REGISTERED NUMBER: 04079321 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

K. FRESH LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

T C Kirkwood

C D Kirkwood

SECRETARY:

Mrs B Brookes

REGISTERED OFFICE:

Carr Farm

Rimswell

Withernsea

HU19 2BZ

REGISTERED NUMBER:

04079321 (England and Wales)

AUDITORS:

Sowerby

Chartered Accountants and Statutory Auditors

Beckside Court

Annie Reed Road

Beverley

East Yorkshire

HU17 0LF

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

The company has invested heavily in the last few years to expand it egg laying operation which, coupled with the renewed support of the supermarket and wholesale sector has ensured that the company results for the year have been extremely positive. A stability in feed costs across the sector have maintained the gross margin, along with strong egg prices seen in the market. The directors are confident that the investment in the free-range sector ensures that the company can continue to improve its position with the increased capacity on investment completed in the current year being reflected in the results for 2025.

Consumer demand for high welfare and environmental credentials creates opportunities for growth for the company, and the directors believe the company is well placed for any changes in market demand due to the pledges made in relation to cage-free eggs.

The directors are aware of the risks to the sector that Avian Flu poses not just for the company but for the whole sector, especially with the increased biosecurity protocols which the directors had already invested heavily into.

The directors are confident that the company will continue to generate positive cashflows moving forward and the post year end results continue to reflect the strong year end position. Having regard to liquidity risk, current market conditions and other factors affecting the company, the use of the going concern basis is therefore considered appropriate, as, in the opinion of the directors, there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

REVIEW OF BUSINESS

The principle activity of the company throughout the year has continued to be egg production.

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

2025

2024

Gross profit

£7,740,155

£7,078,127

Gross profit percentage

44.73%

44.71%

PRINCIPAL RISKS AND UNCERTAINTIES

The directors believe the key risks facing the company include:

- Increase in production costs not being reflected in market prices.

- The impact of Avian flu removing some contracted stocks.

In managing the business, the directors have established controls to enable them to respond to and mitigate the impact of such risks in a timely manner to ensure the effect on the business is minimised.

GOING CONCERN

The directors have reasonable expectations that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered a period in excess of twelve months from the date of approval of signing these financial statements in making this assessment.

ON BEHALF OF THE BOARD:

T C Kirkwood - Director

19 December 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 380,000 .

FUTURE DEVELOPMENTS

The company has continued to invest in key management personnel, capital assets and revisions to the long term strategy. The directors feel this investment and strategic planning has already shown great promise and envisage continued improvements to long-term stability, resilience and profitability.

DIRECTORS

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

T C Kirkwood

C D Kirkwood

FINANCIAL INSTRUMENTS

The directors have reviewed the financial risk management objectives and policies of the company.

The company's principal financial instruments comprise trade debtors, trade creditors and bank loans.. The main purpose of these instruments is to raise funds to finance the company's operations.

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

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

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

In respect of bank loans, these loans are from financial institutions. The interest rate on the loans is variable, but the monthly repayments are fixed.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

T C Kirkwood - Director

19 December 2025

Opinion

We have audited the financial statements of K. Fresh Ltd (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- we also obtained an understanding of the legal and regulatory frameworks that the company operates in and determined that the most significant are those that relate to the reporting framework, FRS 102, the Companies Act 2006 and the relevant tax laws and regulations in the UK. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, relating in majority to general health and safety and employee matters;

- we reviewed results of our enquiries of management about their own identification and assessment of the risks of irregularities; and assessed how the entity identifies, evaluates and complies with laws and regulations and whether management were aware of any instances of non-compliance. We corroborated our enquiries through our review of board minutes and consideration of the results of our audit procedures across the company;

- we also considered how the entity detects and responds to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- we considered the controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors those controls;

- the internal controls established to mitigate risks of non-compliance with laws and regulations were also investigated;.

- we also considered the existence of performance targets and their potential influence on management to manage earnings, and

- where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk.

These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

We reviewed financial statement disclosures and performed testing to supporting documentation to assess compliance with applicable laws and regulations.

We also tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. There was a focus on manual journals and journals indicating large or unusual transactions; enquiries of company management; and challenging the assumptions and judgements made by management by reviewing third party evidence wherever possible.

The results of our procedures did not identify any instances or irregularities, including fraud.

No inherent difficulties were found in the standard processes for detecting irregularities; due to the sector in which it operates and the controls put in place, there was no significant shift in the control environment in the current year.

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.

Patrick Scargill ACA FCCA (Senior Statutory Auditor)

for and on behalf of Sowerby

Chartered Accountants and Statutory Auditors

Beckside Court

Annie Reed Road

Beverley

East Yorkshire

HU17 0LF

19 December 2025

TURNOVER

17,305,155

15,829,861

Cost of sales

9,564,212

8,751,734

GROSS PROFIT

7,740,943

7,078,127

Distribution costs

154,026

141,275

Administrative expenses

2,423,578

1,784,912

2,577,604

1,926,187

5,163,339

5,151,940

Other operating income

6,665

7,208

Gain/loss on revaluation of investment property

165,000

-

OPERATING PROFIT

4

5,335,004

5,159,148

Interest receivable and similar income

221,853

379

5,556,857

5,159,527

Interest payable and similar expenses

5

25,881

81,325

PROFIT BEFORE TAXATION

5,530,976

5,078,202

Tax on profit

6

1,243,784

1,243,203

PROFIT FOR THE FINANCIAL YEAR

4,287,192

3,834,999

PROFIT FOR THE YEAR

4,287,192

3,834,999

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,287,192

3,834,999

FIXED ASSETS

Intangible assets

8

122,500

162,500

Tangible assets

9

9,811,396

9,360,935

Investment property

10

265,000

100,000

10,198,896

9,623,435

CURRENT ASSETS

Stocks

11

1,705,620

1,747,088

Debtors

12

8,944,961

4,683,763

Cash at bank and in hand

428,163

898,821

11,078,744

7,329,672

CREDITORS

Amounts falling due within one year

13

2,334,856

1,674,843

NET CURRENT ASSETS

8,743,888

5,654,829

TOTAL ASSETS LESS CURRENT LIABILITIES

18,942,784

15,278,264

CREDITORS

Amounts falling due after more than one year

14

(841,666

)

(941,666

)

PROVISIONS FOR LIABILITIES

17

(1,377,297

)

(1,519,969

)

NET ASSETS

16,723,821

12,816,629

CAPITAL AND RESERVES

Called up share capital

18

1

1

Retained earnings

19

16,723,820

12,816,628

SHAREHOLDERS' FUNDS

16,723,821

12,816,629

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:

T C Kirkwood - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

1

9,122,629

9,122,630

Changes in equity

Dividends

-

(141,000

)

(141,000

)

Total comprehensive income

-

3,834,999

3,834,999

Balance at 31 March 2024

1

12,816,628

12,816,629

Changes in equity

Dividends

-

(380,000

)

(380,000

)

Total comprehensive income

-

4,287,192

4,287,192

Balance at 31 March 2025

1

16,723,820

16,723,821

Cash flows from operating activities

Cash generated from operations

1

3,186,173

3,128,458

Interest paid

(25,881

)

(81,325

)

Tax paid

(1,984,647

)

(360,188

)

Net cash from operating activities

1,175,645

2,686,945

Cash flows from investing activities

Purchase of tangible fixed assets

(1,398,820

)

(2,638,627

)

Sale of tangible fixed assets

18,150

40,450

Interest received

221,853

379

Net cash from investing activities

(1,158,817

)

(2,597,798

)

Cash flows from financing activities

Loan repayments in year

(100,000

)

(100,000

)

Amount introduced by directors

500

139,401

Amount withdrawn by directors

(7,986

)

(3,132

)

Equity dividends paid

(380,000

)

(141,000

)

Net cash from financing activities

(487,486

)

(104,731

)

Decrease in cash and cash equivalents

(470,658

)

(15,584

)

Cash and cash equivalents at beginning of year

2

898,821

914,405

Cash and cash equivalents at end of year

2

428,163

898,821

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

2025

2024

£

£

Profit before taxation

5,530,976

5,078,202

Depreciation charges

988,360

690,948

Profit on disposal of fixed assets

(18,150

)

(37,161

)

Gain on revaluation of fixed assets

(165,000

)

-

Finance costs

25,881

81,325

Finance income

(221,853

)

(379

)

6,140,214

5,812,935

Decrease in stocks

41,468

128,078

Increase in trade and other debtors

(4,261,198

)

(2,472,453

)

Increase/(decrease) in trade and other creditors

1,265,689

(340,102

)

Cash generated from operations

3,186,173

3,128,458

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

428,163

898,821

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

898,821

914,405

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

898,821

(470,658

)

428,163

898,821

(470,658

)

428,163

Debt

Debts falling due within 1 year

(100,000

)

-

(100,000

)

Debts falling due after 1 year

(941,666

)

100,000

(841,666

)

(1,041,666

)

100,000

(941,666

)

Total

(142,845

)

(370,658

)

(513,503

)

1.	STATUTORY INFORMATION

K Fresh Limited is a private company, limited by shares, registered in England. The company has its registered office at Carr Farm, Rimswell, Withernsea Hull, East Yorkshire, HU19 2BZ. The company's registered number is 0407932.

The principal activity of the company is that of the raising of poultry and egg producer and packer.

The financial statements have been presented in the Pound Sterling (£) as this is the functional currency of the business.

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.

Having regard to liquidity risk, current market conditions and other factors affecting the company, the use of the going concern basis of accounting is appropriate as, in the opinion of the directors, there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

As of 31 March 2025, the company had net assets of £16,723,821 a growth from the 2024 position of £3,907,192 and net current assets of £8,743,888 (2024: £5,654,829).

The company's financial forecasts, taking into consideration the current environment, show that the company's cashflow gives the company the ability to continue to operate for the foreseeable future.

Based on these facts and the current financial position, forecasts and cash flows of the company, the directors have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

Significant judgements and estimates

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Biological assets are subject to significant judgements and estimates. Hens are valued utilising the cost method, with cost comprising the initial cost of the chick, cost of conversion and other overhead costs incurred in bringing the chick to the point of lay. The cost of the chick increases to the point of lay then decreases on a straightline basis until it reaches its expected end of lay value. Estimations must be made in relation to costs of conversion and expected end of lay life. The company uses the retail method for measuring the cost of inventories which is deemed to approximate the cost incurred.

No further key sources of estimation uncertainty are noted by management that have a significant effect on the amounts recognised in the financial statements.

Turnover

Turnover is the amount derived from ordinary activities, measured at the fair value of the consideration received or receivable. Turnover excludes value added tax and trade discounts.

Turnover from the sale of goods is recognised at the point of sale.

Sales are recognised at the point which the company has fulfilled its contractual obligations and the risks and rewards attached to the product, have been transferred to the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of fifteen years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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 - nil

Freehold property Improvements - 2% on cost

Plant and machinery - 20% on cost, 6.67% on cost and 5% on cost

Motor vehicles - 20% on cost

Computer Equipment - 25% on cost

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

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

The freehold property is not depreciated as, in the opinion of the directors, it has an indefinite useful life and its residual value is not expected to be materially less than its carrying amount. As a result, no depreciation has been provided on this asset.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stock is calculated on the first in first out basis.

In relation to biological assets hens are valued utilising the cost method, with cost comprising the initial cost of the chick, cost of conversion and other overhead costs incurred in bringing the chick to the point of lay. The cost of the chick increases to the point of lay then decreases on a straightline basis until it reaches its expected end of lay value. Estimations must be made in relation to costs of conversion and expected end of lay life. The company uses the retail method for measuring the cost of inventories which is deemed to approximate the cost incurred.

Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for the current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such case the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Impairment of financial assets

Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that have occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Interest bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Pension costs and other post-retirement benefits

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

Related parties

For the purposes of these financial statements, a party is considered to be related to the company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company;

(ii) the company and the party are subject to common control;

(iii) the party is an associate of the company or a joint venture in which the company is a venture

(iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company.

(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,346,686

1,199,153

Social security costs

110,466

91,971

Other pension costs

29,483

23,856

1,486,635

1,314,980

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

2025

2024

Director

1

1

Operations

41

38

Administration

4

4

46

43