REGISTERED NUMBER: 05164860 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

FOR

KIERNAN HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr P A Kiernan

Mrs C J Kiernan

Mrs S C Warner

Mrs J M Thompson

Mr J D Eccles

Mr P Kiernan

SECRETARY:

Mrs C J Kiernan

REGISTERED OFFICE:

Rowan House

8 Rough Hey Road

Ribbleton

Preston

Lancashire

PR2 5AR

REGISTERED NUMBER:

05164860 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Statutory Auditor

17 St Peters Place

Fleetwood

Lancashire

FY7 6EB

The directors present their strategic report of the company and the group for the year ended 30 June 2025.

REVIEW OF BUSINESS

The current results are an expected improvement on the previous year. The business is still challenged by inflationary movements, climate and government uncertainty and general economic pressures. Kiernan's have used a strategy to manage its risk exposure and to focus on the best opportunities available. This approach has proved effective, and the company future is now secure with a return to past turnover levels and projected growth year on year predicted.

The 12 months to June 2025 were satisfactory for the company following previous challenging periods felt by the group and the industry as a whole. Foundations have been laid for ongoing productivity and efficiency gains. A strengthened and motivated management team and tough decision-making have meant that we are performing well for 2025-2026, with turnover and margins already ahead of the business plan. We are pleased to have been able to prioritise our strong customer relationships despite the inflationary environment and market conditions of previous years and as a result, already secured turnover of c.£15m.

As a family-owned business with a history spanning more than 50 years this return to expected levels of turnover/profitability, helped by the transition to a more selective approach to the projects we work on, and a diversified workload will see Kiernan's take a prominent role in its sector. There are a number of opportunities ahead that will continue to project the business growth over the next 12 months and beyond. The business leads with our reputation of quality, customer experience, and steadfast reliability. Our focus remains on enhancing capability to meet changing consumer trends and deliver productivity, to ensure Kiernan's is well placed for future progress. Our future success is backed by the continued achievement of BS EN ISO 9001:2015 Quality Management Systems and BS EN ISO 45001:2018 OH&S Management Systems with a BSI accredited assessor, which will give all our customers confidence in the processes and outcomes of the work we undertake.

The group has continued to invest in the future by providing a comprehensive employee training programme. We have also invested heavily in sustainable assets and products and continue to do so, in an effort to help the group reach its goal of net zero carbon footprint.

The group's principal activities during the year continued to be building, civil engineering and the operation of a scrap metal yard. Our key financial and other performance indicators during the year were as follows:

2025

2024

Change

£'000

£'000

Turnover

27,189

17,001

60.0%

Gross Profit

3,623

1,614

124%

Profit After Tax

1,533

240

539%

Equity Shareholders' Funds

8,227

7,024

17.1%

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties are the potential adverse global economic issues within the construction industry, along with wider global economic problems linked to worldwide conflicts. Other key business risks are the competition in the market place, rising costs and potential litigation and disputes arising on contracts.

ON BEHALF OF THE BOARD:

Mrs C J Kiernan - Director

1 December 2025

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

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of construction activities and operation of a scrap metal recycling plant.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

A Ordinary £1

-

£6000

B Ordinary £1

-

£6000

E Ordinary £1

- £7450.10

F Ordinary £1

- £3174.10

G Ordinary £1

- £6077.948

H Ordinary £1

- £4252.70

The total distribution of dividends for the year ended 30 June 2025 will be £ 329,548 .

FUTURE DEVELOPMENTS

The directors do not envisage any significant changes in the way the group operates in the foreseeable future.

DIRECTORS

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

Mr P A Kiernan

Mrs C J Kiernan

Mrs S C Warner

Mrs J M Thompson

Mr J D Eccles

Mr P Kiernan

Other changes in directors holding office are as follows:

Mr G Jennings - resigned 30 April 2025

FINANCIAL INSTRUMENTS

The company's and group's exposure to price risk, credit risk, liquidity risk and cash flow risk is monitored by the directors and appropriate procedures are implemented accordingly.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mrs C J Kiernan - Director

1 December 2025

Opinion

We have audited the financial statements of Kiernan Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 June 2025 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 five, 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 group's and the parent 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 group or the parent 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:

Based on our understanding of the entity and the industry in which it operates, we are required to identify principal risks of non-compliance with laws and regulations that could have a material impact on the financial statements. This includes general regulatory requirements applicable to construction sites and scrap yards, such as relevant health and safety obligations, as well as the requirements of the Companies Act 2006, which directly influence the preparation of the financial statements.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal fraud risks related to the posting of inappropriate journals and the manipulation of accounting estimates in order to influence reported profitability. Significant accounting estimates susceptible to management bias include the valuation of work-done receivables.

Audit procedures performed in order to mitigate the risks highlighted include the following:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud.

- Evaluation of the design and implementation of the management's controls to prevent and detect irregularities.

- Reviewing key correspondence with regulatory authorities in relation to compliance with relevant regulations.

- Challenging assumptions and judgements made by the management as well as explanations given.

- Identifying and testing journal entries, in particular those posted with unusual account combinations.

- Testing specific procedures and amounts based around work in progress and contract income receivable.

There are limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Charles Bryning FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor

17 St Peters Place

Fleetwood

Lancashire

FY7 6EB

1 December 2025

TURNOVER

27,189,450

17,000,613

Cost of sales

23,566,585

15,387,095

GROSS PROFIT

3,622,865

1,613,518

Administrative expenses

1,701,103

1,450,876

1,921,762

162,642

Other operating income

166,778

180,273

OPERATING PROFIT

4

2,088,540

342,915

Interest receivable and similar income

47,769

18,044

2,136,309

360,959

Interest payable and similar expenses

5

88,491

38,583

PROFIT BEFORE TAXATION

2,047,818

322,376

Tax on profit

6

514,728

82,373

PROFIT FOR THE FINANCIAL YEAR

1,533,090

240,003

OTHER COMPREHENSIVE INCOME

Fair value reserve movement

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,533,090

240,003

Profit attributable to:

Owners of the parent

1,533,090

240,003

Total comprehensive income attributable to:

Owners of the parent

1,533,090

240,003

FIXED ASSETS

Tangible assets

9

4,449,393

4,621,451

Investments

10

-

-

Investment property

11

-

-

4,449,393

4,621,451

CURRENT ASSETS

Stocks

12

188,669

245,293

Debtors

13

7,465,502

4,071,344

Cash at bank and in hand

2,643,419

2,145,406

10,297,590

6,462,043

CREDITORS

Amounts falling due within one year

14

(5,536,438

)

(2,942,694

)

NET CURRENT ASSETS

4,761,152

3,519,349

TOTAL ASSETS LESS CURRENT LIABILITIES

9,210,545

8,140,800

CREDITORS

Amounts falling due after more than one year

15

(450,455

)

(587,980

)

PROVISIONS FOR LIABILITIES

18

(532,641

)

(528,914

)

NET ASSETS

8,227,449

7,023,906

CAPITAL AND RESERVES

Called up share capital

19

25,080

25,080

Retained earnings

20

8,202,369

6,998,826

SHAREHOLDERS' FUNDS

8,227,449

7,023,906

The financial statements were approved by the Board of Directors and authorised for issue on 1 December 2025 and were signed on its behalf by:

Mr P A Kiernan - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

25,001

25,001

Investment property

11

2,209,411

2,209,411

2,234,412

2,234,412

CURRENT ASSETS

Debtors

13

750,143

723,309

Cash at bank

250

10

750,393

723,319

CREDITORS

Amounts falling due within one year

14

(2,521,114

)

(2,299,832

)

NET CURRENT LIABILITIES

(1,770,721

)

(1,576,513

)

TOTAL ASSETS LESS CURRENT LIABILITIES

463,691

657,899

CAPITAL AND RESERVES

Called up share capital

19

25,080

25,080

Retained earnings

438,611

632,819

SHAREHOLDERS' FUNDS

463,691

657,899

Company's profit for the financial year

135,340

174,918

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 1 December 2025 and were signed on its behalf by:

Mr P A Kiernan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2023

25,080

7,093,402

7,118,482

Changes in equity

Dividends

-

(334,579

)

(334,579

)

Total comprehensive income

-

240,003

240,003

Balance at 30 June 2024

25,080

6,998,826

7,023,906

Changes in equity

Dividends

-

(329,548

)

(329,548

)

Total comprehensive income

-

1,533,090

1,533,090

Balance at 30 June 2025

25,080

8,202,368

8,227,448

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2023

25,080

792,480

817,560

Changes in equity

Dividends

-

(334,579

)

(334,579

)

Total comprehensive income

-

174,918

174,918

Balance at 30 June 2024

25,080

632,819

657,899

Changes in equity

Dividends

-

(329,548

)

(329,548

)

Total comprehensive income

-

135,340

135,340

Balance at 30 June 2025

25,080

438,611

463,691

Cash flows from operating activities

Cash generated from operations

1

1,367,120

1,323,962

Interest element of hire purchase payments paid

(88,491

)

(38,583

)

Tax paid

(1

)

(37,559

)

Net cash from operating activities

1,278,628

1,247,820

Cash flows from investing activities

Purchase of tangible fixed assets

(555,778

)

(1,088,354

)

Sale of tangible fixed assets

252,109

35,733

Interest received

47,769

18,044

Net cash from investing activities

(255,900

)

(1,034,577

)

Cash flows from financing activities

Capital repayments in year

(177,367

)

298,051

Amount introduced by directors

10,168

131,439

Amount withdrawn by directors

(27,968

)

(130,168

)

Equity dividends paid

(329,548

)

(334,579

)

Net cash from financing activities

(524,715

)

(35,257

)

Increase in cash and cash equivalents

498,013

177,986

Cash and cash equivalents at beginning of year

2

2,145,406

1,967,420

Cash and cash equivalents at end of year

2

2,643,419

2,145,406

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

2025

2024

£

£

Profit before taxation

2,047,818

322,376

Depreciation charges

605,489

563,959

(Profit)/loss on disposal of fixed assets

(129,763

)

4,180

Finance costs

88,491

38,583

Finance income

(47,769

)

(18,044

)

2,564,266

911,054

Decrease/(increase) in stocks

56,624

(35,447

)

(Increase)/decrease in trade and other debtors

(3,370,369

)

3,075,810

Increase/(decrease) in trade and other creditors

2,116,599

(2,627,455

)

Cash generated from operations

1,367,120

1,323,962

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 30 June 2025

30/6/25

1/7/24

£

£

Cash and cash equivalents

2,643,419

2,145,406

Year ended 30 June 2024

30/6/24

1/7/23

£

£

Cash and cash equivalents

2,145,406

1,967,420

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/24

Cash flow

At 30/6/25

£

£

£

Net cash

Cash at bank and in hand

2,145,406

498,013

2,643,419

2,145,406

498,013

2,643,419

Debt

Finance leases

(1,146,266

)

177,367

(968,899

)

(1,146,266

)

177,367

(968,899

)

Total

999,140

675,380

1,674,520

1.	STATUTORY INFORMATION

Kiernan Holdings 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 General Information page.

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.

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 as modified by the revaluation of certain assets.

During the financial year ending 30th June 2025 Kiernan Holdings Limited reported a negative current asset balance of £1,770,720, (2024 £1,576,513). This is due to intercompany loans, the directors have confirmed that Kiernan Construction Limited and Rowan Scrap Metals Ltd will provide continued support and therefore believe it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.

While this negative current asset balance impacts Kiernan Holdings Limited individual financial position, the group as a whole maintains sufficient liquidity and resources to support the subsidiary if necessary. The group's consolidated current ratio remains within acceptable levels, ensuring adequate coverage of short-term obligations across all entities within the group.

Basis of consolidation

The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 30 June 2025. The results of subsidiaries sold or acquired are included in the profit and loss account up to or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation.

Turnover

Turnover comprises the value of work performed, goods sold and services provided excluding Value Added Tax. Amounts in respect of contracts included in turnover, net of payments received on account, are shown in debtors as amounts recoverable on contracts. Cash received in excess of the value of work done is shown in creditors as payments on account.

In respect of long-term contracts and contracts for ongoing services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for ongoing services is recognised by reference to the stage of completion. An appropriate proportion of the anticipated contract profit is recognised in the profit and loss account based on the stage of completion of the work done and the expected end life outcome.

Provision is made for anticipated contract losses. Pre-contract costs incurred before it is virtually certain that a contract will be awarded are charged to the profit and loss account. Once virtually certain of a contract award, costs are held as amounts recoverable on contracts and form part of the accounting for the contract as a whole.

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% on reducing balance and at variable rates on reducing balance

Fixtures and fittings

-

33% on cost and 25% on cost

Motor vehicles

-

25% on reducing balance

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life. The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

No depreciation is provided for on Freehold property. While this represents a departure from the requirements of the Companies Act management has concluded that the financial statements present fairly the entity's financial position, financial performance and cash flows. Freehold property is instead shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition, as follows:

Raw materials, consumables and goods for resale - purchase cost on a first-in, first out basis

Work in progress and finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

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

All interest-bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable to the bank (including interest). After initial recognition they are measured at amortised cost using the effective interest rate method, less impairment. The effective interest rate amortisation is included in finance revenue in the income statement.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Fixed asset investments

Fixed asset investments are stated at cost less provision for diminution in value

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,735,329

2,550,270

Social security costs

303,743

271,973

Other pension costs

55,549

51,723

3,094,621

2,873,966

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

2025

2024

Production

27

29

Administration

15

13

Professional

22

20

64

62

2025

2024

£

£

Directors' remuneration

166,967

163,254