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

The results for the group show turnover of £34.0m (2024 - £39.3m), gross profit of £8.5m (2024 - £8.6m) and a pre-tax profit of £2.7m (2024 - £3.1m). The net assets of the group at the year end were £14.1m (2024 - £12.7m).

2025 has proved to be a challenging period. With a new government elected and the uncertainty in the business world, there have been obstacles put in our way at several junctures. However there is always a requirement to move goods from A to B and that’s what we tend to excel in. We stay abreast of all and react accordingly whatever it may be.

During the year we had a major re-structuring programme which included the amalgamation of 3 related companies within the Grampian Continental family (see Note 28). This has proved to be a very successful decision and has made the group a good deal stronger.

Health and safety is a very important part of any business and we are no different. We have managed to re-appoint a QHSE manager with impeccable credentials to fill this role and take us on and develop the department and prepare for all aspects in the future.

This year has seen a number of projects finishing and contracts nearing the end, but we have endeavoured to tackle this head on and several clients have already agreed to extend their ongoing contracts with us into the future. The management team continue to run a tight ship with utilisation which has been as good as it has been for a while. The directors still have a close relationship with a number of major customers and this proves to be invaluable with a direct line to solving any problems or indeed making important decisions.

Over the last few years, we have had several iconic operational issues to report on whether it be new premises, Brexit or new workshop development but this year has been a little quieter on that front which gives the team of directors more time to focus on the day-to-day operational things.

The new government has not done anyone any favours and has cost all companies a considerable amount of money. This was a big worry this time a year ago although there does seem to be some sort of “U” turn regarding green energy which in the areas we service can only be good.

Traditionally, performance has been measured against revenue flows, profit and a healthy balance sheet: as an organisation committed to business expansion we believe our creativity, innovation and portfolio expansion will provide the stimulus for future growth and development.

Principal risks and uncertainties at present is the lack of trained personnel at a basic level, not just in the transport industry, but in all sectors we are connected with. There are continual uncertainties in the energy sector but they have eased considerably this year due to the government increasing drilling licenses within the North Sea. That said the construction industry continues to thrive and has good forecasts moving into the future.

Section 172 statement

The four directors of the group have acted in a way that they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole, and in doing so having regard (amongst other matters) to:

• the likely consequences of any decision in the long term;

• the interests of the group's employees;

• the need to foster the group's business relationships with suppliers, customers and others;

• the impact of the group's operations on the community and the environment;

• the desirability of the group maintaining a reputation for high standards of business conduct; and

• the need to act professionally and fairly between members of the group.

Section 172 considerations are embedded in Board decision making across the company and further supported by the purpose, vision, values, culture and strategy of the group.

• Our strategy is aimed at creating long term value for the stakeholders and we are proud of the reputation Grampian Continental has built since 2009.

• We are a responsible employer who cares for the safety, welfare and wellbeing of our employees. We nurture an environment in which our people can flourish and seek to grow the business profitably, legally and safely. We have high ethical standards.

• The success of the group has been built with our customers, suppliers and the local communities in which we operate. We are very aware of the environmental impact of our operations, and we embrace change that reduces our impact on the planet and our local communities. We already have electric vans in the fleet and in the very near future will look to add electric trucks, this has been an ongoing process in close contact with the main dealers and ongoing trials.

• Electric forklifts are in place, along with heat and power-controlled facility units.

• We engage responsibly with our many key stakeholders. The following section lists the key decisions that were made during the year together with how we engaged with the relevant stakeholders:

1. Management. The Directors continue to mentor and support the team members selected into management roles, whilst further developing team members with potential to further the successful family culture that has been created. In addition, new members have joined the transport ream to assist with new projects.

    

2. Identifying risk of ageing fleet. We constantly look to update the fleet with latest technology and new designs - new vehicles with aerodynamic designs, driver comfort and efficiency, be it fuel return and reliability, are at the forefront. Our method to change ageing trucks onto local work, a growing market for us, continues.

    

3. Control of costs. The ever-changing economies and issues across the globe, be it war and energy crisis, have caused fluctuating fuel prices, increased costs for consumables, along with a declining market to obtain driver workforce. All of this has given us challenges throughout the year.

    

4. Reducing carbon footprint. Grampian Continental are continuing to make improvements to achieve a reduced carbon footprint. Control of the fleet, consolidation of cargoes, latest fuel efficiency vehicles and continuation of growth to our small electric fleet of vehicles all play a part.

    

5. Technology. Driver handheld devices are the latest technology to be handed out across our driver team. This enables quicker receipt of delivery PODs, enabling us to notify and give proof of delivery asap to our customer base.

    

6. Communication. Communication is key to any business. We encourage regular team talks, toolbox meetings and up to date relevant information to be passed to our workforce.    

Examples of our overall approach to our engagement with our team is summarised in the table below:

Key performance indicators

Traditionally, performance has been measured against revenue flows, profit and a healthy balance sheet: as an organisation committed to business expansion we believe our creativity, innovation and portfolio expansion will provide the stimulus for future growth and development.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the group and company continued to be that of road haulage.

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £200,000 (2024 - £200,000). The directors do not recommend payment of a further dividend.

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

The directors do not anticipate any changes to their business plan in the foreseeable future.

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The regulated SECR energy and greenhouse gas emission sources of the UK operations of the Grampian Continental Group are reported below. The group has taken the exemption from including overseas entities.

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2025 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m of revenue, the recommended ratio for the sector.

The group continues to focus on reducing energy consumption and carbon emissions. Examples of our main measures increase the group's energy efficiency are as follows:

• We have an electric van that is used for one of our local contracts.

• We have been trialling an electric HGV truck.

• We replaced some older forklifts with new electric ones.

• We changed our yard lighting so energy efficient bulbs are now used.

• Office lighting is sensor activated so if there is no movement for a few minutes, the lights will switch off.

• Office heating is on a timer.

• Recycle bins in the office.

• Recycled water is used for the truck wash.

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 auditor of the company 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 auditor of the company is aware of that information.

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Grampian Continental Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Group Profit and Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group 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 group's and the parent company's affairs as at 31 March 2025 and of the group's profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. 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 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' Responsibilities Statement, set out on Page 6, 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 group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• UK Generally Accepted Accounting Practice;

• Companies Act 2006;

• UK and Dutch tax legislation;

• Employment legislation; and

• Drivers' Hours legislation.
  

We gained an understanding of how the group and parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, and relevant correspondence with regulatory bodies.

We assessed the susceptibility of the group’s and parent company's financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls; and

• Revenue recognition.
  

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Performing audit work procedures confirming the completeness of revenue recognised within the financial statements through reconciliation of the operations system and finance system, including review of source documents to determine whether revenue has been recognised in the correct period;

• Reviewing the level of and reasoning behind the group’s and parent company's procurement of legal and professional services;

• Performing audit work procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;

• Completion of appropriate checklists and use of our experience to assess the group's and parent company’s compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.
  

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,199,199 (2024 - £2,076,013 profit).

Grampian Continental Limited (“the parent company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 28 Albyn Place, Aberdeen, AB10 1YL. The principal place of business is Blacklaws House, Minto Drive, Aberdeen, AB12 3LW.

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 group. Monetary amounts in these financial statements are rounded to the nearest pound sterling.

The financial statements have been prepared under the historical cost convention, except for investment properties held at fair value. The principal accounting policies adopted are set out below.

The parent company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures; and

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The consolidated financial statements incorporate those of Grampian Continental Limited and its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 March 2025.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the approval of the financial statements. The directors actively manage cash flows and use cash forecasting to make informed management decisions, and have considered plausible adverse scenarios. The directors expect to operate within the terms of the debt facilities currently available and expected to be available for the foreseeable future.

On this basis, the directors continue to adopt the going concern basis in preparing the financial statements.

Turnover represents net sales from from road haulage services, excluding value added tax and is recognised in the financial statements when the group has received the right to consideration. The group usually obtains the right to consideration upon the collection of goods for delivery to the end-customer.

Other income, relating to rental income, is recognised on a straight line basis over the period of the rental term.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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

Depreciation is recognised so as to write off the cost 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 recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the profit and loss account.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Stocks relate to consumables held for internal use by the group. Stocks are stated at lower of cost and net realisable value. Cost is calculated as purchase price. Net realisable value is calculated as estimated replacement cost.

Cash and cash equivalents are basic financial assets and include cash in hand.

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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

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 assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors and bank loans, 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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

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 group’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 if, and only if, there is 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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The companies in the group operate a defined contribution pension scheme. Payments to the group's pension scheme are charged to the profit and loss account in the period to which they relate.

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 asset's 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 the profit and loss account 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 leased asset are consumed.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

The financial statements of overseas subsidiary undertakings are translated at the rate of exchange ruling at the balance sheet date. The exchange differences arising on the retranslation of opening net assets are taken directly to reserves. All other translation differences are taken to the profit and loss account.

Invoice financing

The group has a debt factoring agreement in place with the bank. Due to the nature of the agreement, the risks and rewards are still retained by the group, and therefore under FRS 102, separate presentation is appropriate.

In the application of the group’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.

Accounting for business combinations can contain significant estimation uncertainty linked to assessments over the fair value of identifiable assets and liabilities acquired as part of the combination. In completing this assessment, management have performed detailed reviews over the underlying assets and liabilities acquired to support values as well as consideration over the period in which assets and liabilities acquired are anticipated to be realised. Further details of the business combination effected in the year are outlined at note 28.

At each reporting period end date, the directors review the carrying value of goodwill and fixed asset investments to determine whether there is any indication that the balances have suffered an impairment loss. If any such indication exists, the recoverable amount of the goodwill is estimated by reference to the fair value of the cash generating unit(s) of which it is a part in order to determine the extent of the impairment loss (if any). The assessment of recoverable amount involves judgement over net sales value and future cash generation attributable to the underlying cash generating units.

An analysis of the group's turnover is as follows:

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

Their aggregate remuneration comprised:

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

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

Goodwill additions result from business acquisitions during in the year, which includes £65,544 (2024: £nil) of acquisition costs. See note 28.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Investment property comprises property held for long-term rental yields. The fair value of the investment properties were recognised at their cost of acquisition taking into account the independent valuation reports obtained at the time of purchase in 2021. The directors do not consider there has been any material change in fair value since then to the balance sheet date.

On a historical cost basis, the properties would have been included at £1,826,365 (2024: £1,826,365).

Additions result from business acquisitions during the year. See note 28.

Details of the company's subsidiaries at 31 March 2025 are as follows:

Under S479C of the Companies Act 2006, Grampian Continental Limited has provided a guarantee to NAM Consultancy Limited (SC532430), Essex International Transport Limited (SC525271) and HFM Transport Limited (SC418501), which are exempt from the requirement of this act relating to the audit of individual financial statements by virtue of S479A.

Amounts owed by group undertakings are interest free and repayable on demand.

Amounts owed on finance leases are secured against the assets to which they relate.

Amounts due to group undertakings are interest free and repayable on demand.

Amounts owed on finance leases are secured against the assets to which they relate.

Other borrowings relate to long term loan notes payable to the directors and their immediate family. These loans accrue interest of 8% and are repayable in 6 monthly instalments until October 2029.

Finance lease payments represent rentals payable by the company or group for certain 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 following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

As at 31 March 2025 included within group creditors is a pension commitment of £24,289 (2024 - £47,517).

The share capital account records the nominal value of shares issued. The Ordinary shares carry equal voting rights and no right to fixed income.

During 2019, the company introduced a share option scheme for certain employees, which provides for these employees to exercise share options in the future if certain conditions are met. The exercise of these equity settled options will generally be on a sale, change of control or listing of the business. Options may also be forfeited if the employee leaves the business before the options vest. The directors consider that the value of the share options is not material to the accounts and therefore no further disclosure is included.

The capital redemption reserve represents the par value of company shares repurchased.

The profit and loss account represents cumulative realisable profits less dividends declared.

Other reserves

Other reserves represent foreign exchange differences on the retranslation of net assets in the foreign subsidiary.

On 29 October 2024 the group acquired 100% percent of the issued capital of NAM Consultancy Ltd.

On 29 October 2024 the group acquired 100% percent of the issued capital of HFM Transport Limited.

On 29 October 2024 the group acquired 100% percent of the issued capital of Essex International Transport Ltd.

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

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Amounts contracted for but not provided in the financial statements:

Dividends totalling £200,000 (2024 - £200,000) were declared in the year in respect of shares held by the company's directors.

During the year, Grampian Continental Limited paid £13,103,648 (2024 - £nil) to directors and their immediate family for the acquisition of related party entities (see note 28). £3,275,912 (2024 - £nil) of this amount was paid in cash and, at the year-end, the remaining £9,827,736 (2024 - £nil) exists as loan notes payable. The loan notes accrue interest of 8% and are repayable in 6 monthly instalments until October 2029.

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company has taken advantage of exemptions under Financial Reporting Standard 102 s.33.1A not to disclose transactions with group undertakings as it is a parent company whose results are included in publicly available consolidated accounts.

Key management personnel are the same as directors, and therefore the company has taken advantage of the exemption not to disclose the remuneration of key personnel.

The company is controlled by the directors.