REGISTERED NUMBER: 04636503 (United Kingdom)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 January 2025

for

G.T. JONES CONTRACTING LTD

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 G T Jones

Mrs D K E Jones

Mr E W Jones

SECRETARY:

Mrs D K E Jones

REGISTERED OFFICE:

Advantage Accountancy & Advisory Ltd

5-7 Cathedral Road

Cardiff

CF11 9HA

REGISTERED NUMBER:

04636503 (United Kingdom)

SENIOR STATUTORY AUDITOR:

Stephen John Bickerton

AUDITORS:

Advantage Accountancy & Advisory Ltd

Chartered Certified Accountants

and Statutory Auditors

Avalon House

5-7 Cathedral Road

Cardiff

CF11 9HA

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

REVIEW OF BUSINESS

The financial year proved to be hugely successful for the business, both operationally and financially, following continued growth, the majority of which centred around works on the A465 Heads of the Valleys road scheme for FCC. Having noted the above, the upcoming financial year will prove a little more challenging due to the contracts ending on this scheme in June 2025. The directors have already secured and will continue to seek additional contracts with new and existing clients to coincide with this.

Turnover has increased from £12,130,478 to £15,231,327 in the year, with a resultant net profit increase from £1,905,080 to £2,098,965. Whilst this represents a slight fall in net profit percentage (15.7% to 13.8%) it still represents a very successful year for the business. The full results for the period are detailed further in the financial statements and accompanying notes.

The acquisition of new plant & equipment, as well as ongoing maintenance of the existing asset base has continued throughout the year to ensure service levels are maintained. A significant proportion of the larger assets are financed, but the level of borrowing against the value of the asset base continues to fall, with a large number of agreements also coming to an end in the next 12 months.

PRINCIPAL RISKS AND UNCERTAINTIES

There are several risks that we are subject to and we aim to plan around these to mitigate their impacts upon the business. The majority of the larger contracts we have carried out over the last few years have been local government contracts, as Welsh government policies were aimed at improving public transport (Metro, Active travel Schemes). Wecontinue to look at diversification, both into other sectors and into other geographical locations.

Rising interest rates and other monetary policy changes are seen as potential threats given the asset base required for the business, although the current strong financial position and reduced gearing ratios do mitigate such concerns.

FUTURE DEVELOPMENTS

As discussed above, the main aim of the company for the next 12 months is to secure new contract work following the completion of the Heads of the Valleys contract in June 2025. This will hopefully from additional work with existing clients and also from new clients.

The majority of the workforce are subcontractors, and as such, overheads can be reduced as required, as we do anticipate that there will be a temporary drop in turnover. Similarly, some of the asset base will be sold where appropriate, allowing new machinery to be acquired based on te requirements of new work secured.

We expect that new contracts will be secured over the next 12 months, and that turnover should start to grow again from the 2027 financial year.

ON BEHALF OF THE BOARD:

Mr G T Jones - 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 the provision of site clearance, fencing, civil engineering and plant hire services.

DIVIDENDS

The total distribution of dividends for the year ending 31 January 2025 will be £241,040 (2024: £215,180).

RESEARCH AND DEVELOPMENT

No significant research and development activities were undertaken during the period ending 31 January 2025 (2024: £nil).

FUTURE DEVELOPMENTS

Please refer to the fair review of the business within the strategic report.

DIRECTORS

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

Mr G T Jones

Mrs D K E Jones

Mr E W Jones

FINANCIAL INSTRUMENTS

See note 2 in relation to disclosure on financial instruments.

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

The auditors, Advantage Accountancy & Advisory Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr G T Jones - Director

30 October 2025

Opinion

We have audited the financial statements of G.T. Jones Contracting Ltd (the 'company') for the year ended 31 January 2025 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 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.

Comparative information in the financial statements is derived from the company's prior period financial statements

which were not audited.

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:

•The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

•We obtained understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: The Companies Act 2006 , UK corporate taxation laws, employment legislation and health and safety legislation.

•We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to management. We corroborated our inquiries through our review of legal correspondence.

•We assessed the susceptibility of the company's financial statements to material misstatements, including how fraud might occur. Audit procedures performed by the engagement team included:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

• understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

• performing analytical procedures to identify any unusual or unexpected relationships;

• challenging assumptions and judgements made by management in its significant accounting estimates;

• identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and

• assessing the extent of compliance with relevant laws and regulations.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware 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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters

The comparative information in relation to the year ended 31st January 2024 was not audited.

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.

Stephen John Bickerton (Senior Statutory Auditor)

for and on behalf of Advantage Accountancy & Advisory Ltd

Chartered Certified Accountants

and Statutory Auditors

Avalon House

5-7 Cathedral Road

Cardiff

CF11 9HA

30 October 2025

TURNOVER

3

15,231,327

12,130,478

Cost of sales

(10,450,854

)

(8,069,096

)

GROSS PROFIT

4,780,473

4,061,382

Administrative expenses

(1,922,850

)

(1,449,562

)

OPERATING PROFIT

5

2,857,623

2,611,820

Interest receivable and similar income

7

7,298

3,418

2,864,921

2,615,238

Interest payable and similar expenses

8

(59,747

)

(94,503

)

PROFIT BEFORE TAXATION

2,805,174

2,520,735

Tax on profit

9

(706,209

)

(615,655

)

PROFIT FOR THE FINANCIAL YEAR

2,098,965

1,905,080

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,098,965

1,905,080

FIXED ASSETS

Tangible assets

11

4,877,086

4,611,670

CURRENT ASSETS

Stocks

12

252,773

112,275

Debtors

13

4,124,671

2,889,227

Cash at bank

2,193,964

1,434,211

6,571,408

4,435,713

CREDITORS

Amounts falling due within one year

14

2,415,409

1,707,963

NET CURRENT ASSETS

4,155,999

2,727,750

TOTAL ASSETS LESS CURRENT LIABILITIES

9,033,085

7,339,420

CREDITORS

Amounts falling due after more than one year

15

(241,601

)

(472,216

)

PROVISIONS FOR LIABILITIES

17

(1,219,272

)

(1,152,917

)

NET ASSETS

7,572,212

5,714,287

CAPITAL AND RESERVES

Called up share capital

18

1

1

Retained earnings

19

7,572,211

5,714,286

SHAREHOLDERS' FUNDS

7,572,212

5,714,287

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:

Mr G T Jones - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2023

1

4,024,386

4,024,387

Changes in equity

Dividends

-

(215,180

)

(215,180

)

Total comprehensive income

-

1,905,080

1,905,080

Balance at 31 January 2024

1

5,714,286

5,714,287

Changes in equity

Dividends

-

(241,040

)

(241,040

)

Total comprehensive income

-

2,098,965

2,098,965

Balance at 31 January 2025

1

7,572,211

7,572,212

Cash flows from operating activities

Cash generated from operations

1

3,518,506

3,431,666

Interest paid

(1,409

)

(1,726

)

Interest element of hire purchase payments paid

(58,338

)

(92,777

)

Tax paid

(623,659

)

(120,346

)

Net cash from operating activities

2,835,100

3,216,817

Cash flows from investing activities

Purchase of tangible fixed assets

(1,583,738

)

(1,912,970

)

Sale of tangible fixed assets

328,942

156,000

Interest received

7,298

3,418

Net cash from investing activities

(1,247,498

)

(1,753,552

)

Cash flows from financing activities

Capital repayments in year

(445,358

)

(60,035

)

Amount introduced by directors

285,754

195,415

Amount withdrawn by directors

(427,205

)

(371,964

)

Equity dividends paid

(241,040

)

(215,180

)

Net cash from financing activities

(827,849

)

(451,764

)

Increase in cash and cash equivalents

759,753

1,011,501

Cash and cash equivalents at beginning of year

2

1,434,211

422,710

Cash and cash equivalents at end of year

2

2,193,964

1,434,211

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

2025

2024

£

£

Profit before taxation

2,805,174

2,520,735

Depreciation charges

1,145,417

956,394

Profit on disposal of fixed assets

(156,037

)

(93,581

)

Finance costs

59,747

94,503

Finance income

(7,298

)

(3,418

)

3,847,003

3,474,633

Increase in stocks

(140,498

)

-

(Increase)/decrease in trade and other debtors

(1,189,182

)

2,305

Increase/(decrease) in trade and other creditors

1,001,183

(45,272

)

Cash generated from operations

3,518,506

3,431,666

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

2,193,964

1,434,211

Year ended 31 January 2024

31.1.24

1.2.23

£

£

Cash and cash equivalents

1,434,211

422,710

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.24

Cash flow

At 31.1.25

£

£

£

Net cash

Cash at bank

1,434,211

759,753

2,193,964

1,434,211

759,753

2,193,964

Debt

Finance leases

(1,185,526

)

445,358

(740,168

)

(1,185,526

)

445,358

(740,168

)

Total

248,685

1,205,111

1,453,796

1.	STATUTORY INFORMATION

G.T. Jones Contracting Ltd is a private company, limited by shares , registered in United Kingdom. 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 Pound Sterling (£), rounded to the nearest pound.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

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 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.

Turnover

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

The majority of turnover is derived from long term contracts, with the application value being recognised within turnover each month.

Retentions are recognised within trade debtors, but are also deferred within accruals, until they are payable.

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

-

15% Straight line

Motor vehicles

-

20% Straight line

Computer equipment

-

20% Straight line

Stocks

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

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.

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.

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

Pension costs and other post-retirement benefits

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

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial Instruments

Recognition and measurement

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Debt instruments are subsequently measured at amortised cost.

Impairment

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

3.

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:

2025

2024

£

£

Rendering of services

15,231,327

12,130,478

15,231,327

12,130,478

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

201,339

49,717

Other pension costs

532

49,677

201,871

99,394

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

2025

2024

Management

4

3

2025

2024

£

£

Directors' remuneration

37,710

12,572

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

818,282

879,350

Other operating leases

91,000

66,375

Depreciation - owned assets

719,845

560,023

Depreciation - assets on hire purchase contracts

425,572

396,372

Profit on disposal of fixed assets

(156,037

)

(93,581

)

6.	AUDITORS' REMUNERATION

2025

2024

£

£

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

12,000

-

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Interest receivable

7,298

3,418

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest payable

1,409

1,726

Hire purchase

58,338

92,777

59,747

94,503

9.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

639,854

392,116

Deferred tax

66,355

223,539

Tax on profit

706,209

615,655

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

2,805,174

2,520,735

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

701,294

630,184

Effects of:

Expenses not deductible for tax purposes

4,914

2,812

Capital allowances in excess of depreciation

(66,354

)

(240,880

)

Movement in deferred tax

66,355

223,539

Total tax charge

706,209

615,655