REGISTERED NUMBER: SC346549

PETER MCKERRAL & CO LTD.

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Page

Strategic Report

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

13

The results for the year and financial position of the company are as shown in the annexed financial statements. We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

Our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. They are turnover, gross margin and net assets. Turnover increased from £10.5 million for the year to March 2024 to £11.1 million for the year to March 2025. The gross profit margin rose from 24.91% last year to 25.4% this year. This is attributable to the close monitoring of costs and in particular, due to a significant reduction in fuel costs which have now decreased to 21.9% of haulage turnover (2024: 25.6%). Net assets at 31 March 2025 have increased from £5.02 million to £5.33million.

The principal risks and uncertainties facing the company are: competition from other suppliers - we feel that the service provided and scale of our operations mitigates this risk; and over reliance on one customer - we have a diverse customer base, and although there are several key customers, no one represents a serious business risk. We are however, continually finding and supplying new customers throughout the country. We constantly review fuel costs and the volatility of the labour market and their impact on the business and make any changes required to ensure the company remains competitive. Volatile economic and global pressures have a downward impact on results due to increased uncertainty.

The potential for bad debts increases as the scale of our activities increases however the customer base is strong. The potential for a serious bad debt problem is, we feel, not a significant business risk. The company continues to operate an effective credit control department and debtors are continually monitored, minimising the risk of loss. The directors will continue to monitor costs and performance, seeking further efficiency gains wherever possible.

Financial instruments

- The company has adopted the disclosure and presentational requirements of FRS 102. When a financial asset or liability is disclosed initially, it is measured at its fair value plus or minus transaction costs. The company regularly monitors its exposure to risks including pricing, credit, liquidity and cash flow.

- The company is satisfied with the level of cash flow being maintained after taking into consideration the timing aspect of payments to trade creditors and business expenses.

- The company's deposits are all in place with major UK financial institutions which are regulated by the Financial Conduct Authority.

Future developments

The company intends to continue to adopt the operating policies which have been successful in the past to ensure that existing customers continue to receive a quality service as well as finding and supplying new customers.

ON BEHALF OF THE BOARD:

P McKerral - Director

28 November 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of freight transport by road.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 291,000 .

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 April 2024 to the date of this report.

D McKerral

P McKerral

R M McKerral

C McKerral

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of financial instruments and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors, the Strategic Report and the financial statements in accordance with applicable laws 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 (Financial Reporting Standard 102 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 the affairs of the company and of the profit and 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;

- state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

P McKerral - Director

28 November 2025

Opinion

We have audited the financial statements of Peter McKerral & Co Ltd. (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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 knowledge and experience of the haulage sector;

- 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 and FRS 102, as well as those laws and regulations having an indirect impact that may have a significant effect on operations, including data protection, anti-bribery, employment, environmental, health and safety legislation, Anti-Money Laundering regulations and the requirements of the Scottish Traffic Area Operators Licence;

- 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 key accounting estimates set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions and those out with the normal course of business.

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 and the company's legal advisors.

In response to the presumed risk associated with revenue recognition, we:

- reviewed post year-end sales invoices for evidence of completeness of income;

- reviewed invoices around the year-end to obtain cut-off assurance: and

- undertook substantive transaction testing from details of jobs undertaken to ensure appropriately invoiced.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud includes intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Colette Callaghan FCCA (Senior Statutory Auditor)

for and on behalf of Armstrong Watson Audit Limited

Chartered Accountants & Statutory Auditors

Caledonia House

89 Seaward Street

Glasgow

G41 1HJ

30 November 2025

TURNOVER

3

11,088,037

10,478,105

Cost of sales

(8,272,529

)

(7,868,763

)

GROSS PROFIT

2,815,508

2,609,342

Administrative expenses

(2,009,665

)

(1,891,337

)

805,843

718,005

Other operating income

94,512

89,908

Gain/(loss) on revaluation of investments

41,552

(640

)

OPERATING PROFIT

5

941,907

807,273

Interest receivable and similar income

9,655

6,286

951,562

813,559

Interest payable and similar expenses

6

(133,724

)

(120,180

)

PROFIT BEFORE TAXATION

817,838

693,379

Tax on profit

7

(213,515

)

(203,168

)

PROFIT FOR THE FINANCIAL YEAR

604,323

490,211

FIXED ASSETS

Tangible assets

9

5,544,792

5,199,114

Investments

10

757,510

1,205,958

6,302,302

6,405,072

CURRENT ASSETS

Stocks

11

54,183

51,976

Debtors

12

2,330,395

2,188,130

Cash at bank

729,919

435,088

3,114,497

2,675,194

CREDITORS

Amounts falling due within one year

13

2,222,475

2,314,860

NET CURRENT ASSETS

892,022

360,334

TOTAL ASSETS LESS CURRENT LIABILITIES

7,194,324

6,765,406

CREDITORS

Amounts falling due after more than one year

14

(999,526

)

(1,097,446

)

PROVISIONS FOR LIABILITIES

17

(863,185

)

(649,670

)

NET ASSETS

5,331,613

5,018,290

CAPITAL AND RESERVES

Called up share capital

18

1,006

1,006

Retained earnings

19

5,330,607

5,017,284

SHAREHOLDERS' FUNDS

5,331,613

5,018,290

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

P McKerral - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

1,006

4,828,663

4,829,669

Changes in equity

Dividends

-

(301,590

)

(301,590

)

Total comprehensive income

-

490,211

490,211

Balance at 31 March 2024

1,006

5,017,284

5,018,290

Changes in equity

Dividends

-

(291,000

)

(291,000

)

Total comprehensive income

-

604,323

604,323

Balance at 31 March 2025

1,006

5,330,607

5,331,613

Cash flows from operating activities

Cash generated from operations

1

2,456,418

2,192,155

Interest element of hire purchase payments paid

(133,724

)

(120,180

)

Net cash from operating activities

2,322,694

2,071,975

Cash flows from investing activities

Purchase of tangible fixed assets

(1,189,677

)

(1,038,356

)

Sale of tangible fixed assets

620,000

865,443

Sale of fixed asset investments

490,000

-

Interest received

9,655

6,286

Net cash from investing activities

(70,022

)

(166,627

)

Cash flows from financing activities

Capital repayments in year

(1,613,592

)

(1,720,101

)

Amount introduced by directors

348,197

322,737

Amount withdrawn by directors

(401,446

)

(243,772

)

Equity dividends paid

(291,000

)

(301,590

)

Net cash from financing activities

(1,957,841

)

(1,942,726

)

Increase/(decrease) in cash and cash equivalents

294,831

(37,378

)

Cash and cash equivalents at beginning of year

2

435,088

472,466

Cash and cash equivalents at end of year

2

729,919

435,088

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

2025

2024

£

£

Profit before taxation

817,838

693,379

Depreciation charges

1,693,928

1,687,126

Profit on disposal of fixed assets

(188,349

)

(174,445

)

(Gain)/loss on revaluation of fixed assets

(41,552

)

640

Impairment loss on freehold property

155,000

-

Finance costs

133,724

120,180

Finance income

(9,655

)

(6,286

)

2,560,934

2,320,594

(Increase)/decrease in stocks

(2,207

)

2,473

Increase in trade and other debtors

(142,265

)

(299,484

)

Increase in trade and other creditors

39,956

168,572

Cash generated from operations

2,456,418

2,192,155

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

729,919

435,088

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

435,088

472,466

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/4/24

Cash flow

changes

At 31/3/25

£

£

£

£

Net cash

Cash at bank

435,088

294,831

729,919

435,088

294,831

729,919

Debt

Finance leases

(2,235,346

)

1,613,592

(1,436,580

)

(2,058,334

)

(2,235,346

)

1,613,592

(1,436,580

)

(2,058,334

)

Total

(1,800,258

)

1,908,423

(1,436,580

)

(1,328,415

)

1.	STATUTORY INFORMATION

Peter McKerral & Co Ltd. is a private company, limited by shares, registered in Scotland. The company's registered office is Darlochan Yard, Kilkenzie, Campbeltown, Argyll, PA28 6NT.

The presentation currency of the financial statements is Sterling (£).

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. There were no material departures from that standard.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Going concern

The financial statements have been prepared on a going concern basis. The validity of this is dependent on the financial performance of the company, during volatile and uncertain economic conditions, including the recoverability of debtors and the continued support of creditors. After reviewing the company's financial position and forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements

The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. In preparing these financial statements, the directors have made the following judgements:-

- Determine whether leases entered into by the company as a lessee are operating leases or hire purchase agreements. These decisions depend on the assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

- Determine whether there are any indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset concerned.

Information and key sources of estimation uncertainty

In the application of the company's accounting policies the directors are required to make estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The directors consider the key sources of estimation uncertainty to be as follows:-

- Tangible fixed assets (see note 9) are depreciated over their estimated useful lives. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as level of usage and maintenance programmes are taken into account. The directors assessed that no changes were required to the estimated useful lives of the tangible fixed assets and therefore, determined that the stated depreciation policies applied in prior years remain appropriate.

Turnover

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for haulage services rendered or for goods supplied, net of discounts and value added tax. The company's policy is to recognise a sale when substantively all the risks and rewards in connection with the goods and services have been passed to the buyer; the amount of revenue can be measured reliably; it is probable that future economic benefit will flow to the entity; and when the following specific criteria are met as described below.

Haulage income - revenue is recognised in the period in which the haulage services are provided.

Sale of hay, straw, sawdust and wood - revenue is recognised when the goods are provided to the buyer.

Service income - revenue is recognised in the period in which the services are provided.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Heritable property

-

5% on cost

Leasehold improvements

-

10% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Depreciation is charged on fixed assets from when they are brought into use.

Tangible fixed assets are included in the financial statements at cost less accumulated depreciation and accumulated impairment losses.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Stocks

Stocks, consisting of consumables for own use, are valued at cost less any provision for obsolete items.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

The charge for taxation for the period takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted by the balance sheet date.

With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in the Statement of Comprehensive Income or the Statement of Changes in Equity depending on the transaction that resulted in the tax expenses.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

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.

Rentals received under operating leases are recognised in the profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Provisions

Provisions are recognised where the company has a legal or constructive obligation at the reporting date resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Fixed asset investments

Investments in unlisted investments, being an international investment bond, are initially measured at cost less transaction costs. Subsequently, these are measured at fair value, being the price quoted by the investment manager at the balance sheet date. Changes in fair value are recognised in the Statement of Comprehensive Income.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from financial institutions and loans to and from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of future payments and subsequently, amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured initially, and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in the Statement of Comprehensive Income.

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

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

Employee benefits

Short term employee benefits are recognised as an expense in the period in which they are incurred.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Provision of services

10,838,665

10,261,896

Sale of goods

249,372

216,209

11,088,037

10,478,105

Turnover is wholly derived in the UK.

Other operating income consists of rent received of £12,400 (2024: £12,400); and renewable energy subsidies of £82,112 (2024: £77,508).

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,812,940

2,718,043

Social security costs

286,336

276,971

Other pension costs

321,023

337,284

3,420,299

3,332,298

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

2025

2024

Directors

4

4

Staff

63

65

67

69

The key management personnel of the company comprises of the directors. During the year, the total employee benefits of the key management personnel were as follows:

2025

2024

£

£

Directors' remuneration

53,746

53,471

Directors' pension contributions to money purchase schemes

66,931

108,467

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

Money purchase schemes

4

4

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

25,536

24,654

Other operating leases

77,135

60,380

Depreciation - owned assets

788,730

729,760

Depreciation - assets on hire purchase contracts

905,198

957,366

Profit on disposal of fixed assets

(188,349

)

(174,445

)

Auditor's remuneration

14,649

16,050

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Hire purchase

133,724

120,180

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Deferred tax

213,515

203,168

Tax on profit

213,515

203,168

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

817,838

693,379

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 19%)

204,460

131,742

Effects of:

Expenses not deductible for tax purposes

28,895

6,895

Capital allowances in excess of depreciation

(114,928

)

(46,512

)

Utilisation of tax losses

(118,427

)

(92,125

)

Deferred tax

213,515

203,168

Total tax charge

213,515

203,168

As at 31 March 2025, there are tax losses available for carry forward against future trading profits of approximately £981,520 (2024: £1,455,227).

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Final

288,000

295,590

A Ordinary shares of £1 each

Interim

3,000

6,000

291,000

301,590