Company No: SC098090 (Scotland)

Contents

• Company Information
• Strategic Report
• Directors' Report
• Directors' Responsibilities Statement
• Independent Auditor's Report
• Statement of Comprehensive Income
• Balance Sheet
• Statement of Changes in Equity
• Statement of Cash Flows
• Notes to the Financial Statements

DIRECTORS	Hanna Buchan
	Paula Grieve
	Alan Kennaway

SECRETARY

Ian Kennaway

REGISTERED OFFICE	11 St. Machar Road
	Aberdeen
	AB24 2UU
	United Kingdom

COMPANY NUMBER

SC098090 (Scotland)

AUDITOR	Hall Morrice LLP
	Statutory Auditor
	6 & 7 Queen's Terrace
	Aberdeen
	AB10 1XL

BANKERS	Royal Bank of Scotland
	40 Albyn Place
	Aberdeen
	AB10 1YN

The directors present their Strategic Report for the financial year ended 31 March 2025.

REVIEW OF THE BUSINESS

The principal activity of the company during the year was that of the sale of tyres, exhaust systems and other motor vehicles components.

The company has performed satisfactorily in the year to 31 March 2025, with profits after taxation of £72,628 (2024: £103,557). Details of dividends paid in the year can be found at page 25 of the financial statements.

KEY PERFORMANCE INDICATORS ('KPIS')

Given the straightforward nature of the business the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance, and position of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider the results for the year to be satisfactory and are not aware of any major risks or uncertainties which could affect the continued growth of the company.

As we look towards 2026, we are implementing changes that will place Kenway Tyres in a stronger position and although competition is fierce, we are more than able to match it.

Expanding our direct sales force together with reviewing our property portfolio and renewing our vehicle fleet, will all help us better deliver a good competitive service to our customers.

FUTURE DEVELOPMENTS

The company has no significant future development plans but will continue to develop its share within the motor industry market.

Approved by the Board of Directors and signed on its behalf by:

Alan Kennaway Director

23 December 2025

The directors present their annual report on the affairs of the company, together with the financial statements and auditors’ report, for the financial year ended 31 March 2025.

DIVIDENDS

The directors paid a dividend of £35,100 in the current financial year (2024: £12,600).

FUTURE DEVELOPMENTS

Details of future developments can be found in the Strategic Report.

DIRECTORS

The directors, who served during the financial year and to the date of this report except as noted, were as follows:

Hanna Buchan
Paula Grieve
Alan Kennaway

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and

* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.


This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.


Hall Morrice LLP have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.

Approved by the Board of Directors and signed on its behalf by:

Alan Kennaway Director

23 December 2025

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), including FRS 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 financial 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. The directors 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.

Opinion

We have audited the financial statements of Kenway Tyres Limited for the financial year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows, the accounting policies, and the related notes 1 to 22, 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 of Kenway Tyres Limited (the ‘company’):
* 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 financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; 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)). 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 directors are responsible for the other information. The other information comprises the information in 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* The Strategic Report and Directors' Report has 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 and the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
* Adequate accounting records have not been kept, 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 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.

Auditor’s 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:

* Ensured that the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with laws and regulations;
* Identified the laws and regulations applicable to the entity through discussions with directors and management and through our own knowledge of the sector;
* Focused on the specific laws and regulations we consider may have a direct effect on the financial statements, including FRS 102, the Companies Act 2006 and tax compliance regulations;
* Focused on the specific laws and regulations we consider may have an indirect effect on the financial statements that are central to the entity's ability to trade including those relating to health and safety in the storage and distribution of tyres and other vehicle components and environment regulations for tyre disposals;
* Reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with applicable laws and regulations;
* Made enquiries of management and inspected legal correspondence; and
* Ensured the engagement team remained alert to instances of non-compliance throughout the audit.

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:

* Obtained an understanding of the entity's operations, including the nature of its revenue sources and of its objectives and strategies, to understand the classes of transactions, account balances, expected financial disclosures and business risks that may result in risk of material misstatement;
* Obtained an understanding of the internal controls in place to mitigate risks of irregularities, including fraud;
* Vouched balances and reconciling items in key control account reconciliations to supporting documentation;
* Carried out detailed testing, on a sample basis, to verify the completeness, occurrence, existence and accuracy of transactions and balances;
* Carried out detailed testing to verify the completeness, occurrence, validity, existence and accuracy of income including cut-off testing and ensuring income recognition is in line with stated accounting policies;
* Made enquiries of management as to where they consider there was a susceptibility to fraud, and their knowledge of any actual, suspected or alleged fraud;
* Tested journal entries to identify any unusual transactions;
* Performed analytical procedures to identify any significant or unusual transactions;
* Investigated the business rationale behind any significant or unusual transactions; and
* Evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates.

We did not identify any matters relating to non-compliance with laws and regulations, or relating to fraud.

Because of the inherent limitations of an audit, there is an unavoidable risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk of not detecting a material misstatement due to fraud is inherently more difficult than detecting those that result from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. In addition, the further removed any non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.

Derek Petrie MA (Hons) CA (Senior Statutory Auditor)
For and on behalf of Hall Morrice LLP
Statutory Auditor

6 & 7 Queen's Terrace
Aberdeen
AB10 1XL

23 December 2025

	Note	2025		2024
		£		£
Turnover	3	15,658,584		16,017,367
Cost of sales		( 13,300,615)		( 13,744,490)
Gross profit		2,357,969		2,272,877
Administrative expenses		( 2,210,073)		( 2,075,758)
Other operating income		2,980		6,196
Operating profit		150,876		203,315
Interest receivable and similar income	4	1,499		2,675
Interest payable and similar expenses	4	( 29,756)		( 36,241)
Profit before taxation	5	122,619		169,749
Tax on profit	8	( 49,991)		( 66,192)
Profit for the financial year		72,628		103,557
Other comprehensive income		0		0
Total comprehensive income		72,628		103,557

All amounts relate to continuing operations.

	Note	2025		2024
		£		£
Fixed assets
Tangible assets	11	2,374,455		2,587,675
		2,374,455		2,587,675
Current assets
Stocks	12	3,063,119		3,131,582
Debtors	13	2,276,498		2,549,986
Cash at bank and in hand		128		1,453
		5,339,745		5,683,021
Creditors: amounts falling due within one year	14	( 3,182,270)		( 3,676,930)
Net current assets		2,157,475		2,006,091
Total assets less current liabilities		4,531,930		4,593,766
Creditors: amounts falling due after more than one year	15	( 39,392)		( 112,097)
Provision for liabilities		( 85,137)		( 111,796)
Net assets		4,407,401		4,369,873
Capital and reserves	17
Called-up share capital		64,500		64,500
Profit and loss account		4,342,901		4,305,373
Total shareholder's funds		4,407,401		4,369,873

The financial statements of Kenway Tyres Limited (registered number: SC098090) were approved and authorised for issue by the Board of Directors on 23 December 2025. They were signed on its behalf by:

Alan Kennaway Director

	Called-up share capital		Profit and loss account		Total
	£		£		£
At 01 April 2023	64,500		4,214,416		4,278,916
Profit for the financial year	0		103,557		103,557
Total comprehensive income	0		103,557		103,557
Dividends paid on equity shares (note 9)	0		( 12,600)		( 12,600)
At 31 March 2024	64,500		4,305,373		4,369,873
At 01 April 2024	64,500		4,305,373		4,369,873
Profit for the financial year	0		72,628		72,628
Total comprehensive income	0		72,628		72,628
Dividends paid on equity shares (note 9)	0		( 35,100)		( 35,100)
At 31 March 2025	64,500		4,342,901		4,407,401

	2025		2024
	£		£
Net cash flows from operating activities (note 20)	251,901		135,175
Cash flows from investing activities
Proceeds from sale of plant and machinery	24,904		53,587
Purchase of plant and machinery	( 41,109)		( 164,953)
Interest received	1,499		2,675
Net cash flows from investing activities	( 14,706)		( 108,691)
Cash flows from financing activities
Repayments of borrowings	( 200,077)		( 197,307)
Dividends paid	(35,100)		(12,600)
Repayment of finance leases obligations	(130,847)		(161,377)
Proceeds from borrowings	15		0
Net cash flows from financing activities	( 366,009)		( 371,284)
Net (decrease) in cash and cash equivalents	( 128,814)		( 344,800)
Cash and cash equivalents at beginning of year	( 248,796)		96,004
Cash and cash equivalents at end of year	( 377,610)		( 248,796)
Reconciliation to cash at bank and in hand:
Cash at bank and in hand at end of year	( 377,610)		( 248,796)
Cash and cash equivalents at end of year	( 377,610)		( 248,796)

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Kenway Tyres Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the company's registered office is 11 St. Machar Road, Aberdeen, AB24 2UU, United Kingdom.

The principal activities are set out in the Strategic Report.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

At 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.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise except for:
* exchange differences on transactions entered into to hedge certain foreign currency risks (see above); and
* exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover 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 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.

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Balance Sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Balance Sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Defined contribution schemes
For defined contribution schemes the amounts charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.

Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.

Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

When the amount that can be deducted for tax for an asset that is recognised in a business combination is less (more) than the value at which it is recognised, a deferred tax liability (asset) is recognised for the additional tax that will be paid (avoided) in respect of that difference. Similarly, a deferred tax asset (liability) is recognised for the additional tax that will be avoided (paid) because of a difference between the value at which a liability is recognised and the amount that will be assessed for tax.

Deferred tax liabilities are recognised for timing differences arising from investments in subsidiaries and associates, except where the company is able to control the reversal of the timing difference and it is probable that it will not reverse in the foreseeable future.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment is measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to the sale of the asset.

Where items recognised in the Statement of Comprehensive Income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.

Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset only if: a) the company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the company and the company intends either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Intangible assets

Goodwill

10 years straight line

Goodwill

Goodwill arises on business combination and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life, which is ten years.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	50 years straight line
Plant and machinery	5 years straight line
Vehicles	4 years straight line
Fixtures and fittings	5 - 10 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Leases

The company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Comprehensive Income over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

The company as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income as described below.

Non-financial assets
At each balance sheet date, the company reviews 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). The recoverable amount of an asset is the higher of its fair value less costs to sell and its 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.

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. 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.

Financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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 complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.

The directors do not consider that any critical judgements have been made in the application of the company's accounting policies and no key sources of estimation uncertainty have been identified that have a significant risk of causing a material misstatement to the carrying amount of assets and liabilities within the financial year.


Key source of estimation uncertainty

There are no key sources of estimation uncertainty in the process of applying the company's accounting policies that have a significant effect on the amounts recognised in the financial statements.

3. Turnover

Turnover represents the fair value of goods/services provided to customers during the financial year excluding value added tax.

Turnover is wholly attributable to the principal activity of the company and arises solely within the United Kingdom.

4. Interest receivable and interest payable

	2025		2024
	£		£
Interest receivable and similar income	1,499		2,675
Interest payable and similar expenses	( 29,756)		( 36,241)
	(28,257)		(33,566)

Interest receivable and similar income

	2025		2024
	£		£
Bank interest	1,499		2,675

Interest payable and similar expenses

	2025		2024
	£		£
Bank loans and overdrafts	( 11,613)		( 24,670)
Finance leases and hire purchase contracts	( 18,143)		( 11,571)
	( 29,756)		( 36,241)

5. Profit before taxation

Profit before taxation is stated after charging/(crediting):

	2025		2024
	£		£
Depreciation of tangible fixed assets (note 11)	256,139		263,843
Operating lease rentals	86,823		104,180
Gain on disposal of fixed assets	( 2,214)		( 21,483)
Fees payable to the company's auditor for the audit of the company's financial statements	14,500		13,840

6. Staff number and costs

	2025		2024
	Number		Number
The average monthly number of employees (including directors) was:
Production staff	42		38
Administrative staff	18		18
Directors	3		3
	63		59

Their aggregate remuneration comprised:

	2025		2024
	£		£
Wages and salaries	2,301,056		2,295,725
Social security costs	236,186		236,875
Other retirement benefit costs	137,397		134,442
	2,674,639		2,667,042

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.

7. Directors' remuneration

	2025		2024
	£		£
Directors' emoluments	47,710		50,943
Company contributions to money purchase pension schemes	2,983		3,200
	50,693		54,143

	2025		2024
	Number		Number
Members of a money purchase pension scheme	2		2

8. Tax on profit

	2025		2024
	£		£
Current tax on profit
UK corporation tax	76,650		50,791
Total current tax	76,650		50,791
Deferred tax
Origination and reversal of timing differences	( 26,659)		15,401
Total deferred tax	( 26,659)		15,401
Total tax on profit	49,991		66,192

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2023 (on 10 January 2023). These changes included an increase in the main rate to 25% from April 2023. Deferred taxes at the balance sheet date, in relation to UK companies, are measured using tax rates enacted as at the balance sheet date (25%).

Tax reconciliation

The tax assessed for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK:

	2025		2024
	£		£
Profit before taxation	122,619		169,749
Tax on profit at standard UK corporation tax rate of 25% (2024: 25%)	30,655		42,437
Effects of:
Expenses not deductible for tax purposes	9		78
Income not taxable in determining taxable profit	( 554)		( 5,371)
Deferred tax movement	(26,659)		15,401
Depreciation on assets not qualifying for tax allowances	46,540		14,310
Tax at marginal rate	0		(663)
Total tax charge for year	49,991		66,192

9. Dividends on equity shares

	2025		2024
	£		£
Amounts recognised as distributions to equity holders in the financial year:
Final dividend for the financial year ended 31 March 2025 of £0.54 (2024: £0.20) per ordinary share	35,100		12,600

10. Intangible assets

	Goodwill		Total
	£		£
Cost
At 01 April 2024	10,000		10,000
At 31 March 2025	10,000		10,000
Accumulated amortisation
At 01 April 2024	10,000		10,000
At 31 March 2025	10,000		10,000
Net book value
At 31 March 2025	0		0
At 31 March 2024	0		0

11. Tangible assets

	Land and buildings		Plant and machinery		Vehicles		Fixtures and fittings		Total
	£		£		£		£		£
Cost
At 01 April 2024	3,272,846		561,450		756,647		467,004		5,057,947
Additions	0		15,951		47,524		2,215		65,690
Disposals	0		0		( 74,053)		0		( 74,053)
At 31 March 2025	3,272,846		577,401		730,118		469,219		5,049,584
Accumulated depreciation
At 01 April 2024	1,182,149		496,759		371,818		419,546		2,470,272
Charge for the financial year	77,312		20,924		145,550		12,353		256,139
Disposals	0		0		( 51,282)		0		( 51,282)
At 31 March 2025	1,259,461		517,683		466,086		431,899		2,675,129
Net book value
At 31 March 2025	2,013,385		59,718		264,032		37,320		2,374,455
At 31 March 2024	2,090,697		64,691		384,829		47,458		2,587,675
Leased assets included above:
Net book value
At 31 March 2025	0		0		158,674		0		158,674
At 31 March 2024	0		0		261,964		0		261,964

Assets held under finance leases

The company has leased motor vehicles on leases which are considered to meet the definition of finance leases and are accounted for accordingly. Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Total future minimum lease payments under finance leases are as follows:

	2025		2024
	£		£
- within one year	62,109		95,751
- between one and five years	39,392		112,097
	101,501		207,848

Freehold property with a carrying amount of £1,368,500 (2024 - £1,408,750) has been pledged to secure borrowings of the company.

12. Stocks

	2025		2024
	£		£
Stocks	3,063,119		3,131,582

13. Debtors

	2025		2024
	£		£
Trade debtors	2,162,780		2,524,723
Other debtors	765		0
Prepayments	112,953		25,263
	2,276,498		2,549,986

14. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans and overdrafts (secured)	377,738		450,326
Obligations under finance leases and hire purchase contracts (secured)	62,109		95,751
Trade creditors	1,927,893		2,340,253
Corporation tax	76,650		50,791
Other taxation and social security	396,165		414,014
Accruals	318,683		303,037
Other creditors	23,032		22,758
	3,182,270		3,676,930

The bank loans and overdraft are secured by a standard security over the property owned by the company along with a bond and floating charge over all assets of the company. The effective interest rates on the bank loans varies from 2.8% - 3.5% p.a over base rate and a fixed 4.83% p.a. The bank loans were fully repaid during the year.

The bank overdraft is also secured by a standard security over the property owned by the company along with a bond and floating charge over all assets of the company and a personal guarantee of £150,000 provided by a director of the company.

15. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Obligations under finance leases and hire purchase contracts (secured)	39,392		112,097

Bank loans
	2025		2024
	£		£
Between one and two years	0		0
Between two and five years	0		0
After five years	0		0
	0		0
On demand or within one year	0		200,077
	0		200,077

Finance leases
	2025		2024
	£		£
Between one and two years	39,392		82,774
Between two and five years	0		29,323
After five years	0		0
	39,392		112,097
On demand or within one year	62,109		95,751
	101,501		207,848

Total borrowings including finance leases
	2025		2024
	£		£
Between one and two years	39,392		82,774
Between two and five years	0		29,323
	39,392		112,097
On demand or within one year	62,109		295,828
	101,501		407,925

16. Deferred tax

	2025		2024
	£		£
At the beginning of financial year	( 111,796)		( 96,395)
Credited/(charged) to the Profit and Loss Account	26,659		( 15,401)
At the end of financial year	( 85,137)		( 111,796)

The deferred taxation balance is made up as follows:

	2025		2024
	£		£
Accelerated capital allowances	( 85,137)		( 111,796)

17. Called-up share capital and reserves

	2025		2024
	£		£
Allotted, called-up and fully-paid
64,500 Ordinary shares of £ 1.00 each	64,500		64,500
Presented as follows:
Called-up share capital presented as equity	64,500		64,500

The Company's other reserves are as follows:

The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

18. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2025		2024
	£		£
within one year	116,619		139,013
between one and five years	79,531		194,501
after five years	0		1,649
Total future minimum lease payments under non-cancellable operating leases	196,150		335,163

Other financial commitments

	2025		2024
	£		£
Total future minimum lease receipts under non-cancellable operating leases are as follows: within one year	1,000		1,000
between one and five years	4,000		4,000
after five years	3,921		4,921
	8,921		9,921

19. Net debt reconciliation

	Balance at 01 April 2024		Cash flows		New finance leases		Balance at 31 March 2025
	£		£		£		£
Cash at bank and in hand	1,453		( 1,325)		0		128
Bank overdrafts	( 250,249)		( 127,489)		0		( 377,738)
	( 248,796)		( 128,814)		0		( 377,610)
Bank loans	( 200,077)		200,077		0		0
Finance leases	( 207,848)		130,847		( 24,500)		( 101,501)
	( 407,925)		330,924		( 24,500)		( 101,501)
Net debt	( 656,721)		202,110		( 24,500)		( 479,111)

20. Statement of Cash Flows

	2025		2024
	£		£
Operating profit	150,876		203,315
Adjustment for:
Depreciation and amortisation	256,139		263,843
Profit on sale of plant and equipment	( 2,214)		( 21,483)
Operating cash flows before movement in working capital	404,801		445,675
Decrease/(increase) in stocks	68,463		( 171,610)
Decrease in debtors	273,488		208,920
Decrease in creditors	( 440,963)		( 286,903)
Cash generated by operations	305,789		196,082
Income taxes paid	( 24,132)		( 24,666)
Interest paid	( 29,756)		( 36,241)
Net cash flows from operating activities	251,901		135,175

21. Related party transactions

Transactions with related parties or connected persons

Purchase of goods and services

	2025		2024
	£		£
Other related parties	180,595		129,384

Transactions with the entity’s directors (or members of its governing body)

Amounts owed to directors

	2025		2024
	£		£
Amounts outstanding at balance sheet date	68		53

Dividends

	2025		2024
	£		£
Dividends were paid in the year in respect of shares held by the company's directors	35,100		12,600

22. Controlling party

The company was under the control of A M Kennaway throughout the current and previous year. A M Kennaway is the managing director and majority shareholder.