REGISTERED NUMBER: 09140646 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

ASHTON CARE HOMES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTOR:

Mrs K Ragunathan

REGISTERED OFFICE:

14 Highbury Road

London

SW19 7PR

REGISTERED NUMBER:

09140646 (England and Wales)

SENIOR STATUTORY AUDITOR:

Timothy Harbour Bsc FCA

AUDITORS:

Xeinadin Audit Limited

Beckwith Barn

Warren Estate

Lordship Road

Writtle

Essex

CM1 3WT

The director presents her strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

Our financial performance in FY 2024 demonstrated resilience amidst market challenges.

1. Sales Revenue Growth:

- Sales revenue have increased to £6.47 million, due to fee uplifts, increased and more stable occupancy.

- This growth was driven by robust business activity, strategic market positioning, and effective customer engagement.

2. Payroll Costs and Staffing:

- Payroll costs rose to £3.90 million due to necessary staffing adjustments.

- Overseas recruitment bolstered our workforce, ensuring operational stability and maintaining quality care provision.

3. Gross Profit Efficiency:

- Our gross profit reached £1.990million, reflecting prudent cost management and streamlined operations. We optimised resource allocation while maintaining service excellence.

Key performance indicators

The directors consider the following to be financial key performance indicators.

31.12.2024

31.12.2023

£

£

Sales revenue

6,477,416

6,152,313

Payroll costs

3,900,319

3,453,350

Gross profit

1,812,433

1,994,020

Profit before tax

449,150

861,563

Shareholders funds

6,087,023

5,626,273

Challenges and opportunities

1. Market Environment:

- Inflationary Pressures: Escalating costs due to inflation remain a challenge.

- Local Council Measures: Cost-saving initiatives by local councils are continuing to impact market occupancy in the short term.

- Mitigation Strategy: we're closely monitoring these factors and adjusting our business model accordingly.

2. Refurbishment and Remodelling Programme:

- Enhances Amenities: Upgraded facilities improve resident comfort and differentiate us in a competitive market and act as powerful marketing tool for prospective residents and their families.

- Fire Safety Compliance: Alongside remodelling, we are ensuring compliance with the latest fire safety regulations across the business.

PRINCIPAL RISKS AND UNCERTAINTIES

1. Regulatory Compliance:

- The Care Quality Commission (CQC) closely monitors our homes.

- Our unwavering commitment to quality ensures consistent grading.

2. Property Maintenance:

- Maintaining high standards incurs costs but aligns with our care provision ethos.

FUTURE DEVELOPMENTS

Looking ahead to FY 2025:

- Market Expansion: We'll continue growing our industry presence.

- Investments in enhancing our facilities: Will continue, these improvements not only benefit residents but also contribute to staff morale and overall satisfaction.

- Diversify our care offering: Diversifying our care offering will strengthen our market position and make us more resilient.

ON BEHALF OF THE BOARD:

Mrs K Ragunathan - Director

22 December 2025

The director presents her report with the financial statements of the Company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the Company continued to be the provision of care services in a range of specialist nursing and care services to residents aged 40 and over with or without mental health.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR

Mrs K Ragunathan held office during the whole of the period from 1 January 2024 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-size Companies and Group (Accounts and reports) Regulation 2008, certain matters which are required to be disclosed in the directors report have been omitted as they are included in the strategic report of page 2. These matters relate to the business review, principal risks and uncertainties, key performance indicators and future developments.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs K Ragunathan - Director

22 December 2025

Opinion

We have audited the financial statements of Ashton Care Homes Limited (the 'Company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the Company's affairs as at 31 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or has 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:

The objectives of our audit, in respect to irregularities, including fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; to respond appropriately to fraud or suspected fraud identified during the audit, to obtain audit evidence regarding compliance with provisions of applicable laws and regulations, and to respond appropriately to any non-compliance identified. 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 our approach was to consider the following:

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

- the results of enquiries of management about their own identification and assessment of the risks of irregularities;

- matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, tax legislation and health and safety.

In addition, we considered provisions of other laws and regulations that 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.

We assessed the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud to be in respect of the recognition of income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation;

- enquiring of management concerning actual and potential litigation and claims;

- reviewing material legal costs in the period;

- performing analytical procedures to identify unusual or unexpected relationships;

- reviewing correspondence with HMRC;

- testing the appropriateness of judgements made in making accounting estimates, journal entries and other adjustments made by management for indications of potential bias; and

- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

The likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Timothy Harbour Bsc FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Beckwith Barn

Warren Estate

Lordship Road

Writtle

Essex

CM1 3WT

30 December 2025

TURNOVER

6,477,416

6,152,313

Cost of sales

4,664,541

4,158,293

GROSS PROFIT

1,812,875

1,994,020

Administrative expenses

1,217,433

1,036,081

595,442

957,939

Other operating income

91,205

157,232

OPERATING PROFIT

5

686,647

1,115,171

Interest payable and similar expenses

7

237,497

253,608

PROFIT BEFORE TAXATION

449,150

861,563

Tax on profit

8

(11,600

)

(11,600

)

PROFIT FOR THE FINANCIAL YEAR

460,750

873,163

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

460,750

873,163

FIXED ASSETS

Tangible assets

9

10,475,082

10,771,668

CURRENT ASSETS

Debtors

10

3,391,692

2,981,717

Cash at bank

11

240,821

241,477

3,632,513

3,223,194

CREDITORS

Amounts falling due within one year

12

1,576,319

1,658,194

NET CURRENT ASSETS

2,056,194

1,565,000

TOTAL ASSETS LESS CURRENT LIABILITIES

12,531,276

12,336,668

CREDITORS

Amounts falling due after more than one year

13

(5,765,253

)

(6,019,795

)

PROVISIONS FOR LIABILITIES

16

(679,000

)

(690,600

)

NET ASSETS

6,087,023

5,626,273

CAPITAL AND RESERVES

Called up share capital

17

100

100

Revaluation reserve

18

3,216,194

3,304,471

Retained earnings

18

2,870,729

2,321,702

SHAREHOLDERS' FUNDS

6,087,023

5,626,273

The financial statements were approved by the director and authorised for issue on 22 December 2025 and were signed by:

Mrs K Ragunathan - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100

1,360,262

3,392,748

4,753,110

Changes in equity

Profit for the year

-

873,163

-

873,163

Total comprehensive income

-

873,163

-

873,163

Deferred tax

-

(11,600

)

11,600

-

Transfer

-

99,877

(99,877

)

-

Balance at 31 December 2023

100

2,321,702

3,304,471

5,626,273

Changes in equity

Profit for the year

-

460,750

-

460,750

Total comprehensive income

-

460,750

-

460,750

Deferred tax

-

(11,600

)

11,600

-

Transfer

-

99,877

(99,877

)

-

Balance at 31 December 2024

100

2,870,729

3,216,194

6,087,023

Cash flows from operating activities

Cash generated from operations

1

1,132,141

1,394,711

Interest paid

(305,467

)

(185,638

)

Net cash from operating activities

826,674

1,209,073

Cash flows from investing activities

Purchase of tangible fixed assets

(53,901

)

(57,239

)

Net cash from investing activities

(53,901

)

(57,239

)

Cash flows from financing activities

Loan repayments in year

(221,064

)

(211,555

)

Movement in loans to related parties

(529,946

)

(917,919

)

Amount introduced by directors

-

19,500

Amount withdrawn by directors

(22,419

)

-

Net cash from financing activities

(773,429

)

(1,109,974

)

(Decrease)/increase in cash and cash equivalents

(656

)

41,860

Cash and cash equivalents at beginning of year

2

241,477

199,617

Cash and cash equivalents at end of year

2

240,821

241,477

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

2024

2023

£

£

Profit before taxation

449,150

861,563

Depreciation charges

350,485

329,217

Finance costs

237,497

253,608

1,037,132

1,444,388

Decrease/(increase) in trade and other debtors

232,317

(184,142

)

(Decrease)/increase in trade and other creditors

(137,308

)

134,465

Cash generated from operations

1,132,141

1,394,711

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

240,821

241,477

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

241,477

199,617

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

241,477

(656

)

240,821

241,477

(656

)

240,821

Debt

Debts falling due within 1 year

(219,671

)

(11,058

)

(230,729

)

Debts falling due after 1 year

(3,834,715

)

232,123

(3,602,592

)

(4,054,386

)

221,065

(3,833,321

)

Total

(3,812,909

)

220,409

(3,592,500

)

1.	STATUTORY INFORMATION

Ashton Care Homes Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

Amounts in these financial statements are rounded to the nearest Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The financial statements have been prepared on a going concern basis. The director has considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Significant judgements and estimates

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying value of assets and liabilities. The directors' judgement, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that considered to be applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively.

The key assumptions and estimates made by the directors within these financial statements are as follows:

Land & buildings

Freehold property held and used for the supply of services are stated in the balance sheet at their revalued amounts. The revalued amounts equate to the fair value at the date of revaluation, less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amounts do not materially from using the fair value. Once a revalued property is sold or retired any attributable revaluation surplus remaining in the revaluation reserve is transferred to retained earnings. No transfer is made from the revaluation reserve unless an asset is derecognised.

Turnover

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

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts.

The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met as described below.

Services

The company provides specialist nursing care for the elderly, which is operated from the freehold property of the company. The company recognises revenue for the sales of services in the reporting period in which the services are rendered.

Tangible fixed assets

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

Freehold property

-

Straight line over 50 years

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

at varying rates on cost

Motor vehicles

-

20% straight line

Land and buildings include a freehold building. Land and buildings are carried at their revalued amounts, being fair value at the date of valuation less subsequent depreciation and impairment losses. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Any revaluation increase in the carrying amount of land and buildings is recognised in other comprehensive income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit and loss to the extent of the decrease previously expended. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against revaluation reserve in equity; decreases exceeding the balance in revaluation reserve relating to an asset are recognised in profit or loss. Each year the difference between depreciation based on the revalued carrying amount of the asset

recognised in profit or loss and depreciation based on the asset’s original cost is transferred from revaluation reserve to retained earnings.

Land is not depreciated.

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

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.

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.

Leasing commitments

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, such as plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

Borrowing costs

All borrowing costs are recognised in the income statement in the period in which they are incurred using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated.

Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,519,973

3,130,755

Social security costs

337,380

289,795

Other pension costs

42,966

32,800

3,900,319

3,453,350

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

2024

2023

Administration

9

9

Operations

101

96

110

105

2024

2023

£

£

Director's remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

11,160

11,712

Depreciation - owned assets

350,487

329,217

6.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the Company's auditors for the audit of the Company's financial statements

39,170

21,000

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

175,550

185,060

Interest payable

61,947

68,548

237,497

253,608

8.

TAXATION

Analysis of the tax credit

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

2024

2023

£

£

Deferred tax:

Origination and reversal of timing differences

(11,600

)

(11,600

)

Tax on profit

(11,600

)

(11,600

)

Reconciliation of total tax credit included in profit and loss

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

2024

2023

£

£

Profit before tax

449,150

861,563

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

112,288

215,391

Effects of:

Capital allowances in excess of depreciation

(85,316

)

(148,683

)

Adjustments to tax charge in respect of previous periods

-

(66,708

)

Losses carried forward

(26,972

)

-

Deferred tax on revaluation

(11,600

)

(11,600

)

Total tax credit

(11,600

)

(11,600

)

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2024

10,954,083

1,090,223

2,042,461

30,989

14,117,756

Additions

3,420

-

50,481

-

53,901

At 31 December 2024

10,957,503

1,090,223

2,092,942

30,989

14,171,657

DEPRECIATION

At 1 January 2024

1,149,442

1,074,372

1,093,904

28,370

3,346,088

Charge for year

146,378

10,016

193,700

393

350,487

At 31 December 2024

1,295,820

1,084,388

1,287,604

28,763

3,696,575

NET BOOK VALUE

At 31 December 2024

9,661,683

5,835

805,338

2,226

10,475,082

At 31 December 2023

9,804,641

15,851

948,557

2,619

10,771,668