REGISTERED NUMBER: SC066568 (Scotland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

PARK'S OF HAMILTON (HOLDINGS) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

17

DIRECTORS:

I B Mackay

W Cumming

R W Park

G T Park

A G Noble

R B Hare

SECRETARY:

A G Noble

REGISTERED OFFICE:

Park House

14 Bothwell Road

Hamilton

ML3 0AY

REGISTERED NUMBER:

SC066568 (Scotland)

AUDITORS:

Thomas Barrie & Co LLP

Statutory Auditor

Chartered Accountants

Atlantic House

1a Cadogan Street

Glasgow

G2 6QE

BANKERS:

HSBC

1 Centenary Square

Birmingham

B1 1HQ

SOLICITORS:

Brodies LLP

110 Queen Street

Glasgow

G1 3BX

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The Company operates as a holding and related head office and management services company for the trading group subsidiary companies. On 29 October 2024 the share capital of the company was acquired by a new group holding company, Park's of Hamilton (Investments) Limited. Subsequently the majority of non -motor trade related assets were transferred to related group companies. The company retains ownership of Park's of Hamilton (Townhead Garage) Limited and Douglas Park Limited, and in future will focus on the Group's motor trade operations and their regulation by the FCA as an insurance intermediary and credit broker.

2025

2024

£

£

Other operating income

8,844,985

9,211,151

Other operating income fell 4% in the year, principally due to the transfer of the property portfolio to Park's of Hamilton (Properties) Limited on 29 November 2024.

Operating profit for the year was £3,964,030 (2024 - £(2,758,227)).

PRINCIPAL RISKS AND UNCERTAINTIES

The strategic direction of the Company is aligned to manage the principal risks identified by the Directors as follows:

Operational risk

The Company's operation is dependent on supply chains which are outside the influence of the Directors, the failure of which would risk the ability to meet customer demands and the Company's financial goals. Risk is managed through regular and proactive dialogue with suppliers to ensure customer demand is met through reliable delivery of vehicles and associated products.

Market and strategic risks

The Company's profitability and cash flow are affected by changes in market conditions and the ability of the Directors to accurately predict these in advance. The Company places increasing emphasis on the careful management of the purchasing and maintaining of used vehicle inventory and sales profitability to provide the Company with protection against shortfalls in new vehicle demand.

The emergence of Covid-19 restrictions has highlighted the importance of being able to adapt sales processes to meet changing customer demands and behaviours. The Directors recognise the emergence of online sales platforms from both manufacturers and internet consolidators which increase competition and threaten to reduce profitability of sales. The Company is focused on retaining customers by providing a high standard of service across all sales channels.

Competitive risk

The marketplace continues to be competitive but the Company benefits from a wide geographical presence, well diversified operations and brand portfolio, and a focus on maintaining a strong reputation for service and quality.

Regulatory and legislative risk

The Company operates in a highly regulated marketplace and is regulated by the FCA for general insurance broking and consumer credit purposes. The Company operates under the Senior Managers and Certification Regime (SMCR), with responsibilities appropriately allocated to Directors and senior Group managers. The Directors have taken appropriate steps to ensure the Company is compliant with the recent introduction of the Consumer Duty.

The Directors are committed to ensuring the Company complies with all legislation and directives applicable to the Company's activity.

The impact of Brexit and risks associated with changing legislation and regulation continue to be monitored by the Directors.

Covid-19 emerged as significant risks to business continuity, and the Directors have ensured decisions and actions can be taken swiftly to minimise cost and disruption while maximising trading opportunities should similar disruption arise in the future.

Financial Risk Management

The main risks associated with the company's financial assets and liabilities are set out below.

Liquidity Risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations the company has credit facilities available.

Interest Rate Risk

The company borrows from its bankers using either overdrafts or term loans whose tenure depends on the nature of the asset and management's view of the future direction of interest rate.

Credit Risk

The company has external debtors, however, the company undertakes assessments of its customers in order to ensure that credit is not extended where there is a likelihood of default

SECTION 172(1) STATEMENT

The Directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regard amongst other matters) to:

The likely consequences of any decision in the long term;

The interests of the Company's employees;

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

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

The desirability of the Company maintaining a reputation for high standards of business conduct.

The need to act fairly as between members of the company.

Employees

The Company's employees are key to delivering the overall strategy. Ensuring that the business has the right values and culture is of paramount importance to the continued success of the Company's business.

The business engages on a regular basis with all of its employees, including regular team meetings, appraisals, apprenticeship programmes and various training and development courses.

Customers

The Company is committed to delivering a professional, industry leading customer experience across all activities. Customer feedback is collected from a number of sources.

Suppliers

The Company works closely with a wide variety of suppliers in maintaining a ready fleet of operational vehicles. Successful operation is dependent on the continued maintenance of strong relationships with those suppliers through regular engagement.

The Company is committed to developing strong relationships with suppliers across all activities to drive value, ensure continuity of service and improve customer outcomes.

Community and Environment

The Company values the importance of making a positive impact and maintaining its physical presence in each of its operating locations by engaging in the local community in which it operates.

The Directors are committed to delivering a corporate social responsibility strategy that sets the aim to be environmentally responsible, a good neighbour and an excellent workplace.

ON BEHALF OF THE BOARD:

A G Noble - Director

18 December 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale and service of private and commercial vehicles together with the sale of motor fuels, oil and accessories and the operation of vehicle repair centres. Certain group companies also operate coach hiring activities and the rental of properties.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 130,580,000 .

FUTURE DEVELOPMENTS

The directors will continue to look for opportunities to expand the company's core business.

DIRECTORS

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

I B Mackay

W Cumming

R W Park

G T Park

A G Noble

R B Hare

Other changes in directors holding office are as follows:

D I Park - resigned 29 October 2024

Qualifying third party indemnity provisions

The company has put in place qualifying third party indemnity provisions for all of the directors.

GOING CONCERN

The directors are of the opinion that the financial statements should be prepared on a going concern basis. In forming this opinion, the directors have considered forecasts prepared taking into account the information currently available as well as several severe downside scenarios. The group's balance sheet has strong reserves and trading since the year end has been good, there is no reason to believe that the group's current funding and liquidity position is not sufficient.

EMPLOYEES

The company is committed to providing a safe and pleasant environment for its employees and training and career development opportunities are available. No discrimination is made on the grounds of age, colour, disability, marital status, race, religion or sex. Employees are given the opportunity to develop and progress according to their ability. Disabled people are given fair consideration for all job vacancies for which they offer themselves as suitable applicants, having regard to their particular aptitudes and abilities.

Every effort is made to keep staff informed of, and involved in, the operations and progress of the group.

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;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Thomas Barrie & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A G Noble - Director

18 December 2025

Opinion

We have audited the financial statements of Park's of Hamilton (Holdings) Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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 material misstatements in respect of 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 misrepresentation, or through collusion. However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the company and management.

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, tax legislation, pensions legislation, financial conduct authority regulation and data protection regulations; and

- do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

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.

Martin Greig BA CA (Senior Statutory Auditor)

for and on behalf of Thomas Barrie & Co LLP

Statutory Auditor

Chartered Accountants

Atlantic House

1a Cadogan Street

Glasgow

G2 6QE

18 December 2025

TURNOVER

-

-

Other operating income

3

8,844,985

9,211,151

8,844,985

9,211,151

Staff costs

4

(8,068,023

)

(6,940,666

)

Depreciation

8,308,972

(1,208,430

)

Other operating expenses

(5,121,904

)

(3,820,282

)

OPERATING PROFIT/(LOSS)

5

3,964,030

(2,758,227

)

Income from shares in group undertakings

40,000,000

37,500,000

Interest receivable and similar income

247,541

215,295

44,211,571

34,957,068

Interest payable and similar expenses

6

2,649,224

2,458,317

PROFIT BEFORE TAXATION

46,860,795

37,415,385

Tax on profit

7

-

-

PROFIT FOR THE FINANCIAL YEAR

46,860,795

37,415,385

PROFIT FOR THE YEAR

46,860,795

37,415,385

OTHER COMPREHENSIVE INCOME

Actuarial losses

Actuarial gains

50,000

-

GMP equalisation

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

50,000

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

46,910,795

37,415,385

FIXED ASSETS

Tangible assets

10

7,704,168

102,032,316

Investments

11

27,929,856

28,439,856

Investment property

12

800,000

13,099,061

36,434,024

143,571,233

CURRENT ASSETS

Debtors

13

24,431,877

19,623,625

Cash at bank and in hand

10,903,465

13,972

35,335,342

19,637,597

CREDITORS

Amounts falling due within one year

14

(40,687,676

)

(48,457,935

)

NET CURRENT LIABILITIES

(5,352,334

)

(28,820,338

)

TOTAL ASSETS LESS CURRENT LIABILITIES

31,081,690

114,750,895

CAPITAL AND RESERVES

Called up share capital

19

20,000,004

20,000,004

Retained earnings

20

11,081,686

94,750,891

SHAREHOLDERS' FUNDS

31,081,690

114,750,895

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2025 and were signed on its behalf by:

A G Noble - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

20,000,004

68,325,508

88,325,512

Changes in equity

Dividends

-

(10,990,002

)

(10,990,002

)

Total comprehensive income

-

37,415,385

37,415,385

Balance at 31 March 2024

20,000,004

94,750,891

114,750,895

Changes in equity

Dividends

-

(130,580,000

)

(130,580,000

)

Total comprehensive income

-

46,910,795

46,910,795

Balance at 31 March 2025

20,000,004

11,081,686

31,081,690

Cash flows from operating activities

Cash generated from operations

1

(12,048,611

)

(2,010,806

)

Interest paid

2,649,224

2,458,317

Tax paid

1,633,929

(747,415

)

Net cash from operating activities

(7,765,458

)

(299,904

)

Cash flows from investing activities

Purchase of tangible fixed assets

(2,498,514

)

(4,505,664

)

Purchase of fixed asset investments

-

(144,515

)

Purchase of investment property

(141,952

)

(646,921

)

Sale of tangible fixed assets

104,791,647

485,940

Sale of fixed asset investments

500,000

-

Sale of investment property

12,795,000

-

Interest received

247,541

215,295

Dividends received

40,000,000

37,500,000

Net cash from investing activities

155,693,722

32,904,135

Cash flows from financing activities

New loans in year

15,000,000

-

Loan repayments in year

(3,600,000

)

(19,296,336

)

Equity dividends paid

(130,580,000

)

(10,990,002

)

Net cash from financing activities

(119,180,000

)

(30,286,338

)

Increase in cash and cash equivalents

28,748,264

2,317,893

Cash and cash equivalents at beginning of year

2

(17,844,799

)

(20,162,692

)

Cash and cash equivalents at end of year

2

10,903,465

(17,844,799

)

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

2025

2024

£

£

Profit before taxation

46,860,795

37,415,385

Depreciation charges

1,026,651

1,069,684

Profit on disposal of fixed assets

(9,335,623

)

(64,114

)

Impairment of investment properties

-

202,860

Pensions adjustments

50,000

-

Finance costs

(2,649,224

)

(2,458,317

)

Finance income

(40,247,541

)

(37,715,295

)

(4,294,942

)

(1,549,797

)

Increase in trade and other debtors

(6,408,252

)

(1,021,021

)

(Decrease)/increase in trade and other creditors

(1,345,417

)

560,012

Cash generated from operations

(12,048,611

)

(2,010,806

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

10,903,465

13,972

Bank overdrafts

-

(17,858,771

)

10,903,465

(17,844,799

)

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

13,972

(953

)

Bank overdrafts

(17,858,771

)

(20,161,739

)

(17,844,799

)

(20,162,692

)

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

13,972

10,889,493

10,903,465

Bank overdrafts

(17,858,771

)

17,858,771

-

(17,844,799

)

28,748,264

10,903,465

Debt

Debts falling due within 1 year

(18,600,000

)

(11,400,000

)

(30,000,000

)

(18,600,000

)

(11,400,000

)

(30,000,000

)

Total

(36,444,799

)

17,348,264

(19,096,535

)

1.	STATUTORY INFORMATION

Park's of Hamilton (Holdings) Limited is a private company, limited by shares, registered in Scotland. The company's registered number is SC066568 and its registered office is Park House, 14 Bothwell Road, Hamilton ML3 0AY.

The presentation currency of the financial statements is Pounds 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.

Going Concern

The company is showing a net current liability, mainly due to the vehicle stocking loan & overdraft. Vehicle stocks are held in other group companies and there is an overall positive cash balance in the group as whole. The company has a healthy net asset position and will receive the full support of the other group companies.

The group meets its day to day working capital requirements through loans from finance houses and a group overdraft facility which is due for renewal withing the next financial year.

The group's forecasts and projections, taking into account of possible changes in trading performance, show that the company will be able to operate within the level of its current facilities. The group will open renewal negotiations with the bank in due course, who have indicated that it is their intention to renew all group facilities. The group has held discussions with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that finance may not be forthcoming on acceptable terms.

Significant judgements and estimates

In preparing these consolidated financial statements, the directors are required to make judgements, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The following areas provide estimation uncertainty:

Investment properties are included in the accounts at fair value based on the local market.

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

-

in accordance with the property

Improvements to property

-

10% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% on cost

Computer equipment

-

25% on cost

Motor vehicles consist of cherished number plates, which the directors have chosen not to depreciate as it is unlikely that the realisable value will diminish over a period of time.

The carrying value of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be reasonable.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including related transaction costs. Subsequently, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit and loss in the period in which they arise.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in nonconvertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents comprises cash balances. Bank overdrafts that are payable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions

Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Pension costs and other post-retirement benefits

The pension scheme liabilities are measured using a projected unit method and discounted at an AA corporate bond rate. The pension scheme assets are valued at market rate. The pension scheme surplus (to the extent that it can be recovered) is recognised in full on the balance sheet.

The group also operates defined contribution pension schemes. Contributions payable are charged to the profit and loss account in the period to which they relate.

Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

3.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

1,016,217

1,376,388

Sundry receipts

101,768

131,513

Management Charges Received

7,727,000

7,703,250

8,844,985

9,211,151

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

6,994,923

6,067,448

Social security costs

752,177

672,039

Other pension costs

320,923

201,179

8,068,023

6,940,666

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

2025

2024

Office and Management

103

91

Production

18

14

121

105

2025

2024

£

£

Directors' remuneration

2,066,724

2,129,680

Directors' pension contributions to money purchase schemes

74,000

74,000

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

Money purchase schemes

5

5