REGISTERED NUMBER: 00493273 (England and Wales)

Etrickbank Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st March 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

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

17

DIRECTORS:

K E Nicholson

S M Hogarth

REGISTERED OFFICE:

Cave Castle Hotel

South Cave

Brough

East Yorkshire

HU15 2EU

REGISTERED NUMBER:

00493273 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

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

FAIR REVIEW OF THE BUSINESS

During the year ended 31 March 2025 the company reported an increase in turnover of £300k, which is an 7.4% increase on the previous year.

Despite significant efficiency savings, total operating costs have increased by £30,000, due to a combination of general inflation and the significant rise in wages brought about by an unprecedented increase to the national minimum wage.

At 31 March 2025 shareholders funds totalled £2.45 million and the company has net current liabilities of £2,930k due to the re-classification of bank borrows to current liabilities.

As a result of improved trading and better cost control, the company has managed to report an operating profit of £31,000; an improvement of £275,000 versus the operating loss reported a year previously of £244,000.

The directors and senior management are working tirelessly to address the adverse gap between EBITDA and debt servicing. 2025 has seen the early benefits of the efforts put in by the entire term, with further improvements projected to continue in the years ahead.

The Company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2025

2024

Turnover

£

4,364,886

4,064,482

Gross profit

£

1,535,911

1,391,980

Gross margin %

%

35

34

EBITDA

£

171,010

(97,414

)

PRINCIPAL RISKS AND UNCERTAINTIES

Management continually monitor the key risks facing the company together with assessing the controls used managing these risks.

The principal risks and uncertainties facing the company are as follows:

Going concern - the company's financial performance for the year was significantly impacted by the economic conditions, particularly the rise in the prices of goods and services caused by high inflation. The directors are continually monitoring the economic conditions and are confident that the company will return to net profitability in the next financial year.

Financial risk - financial risk is managed specifically by regular management meetings and the preparation and monitoring of monthly management accounts.

Economic conditions - the company acknowledges the importance of monitoring the economic conditions, and including inflation and interest rates, to be able to identify the potential impact on the company.

Reliance on key suppliers - the company's purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressure. The company manages this risk by ensuring there is enough breadth in its supplier bases by constantly seeking to find potential alternative suppliers that may be used if necessary.

Loss of key personnel - this would present significant operational difficulties, for the company. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised. Staff are continuously kept up to date on new policies and procedures and the company encourages staff development.

Tourist industry - the company's activities are based around the business and tourist trade. At present the tourist industry in the United Kingdom faces several challenges. The directors continue to believe that growth can be achieved thorough maintaining high standards throughout the hotel for both the business and tourist trade.

ON BEHALF OF THE BOARD:

S M Hogarth - Director

19th December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the Company is the operation of a hotel and country club.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2025.

DIRECTORS

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

K E Nicholson

S M Hogarth

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, bank loans, hire purchase, trade

creditors and loans with related companies. The main purpose of these instruments is to raise funds for the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price or currency risk.

The company's approach to managing other risks applicable to the financial instruments is detailed below.

PRICE RISK, CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK

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

The company's main bank account, bank loan and loan from related company are used to fund the enhancement and maintenance of the property, as well as finance the principal trading activity. In respect of the loan from a financial institution the repayment terms and interest rates are determined by the financial institution and the company monitors its' cash flow to ensure it meets the repayments as the fall due.

The loan from the related company is interest free and will be repaid only when surplus funds are available.

Hire purchase is used to fund the acquisition of some fixed assets.

FUTURE DEVELOPMENTS

The effects of recent global events on trading have been well managed to ensure that a satisfactory financial performance has continued whilst going concern has not been adversely impacted in the current reporting period.

GOING CONCERN

During the year ended 31 March 2025 the company reported an increase in turnover of £300k, which is a 7.4% increase on the previous year. However, despite significant efficiency savings, costs have marginally increased due to general inflation and rising wage costs faced by the hospitality industry. As a result, the company has recorded a further loss for the year. The loss has however significantly reduced as a result of operational changes implemented by management. The company reported a loss before tax for the year of £109,781 (2024 £408,050). Further improvements to profitability are projected into 2026, despite the further challenges brought about by increases to National Insurance and further increases to the National Minimum Wage.

At 31 March 2025 shareholders’ funds totalled £2.45 million and the company reported net current liabilities of £2,930k. Reported net current liabilities now includes a significant amount of bank debt on facilities which expired shortly after the year end. Net liabilities also includes a net amount owed to the company by related parties of £2,270k. The Company’s overdraft renewed on 16 July 2025.

The directors are working closely with the company's bankers, who are provided with significantly improved management information and the current business plan, which is underpinned by a focus on sales improvement and cost control initiatives.

The directors are currently negotiating a new bank loan facility following the expiry of the existing term loan facility in September 2025. A temporary facility has been put in place until March 2026 whilst the terms of a permanent facility are agreed. The ongoing operations of the company are reliant upon suitable bank loan facilities or replacement financing being in place. The directors fully expect to agree a renewal of the facilities in due course but at the date of approval of the financial statements, contractual facilities extending beyond the going concern assessment period are not in place. These factors indicate that a material uncertainty exists that may cast significant doubt on the entity's ability to continue as a going concern.

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, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S M Hogarth - Director

19th December 2025

Opinion

We have audited the financial statements of Etrickbank Limited (the 'company') for the year ended 31st 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 31st March 2025 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Material uncertainty related to going concern

We draw attention to Note 2 in the financial statements, which indicates that the company's continuing operations are dependent on the renewal of its bank loan facility. The existing facility expired in September 2025 and has only been renewed on a temporary basis until a permanent facility can be agreed. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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;

-reading the minutes of meetings of those charged with governance; and

-enquiring of management as to actual and potential litigation and claims.

Due to 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 statement 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 to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves 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.

Stephen Bramall BSc FCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

23rd December 2025

TURNOVER

3

4,364,886

4,064,482

Cost of sales

2,828,975

2,672,502

GROSS PROFIT

1,535,911

1,391,980

Administrative expenses

1,562,384

1,688,272

(26,473

)

(296,292

)

Other operating income

57,765

52,432

OPERATING PROFIT/(LOSS)

5

31,292

(243,860

)

Interest payable and similar expenses

6

141,073

164,190

LOSS BEFORE TAXATION

(109,781

)

(408,050

)

Tax on loss

7

-

(23,918

)

LOSS FOR THE FINANCIAL YEAR

(109,781

)

(384,132

)

LOSS FOR THE YEAR

(109,781

)

(384,132

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(109,781

)

(384,132

)

FIXED ASSETS

Tangible assets

8

5,313,200

5,452,918

Investment property

9

190,000

190,000

5,503,200

5,642,918

CURRENT ASSETS

Stocks

10

32,379

25,665

Debtors

11

2,982,914

2,933,650

Cash in hand

2,065

2,135

3,017,358

2,961,450

CREDITORS

Amounts falling due within one year

12

5,947,895

3,030,420

NET CURRENT LIABILITIES

(2,930,537

)

(68,970

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,572,663

5,573,948

CREDITORS

Amounts falling due after more than one year

13

122,312

3,013,816

NET ASSETS

2,450,351

2,560,132

CAPITAL AND RESERVES

Called up share capital

17

225,004

225,004

Revaluation reserve

18

1,752,452

1,755,698

Capital redemption reserve

18

24,996

24,996

Retained earnings

18

447,899

554,434

SHAREHOLDERS' FUNDS

2,450,351

2,560,132

The financial statements were approved by the Board of Directors and authorised for issue on 19th December 2025 and were signed on its behalf by:

S M Hogarth - Director

K E Nicholson - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1st April 2023

225,004

918,320

1,775,944

24,996

2,944,264

Changes in equity

Total comprehensive income

-

(363,886

)

(20,246

)

-

(384,132

)

Balance at 31st March 2024

225,004

554,434

1,755,698

24,996

2,560,132

Changes in equity

Total comprehensive income

-

(106,535

)

(3,246

)

-

(109,781

)

Balance at 31st March 2025

225,004

447,899

1,752,452

24,996

2,450,351

Cash flows from operating activities

Cash generated from operations

1

169,319

264,345

Interest paid

(139,189

)

(162,298

)

Interest element of hire purchase payments paid

(1,884

)

(1,892

)

Tax paid

-

(10,137

)

Net cash from operating activities

28,246

90,018

Cash flows from investing activities

Purchase of tangible fixed assets

-

(12,046

)

Net cash from investing activities

-

(12,046

)

Cash flows from financing activities

Loan repayments in year

(275,342

)

(260,446

)

Hire purchase repayments in year

(9,356

)

(9,356

)

Amount introduced by directors

20,000

25,880

Amount withdrawn by directors

(12,574

)

(37,716

)

Net cash from financing activities

(277,272

)

(281,638

)

Decrease in cash and cash equivalents

(249,026

)

(203,666

)

Cash and cash equivalents at beginning of year

2

(763,212

)

(559,546

)

Cash and cash equivalents at end of year

2

(1,012,238

)

(763,212

)

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

2025

2024

£

£

Loss before taxation

(109,781

)

(408,050

)

Depreciation charges

139,718

146,446

Finance costs

141,073

164,190

171,010

(97,414

)

(Increase)/decrease in stocks

(6,714

)

9,884

Increase in trade and other debtors

(110,037

)

(195,130

)

Increase in trade and other creditors

115,060

547,005

Cash generated from operations

169,319

264,345

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 31st March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

2,065

2,135

Bank overdrafts

(1,014,303

)

(765,347

)

(1,012,238

)

(763,212

)

Year ended 31st March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

2,135

2,334

Bank overdrafts

(765,347

)

(561,880

)

(763,212

)

(559,546

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

2,135

(70

)

2,065

Bank overdrafts

(765,347

)

(248,956

)

(1,014,303

)

(763,212

)

(249,026

)

(1,012,238

)

Debt

Finance leases

(28,072

)

9,356

(18,716

)

Debts falling due within 1 year

(275,341

)

(2,608,690

)

(2,884,031

)

Debts falling due after 1 year

(2,996,984

)

2,884,032

(112,952

)

(3,300,397

)

284,698

(3,015,699

)

Total

(4,063,609

)

35,672

(4,027,937

)

1.	STATUTORY INFORMATION

Etrickbank 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.

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 as modified by the revaluation of certain assets.

The financial statements have been prepared in sterling and are rounded to the nearest pound.

Material uncertainty related to going concern

During the year ended 31 March 2025 the company reported an increase in turnover of £300k, which is a 7.4% increase on the previous year. However, despite significant efficiency savings, costs have marginally increased due to general inflation and rising wage costs faced by the hospitality industry. As a result, the company has recorded a further loss for the year. The loss has however significantly reduced as a result of operational changes implemented by management. The company reported a loss before tax for the year of £109,781 (2024 £408,050). Further improvements to profitability are projected into 2026, despite the further challenges brought about by increases to National Insurance and further increases to the National Minimum Wage.

At 31 March 2025 shareholders’ funds totalled £2.45 million and the company reported net current liabilities of £2,931k. Reported net current liabilities now includes a significant amount of bank debt on facilities which expired shortly after the year end. Net liabilities also includes a net amount owed to the company by related parties of £2,270k. The Company’s overdraft renewed on 16 July 2025.

The directors are working closely with the company's bankers, who are provided with significantly improved management information and the current business plan, which is underpinned by a focus on sales improvement and cost control initiatives.

The directors are currently negotiating a new bank loan facility following the expiry of the existing term loan facility in September 2025. A temporary facility has been put in place until March 2026 whilst the terms of a permanent facility are agreed. The ongoing operations of the company are reliant upon suitable bank loan facilities or replacement financing being in place. The directors fully expect to agree a renewal of the facilities in due course but at the date of approval of the financial statements, contractual facilities extending beyond the going concern assessment period are not in place. These factors indicate that a material uncertainty exists that may cast significant doubt on the entity's ability to continue as a going concern.

Turnover

Turnover represents the amounts chargeable to customers for hotel services, events and leisure facilities provided during the year, excluding value added tax.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the company's activities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

straight line over 50 years

Fixtures and fittings

-

25% on reducing balance and 20% on reducing balance

With the exception of freehold property, tangible fixed assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Freehold property is included at open market value.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss account.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss has been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the profit and loss account.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated using the first in, first out (FIFO) method of valuation. Net realisable value is based on estimated selling price less costs to sell.

Financial instruments

Recognition and measurement

Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds basic financial instruments, which comprise cash, and cash equivalents, trade and other debtors, trade and other creditors and loans payable.

i) Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held with banks.

ii) Trade and other debtors

Trade and other debtors receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the company assesses whether there is objective evidence that any receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in profit or loss.

iii) Trade and other creditors

Trade and other creditors payable within one year are measured at the undiscounted amounts of the cash expected to be paid.

iv) Loans payable

Loans payable are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method.

Taxation

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measure using the rates and allowances that apply to the sale of the asset.

Pension costs and other post-retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand.

Trade debtors

Trade debtors are amounts due from customers for the sale of goods and the provision of services in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3.

TURNOVER

The turnover and loss 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

£

£

Sale of goods and services

4,364,886

4,064,482

4,364,886

4,064,482

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,953,587

1,874,569

Social security costs

129,491

108,987

Other pension costs

30,910

28,447

2,113,988

2,012,003

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

2025

2024

Management and other staff

140

162

2025

2024

£

£

Directors' remuneration

91,538

99,999

Directors' pension contributions to money purchase schemes

2,372

2,625

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

Money purchase schemes

2

2

5.	OPERATING PROFIT/(LOSS)

The operating profit (2024 - operating loss) is stated after charging:

2025

2024

£

£

Depreciation - owned assets

139,718

144,932

Auditors' remuneration

12,500

10,400

Auditors' remuneration for non audit work

2,300

2,100