REGISTERED NUMBER: 01546198 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 30 June 2025

for

M.G.F. (TRENCH CONSTRUCTION SYSTEMS)

LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

Directors:

S J Littlewood

S D Hesketh

J G Woodward

R Ranson

J Durr

C Whitworth

Registered office:

Grant House

South Lancashire Industrial Estate

Lockett Road

Ashton In Makerfield

Wigan

WN4 8DE

Registered number:

01546198 (England and Wales)

Auditors:

S&W Audit

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

The directors present their strategic report for the year ended 30 June 2025.

Review of business

Our goal is to be the leading manufacturer and supplier of specialist engineered solutions for excavation, lifting, and structural support within the construction industry. With over four decades of experience, MGF has built a reputation as an industry innovator dedicated to excellence. Through a collaborative approach, we deliver engineering solutions that not only meet but exceed industry standards, ensuring our customers receive high-quality, reliable equipment every time.

Our commitment to exceeding customer expectations has driven strong financial performance. Net profit before taxation rose by 22% to £19,326,894 (2024: £15,880,632), while net profit before tax plus depreciation increased by 20% to £25,138,260 (2024: £20,988,194). This profit growth was a result of a substantial increase in revenues, driven by significant investment from the UK water industry and increased export activity during the year. Both gross and operating profit margins also showed slight improvement.

The directors are pleased with these results and remain confident that the Company is well positioned to reinforce its leadership in core markets while accelerating growth through the related, diversified activities it has successfully developed in recent years.

Future developments

Housebuilding, a significant source of the Company's revenues, remained subdued throughout the last financial year amid general economic uncertainty. The outlook for housebuilding is also cautious, with a projected slight contraction in 2025 followed by a gradual recovery in 2026, supported by expected interest rate cuts and government infrastructure projects, though significant challenges remain. Demand is held back by stretched affordability, while on the supply side, constraints and a collapse in planning consents are slowing down delivery, despite policy efforts.

In the Company's key infrastructure sectors, the outlook remains extremely promising. The water industry's watchdog for England and Wales, Ofwat, determines five yearly spending programmes for the various water companies, termed Asset Management Programmes (AMP). The latest of these, AMP7, delivered significant revenues during the last financial year before ending in April 2025. Its successor, AMP8, began with a planned spend of £104bn , almost double that of AMP7. Although these spending programmes tend to be back-end loaded, with very little being spent in the first year or so, the sheer scale of AMP8 should provide the Company's core markets with ample work over the next five years and an increase in workload expected from spring 2026 onwards.

The similarly determined five yearly spending plan of the rail sector is also underway with Control Period 7 (CP7) expected to see £45bn spent between April 2024 and March 2029. Network Rail's £8.8bn spend in the first year of CP7 was down about 5% on the prior year, but unlike CP6, CP7 does not cover major infrastructure improvements and enhancements, but rather the operation, maintenance, and renewal of existing rail infrastructure. Hence, the UK Government's June 2025 spending review that announced £10bn for rail infrastructure improvements alongside long-term projects such as the TransPennine Route Upgrade and East West Rail was extremely welcome news and again provides a solid pipeline of work for the Company over the next few years. Likewise, the continued spend on HS2 and the revenues from it continue to be strong and are expected to be so for a number of years to come.

In the energy and transmission sectors, the UK's commitment to invest approximately £40bn annually between 2025 and 2030 to upgrade its electricity grid, coupled with projects like Sizewell C, will drive demand for our specialist solutions.

Internationally, our strategic partnership with National Trench Safety (NTS) in the United States is gaining momentum, creating a new revenue channel and expanding our global footprint. This collaboration involves NTS distributing the Company's advanced hydraulic bracing systems and other products in the United States, expanding our market reach. Further overseas opportunities are being actively explored to diversify and strengthen our growth trajectory.

As described above, the Company's core infrastructure markets present significant long-term potential. That coupled with the anticipated expansion of overseas markets means the directors remain confident in delivering sustainable growth and long-term value for shareholders, supported by continued investment in people, innovation, and operational capacity.

Development and performance

The Company and its directors remain committed to growth and keeping at the forefront of the UK shoring market but are increasingly seeking to exploit overseas opportunities that allow it to leverage its intellectual property and core competencies. Alongside this, in the UK significant growth is also being pursued in its Structural Support Solutions and Lifting divisions with the aim of achieving truly national coverage and becoming a leading supplier in both markets.

Whilst growth or consolidation of its position in all its markets remains the primary focus of the Company's strategic plans, it continues to seek out other opportunities in new and related markets, where it can leverage its core skills of temporary works design and asset rental.

Key performance indicators

Profitability and net profit before tax plus depreciation are the principal key performance indicators (KPI's) monitored by the directors, and these are included in the fair review of the business above.

Principal risks and uncertainties

The principal risks faced by the business are:

- Adverse economic conditions.

- Credit risk - difficulty collecting trade receivables.

- Competitor actions.

- Legislative changes.

- Health & safety risks.

- Product obsolescence.

- Business continuity.

- Control failures.

The Company operates in diverse markets and proactively manages risks through robust frameworks and governance. Our objectives focus on:

- Aligning risk management with strategic goals to maximise value and resilience.

- Driving continuous improvement and informed decision-making.

- Prioritising resources for critical and emerging risks.

- Maintaining competitive advantage through proactive opportunity management.

- Strengthening operational effectiveness via investment in controls and compliance.

- Building stakeholder trust by mitigating major risks whilst delivering our objectives.

- Ensuring full regulatory compliance and maintaining accreditations.

Notwithstanding the above, the Company also maintains a strong balance sheet to respond effectively to unforeseen risks and uncertainties.

Going concern

The directors have considered a range of possible scenarios for a period of at least 12 months from the date of signature of the financial statements. The directors are satisfied that the Company will be able to continue to operate as a going concern for the foreseeable future.

The going concern basis of preparation of these financial statements is discussed further in the Accounting Policies note.

Section 172(1) statement

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole. In doing this, section 172 requires the directors to have regard to, amongst other matters:

- the likely consequences of any decisions in the long-term;

- the interests of the Company's employees;

- the need to foster the Company's business relationships with suppliers, customers and others;

- the impact of the Company's operations on the community and environment;

- the desirability of the Company maintaining a reputation for high standards of business conduct; and

- the need to act fairly as between the members of the Company.

In discharging their section 172 duties, the directors have given regard to all the matters set out above and have adopted the following core values:

Collaborative:

building partnerships / trusted provider / passionate / communication

Responsible:

safety / high quality products / engineering excellence / reliable

Dedicated:

customer-centric / environmentally led / our people / well-being

Groundbreaking:

innovative / evolving / industry leading / solutions provider

The directors are regularly provided with information by way of written reports and meetings with the Company's executive leadership teams. Such engagement allows them to regularly:

- set, approve and execute business strategy, plans and policies;

- review business performance;

- manage risk; and

- make decisions relating to material business initiatives and other matters.

The Company's key stakeholders are its shareholders, employees, customers and suppliers and the directors have regard to the views of all these stakeholders in their decision making. Engagement with these stakeholders occurs through various channels, including:

Shareholders:

Monthly performance reporting and regular meetings with the directors.

Employees:

The Group provides regular briefings, rolled out by team leaders, which inform all employees of recent developments and future plans and seeks feedback from them on all aspects of the business. In addition, an anonymous feedback comment card system is in operation at all the Group's places of work. This is primarily aimed at providing focus on health and safety in the workplace but is also used to receive suggestions from employees on any ways in which their wellbeing could be improved.

Customers:

The Group enhances its relationships with its customers through site meetings, attendance at trade conferences and free professional development sessions via webinars or 'lunch and learn' sessions.

Suppliers:

The Group maintains close relationships with its suppliers though regular feedback and periodic meetings. Contract terms ensure that the interests of the Group and its suppliers are closely aligned.

Amongst others, the Company has ISO9001, ISO14001 and ISO 45001 accreditations, which demonstrates the directors' commitment to promoting continual improvement in the management of quality, environmental and occupational health and safety matters.

On behalf of the board:

J G Woodward - Director

19 December 2025

The directors present their directors' report and financial statements for the year ended 30 June 2025.

Principal activity

The principal activity for the Company is the design, manufacture and distribution of specialised temporary works support equipment for both hire and sale to the civil engineering and construction industries. Principal activities include the sale of both new and used equipment.

Results

The profit for the year after taxation amounted to £15,005,493 (2024: £12,447,759)

Dividends

The Company paid a dividend of £14,783,850 in the year (2024: £13,419,675).

Directors

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

S J Littlewood

S D Hesketh

Other changes in directors holding office are as follows:

M O'Hara - resigned 3 May 2025

G Nowicki - resigned 30 March 2025

K L Clarke - resigned 30 June 2025

J G Woodward - appointed 18 December 2024

R Ranson - appointed 18 December 2024

J Durr - appointed 30 June 2025

C Whitworth - appointed 30 June 2025

Energy and emissions

This Company has taken the exemption from the requirement to present carbon reporting information on the basis that this information is disclosed in the Group financial statements of MGF Limited.

Disabled employees

The Company's policy is to not discriminate against disabled workers. All necessary assistance with initial training courses is given, Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retaining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Strategic report

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' Report) Regulations 2013.

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;

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

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

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

Statement as to disclosure of information to auditors

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

On behalf of the board:

J G Woodward - Director

19 December 2025

Opinion

We have audited the financial statements of M.G.F. (Trench Construction Systems) Limited (the 'company') for the year ended 30 June 2025 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and 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 30 June 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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.

We obtained a general understanding of the company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigation cliams. We also drew on our existing understanding of the company's industry and regulation.

We understand that the company complies with the framework through outsourcing accounts preparation and tax compliance to external experts.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company's ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company:

- The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements

- UK taxation law

- ISO, FORS and ROSPA accreditation

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement including how fraud might occur. The areas identified in this discussion were:

- Manipulation of financial statements, especially revenue via fraudulent entries.

These areas were communicated to the other members of the engagement team not present at the discussion.

The procedures we carried out to gain evidence in the above areas included:

- Substantive work on material areas affecting profits;

-Revenue recognition, to ensure cut off we have sampled sales invoices bordering the year end, in addition to performing analytical procedures on the average daily hire revenue , aswell as a reconciliation of revenue recognised per Insphire to revenue recognised per financial statement, investigating any material adjustments and testing a sample of contracts to gain comfort over completness of revenue

- Testing journal entries, focusing particularly on posting to unexpected or unusual accounts and those posted at unusual items.

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.

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

Antony Sassen (Senior Statutory Auditor)

for and on behalf of S&W Audit

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

19 December 2025

Turnover

5

65,918,195

55,428,397

Cost of sales

(12,827,396

)

(10,084,079

)

Gross profit

53,090,799

45,344,318

Administrative expenses

(33,753,463

)

(29,523,956

)

Operating profit

19,337,336

15,820,362

Interest receivable and similar income

8

48,041

60,761

19,385,377

15,881,123

Interest payable and similar expenses

9

(58,483

)

(491

)

Profit before taxation

10

19,326,894

15,880,632

Tax on profit

11

(4,321,401

)

(3,432,873

)

Profit for the financial year

15,005,493

12,447,759

Other comprehensive income

-

-

Total comprehensive income for the year

15,005,493

12,447,759

Fixed assets

Tangible assets

13

26,257,692

23,713,485

Current assets

Stocks

14

4,186,043

5,665,733

Debtors

15

11,510,948

12,826,177

Cash at bank and in hand

1,454,055

807,339

17,151,046

19,299,249

Creditors

Amounts falling due within one year

16

9,700,868

10,183,981

Net current assets

7,450,178

9,115,268

Total assets less current liabilities

33,707,870

32,828,753

Provisions for liabilities

18

2,700,160

2,042,686

Net assets

31,007,710

30,786,067

Capital and reserves

Called up share capital

19

6,345

6,345

Share premium

20

500

500

Capital redemption reserve

20

21,155

21,155

Retained earnings

20

30,979,710

30,758,067

Shareholders' funds

31,007,710

30,786,067

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

J G Woodward - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 July 2023

6,345

31,729,983

500

21,155

31,757,983

Changes in equity

Dividends

-

(13,419,675

)

-

-

(13,419,675

)

Total comprehensive income

-

12,447,759

-

-

12,447,759

Balance at 30 June 2024

6,345

30,758,067

500

21,155

30,786,067

Changes in equity

Dividends

-

(14,783,850

)

-

-

(14,783,850

)

Total comprehensive income

-

15,005,493

-

-

15,005,493

Balance at 30 June 2025

6,345

30,979,710

500

21,155

31,007,710

1.	Statutory information

M.G.F. (Trench Construction Systems) 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.	Statement of compliance

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.

3.	Accounting policies

Basis of preparing the financial statements

These financial statements are prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102") and the requirements of the Companies Act 2006, including the provisions of the Large and Medium-sized companies and Group (Accounts and Reports) Regulations 2008, and under the historical cost convention. The presentation currency of these financial statements is sterling.

Going concern

These financial statements have been prepared on a going concern basis. The directors of the ulitmate parent undertaking have prepared cash flow projections which include this Company and are satisfied that it has adequate resources to continue in operational existence for the foreseeable future (and at least 12 months from the date of approval of the financial statements). The forecasts and projections consider possible changes in trading performance including potential impacts from the UK's ongoing 'cost of living crisis', in particular further increases in the prices of energy and materials. Accordingly, the directors continue to adopt the going concern basis in preparing the Company's financial statements.

Details of the basis upon which the ultimate parent undertaking has reached its conclusion on the ability of the Company to continue to operate as a going concern are included in the financial statements of the parent Company, MGF Limited.

MGF Limited includes the Company in its consolidated financial statements. The consolidated financial statements of MGF Limited are available to the public and may be obtained from Grant House, South Lancashire Industrial Estate, Ashton in Makerfield, WN4 8DE.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23.

Turnover

Turnover comprises revenue recognised by the Company in respect of the rental of equipment exclusive of Value Added Tax and trade discounts. Turnover also includes amount receivable in respect of the sale of new and used hire equipment.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings.

The Company assesses at each reporting date whether tangible fixed assets are impaired.

Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible assets. Land is not depreciated. The estimated useful lives are as follows;

- Property improvements - 1- 50 years

- Plant and equipment held for hire - 1-15 years

- Motor vehicles - 4-10 years

- Fixture and fittings - 1-15 years

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the Company expect to consume an asset's future economic benefits.

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

The assets disposed from hire fleet are transferred to stocks prior to sale. The sale proceeds are recognised in turnover whilst the carrying value of the stock is recognised in cost of sales.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in first-out principle and included expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stocks and work in progress, cost included raw materials, direct labour and an appropriate share of overheads based on normal operating capacity. As well as raw materials and work in progress, stock included new equipment held for sale whereas equipment held for hire is classified as fixed assets.

Financial instruments

(i) Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.

(ii) Cash and cash equivalents

Cash at bank comprises cash in hand and deposits repayable on demand, less overdrafts payable on demand.

Current asset investments are disposable without curtailing or disrupting the business and are either readily convertible into known amounts of cash at or close to their carrying values or traded in an active market.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.

Hire purchase and leasing commitments

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

Employee benefits

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

Defined contribution plans and other long term employee benefits

A defined contribution plan is a post-employment plan under which the Group and Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Expenses

(i) Operating lease

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred.

(ii) Interest receivable and Interest payable

Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the Group and Company's right to receive payments is established. Foreign currency gains and losses are reported on a net basis.

Provisions

A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

(ii) Non-financial assets

The carrying amounts of the Company's non-financial assets, other than stocks and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. 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 the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss.

An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

4.	Judgements and key sources of estimation uncertainty

In the application of the 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.

Key sources of estimation uncertainty

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.

Useful economic life of plant and equipment

The Company estimates the useful economic life of plant and equipment and applies a depreciation rate to each item of plant and equipment accordingly. The Company uses past experience and knowledge of current market conditions to ensure that this estimate is correct.

5.

Turnover

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

61,381,306

54,563,389

Rest of world

4,536,889

865,008

65,918,195

55,428,397

6.	Employees and directors

2025

2024

£

£

Wages and salaries

18,969,233

15,948,171

Social security costs

2,367,653

1,900,042

Other pension costs

1,029,300

1,408,681

22,366,186

19,256,894

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

2025

2024

Operational

212

201

Administration and Sales

210

202

422

403

7.	Directors' emoluments

2025

2024

£

£

Directors' remuneration

1,104,628

802,062

Directors' pension contributions to money purchase schemes

105,291

227,171

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

Money purchase schemes

5

4

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

398,129

369,821

Pension contributions to money purchase schemes

20,000

38,850

8.

Interest receivable and similar income

2025

2024

£

£

Bank interest receivable

48,041

60,761

9.

Interest payable and similar expenses

2025

2024

£

£

Other interest

58,483

491

10.	Profit before taxation

The profit is stated after charging/(crediting):

2025

2024

£

£

Other operating leases

2,590,321

2,019,798

Depreciation - owned assets

5,811,366

5,107,562

Profit on disposal of fixed assets

(132,013

)

(130,949

)

Foreign exchange differences

53

194

Auditor's remuneration:

2025

2024

£

£

Audit of these financial statements

25,200

24,000

Other services paid to the Company's auditor, other than the audit of the Company's financial statements, have not been disclosed, as the information is disclosed on a consolidated basis in the consolidated financial statements of the Company's parent, MGF Limited.

11.

Taxation

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

3,916,486

3,369,831

(Over)/under provision PY

(252,559

)

56,626

Total current tax

3,663,927

3,426,457

Deferred tax

657,474

6,416

Tax on profit

4,321,401

3,432,873