REGISTERED NUMBER: NI673711 (Northern Ireland)

LILLEY'S RETAIL LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 30 June 2025

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Income Statement

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

Una Maria O'Callaghan

Sinead Rogers

Aideen Lilley

Nuala Lilley

REGISTERED OFFICE:

27 Lough Shore Road

Drumlyon

Enniskillen

Co. Fermanagh

BT74 5NH

REGISTERED NUMBER:

NI673711 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

Ulster Bank

16 Darling Street

Enniskillen

Co. Fermanagh

BT74 7ER

The directors present their strategic report for the year ended 30 June 2025.

PRINCIPAL ACTIVITIES

The principal activity of the Company in the year under review was that of a convenience and fuel retailer.

REVIEW OF BUSINESS

The Directors are satisfied with the trading performance for the year ended 30 June 2025 and the company remains in a sound financial position at the year end.

The Directors considers that the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and operating profit as provided below.

Revenue for the year has Increased from £10,733,254 in 2024 to £10,778,397. Operating profit has increased from £204,755 in 2024 to £235,976. The directors are satisfied with the results in the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks from the company's operations are business interruption, customer proposition and food and product safety. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous years.

Business Interruption

Distribution and systems infrastructures are fundamental to ensuring the normal continuity of trading in the store. If an accident occurred to this infrastructure or another key facility, this could have a detrimental impact on the company's ability to operate effectively.

Customer Proposition

We operate in a very competitive industry. Also, our customers' shopping habits are influenced by broader economic factors that our business does not control. If we fail to keep our proposition aligned with customers' expectations, then they may choose not to shop with us and sales will suffer.

Food and Product Safety

We are aware that, if we fail to deliver excellent standards of hygiene and safety in our products, there is a potential to harm our customers and damage our business reputation. Food safety is of paramount importance.

ENVIRONMENT

The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

HEALTH & SAFETY

The company is committed to achieving the highest practicable standards in health & safety management and strives to make all sites and offices safe environments for employees and customers alike.

HUMAN RESOURCES

Employees are kept as fully informed as practicable about developments within the business.

The company depends on the skills and commitment of its employees in order to achieve its objectives. Staff at every level are encouraged to make their fullest possible contribution.

Employees are kept as fully informed as practicable about developments within the business. It is the policy of the company to offer opportunities to all employees having regard to their aptitudes and abilities in relation to jobs available.

FUTURE DEVELOPMENTS

The company plans to continue its present activities and current trading levels.

ON BEHALF OF THE BOARD:

Una Maria O'Callaghan - Director

19 November 2025

The directors present their report with the financial statements of the Company for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the Company in the year under review was that of a convenience and fuel retailer.

DIVIDENDS

Interim dividends of £20,000 have been paid during the year (2024: £20,000). The directors do not recommend the payment of a final dividend (2024: £Nil).

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Una Maria O'Callaghan

Sinead Rogers

Aideen Lilley

Nuala Lilley

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025. CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in its place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Una Maria O'Callaghan - Director

19 November 2025

Opinion

We have audited the financial statements of Lilley's Retail Limited (the 'Company') for the year ended 30 June 2025 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 30 June 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report 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 Directors' Report.

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 Directors' Responsibilities Statement 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 an Auditors' Report 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

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

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

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 an Auditors' Report 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.

Mr. Desmond Kelly FCA (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

19 November 2025

TURNOVER

10,778,397

10,733,254

Cost of sales

(8,821,919

)

(8,858,093

)

GROSS PROFIT

1,956,478

1,875,161

Administrative expenses

(1,921,795

)

(1,884,660

)

34,683

(9,499

)

Other operating income

201,293

214,254

OPERATING PROFIT

6

235,976

204,755

Finance costs

7

(136,396

)

(138,442

)

PROFIT BEFORE TAXATION

99,580

66,313

Tax on profit

8

(52,762

)

(34,611

)

PROFIT FOR THE FINANCIAL YEAR

46,818

31,702

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

46,818

31,702

NON-CURRENT ASSETS

Intangible assets

10

230,000

330,000

Tangible assets

11

4,610,089

4,672,718

4,840,089

5,002,718

CURRENT ASSETS

Stocks

12

409,880

343,515

Receivables: amounts falling due within one year

13

54,877

51,699

Cash at bank and in hand

123,338

201,797

588,095

597,011

PAYABLES

Amounts falling due within one year

14

(2,920,525

)

(2,942,423

)

NET CURRENT LIABILITIES

(2,332,430

)

(2,345,412

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,507,659

2,657,306

PAYABLES

Amounts falling due after more than one year

15

(1,208,316

)

(1,253,577

)

PROVISIONS FOR LIABILITIES

18

(131,016

)

(152,050

)

DEFERRED GRANTS

19

(301,230

)

(411,400

)

NET ASSETS

867,097

840,279

CAPITAL AND RESERVES

Called up share capital

20

100

100

Revaluation reserve

21

639,329

639,329

Retained earnings

21

227,668

200,850

SHAREHOLDERS' FUNDS

867,097

840,279

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

Una Maria O'Callaghan - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 July 2023

100

189,148

639,329

828,577

Changes in equity

Profit for the year

-

31,702

-

31,702

Total comprehensive income

-

31,702

-

31,702

Dividends

-

(20,000

)

-

(20,000

)

Balance at 30 June 2024

100

200,850

639,329

840,279

Changes in equity

Profit for the year

-

46,818

-

46,818

Total comprehensive income

-

46,818

-

46,818

Dividends

-

(20,000

)

-

(20,000

)

Balance at 30 June 2025

100

227,668

639,329

867,097

Cash flows from operating activities

Cash generated from operations

1

409,204

395,026

Interest paid

(136,396

)

(138,442

)

Tax paid

(48,304

)

(45,325

)

Net cash from operating activities

224,504

211,259

Cash flows from investing activities

Purchase of tangible fixed assets

(122,754

)

(171,365

)

Sale of tangible fixed assets

10,000

-

Net cash from investing activities

(112,754

)

(171,365

)

Cash flows from financing activities

Loan repayments in year

(48,783

)

(45,071

)

Capital repayments in year

(1,725

)

(5,953

)

Amount withdrawn by directors

(78,590

)

(57,077

)

Equity dividends paid

(20,000

)

(20,000

)

Net cash from financing activities

(149,098

)

(128,101

)

Decrease in cash and cash equivalents

(37,348

)

(88,207

)

Cash and cash equivalents at beginning of year

2

107,770

195,977

Cash and cash equivalents at end of year

2

70,422

107,770

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

2025

2024

£

£

Profit before taxation

99,580

66,313

Depreciation charges

275,789

270,086

Profit on disposal of fixed assets

(406

)

-

Government grants

(110,170

)

(100,000

)

Finance costs

136,396

138,442

401,189

374,841

(Increase)/decrease in stocks

(66,365

)

17,484

Increase in trade and other debtors

(3,178

)

(102

)

Increase in trade and other creditors

77,558

2,803

Cash generated from operations

409,204

395,026

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 June 2025

30/6/25

1/7/24

£

£

Cash and cash equivalents

123,338

201,797

Bank overdrafts

(52,916

)

(94,027

)

70,422

107,770

Year ended 30 June 2024

30/6/24

1/7/23

£

£

Cash and cash equivalents

201,797

195,977

Bank overdrafts

(94,027

)

-

107,770

195,977

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/7/24

Cash flow

At 30/6/25

£

£

£

Net cash

Cash at bank and in hand

201,797

(78,459

)

123,338

Bank overdrafts

(94,027

)

41,111

(52,916

)

107,770

(37,348

)

70,422

Debt

Finance leases

(1,725

)

1,725

-

Debts falling due within 1 year

(153,473

)

3,522

(149,951

)

Debts falling due after 1 year

(1,253,577

)

45,261

(1,208,316

)

(1,408,775

)

50,508

(1,358,267

)

Total

(1,301,005

)

13,160

(1,287,845

)

1.	STATUTORY INFORMATION

Lilley's Retail Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

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 in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. The financial statements are presented in sterling which is the functional currency of the company.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods:

Revenue from sales of goods is recognised in the period in which the goods are provided. The following criteria must also be met before revenue is recognised:

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the company;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably

Goodwill

Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 5 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

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.

The Liquor Licence is not being amortised evenly over it's estimated useful life as the Directors consider it to have an indefinite useful life.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Fixtures, fittings and equipment

10% Reducing balance

Motor Vehicles

25% Reducing balance

Freehold Property

2% Straightline

The carrying values of property, plant and equipment are reviewed annually for impairment and during the period, if events or changes in circumstances indicate the carrying value may not be recoverable.

Revaluation gains arising in a year are recognised in the statement of changes in equity except to the extent that they reverse revaluation losses that were previously charged to the income statement. Revaluation losses which represent a clear consumption of economic benefit inherent in the asset are recognised in the income statement.

An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation on those assets is transferred annually from the revaluation reserve to retained earnings.

Inventories

Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation and deferred taxation

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the period and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

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.

Finance costs

Finance costs are charged to the Income Statement over the term of the debt.

Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. However, management do not believe there are any critical estimates, judgements or assumptions applied within the accounting policies.

5.	EMPLOYEES AND DIRECTORS

Staff costs, including directors' remuneration, were as follows:

2025

2024

£

£

Wages and salaries

1,061,669

1,030,391

Social security costs

65,177

65,858

Other pension costs

54,868

63,088

1,181,714

1,159,337

During the year, retirement benefits were accruing to 4 directors (2024: 4) in respect of defined benefit pension schemes. The directors of the company are considered to be key management.

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

2025

2024

80

82

2025

2024

£

£

Directors' remuneration

80,798

91,535

6.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

175,789

170,086

Profit on disposal of fixed assets

(406

)

-

Goodwill amortisation

100,000

100,000

7.	FINANCE COSTS

2025

2024

£

£

Bank loan interest

101,168

108,402

Credit card charges

35,228

30,040

136,396

138,442

8.

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

65,995

40,503

Prior year adjustment

7,801

(774

)

Total current tax

73,796

39,729

Deferred tax

(21,034

)

(5,118

)

Tax on profit

52,762

34,611

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

99,580

66,313

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

24,895

16,578

Effects of:

Expenses not deductible for tax purposes

57

53

Adjustments in respect of prior periods

7,801

(775

)

Marginal relief

-

(1,245

)

Non-relevant depreciation

20,009

20,000

Total tax charge

52,762

34,611

9.

DIVIDENDS

2025

2024

£

£

Ordinary Shares shares of £1 each

Interim

20,000

20,000