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

The primary objective and activities of the Company are as a timber merchant selling fencing, landscaping, and construction products to trade and retail. We also manufacture bespoke joinery products, and continue to have income streams from forestry services, Little Acorn Café, and property rentals.

Our key entry points to market are the retail centres at Midgley and Brigg, internet sales, and the trade sales desk based in Midgley. Geographically the business trades within an approximate 50-mile radius of the two sites.

Management continually monitors the key risks facing the company together with assessing the controls used for managing these risks. The principal risks and uncertainties facing the company are as follows:

Liquidity risk – the company manages its cash and borrowings based on forward forecasting, and within facilities provided by our bankers to meet its needs and minimise costs.

Cashflow risks – These are managed by strict management controls and the preparation and review of accurate and timely management information. Funding requirements are reviewed on a regular basis with supplier and customer terms and stock levels agreed to minimise working capital needs.

Credit risk – As the company’s exposure to individual customers is low, the risk of customer losses having a major impact is relatively small. The company works hard to maintain strong relationships with existing key customers. In addition, the company has set guidelines to ensure that the sale of goods & services takes place to customers with suitable creditworthiness and that the necessary reserves are made for doubtful debts. If a credit limit for a customer is valued by an independent valuer, this assessment is used. In cases where there is no independent credit assessment, a risk assessment of the customer’s creditworthiness is made mainly based on the customer’s financial position.

Defined benefit pension scheme - This continues to be a large draw on our investment capital and senior management time. Regulatory pressures drive increased running costs in addition to both regular and profit linked deficit reduction payments. In addition, the annual re-measurement of the scheme liabilities and related notional interest can have a significant impact on the companies financial statements year on year. The re-balancing of the scheme portfolio detailed last year was successfully completed and, in the current year, we have moved our portfolio management to the Legal and General Investment platform in order to streamline processes and reduce management fees. At the end of the year the liability on the pension scheme is £1,634k (2024: £1,685k).

Competitor pressure – management recognises the competition operating within this sector and manages the risk by prioritising a superior product, first class service throughout the business and competitive pricing coupled with quick turnaround and prompt delivery.

Key people – The ability to retain current staff and recruit new staff is crucial for the company’s future development. There is a risk that the loss of a board member, management or key person could mean that important knowledge is lost, or that the execution of the Company’s business strategy is negatively affected.

The 2024 – 2025 financial year has been another difficult one. Whilst we have had improved climatic conditions the macro-economic pressures have led to weak general demand and increased costs, which we have not been able to fully pass on to our customers. In terms of different sectors:

Retail Sales - A better year in the retail sector bolstered by good weather in most of our key trading periods. We continue to sell from two sites and offer a comprehensive mix of garden landscaping products. We have not seen a full return to budgeted levels of trading due to an extremely cautious attitude to discretionary spending by customers, especially on the larger ticket items like cabins. We have had to be very price sensitive in passing on any cost increases.

Internet Sales - We are still working with a regional based, self-managed option, where enquiries are placed online and we then finalise the product mix, price, and delivery dates via our dedicated online salesman. We have been very successful in converting online enquiries through to sales and see this as a potential growth area for the business.

Trade Sales – A slow year for nearly all our trade customers. The change of Government and uncertainty of the housing market has impacted construction projects this year. We have seen slow and delayed call offs on many sites and no real boom in the new build market.

Rental Income – In 2025 we have continued the drive for physical efficiency of the business, consolidating our footprint on the two sites and diversifying income streams by renting out buildings and floorspace no longer fully utilised. This has been a very successful project and has increased the diversity of our income streams.

Woodland Management – There have been no changes in our woodland portfolio this year. We are confident that they remain good assets to hold and we continue to investigate ways to maximise their usage and produce greater returns from them.

The Company focuses primarily on the following key performance indicators:

Turnover growth %

Gross margin after direct cost of sales %

Profit/(Loss) before tax and exceptional items

Net assets

Turnover growth percentage – The Company turnover for the year of £5,010k, which is a decline of 0.4% from last year, with small increases in the fencing centre sales offset by a decrease in Forestry. The latter is very driven by one off projects which is the main cause of the YOY fluctuations. Within the fencing centres we have seen a 5% growth in the retail sales but a 4% decrease in trade sales as described earlier.

Gross margin after direct cost of sales percentage – The gross profit declined by 2.1% to 26.3% of sales driven by the margin on purchases . Direct labour costs have decreased in the current year primarily through a reduction in headcount as we have sought to streamline our trading operations in the face of increasing employment costs.

Profit/ (Loss) before tax and exceptional items –The Company returned a net trading loss of £131k (2024 - £291k) before taxation and after charging £84k (2024 - £104k) of interest on the pension scheme liability. This is a significant improvement on the prior year.

Net assets - The Company net assets reduced by £75k (2024 - increase of £797k). The current year movement is predominantly the loss for the financial year, whereas the comparative included £993k of property revaluations and £261k in respect of actuarial gains on the defined benefit pension scheme.

Cash flow – The Company has maintained a reasonable bank position throughout the year.

Despite the trading loss recorded the company balance sheet remains healthy with positive current and total net assets.

In the opinion of management there are no non-financial key performance indicators.

The continued difficult trading conditions have justified the directors decision in 2024 to increase focus on diversifying the business income streams, as well as continuing to attack costs.

Throughout the last 12 months we have undertaken significant re-organisation of the site which has allowed us to rent out an additional 6 areas, providing a much less seasonal source of income and also reducing overhead costs. The directors intend to continue to pursue other opportunities for diversification in the next financial year.

Hopefully, the macro-economic climate will also be calmer with lower inflation, stable interest rates, and a return in customer confidence to make larger purchases.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2025.

The principal activity of the company continued to be that of forestry and home grown timber merchants, with an emphasis on the retailing of timber fencing and garden related products.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

There have been no significant events affecting the Company since the year end.

The directors are responsible for preparing the annual 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). 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; and

• 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Although the company has made trading losses for the last two years the balance sheet remains healthy with positive net current assets of £0.6m (2024 - £0.7m) and total net assets of £6.7m (2024 - £6.8m). This is further underpinned by an overdraft facility with Barclays Bank of £0.3m (2024 - £0.3m). The directors continue have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual financial statements.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Job Earnshaw & Bros.Limited (the 'company') for the year ended 30 June 2025 which comprise statement of comprehensive income, balance sheet, statement of changes in equity, statement of cash flows and notes to the financial statements, including 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 loss 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our 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.

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 in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 auditor's 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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• 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 identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

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

• tested journal entries to identify unusual transactions;

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

• investigated the rationale behind significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

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

• reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors, where applicable.

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 auditor's 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Job Earnshaw & Bros.Limited is a private company limited by shares incorporated in England and Wales. The registered office is Main Offices, Stocksmoor Road, Midgley, Wakefield, WF4 4JG.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include items at fair value. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Although the company has made trading losses for the last two years the balance sheet remains healthy with positive net current assets of £0.6m (2024 - £0.7m) and total net assets of £6.7m (2024 - £6.8m). This is further underpinned by an overdraft facility with Barclays Bank of £0.3m (2024 - £0.3m). Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rental income is recognised on a straight line basis over the duration of the rental agreement.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Amortisation charges are included within administrative expenses in the statement of comprehensive income.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Depreciation charges are included within administrative expenses in the statement of comprehensive income.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Cost is calculated using the first in first out method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The company operates a defined benefit scheme which is valued annually by third party valuers. Asset valuations are based on fair value of assets. The valuation of liabilities of the scheme are based on statistical and actuarial calculations, using various assumptions including discount rates, future salary and pension increases, life expectancy of scheme members and cash commutations. The actuarial assumptions may differ materially from actual experience due to changes in economic and market conditions, variations in actual mortality, higher or lower cash withdrawal rates and other changes in factors assessed. Any of these differences could impact the assets and liabilities recognised in the balance sheet in future periods.

In assessing whether there have been any indicators of impairment of assets the directors have considered both external and internal sources of information including market conditions, counterparty credit rating, previous experience of recoverability and where applicable the ability of the asset to be operated as planned.

The stock of the Company, by its nature, has a long life and although there are conditions which give rise to a degradation of the product (such as extremely high temperatures) the controls in place in the stock cycle are sufficient to ensure that stock write-offs are minimal. The Company uses the seconds area of its sales facility to sell product which has reduced quality but is still saleable at a positive margin. The Company is in a subsector of the market which is largely immune from fashionable trends.

The Company has access to historic sales data per stock line which is useful in determining whether a stock provision is required and makes adjustments for new products where there is no historic sales data.

The Company has a significant asset holding of freehold property which is held under a fair value model and not historic cost convention. The Company engages an independent third party valuer to value the assets on a triennial basis and the last valuation was at 30 June 2024.

In the years that an external valuation is not adopted the directors review the continuing appropriateness of the previous valuation using source data including movement in similar asset classes.

All turnover arose within the United Kingdom.

The company is of medium size and has thus claimed the exemption from disclosing in these financial statements the non-audit fees payable to the auditor.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 3 (2024 - 3).

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount credited to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the United Kingdom of 25% (2024 - 25%).

The net carrying value of tangible fixed assets includes £27,745 (2024: £49,743) in respect of assets held under finance leases or hire purchase contracts.

Included within freehold land and buildings is £4,160,693 (2024: £4,160,693) related to land.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

The finance lease creditor is secured against the assets in question.

The Company is subject to a legal charge dated 3 April 2014 whereby Barclays Bank PLC are the counterparty. The legal charge is one of a mortgage over the freehold property of 16.1 acres of land at the registered office of the Company.

The Company is subject to a debenture dated 19 September 2012 where Barclays Bank PLC is the counterparty. The legal charge is a fixed and floating charge over the undertaking and all property assets, present and future, including goodwill, book debts, uncalled share capital, buildings, fixtures and fittings and plant and machinery, is secured against all monies owed to the bank in any manner (including interest, commissions, fees and charges), either by the Company directly or where jointly held with another entity.

The Company is subject to a mortgage dated 29 June 2012 where Barclays Bank PLC is the counterparty. The legal charge against the land lying to the west of the registered office of the Company is secured against all monies due to the bank in any manner whatsoever.

The finance lease creditor is secured against the assets in question.

Finance lease obligations represent rentals payable by the company for certain items of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The obligation under finance lease and hire purchase contracts are secured by a charge on the assets purchased under those agreements.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability in relation to accelerated capital allowances set out above is expected to reverse over the useful lives of the assets to which the accelerated capital allowances relate.

All shares rank pari passu and have full voting rights. Each share has the right to a discretionary dividend.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £8,687 (2024 - £10,327) were payable to the fund at the balance sheet date and are included within creditors falling due within one year.

The company operates a defined benefit scheme for qualifying employees in the United Kingdom.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 9 September 2025 by Broadstone, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

Under FRS 102 the company is required to disclose the amount and timing of any future deficit contributions that it is committed to paying to the Job Earnshaw & Bros Limited Staff Pension Scheme. These contributions are in the current recovery plan agreed between the company and the pension scheme trustees.

The scheme was closed to new members in November 2003, and therefore, under the projected unit method, the current service costs will increase as the members of the scheme approach retirement. The scheme ceased all future service benefit accrual with effect from 8 November 2010.

The contributions paid for the year were £123,000 (2024: £113,000) and the expected payments in the year ending 30 June 2026 is £135,000.

Assumed life expectations on retirement at age 65:

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Profit and loss account

This reserve represents cumulative profits and losses less dividends paid. The full reserve is available for immediate distribution.

Revaluation reserve

The reserve represents the effect of historic revaluations to the owner occupied freehold property, the forestry land and the lumber yards. The reserve is not available for immediate distribution.

Capital redemption reserve

This reserve represents the historic profit on a sale of a capital item.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the Company rented units to shareholders totaling £5,490 (2024 - £5,085) and to directors totaling £983 (2024 - £949). In relation to shareholders there was £nil (2024 - £4,349) and in relation to directors there was £nil (2024 - £707) outstanding in respect of the transactions at the year-end.

During the year the Company paid consultancy fees to a shareholder totaling £nil (2024 - £18,683). There was £nil (2024 - £nil) outstanding in respect of this at the year-end.

During the year the Company incurred gross wages totaling £97,975 (2024 - £102,800), employers national insurance totaling £8,399 (2024 - £9,151) and employers pension costs of £25,533 (2024 - £20,781) in respect of key management personnel.

During the year the Company incurred wages and salaries costs of £82,113 (2024 - £74,335), employers national insurance totalling £7,561 (2024 - £5,522) and employers pension costs of £4,642 (2024 - £4,452) in respect of close family members.

The directors consider there to be no single ultimate controlling party.