REGISTERED NUMBER: 03427453 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

RES GROUP LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

S Champion

Ms L Connor

MS A Morris

REGISTERED OFFICE:

Unit 1 Sidings Court

Henry Boot Way

Hull

HU4 7DY

REGISTERED NUMBER:

03427453 (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 December 2024.

PRINCIPAL ACTIVITY AND REVIEW OF BUSINESS

The principal activity of the company throughout the year has continued to be that of electrical, plumbing and drainage engineering and the maintenance air conditioning units and lifts.

With a continued measured approach the business is maintaining its core strategy and aims to gain new business due to its reputation for quality and and the ability to rise to new challenges and market demands.

Given the economic situation affecting the company's core customer-base in retail, the management team have seen a minor reduction in turnover, however with good procurement and a skilled workforce have managed to maintain a satisfactory profit margin albeit with a minor reduction over last year. The directors are therefore pleased to report this has resulted in another successful year. The continued consolidation of trade being brought back into its originating business has strengthened the business and its core trades.

The business continues to concentrated on reactive/maintenance element of its services as opposed to long term contracting. This has been paramount in maintaining results which evident in the company's strong order book from a wider range of customers.

Continued review of client base and trades has also been paramount. The concentration of providing greener services ie. EV Charging, Solar Panels and Air Source Heat Pumps has provided much more service to the existing client base as well as the welcomed new clients.

The company continues to look forward to improve and refine its core strategy which includes training and promotion from within. This together with a renewed drive to consolidate the branding, the directors are looking forward to on-boarding new contracts and growing the customer base further to rebuild lost turnover since the year end.

When taking into account the current economic environment and changes to the core customer base post year end the directors consider the position of the company to be still positive.

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

2024

2023

£

£

Gross profit

2,310,171

2,402,334

Profit on ordinary activities before taxation and depreciation

501,694

388,778

The directors believe that the key risks facing the company include:

- credit risk of clients;

- further reduction in high street retail

- inflation impact on core customer base;

- departure of clients due to their new business strategies and service requirements;

- liquidity risk; and

- unpredictable availability of materials and labour.

In managing the business the directors have established controls to enable them to respond to and mitigate the impact of such risks.

ON BEHALF OF THE BOARD:

Ms L Connor - Director

23 December 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

Total dividends paid to Res Group Holdings Limited in the year amount to £93,600. The directors do not recommend a final dividend.

FUTURE DEVELOPMENTS

The strategy of making investment in key management personnel and improvements in internal controls are now fully embedded in the culture of the company. Continued product development in new markets like green energy and related services like solar panel installations and EV charging have created sustained profits and resilience. The directors have also made significant progress in increasing the diversity of the company's customer base.

Since the year end the company has pivoted away from a major customer resulting in a significant reduction in turnover. Due to this the company has reduced staffing levels which has been managed without any impact on the companys ability to trade or negatively affect cash reserves. The directors have reviewed the long term profitability of the company and have concluded that regardless of the reduction in turnover, they are satisfied that the company will remain a going concern and that acceptable future profits can be achieved. New customers have already been successfully taken on and the company's improved web presence is also helping encourage a new more diverse customer base.

The directors are confident that regardless of a short term drop in turnover/profits the long term future of the company is secure and profit making.

DIRECTORS

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

S Champion

Ms L Connor

Other changes in directors holding office are as follows:

MS A Morris was appointed as a director after 31 December 2024 but prior to the date of this report.

M D Shanks ceased to be a director after 31 December 2024 but prior to the date of this report.

DONATIONS

Throughout the year the company has made donations of £2,100 to local charity endeavours.

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 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:

Ms L Connor - Director

23 December 2025

Opinion

We have audited the financial statements of RES Group Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, 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 31 December 2024 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, and;

- 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.

- 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.

Richard Skewis 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

23 December 2025

TURNOVER

3

12,498,216

12,595,072

Cost of sales

10,188,045

10,192,738

GROSS PROFIT

2,310,171

2,402,334

Administrative expenses

1,987,716

2,118,709

OPERATING PROFIT

5

322,455

283,625

Income from shares in group undertakings

-

1,012

Interest receivable and similar income

26,007

15,169

26,007

16,181

348,462

299,806

Interest payable and similar expenses

6

234

16,795

PROFIT BEFORE TAXATION

348,228

283,011

Tax on profit

7

90,406

73,105

PROFIT FOR THE FINANCIAL YEAR

257,822

209,906

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

257,822

209,906

FIXED ASSETS

Tangible assets

9

827,906

923,202

Investments

10

-

-

827,906

923,202

CURRENT ASSETS

Stocks

11

24,764

24,764

Debtors

12

1,191,433

1,419,528

Cash in hand

2,262,350

2,353,461

3,478,547

3,797,753

CREDITORS

Amounts falling due within one year

13

2,430,133

2,988,745

NET CURRENT ASSETS

1,048,414

809,008

TOTAL ASSETS LESS CURRENT LIABILITIES

1,876,320

1,732,210

PROVISIONS FOR LIABILITIES

16

126,982

147,094

NET ASSETS

1,749,338

1,585,116

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

1,749,238

1,585,016

SHAREHOLDERS' FUNDS

1,749,338

1,585,116

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

Ms L Connor - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

1,461,510

1,461,610

Changes in equity

Dividends

-

(86,400

)

(86,400

)

Total comprehensive income

-

209,906

209,906

Balance at 31 December 2023

100

1,585,016

1,585,116

Changes in equity

Dividends

-

(93,600

)

(93,600

)

Total comprehensive income

-

257,822

257,822

Balance at 31 December 2024

100

1,749,238

1,749,338

1.	STATUTORY INFORMATION

RES Group Limited (previously known as Ryan Electrical Services & Sons Ltd) is a private company, limited by shares, registered in England. It has its registered office and principal place of business at Unit 1 Sidings Court, Henry Boot Way, Hull, HU4 7DY.

The principal activity of the company through the year continued to be that of electrical, plumbing and drainage engineering and the maintenance air conditioning units and lifts.

The presentational currency of the financial statements is Pound Sterling (£).

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.

Having regard to liquidity risk, current market conditions like low growth, high labour cost, skills shortages and other factors affecting the company including the loss of a major customer, 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 December 2024, the company had net assets of £1,749,338 a growth from the 2023 position of £1,585,116 The financial statements have been prepared on a going concern basis.

The Directors agree that the company remains a going concern due to the significant cash reserves held and a healthy flow of orders which now are received from a much more diverse client base. The inclusion of a green technology product line, and increased use of modern software applications in the administration of the sales process both strengthen the directors view toward the ability to operate as a going concern. The company has continue to welcome new clients, utilised the services provided on a more local base and strengthened the client base and order book alike. The cash flow has continued to remain in a strong position due to the consolidation of core trades and is in a position to easily meet the debts due to more streamlined cash control.

The risk of losing any clients is always a concern, but the company has concentrated on building a more diverse client base and offer a more attractive service package, with the aim of limiting any affect on the business should any client no longer require the services provided.

The company's financial forecasts, taking into consideration the current economic environment, the threat of impending changes in industry legislation and the loss of a major customer still show that the company is expected to continue to make profits and generate positive cashflows giving 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

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 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

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

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about RES Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, RES Group Holdings Limited, Unit 1 Sidings Court, Henry Boot Way, Hull, HU4 7DY.

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.

In the process of applying the company's accounting policies, the directors have made the following critical

judgements which are considered to have the most significant effect on the amounts recognised in the financial statements.

Revenue Recognition

Determining whether or not to recognise revenue involves a degree of management judgement. Where the

outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion of contract costs incurred for work performed to date as total contract costs, except where this would not be representative of the stage of completion. Various contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that contract costs will exceed contract revenue, the expected loss is recognised as an expense immediately.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for services provided during the year, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from services is recognised on completion of service, or when those services span the year end date, by reference to the stage of completion at the balance sheet date.

Occasionally retentions are offered and these are included in turnover at the beginning of the retention period.

Work done but not yet invoiced at the balance sheet date is included in gross amounts owed by contract customers within debtors, at the value of the future sales invoice.

Tangible fixed assets

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

Freehold property

-

10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on reducing balance

Computer equipment

-

33.3% on cost

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

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

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.

Stocks

Stock are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacture/completion.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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

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.

Short-term employee benefits are recognised as an expense in the period they are incurred.

The obligations for contributions to defined contribution scheme are recognised as an expense in the period they are incurred. The assets of the scheme are held separately from those of the company in an independent administered fund.

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.

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.

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:

2024

2023

£

£

United Kingdom

12,498,216

12,595,072

12,498,216

12,595,072

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,343,067

2,584,253

Social security costs

235,276

269,110

Other pension costs

115,937

93,648

2,694,280

2,947,011

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

2024

2023

Directors

3

3

Engineering

34

25

Administration

29

25

66

53

2024

2023

£

£

Directors' remuneration

186,845

389,557

Directors' pension contributions to money purchase schemes

20,658

22,255

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

Money purchase schemes

3

3

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Other operating leases

31,200

30,321

Depreciation - owned assets

148,047

123,514

Loss/(profit) on disposal of fixed assets

5,185

(17,747

)

Auditors' remuneration

20,750

21,313

Plant operating leases

-

2,735

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

234

16,104

Hire purchase

-

691

234

16,795

7.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

110,518

19,376

Deferred tax

(20,112

)

53,729

Tax on profit

90,406

73,105

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

348,228

283,011

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

87,057

70,753

Effects of:

Expenses not deductible for tax purposes

547

4,679

Capital allowances in excess of depreciation

-

(54,837

)

Depreciation in excess of capital allowances

22,914

-

Deferred tax

(20,112

)

53,729

Change of tax rate

-

(1,219

)

Total tax charge

90,406

73,105

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. In the year to 31 December 2024, deferred tax is charged at 25% (2023 - 25%).

8.

DIVIDENDS

2024

2023

£

£

Ordinary share capital shares of 1 each

Interim

93,600

86,400

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2024

418,432

41,034

51,187

Additions

-

2,468

4,235

Disposals

-

-

-

At 31 December 2024

418,432

43,502

55,422

DEPRECIATION

At 1 January 2024

144,241

32,974

44,799

Charge for year

11,210

3,434

2,544

Eliminated on disposal

-

-

-

At 31 December 2024

155,451

36,408

47,343

NET BOOK VALUE

At 31 December 2024

262,981

7,094

8,079

At 31 December 2023

274,191

8,060

6,388

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2024

900,476

14,625

1,425,754

Additions

76,640

12,718

96,061

Disposals

(108,081

)

-

(108,081

)

At 31 December 2024

869,035

27,343

1,413,734

DEPRECIATION

At 1 January 2024

265,913

14,625

502,552

Charge for year

130,209

650

148,047

Eliminated on disposal

(64,771

)

-

(64,771

)

At 31 December 2024

331,351

15,275

585,828

NET BOOK VALUE

At 31 December 2024

537,684

12,068

827,906

At 31 December 2023

634,563

-

923,202