REGISTERED NUMBER: 06432394 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 January 2025

for

EXPRESS LINEN SERVICES LIMITED

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

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

E Bruce

MA Bruce

REGISTERED OFFICE:

1 Brunel Way

Blackpool & Fylde Industrial Estate

Blackpool

Lancashire

FY4 5ES

REGISTERED NUMBER:

06432394 (England and Wales)

AUDITORS:

Keenan

Chartered Accountants & Statutory Auditors

The Old Surgery

43 Derbe Road

Lytham St Annes

Lancashire

FY8 1NJ

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

REVIEW OF BUSINESS

The results for the Company show a profit after taxation of £236,298 (2024: £357,556). The decrease in profit is due to the Company overheads increasing at a higher rate than the sales, additionally the company had a higher tax in the year due to less capital allowances claimed.

Total sales increased by 5.2% in the year compared to the prior year. The increase in sales is due to higher volumes of laundry and linen hire undertaken in the year for both hotels and hospitals.

Wages, subcontract labour and other associated costs have increased in the year by 3.1%. Wages costs increased mostly due to annual wages increases across the company offset by a slight deduction in average employee numbers in the year and reduced subcontract labour costs.

Other costs increased by 12.4% mainly due to light, heat and power costs increasing in they year due to more energy used in line with more sales but also energy unit prices increasing too. Other increases in the year included insurance costs with higher premium coverage taken in the year.

The Company's main focus is to continue to increase the sales by a higher proportion of cost increases for items such as wages, subcontract labour and other associated costs whilst monitoring and savings on other overhead expenditure in the future years.

The market in which the Company operates remains highly competitive and the Company's success is dependent on prices of laundry services and hire and quality of services provided to its customers to retain repeat business.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors of the Company face a number of business risks and uncertainties when operating the Company. The main risks of the business are as follows.

Industry Related Regulation - The directors of the company ensure the company complies with all sector regulations and legislation maintaining all relevant licences and permits.

Fire Risk - The company faces the risk of fire on the premises and to safeguard against this, the directors have insured the premises and machines in the event of a fire occurring. They carry out regular practice fire drills on the premises, and ensure all machinery, electrics and fire extinguishers are maintained to high standard and serviced regularly.

Bad Debt Risk - As the company has a large volume of customers, there is a risk of bad debts occurring. The directors, to lower any risk of bad debts, employ staff to monitor and control the level of trade debtors. The company obtains an approved level of credit with the customer before they commence trading with them, and adjust the level of credit and repayment terms accordingly as the sales volumes increase over time.

Employment Risk - There are a high number of staff employed, many working with machinery on a daily basis. The directors have chosen to insure the Company during the year to mitigate the risk of any legal issues in the event of an incident occurring in the factory.

Customer risk - The company has a number of large customers which if one should trade elsewhere could have an impact on the financial results of the company. The directors years of experience and monitoring of the market, keeps them both competitive in terms of price and services offered. Many customers have dealt with the Company for many years and have a good professional relationship with the directors and staff in terms of communication and services offered to them individually.

KEY PERFORMANCE INDICATORS

The directors monitor linen hire sales levels, staff costs and gross profit on a monthly basis. Working capital availability is monitored to manage the business on a daily basis.

FUTURE DEVELOPMENTS

The directors aim to increase the sales volumes of linen hire and improve efficiencies within the business. They are aware of the competitive business environment that the Company operates in and continue to explore new opportunities in the local area as well as expanding their network of customers to a wider national area. The company is in a strong financial position and the vast experience of the directors in the industry helps them mitigate its exposure to operational risks.

ON BEHALF OF THE BOARD:

E Bruce - Director

30 October 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of laundry services to the hotel industry and hospitals.

DIVIDENDS

The total distribution of dividends for the year ended 31 January 2025 will be £ 476,000 .

DIRECTORS

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

E Bruce

MA Bruce

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

Keenan Chartered Accountants were appointed auditors to the company and will be proposed for reappointment in accordance with Section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

E Bruce - Director

30 October 2025

Opinion

We have audited the financial statements of Express Linen Services Limited (the 'company') for the year ended 31 January 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 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 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:

The objectives of our audit are to obtain sufficient audit evidence regarding compliance with laws and regulations that have a direct effect in the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instance of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud and to perform audit procedures to help identify evidence of fraud and to respond appropriate to fraud or suspected fraud identified during the audit.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit team:

- Obtained an understanding of the nature of the sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory frameworks;

- Inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instance of fraud;

- Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are:

- FRS102;

- Companies Act 2006;

- Employment law;

- Fire regulations;

- Health and safety;

- Water and effluent;

- Bacterial and viral risk of linen;

- Transport and tachograph laws.

We performed audit procedures to detect non-compliance with these laws and regulations and inspected correspondence with regulatory authorities and external consultants, which included:

- Reviewing the employee staff handbook and employee starter procedures;

- Reviewing fire regulation tests undertaken by external consultants through the year and reviewed thermal imaging of linen during the year;

- Reviewing the results of third party health and safety inspection visits which take place every 6 weeks and the Accident Book;

- Reviewing monthly tests conducted by United Utilities into effluent discharges;

- Reviewing internal testing results undertaken twice a week for cross contamination;

- Reviewing internal transport checks on wagon weights, tachograph readings and individual driver's driving reports;

- Discussions with management.

In regards to fraud and error, the areas likely to cause a significant problem are:

- Revenue recognition and completeness of income;

- Existence of employees.

- The threat of management override;

- Completeness of related party transactions;

Our audit procedures included:

- Agreement of linen deliveries to sales invoices;

- Sales cut off testing;

- Checking the existence of employees and agreeing employee hours to time recording software;

- Review of journals;

- Review of large and unusual items;

- Review of sundry purchases for related party transactions;

- Companies House searches for other directorships.

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.

Prior year financial statements

In the previous accounting period, the directors of the company took advantage of audit exemptions under s477 of the Companies Act 2006. Therefore, the prior year's financial statements were not subject to audit.

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.

Anthony Keenan (Senior Statutory Auditor)

for and on behalf of Keenan

Chartered Accountants & Statutory Auditors

The Old Surgery

43 Derbe Road

Lytham St Annes

Lancashire

FY8 1NJ

30 October 2025

TURNOVER

7,844,566

7,457,599

Cost of sales

6,328,773

5,876,124

GROSS PROFIT

1,515,793

1,581,475

Administrative expenses

1,156,129

1,097,509

OPERATING PROFIT

5

359,664

483,966

Interest receivable and similar income

39,832

37,828

399,496

521,794

Interest payable and similar expenses

7

36,464

33,112

PROFIT BEFORE TAXATION

363,032

488,682

Tax on profit

8

126,734

131,126

PROFIT FOR THE FINANCIAL YEAR

236,298

357,556

PROFIT FOR THE YEAR

236,298

357,556

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

236,298

357,556

FIXED ASSETS

Intangible assets

10

2

2

Tangible assets

11

3,213,245

3,305,808

Investments

12

1,000

1,000

3,214,247

3,306,810

CURRENT ASSETS

Stocks

13

23,288

27,804

Debtors

14

1,230,438

937,867

Cash at bank and in hand

777,544

1,205,543

2,031,270

2,171,214

CREDITORS

Amounts falling due within one year

15

1,308,551

1,249,745

NET CURRENT ASSETS

722,719

921,469

TOTAL ASSETS LESS CURRENT LIABILITIES

3,936,966

4,228,279

CREDITORS

Amounts falling due after more than one year

16

(737,816

)

(814,586

)

PROVISIONS FOR LIABILITIES

20

(364,883

)

(339,724

)

NET ASSETS

2,834,267

3,073,969

CAPITAL AND RESERVES

Called up share capital

21

200

200

Retained earnings

2,834,067

3,073,769

SHAREHOLDERS' FUNDS

2,834,267

3,073,969

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

E Bruce - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2023

200

2,951,213

2,951,413

Changes in equity

Dividends

-

(235,000

)

(235,000

)

Total comprehensive income

-

357,556

357,556

Balance at 31 January 2024

200

3,073,769

3,073,969

Changes in equity

Dividends

-

(476,000

)

(476,000

)

Total comprehensive income

-

236,298

236,298

Balance at 31 January 2025

200

2,834,067

2,834,267

Cash flows from operating activities

Cash generated from operations

1

1,104,619

1,424,170

Interest paid

(16,715

)

(20,447

)

Interest element of hire purchase payments paid

(19,749

)

(12,665

)

Tax paid

(107,561

)

(115,467

)

Net cash from operating activities

960,594

1,275,591

Cash flows from investing activities

Purchase of tangible fixed assets

(872,203

)

(1,077,911

)

Sale of tangible fixed assets

12,299

-

Interest received

39,832

37,828

Net cash from investing activities

(820,072

)

(1,040,083

)

Cash flows from financing activities

Loan repayments in year

(42,202

)

(38,470

)

Capital repayments in year

(50,319

)

117,995

Equity dividends paid

(476,000

)

(235,000

)

Net cash from financing activities

(568,521

)

(155,475

)

(Decrease)/increase in cash and cash equivalents

(427,999

)

80,033

Cash and cash equivalents at beginning of year

2

1,205,543

1,125,510

Cash and cash equivalents at end of year

2

777,544

1,205,543

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

31.1.25

31.1.24

£

£

Profit before taxation

363,032

488,682

Depreciation charges

951,389

917,757

Loss on disposal of fixed assets

1,078

-

Finance costs

36,464

33,112

Finance income

(39,832

)

(37,828

)

1,312,131

1,401,723

Decrease in stocks

4,516

1,132

Increase in trade and other debtors

(292,571

)

(193,989

)

Increase in trade and other creditors

80,543

215,304

Cash generated from operations

1,104,619

1,424,170

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 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

777,544

1,205,543

Year ended 31 January 2024

31.1.24

1.2.23

£

£

Cash and cash equivalents

1,205,543

1,125,510

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.2.24

Cash flow

At 31.1.25

£

£

£

Net cash

Cash at bank and in hand

1,205,543

(427,999

)

777,544

1,205,543

(427,999

)

777,544

Debt

Finance leases

(355,054

)

50,319

(304,735

)

Debts falling due within 1 year

(42,202

)

1,081

(41,121

)

Debts falling due after 1 year

(552,187

)

41,121

(511,066

)

(949,443

)

92,521

(856,922

)

Total

256,100

(335,478

)

(79,378

)

1.	STATUTORY INFORMATION

Express Linen Services 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 (£).

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.

Revenue recognition

Revenue is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT.

Revenue from the process of cleaning linen is recognised when the following conditions are satisfied:

Specifically, revenue from the sale of services is recognised after which the Company has processed and delivered the clean linen to the customer.

Specifically, revenue from the sale of new and damaged linen, which is minimal, is recognised when goods are delivered by the Company at an agreed price and legal title is passed.

Goodwill

Goodwill of £1, being the amount paid in connection with the acquisition of a business in 2008, is being amortised evenly over its estimated useful life of ten years. A further £1 of Goodwill was acquired on 29 May 2018 when the company acquired the trade and assets of its wholly owned subsidiary of Vale Textile Services Limited.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

Long leasehold

-

4% on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Linen

-

50% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

During the period under review, the company held 100% of the issued ordinary share capital of its dormant subsidiary, Vale Textile Services Limited.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obselete and slow moving items.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals payable under operating leases are charged against income on a straight line basis over the lease

term.

Pension costs and other post-retirement benefits

The Company operates defined contribution pension schemes for employees and directors. Contributions payable to the company's pension schemes are charged to profit or loss in the period to which they relate.

Financial instruments

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

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

Short term debtors and creditors receivable

Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

4.	EMPLOYEES AND DIRECTORS

31.1.25

31.1.24

£

£

Wages and salaries

2,975,098

2,754,837

Social security costs

273,897

245,811

Other pension costs

102,610

110,876

3,351,605

3,111,524

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

31.1.25

31.1.24

Directors

2

2

Management

7

7

Office

8

9

Maintenance

6

6

Drivers

16

18

Factory

59

57

Cleaners

2

2

100

101

31.1.25

31.1.24

£

£

Directors' remuneration

184,665

180,267

Directors' pension contributions to money purchase schemes

1,321

1,321

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

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.1.25

31.1.24

£

£

Hire of plant and machinery

7,463

7,575

Other operating leases

11,303

15,395

Depreciation - owned assets

877,644

823,250

Depreciation - assets on hire purchase contracts

73,745

94,507

Loss on disposal of fixed assets

1,078

-

6.	AUDITORS' REMUNERATION

31.1.25

31.1.24

£

£

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

7,000

-