment to parent charity made

under gift aid scheme

-

(2,149,504

)

(2,149,504

)

Total comprehensive income

-

1,845,425

1,845,425

Balance at 31st January 2025

2

1,422,776

1,422,778

1.	GENERAL INFORMATION

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:

The Deep Business Centre

Kingston upon Hull

HU1 4BG

These financial statements were authorised for issue by the Board on 19th September 2025.

2.	STATEMENT OF COMPLIANCE

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'. The financial statements have been prepared in accordance with applicable accounting standards for the year ended 31 January 2025.

3.	ACCOUNTING POLICIES

Basis of preparation

The financial statements are prepared in sterling which is the functional currency of the company. These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

It is important that sufficient visitors continue to be attracted to The Deep so that it can cover its operational costs and generate sufficient resources to maintain the quality of its facilities (and provide for their ongoing improvement), whilst also enabling the organisation to continue to support conservation and marine research projects.

Whilst visitor numbers can be uncertain, the directors feel that their forecasts over the period to 31January 2027 include a conservative estimate in relation to visitor numbers and that the overall forecasts are reliable in predicting future company revenue and cash flows. The directors believe that the company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

Statement of cash flows

The directors have taken advantage of the exemption from including a statement of cash flows in the financial statement on the grounds that the company is wholly owned and its parent publishes group financial statements.

Related party exemption

Advantage has been taken of exemptions available under FRS102 from disclosing transactions with other group companies.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The judgements (apart from those involving estimates) that have had the most significant effect on amounts recognised in the financial statements are the actuarial assumptions supporting the valuation of the Company's defined benefit pension scheme.

Tangible fixed assets

All fixed assets are initially recorded at cost.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value based on prices prevailing at the date of acquisition of each assets evenly over its expected useful life, as follows:

Equipment - 1 to 5 years

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred taxation

Deferred taxation is recognised in respect of all timing differences which are differences between taxable profits and total comprehensive income arising from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial

statements, except that:

-

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

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Defined benefit pension obligation

The company participates in the Local Government Pension Scheme. Contributions are made to a separately administrated fund. Pension scheme assets are measured at fair value and scheme liabilities are measured on an actuarial basis using the projected unit method and discounted at an interest rate equivalent to the current rate of return on a high quality corporate bond.

The service cost of providing pension and other post-retirement benefits to employees for the year is charged to the operating profit or loss in the year. The full cost of providing amendments to benefits in respect of past service is also charged to the operating surplus or deficit in the year.

The expected return on defined benefit pension scheme assets based on the market value scheme assets at the start of the financial year is included within other finance costs. This also includes a charge representing the expected increase in liabilities of the scheme during the year, arising from the liabilities being one year closer to payment. Differences between actual and expected returns on assets during the year are recognised in the statement of comprehensive income in the year, together with differences from changes in assumptions. The net asset/(liability) of the defined benefit scheme is reported on the balance sheet within the pension asset/(liability). FRS102 only permits a company to recognise an asset to the extent that the company is able to recover the surplus through reduced contributions or refunds from the plan. At the balance sheet date, the company did not have sole discretion in such recovery of the surplus and therefore this has not been recognised in the balance sheet.

Gift aid payment to parent charity

The company pays all its taxable profits for the reporting period to its parent charity under the gift aid scheme. These gift aid payments are recognised as distributions to owners in equity within retained earnings.

The company does not have a legal obligation in place at the reporting date to make the payment of its taxable profits to the parent charity under the gift aid scheme. Therefore, gift aid payments are only recognised in the reporting period that the payments are made. The gift aid payment for the current reporting period is expected to be made within 9 months of the reporting date.

The company previously recognised the related tax relief in equity within retained earnings in the year that the gift aid payment was made to the parent charity. On application of the triennial review amendments the subsidiary has applied paragraph 29.14A and 29.22A of FRS 102. This has resulted in a change in accounting policy. Tax relief is now recognised in the reporting period in which the profits arise and is also recognised in the income statement and not in equity.

4.

TURNOVER

Turnover, which is stated net of value added tax, arises from the one continuing activity of the company in the United Kingdom and represents the fair value of consideration received for the provision of goods and services to third parties, rental income from the business centre and amounts invoiced for services provided to the charity, its parent, EMIH Limited. Revenue is recognised in the period in which a sale is made.

The analysis of the company's revenue for the year from continuing operations is as follows:

2025

2024

£

£

Trading revenue from sales of goods & services

5,353,552

5,164,991

Rental income & related services

652,305

629,713

Services provided to EMIH Limited

5,032,853

4,525,069

11,038,710

10,319,773

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,226,741

2,869,916

Social security costs

289,951

245,854

Other pension costs

510,926

449,158

4,027,618

3,564,928

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

2025

2024

Administrative

134

132

Management

5

5

139

137

6.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

165,261

150,128

Expenses of NIL were paid in total on the behalf of two directors for the year ended 31st January 2025 (2024: £912).

7.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

21,655

20,361

Auditor's remuneration

15,293

12,390

Non-Audit remuneration

2,557

2,435

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Interest received

43,573

34,292

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest payable

7,693

11,088

10.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Deferred tax

99,594

(4,548

)

Tax on profit

99,594

(4,548

)

UK corporation tax has been charged at 25% (2024 - 24.03%).

Reconciliation of total tax charge/(credit) included in profit and loss

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

2025

2024

£

£

Profit before tax

2,217,269

2,357,421

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 24.030%)

554,317

566,488

Effects of:

Expenses not deductible for tax purposes

5

-

Depreciation in excess of capital allowances

-

694

Deferred tax expense (credit) relating to changes in tax rates or

-

(10,117

)

Deferred tax expense (credit) from unrecognised temporary difference from a prior period

564,750

256,250

Increase (decrease) in UK and foreign current tax from adjustment for prior periods

1,439,250

1,082,077

Tax increase (decrease) from other short-term timing differences

(2,083,871

)

(1,383,415

)

Tax increase (decrease) arising from group relief

(465,607

)

(516,525

)

Deferred tax expense (credit) relating to defined benefit pension obligation

90,750

-

Total tax charge/(credit)

99,594

(4,548

)

Tax effects relating to effects of other comprehensive income

2025

Gross

Tax

Net

£

£

£

Actuarial (loss)/gain on pension scheme

(363,000

)

-

(363,000

)

Deferred tax on pension (loss)/gain

90,750

-

90,750

(272,250

)

-

(272,250

)

2024

Gross

Tax

Net

£

£

£

Actuarial (loss)/gain on pension scheme

(229,000

)

-

(229,000

)

Paragraph 29.14A of FRS102 has been applied allowing the tax relief on gift aid payments to be

recognised in the period to which it relates. This exception is only applicable as long as it is probable that the gift aid payment will be made to the parent charity within 9 months of the reporting date.

(d) Factors that may affect future tax charge

The standard rate of UK corporation tax is 19% for the period to 31 March 2024, after which corporation tax remains at 25%. Deferred tax has been calculated at 25%.

11.	PAYMENT TO PARENT CHARITY MADE

UNDER GIFT AID SCHEME

2025

2024

£

£

Ordinary shares of £1 each

Payment to parent charity made

under gift aid scheme

2,149,504

2,133,508

2,149,504

2,133,508

12.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1st February 2024

292,644

Additions

56,570

At 31st January 2025

349,214

DEPRECIATION

At 1st February 2024

269,823

Charge for year

21,655

At 31st January 2025

291,478

NET BOOK VALUE

At 31st January 2025

57,736

At 31st January 2024

22,821

13.

STOCKS

2025

2024

£

£

Finished goods

230,895

169,456

14.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

95,873

82,314

Amounts owed by group undertakings

3,630,289

3,913,692

Other debtors

120,431

75,875

Deferred tax asset

819

9,663

Prepayments and accrued income

125,764

149,551

3,973,176

4,231,095