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

Principal Activity

The principal activity of the company continued to be that of food wholesalers.

Business Review

The year ended 31st March 2025 was a challenging yet successful period for G.C. Birchall Limited, set against a highly competitive trading environment within the foodservice and wholesale sector. The market continued to experience pricing pressure, increased competition, and ongoing cost volatility, particularly in relation to labour, energy, and logistics. Despite these conditions, the company demonstrated resilience and delivered a strong financial performance.

Through a continued focus on customer service, operational efficiency, and strategic investment, the company achieved turnover growth of 5.3% for the year. This growth reflects the strength of customer relationships, the effectiveness of pricing and procurement strategies, and the company’s ability to adapt to changing market conditions.

A key development during the year was the recruitment of an IT Director, reflecting the board's commitment to strengthening the company’s ICT infrastructure, cyber security, and digital capability.

This appointment has significantly enhanced the company’s approach to ICT security risk management while also positioning the business to accelerate its use of automation and technology led solutions. Particular focus has been placed on the continued development and optimization of the company’s Ordermate platform, which is central to improving order processing, customer experience and operational efficiency.

In addition, the group completed the acquisition of a sister company in October 2024. This acquisition represented an important step in strengthening the group's market position and supporting long-term growth objectives. While the full benefits of this acquisition will be realized in future periods, the transaction provides a strong foundation for future operational and commercial benefits.

The directors are satisfied with the company’s performance in the context of a demanding trading environment and believe the business is well positioned for continued growth.

Principle risks and uncertainties

The company operates in a fast-moving consumer goods industry that remains intensely competitive.

The principal risks and uncertainties facing the company are considered to be:

• Food Inflation, impacting procurement costs.

• Energy and fuel costs, subject to market fluctuations.

• General inflation affecting overall operational expenses.

• ICT and Cyber security risk. Increased reliance on digital platforms exposes the business to cyber threats and system disruption. This risk has been mitigated through enhanced leadership, governance and investment following the appointment of the IT Director.

• Operational Risk. As the business continues to grow and integrate acquisitions, there is a risk associated with system compatibility, process alignment and execution.

• Risks associated with bad debts and the financial stability of customers.

• Recruitment challenges in a competitive labour market.

• Non-compliance with legislation and governance, posing legal and reputational risks.

By managing the business, the directors have established controls to respond to and mitigate the impact of such risks.

Financial Risk Management Objectives and Policies

The company finances its operations through a mixture of retained profits and where necessary to fund capital expenditure programs through hire purchase financing arrangements and bank borrowings. Management's objectives are to:

• Retain sufficient liquid funds to enable it to meet its day-to-day obligations as they fall due; and

• Match the repayment schedule of any external finance with the expected future cashflows expected to arise from the company’s trading activities.

The company’s bank borrowings are held with reputable banks. When seeking new borrowings, the directors seek to minimize interest rates whilst giving consideration as to whether it is worth incurring a premium to reduce the company’s exposure to fluctuations in interest rates.

As the company’s surplus funds are invested in sterling bank accounts, this limits exposure to price risk.

The company’s credit risk is primarily attributable to its trade debtors. The company mitigates this risk by implementing a robust credit control policy.

Financial Key Performance Indicators

The company’s directors believe that their key financial performance indicators (KPIs) are those that communicate the financial performance and strength of the company, these being turnover, gross profit and profit before tax.

The KPIs for the year to 31st March 2025 showcase a robust and positive trajectory. Turnover for the year has increased by 5.3% to £46,137,858 from £43,797,944. Gross profit (GP) increased to £14,810,486 from £14,220,079 despite the challenging competitive environment which has adversely impacted on margins. Profit before tax and exceptionals amounted to £2,514,430 (2024 - £2,658,840). The company’s long leasehold buildings were professionally valued during the year resulting in a revaluation loss net of deferred tax amounting to £435,122 (2024 - £1,085,138 revaluation gain). Total comprehensive income for the year decreased to £1,483,667 from £2,643,716.

At 31st March 2025 the company’s net current assets amounted to £1,141,915 and the company’s net assets amounted to £4,782,892.

The company's key non-financial performance indicators during the year were as follows:

Section 172 of the Companies Act states directors must act in a manner they consider, would in good faith, benefit the members of the company. Taking into account the long term consequences of their decisions on all stakeholder groups, including employees. The directors also acknowledge the need to act fairly for every stakeholder.

Our employees are our most important asset. The board ensure that wherever possible we provide appropriate training and career development.

We adhere to our policies covering recruitment, equal opportunities, harassment and bullying. The company is committed to satisfying latest employment legislation and providing a safe working environment.

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, and all those with whom we do business with. The company seeks to promote and apply to those relationships, principles which are based on our core values. The ability to promote these principles effectively is a key factor in the decision to enter or remain in such relationships

Suppliers are selected based on several criteria such as quality and compliance with our policies. Close relationships with suppliers are encouraged to benefit the company. Regular dialogue is encouraged and feedback sought at every opportunity to improve our business.

Our customers are at the heart of our decision-making and we seek regular feedback from them. The directors continuously assess the priorities related to customers and those with whom we do business, and engage on these topics, for example, within the context of business strategy updates.

The directors of the company are committed to high standards of business conduct and governance and seek advice from its advisors, as and when required, to ensure the consideration of business conduct and that the company's reputation is maintained.

The board and senior management conduct regular reviews of business performance with a view to managing risk. Informed decisions can then be taken to mitigate risks wherever possible. Decision-making and long-term strategy is reviewed regularly and consideration is given to our operations and the impact on the communities where we operate.

The company is aware of its social responsibilities to the communities where it operates.

We encourage sustainable practices and are constantly seeking to be environmentally responsible. For instance, policies are implemented to reduce the business' carbon footprint such as considerations when replenishing our fleet of vehicles and installation of solar panels at our Head Office to assist in reducing business energy usage. We constantly strive to reduce waste.

Future Developments

Looking ahead the directors expect continued progress and development across several key areas.

Following the October 2024 acquisition, plans are in place for the newly acquired business to become a key supplier of fruit and vegetables to Birchall Foodservice, creating efficiencies within the supply chain and improving product quality, consistency, and margin control.

The company also anticipates a slight change in organizational structure and personnel, driven by growth and operational needs. This is expected to include internal promotions, supporting staff development, succession planning, and retention of key talent.

Further investment in automation, ICT infrastructure and the Ordermate platform remains a strategic priority, with the objective of enhancing scalability, customer experience and long-term competitiveness.

The directors are confident that these developments position G.C. Birchall Limited for sustained growth and operational excellence in the coming years.

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 company continued to be that of food wholesalers.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £3,000,000. The directors do not recommend payment of a final dividend.

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

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company employs a variety of means of regular consultation with its employees including an employee suggestion box which is reviewed weekly by the directors, annual appraisals, discussion groups and other less formal arrangements. The objective is to provide a sound basis for constructive employee relations.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

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

The energy and carbon reporting requirements for the company is included within the Directors' report of G.C. Birchall (Holdings) Limited. The company has taken the subsidiary exemption from also reporting that information in this report.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• 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 company will continue in business.

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

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

The information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 has been included in the separate Strategic Report in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.

We have audited the financial statements of G.C. Birchall Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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

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

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

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

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and Minimum Wage requirements; and

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

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

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

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

We addressed detecting material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, as follows:

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

• tested journal entries to identify unusual transactions;

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

• investigated the rationale behind significant or unusual transactions.

• agreeing financial statement disclosures to underlying supporting documentation; and

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

The notes on pages pages 13 to 27 form an integral part of these financial statements.

G.C. Birchall Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cobalt House, Magnesium Way, Burnley Bridge Business Park, Hapton, Burnley, BB12 7BF.

The company's principal activities are disclosed in the Strategic Report.

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of leasehold buildings. The principal accounting policies adopted are set out below.

This 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:

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

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

The financial statements of the company are consolidated in the financial statements of G.C. Birchall (Holdings) Limited. These consolidated financial statements are available from Companies House.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

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

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

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

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

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

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

Company policy is to maintain the leasehold buildings to a high standard by a continued programme of refurbishment and maintenance. The original cost compared with the residual value of leasehold buildings is such that the depreciable amount is considered to be nil.

Non-depreciable land is not depreciated.

Interests in unlisted investments whose fair values cannot be measured reliably are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

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

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

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

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises the purchase price of stock items.

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

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

A financial instrument is a contract giving rise to a financial asset (such as trade and other debtors, cash and bank balances) or a financial liability (such as trade and other creditors, bank and other loans, hire purchase and lease creditors) or an equity instrument (such as ordinary or preference shares).

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

Investments in equity instruments which are not subsidiaries, associates or joint ventures, that are not publicly traded and whose fair values cannot be measured reliably are accounted for at cost less impairment.

All the company's other financial instruments are basic financial instruments and are recognised at amortised cost using the effective interest method.

Amortised cost: the original transaction value, less amounts settled, less any adjustment for impairment.

Effective interest method: where a financial instrument falls due more than 12 months after the balance sheet date and is subject to a rate of interest which is below a market rate, the original transaction value is discounted using a market rate of interest to give the net present value of future cash flows.

Financial assets cease to be recognised only when the contractual rights to the cash flows expire, or when substantially all the risks and rewards of ownership are transferred to another entity.

Financial liabilities cease to be recognised when and only when the company's obligations are discharged, cancelled, or they expire.

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

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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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 reserves, in which case the deferred tax is also dealt with in reserves.

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.

Pension costs are charged to the profit and loss account in the year in which they are incurred.

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

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to 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 leases asset are consumed.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) and that have had the most significant effect on amounts recognised in the financial statements are as follows:

The determination of whether there are indicators of impairment of the company's debtors when assessing impairment, management consider factors including the underlying performance of the debtor, the ageing profile of debtors, compliance with payment terms and historical experience.

The determination of whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

The determination of whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and whether it is a larger cash-generating unit, the viability and expected future performance of that unit.

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

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

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

The total turnover of the company for the year has been derived from its principal activity, wholly undertaken in the United Kingdom.

The average monthly number of persons (including directors) employed by the 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 7 (2024 - 6).

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:

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

On 20 December 2024 land and buildings were professionally valued by Mr C Ardern MRICS of Cluttons LLP, independent valuers not connected with the company on the basis of market value. The valuation conforms to RICS Valuation Global Standards (incorporating the International Valuation Standards) and was based on recent market transactions on arms's length terms for similar properties. The directors believe that this valuation is still a reasonable value to use in the accounts.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amount included would have been as follows:-

Details of security and loan terms are provided in Notes 20 and 21.

Details of security and loan terms are provided in Notes 20 and 21.

Included in the bank overdrafts figure is £2,781,148 (2024: £1,117,488) which relates to an invoice discounting facility. This is secured on trade debtors.

The bank loans and overdraft are secured by a debenture incorporating a fixed and floating charge over the company's assets and a legal first charge over The Cobalt Building, Magnesium Way, Burnley.

The bank loan of £600,000 is repayable in equal monthly instalments over 15 years. Interest is charged on the loan at 3% over LIBOR.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and 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 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The finance lease and hire purchase obligations are secured against the assets concerned.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

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

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

Amounts contracted for but not provided in the financial statements:

During the year the company advanced £95,302 (2024: £45,192) to close family members of the directors. At 31 March, 2025 £192,246 (2024: £96,944) remained due to the company.

During the year the company advanced £835,427 (2024: £Nil) to entities controlled by the directors. At 31 March, 2025 £835,427 (2024: £Nil) remained due to the company.

The company rents premises which are owned by Birchall Family Suntrust Scheme - Pension Fund, of which four of the directors are members. A commercial rent of £227,155 was paid during the year (2024: £176,000).

The company's parent and ultimate parent company is G.C. Birchall (Holdings) Limited, a company registered in England and Wales.

The directors consider there to be no ultimate controlling party.