REGISTERED NUMBER: 03845459 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

TONIC CONSTRUCTION LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

C R Jenkins

E Drewett

T Beach

SECRETARY:

E Drewett

REGISTERED OFFICE:

The Coach House

Berwick Bassett

Swindon

Wiltshire

SN4 9NF

REGISTERED NUMBER:

03845459 (England and Wales)

SENIOR STATUTORY AUDITOR:

Benjamin Herbert

AUDITORS:

the dt group

Chartered Accountants & Statutory Auditors

Swatton Barn

Badbury

Swindon

Wiltshire

SN4 0EU

BANKERS:

HSBC Plc

1 Marlborough Road

Swindon

Wiltshire

SN3 1QN

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

REVIEW OF BUSINESS

Tonic Construction Limited's principal activity is that of property construction and groundworks.

The results for the year and financial position are as shown in the annexed accounts. The key financial highlights are as follows:

2025

2024

2023

2022

£

£

£

£

Gross Profit

3,920,688

3,736,884

5,125,146

6,843,897

Profit before tax

1,604,390

1,381,459

2,811,907

4,770,841

Dividends

1,200,000

2,400,000

3,500,000

3,950,000

Shareholders' funds

2,672,386

2,114,144

3,270,056

4,363,212

The Directors anticipate a turbulent year in 2026 due to the uncertainty within the industry due to political and economic pressures, however it is expected that the industry will recover and thrive moving into 26/27.

Moving forward the directors are well aware of the potential risks and uncertainties within the UK economy due to global economic pressures, however, we feel that the construction industry is well placed with the continued need for housing stock in the UK.

The directors intend to continue with operations in the same geographical area, finding benefits to the company through fuel savings and transport costs.

The accounts reflect a increase in turnover of 18.8% (2024 decrease 8.3%), producing a gross margin of 12.1% (2024 13.7%). The company are pleased to report profits before tax of £1.60m. During the year £1,2m of dividends were paid to the parent company to assist with the parent company funding its Employee Ownership Trust.

Sustaining healthy margins is still paramount and the target for the company. Net profit is only achieved through strong management/workforce and tight controls over spending, credit control and procurement buying power.

PRINCIPAL RISKS AND UNCERTAINTIES

The financial risk management objectives of the company in relation to financial instruments are set by the board of directors with a view to minimising its exposure to price risk, credit risk, liquidity risk and cashflow risk.

With these risks and uncertainties in mind, the directors are aware that plans for the future development of the business may be subject to unforeseen events outside of their control.

The key performance indicators of the company are turnover and gross profit percentage. The company has a very good nucleus of personnel and management which are together maintaining production and growth, which in turn has retained profitability.

The directors are pleased to have secured and commenced work on some new projects in the early part of the current year, as well as making good progress with ongoing projects within the South West. The business is also very fortunate to work with growing clients which also promotes natural expansion within our business.

The main risk to the company would be a downturn in the housing market, although recent UK reports confirm the need for more housing in the UK, and this is evident from the financial statements.

There are sufficient funds available for ongoing operations and future developments in the form of bank balances and cash.

GOING CONCERN

The directors have considered forecasts for a period extending to at least twelve months from the date of approval of these financial statements. The directors are satisfied that those forecasts, which take into account trading performance, provide a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the company continues to adopt the going concern basis.

ON BEHALF OF THE BOARD:

E Drewett - Director

16 December 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 property construction and groundworks.

DIVIDENDS

Dividends totalling £1,200,000 were paid during the year ended 31 March 2025.

FUTURE DEVELOPMENTS

The directors are pleased with the results for the year, however they anticipate some challenging times ahead due to the uncertainty and risks that have been caused by global pressures.

DIRECTORS

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

C R Jenkins

E Drewett

T Beach

Other changes in directors holding office are as follows:

D L Iles - resigned 16 October 2024

A J Iles - resigned 16 October 2024

I P Jones - resigned 1 July 2024

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, trade debtors, trade creditors and finance lease agreements. The main purpose of these instruments are to raise funds for the company's operations and to finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of banking facilities.

The company is a lessee in respect of finance leased assets. The interest rate on these loans from financial institutions and the monthly repayments are fixed. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet liabilities as they fall due.

CHARITABLE DONATIONS AND EXPENDITURE

During the year the company paid amounts of a charitable nature of £6,407

DIRECTORS' QUALIFYING THIRD PARTY INDEMNITY PROVISION

The company has granted an indemnity to its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such a qualifying third party indemnity provision remains in force as at the date of approving the director's report.

DISCLOSURE IN THE STRATEGIC REPORT

The business review disclosure has been included in the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, the dt group, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

E Drewett - Director

16 December 2025

Opinion

We have audited the financial statements of Tonic Construction Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework and the Companies Act 2006 and the relevant tax compliance regulations in the UK.

- We understood how Tonic Construction Limited is complying with those frameworks by making enquiries of management, Internal Audit, those responsible for legal and compliance procedures and the company Directors. We corroborated our enquiries through our review of board minutes and papers provided by the Company.

- We assessed the susceptibility of the Company's financial statements to material misstatements, including how fraud might occur by meeting with management from various parts of the business to understand where it considered there was a susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage earnings. We considered the programmes and controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud, and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud and error.

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved journal entry testing, with a focus on large or unusual transactions based on our understanding of the business, and focused testing, as referred to in the key audit matters section above. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the requirements of the relevant accounting standards.

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.

Benjamin Herbert (Senior Statutory Auditor)

for and on behalf of the dt group

Chartered Accountants & Statutory Auditors

Swatton Barn

Badbury

Swindon

Wiltshire

SN4 0EU

16 December 2025

TURNOVER

3

32,331,966

27,195,639

Cost of sales

28,411,278

23,458,755

GROSS PROFIT

3,920,688

3,736,884

Administrative expenses

2,409,954

2,434,058

OPERATING PROFIT

5

1,510,734

1,302,826

Interest receivable and similar income

96,925

86,304

1,607,659

1,389,130

Interest payable and similar expenses

7

3,269

7,671

PROFIT BEFORE TAXATION

1,604,390

1,381,459

Tax on profit

8

(153,852

)

137,371

PROFIT FOR THE FINANCIAL YEAR

1,758,242

1,244,088

PROFIT FOR THE YEAR

1,758,242

1,244,088

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,758,242

1,244,088

FIXED ASSETS

Tangible assets

10

257,821

339,554

CURRENT ASSETS

Debtors

11

5,464,366

3,694,722

Cash at bank

1,957,673

2,872,829

7,422,039

6,567,551

CREDITORS

Amounts falling due within one year

12

4,955,685

4,708,061

NET CURRENT ASSETS

2,466,354

1,859,490

TOTAL ASSETS LESS CURRENT LIABILITIES

2,724,175

2,199,044

CREDITORS

Amounts falling due after more than one year

13

-

(16,900

)

PROVISIONS FOR LIABILITIES

17

(51,789

)

(68,000

)

NET ASSETS

2,672,386

2,114,144

CAPITAL AND RESERVES

Called up share capital

18

550

550

Capital redemption reserve

19

450

450

Retained earnings

19

2,671,386

2,113,144

SHAREHOLDERS' FUNDS

2,672,386

2,114,144

The financial statements were approved by the Board of Directors and authorised for issue on 16 December 2025 and were signed on its behalf by:

E Drewett - Director

C R Jenkins - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

550

3,269,056

450

3,270,056

Changes in equity

Dividends

-

(2,400,000

)

-

(2,400,000

)

Total comprehensive income

-

1,244,088

-

1,244,088

Balance at 31 March 2024

550

2,113,144

450

2,114,144

Changes in equity

Dividends

-

(1,200,000

)

-

(1,200,000

)

Total comprehensive income

-

1,758,242

-

1,758,242

Balance at 31 March 2025

550

2,671,386

450

2,672,386

Cash flows from operating activities

Cash generated from operations

1

101,204

2,305,265

Interest paid

-

(199

)

Interest element of hire purchase payments paid

(3,269

)

(7,472

)

Tax paid

188,605

(434,627

)

Net cash from operating activities

286,540

1,862,967

Cash flows from investing activities

Purchase of tangible fixed assets

(27,461

)

(64,581

)

Sale of tangible fixed assets

346

955

Interest received

96,925

86,304

Net cash from investing activities

69,810

22,678

Cash flows from financing activities

Capital repayments in year

(73,407

)

(95,378

)

Amount introduced by directors

1,901

-

Amount withdrawn by directors

-

(2,247

)

Equity dividends paid

(1,200,000

)

(2,400,000

)

Net cash from financing activities

(1,271,506

)

(2,497,625

)

Decrease in cash and cash equivalents

(915,156

)

(611,980

)

Cash and cash equivalents at beginning of year

2

2,872,829

3,484,809

Cash and cash equivalents at end of year

2

1,957,673

2,872,829

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

2025

2024

£

£

Profit before taxation

1,604,390

1,381,459

Depreciation charges

108,737

85,002

Loss on disposal of fixed assets

112

186

Finance costs

3,269

7,671

Finance income

(96,925

)

(86,304

)

1,619,583

1,388,014

Increase in trade and other debtors

(1,626,155

)

(513,708

)

Increase in trade and other creditors

107,776

1,430,959

Cash generated from operations

101,204

2,305,265

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

1,957,673

2,872,829

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

2,872,829

3,484,809

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

2,872,829

(915,156

)

1,957,673

2,872,829

(915,156

)

1,957,673

Debt

Finance leases

(90,307

)

73,407

(16,900

)

(90,307

)

73,407

(16,900

)

Total

2,782,522

(841,749

)

1,940,773

1.	STATUTORY INFORMATION

Tonic Construction 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 Company Information page.

The presentation currency of the financial statements is the Pound 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. The financial statements have been prepared under the historical cost convention.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

The financial statements contain information about Tonic Construction Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, A J Iles Holdings Limited, The Coach House, Berwick Bassett, Swindon, Wiltshire, SN4 9NF.

RELATED PARTY EXEMPTION

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

TURNOVER

Turnover represents the amounts of certified turnover supported by payment certificates, from job contracts that were in progress during the year, excluding value added tax. For long term contracts, refer to the stock and work in progress accounting policy below.

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.

Improvements to property

-

10% straight line basis

Plant and machinery

-

25% straight line basis

Fixtures and fittings

-

25% straight line basis

Computer equipment

-

25% straight line basis

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HIRE PURCHASE AND LEASING COMMITMENTS

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

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

STOCK AND WORK IN PROGRESS

Stock and work in progress is valued at the lower of cost and net realisable value.

In the case of long term contracts, the cumulative turnover is compared with total payments on account. If turnover exceeds payments on account an 'amount recoverable on contracts' is established and separately disclosed within debtors. If payments on account are greater that turnover to date, the excess is classified as a deduction from any balance on that contract in stock and work in progress, with any residual balance in excess of cost being classified as creditors.

3.

TURNOVER

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

The total turnover of the company has been derived from its principal activity wholly undertaken in the UK.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

5,756,227

4,621,319

Social security costs

682,193

553,228

Other pension costs

162,519

170,244

6,600,939

5,344,791

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

2025

2024

Management

4

6

Administration

17

15

Workforce

81

63

102

84

2025

2024

£

£

Directors' remuneration

443,560

626,073

Directors' pension contributions to money purchase schemes

55,987

97,824

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

Money purchase schemes

4

5

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

151,610

179,391

Pension contributions to money purchase schemes

-

(50

)

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Other operating leases

73,600

63,600

Depreciation - owned assets

44,579

43,347

Depreciation - assets on hire purchase contracts

64,157

41,657

Loss on disposal of fixed assets

112

186

6.	AUDITORS' REMUNERATION

2025

2024

£

£

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

13,865

15,350

Auditors' remuneration for non audit work

6,060

6,275

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

-

199

Hire purchase

3,269

7,472

3,269

7,671

8.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

426,390

325,172

Adjustment prior years

(564,031

)

(186,632

)

Total current tax

(137,641

)

138,540

Deferred tax

(16,211

)

(1,169

)

Tax on profit

(153,852

)

137,371

UK corporation tax has been charged at 25% (2024 - 25%).

RECONCILIATION OF TOTAL TAX (CREDIT)/CHARGE INCLUDED IN PROFIT AND LOSS

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

2025

2024

£

£

Profit before tax

1,604,390

1,381,459

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

401,098

345,365

Effects of:

Expenses not deductible for tax purposes

4,859

6,360

Depreciation in excess of capital allowances

20,433

5,390

Group relief

-

(31,943

)

Deferred tax

(16,211

)

(1,169

)

Over provision from prior years

(564,031

)

(186,632

)

Total tax (credit)/charge

(153,852

)

137,371

9.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

1,200,000

2,400,000