REGISTERED NUMBER: 05948423 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 March 2025

for

Pace Interiors Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTOR:

Mr P Heaney

SECRETARY:

Mrs D Heaney

REGISTERED OFFICE:

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

BUSINESS ADDRESS:

9 Staple Inn

London

WC17 7QH

REGISTERED NUMBER:

05948423 (England and Wales)

SENIOR STATUTORY AUDITOR:

Emma Fraser FCA

AUDITORS:

Bracey's Accountants (Audit) Limited

Statutory Auditor, Chartered Accountants

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

The director presents his strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

During the year ended 31 March 2025, the company experienced a reduction in turnover from £14.9m to £13.2m. This reduction was largely attributable to a deliberate focus on project selectivity and margin discipline rather than volume-led growth.

Despite the lower turnover, gross profit performance improved, with the gross profit margin increasing to 36% from 34% in the prior year, demonstrating continued control over project costing and pricing.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the business remain cash flow management and effective project management. These risks are inherent in a project-based operating environment and are mitigated through close monitoring and control. The company utilises appropriate and up-to-date accounting systems alongside robust job management systems to provide timely financial and operational information. This enables management to identify issues early and take corrective action where necessary.

ON BEHALF OF THE BOARD:

Mr P Heaney - Director

24 December 2025

The director presents his 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 interior fit out and joinery in the construction industry.

DIVIDENDS

An interim dividend was paid on 30 April 2024 totalling £90,000. There are no further dividends proposed or made.

FUTURE DEVELOPMENTS

The company's strategy for the forthcoming year is centred on managed and sustainable turnover growth, with a continued emphasis on maintaining consistent project margins in line with historical performance. Growth will be targeted through carefully selected projects through our long-standing customer base. that align with the company's operational expertise, capacity, and margin expectations, rather than pursuing growth at the expense of profitability.

To support this strategy and further enhance operational efficiency, the company is planning investment in new machinery along with an expansion to our current workshop premises during the next financial year. This investment is intended to improve productivity, support margin retention, and ensure the business continues to evolve from a technology and capability standpoint.

Overall, the company remains focused on disciplined growth, margin protection, and continued investment in systems and infrastructure to support long-term sustainability.

DIRECTOR

Mr P Heaney held office during the whole of the period from 1 April 2024 to the date of this report.

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). Under company law the director must not approve the financial statements unless he 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 him to ensure that the financial statements comply with the Companies Act 2006. He 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 he 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, Bracey's Accountants (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr P Heaney - Director

24 December 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 matters

This is the first year that the company has been subject to a statutory audit. As such, the comparative figures have not been audited.

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 three, 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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Financial Reporting Standard applicable in the UK and Ireland (FRS102). 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 might be fundamental to the company's ability to operate for example health and safety policies and procedures, taxation legislation and employment legislation.

In identifying and addressing the risk of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, our audit procedures performed included, but were not limited to the following: review of the financial statements and disclosures to underlying supporting documentation, obtained an understanding of laws and regulations that affect the company both directly in the financial statements and its operations, undertaking a walk through test of key controls that are in operation, review and enquiries into journal entries processed during the period under review, evaluation and consideration of areas where the potential for management bias exists, enquiries of management and key personnel, performance of analytical review and reviewing the findings of testing, review of costs, documents obtained and engaging in discussions to ensure consistency is evident in the findings documented.

Our work was directed where management applies significant judgement within the financial statements - construction contract recognition. This involves estimating the outcome of a job so as to recognise revenue in line with the stage of completion of that job (with reference to costs incurred), this requires profitability within the job to be estimated reliably and reviewed/updated regularly.

Our audit procedures to address specific risks related to construction contracts included, but were not limited to:

* Evaluating the internal controls to prevent and detect fraud and revenue recognition

* Testing the completeness and accuracy of cost estimates and other critical inputs to the percentage of completion calculation

* Reviewing management's assumptions and estimates for bias or inconsistency

* Performing detailed analytical procedures to identify unusual trends or significant variations in related costs and revenue

* Reviewing post year end activity against estimations applied at the year end

* Reviewing the outcome of the prior years projects and the accuracy of estimations applied

Our audit did not identify any instances of fraud or irregularities that materially affect the financial statements. However, due to the inherent estimation risks in long term contracts, there is a risk that future results may differ from management's current estimates. We recommend that management continues to strengthen internal controls and monitor estimation processes to mitigate this inherent risk within construction contract accounting.

There are inherent limitations in the audit procedures described above as irregularities in relation to fraud are by nature difficult to detect as it would likely have occurred through deliberate concealment and could involve collusion and deliberate misrepresentations. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with laws and regulations.

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.

Emma Fraser FCA (Senior Statutory Auditor)

for and on behalf of Bracey's Accountants (Audit) Limited

Statutory Auditor, Chartered Accountants

Unit 1 The Cam Centre

Wilbury Way

Hitchin

Hertfordshire

SG4 0TW

31 December 2025

TURNOVER

3

13,208,642

14,908,379

Cost of sales

8,447,563

9,819,079

GROSS PROFIT

4,761,079

5,089,300

Administrative expenses

4,613,516

4,292,073

OPERATING PROFIT

5

147,563

797,227

Interest receivable and similar income

25,575

14,621

173,138

811,848

Interest payable and similar expenses

7

28,892

38,467

PROFIT BEFORE TAXATION

144,246

773,381

Tax on profit

8

(269,532

)

(83,670

)

PROFIT FOR THE FINANCIAL YEAR

413,778

857,051

Retained earnings at beginning of year

2,371,954

1,612,153

Dividends

9

(90,000

)

(97,250

)

RETAINED EARNINGS AT END OF YEAR

2,695,732

2,371,954

FIXED ASSETS

Tangible assets

11

289,978

292,641

CURRENT ASSETS

Stocks

12

50,000

135,000

Debtors

13

3,222,825

2,938,377

Cash at bank

1,437,221

1,194,916

4,710,046

4,268,293

CREDITORS

Amounts falling due within one year

14

2,076,487

1,908,929

NET CURRENT ASSETS

2,633,559

2,359,364

TOTAL ASSETS LESS CURRENT LIABILITIES

2,923,537

2,652,005

CREDITORS

Amounts falling due after more than one year

15

(157,400

)

(224,349

)

PROVISIONS FOR LIABILITIES

19

(70,305

)

(55,602

)

NET ASSETS

2,695,832

2,372,054

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

2,695,732

2,371,954

SHAREHOLDERS' FUNDS

2,695,832

2,372,054

The financial statements were approved by the director and authorised for issue on 24 December 2025 and were signed by:

Mr P Heaney - Director

Cash flows from operating activities

Cash generated from operations

1

752,652

1,653,905

Interest paid

(19,231

)

(27,460

)

Interest element of hire purchase payments paid

(9,661

)

(11,007

)

Tax paid

2

14,612

Net cash from operating activities

723,762

1,630,050

Cash flows from investing activities

Purchase of tangible fixed assets

(81,871

)

(160,866

)

Sale of tangible fixed assets

-

6,750

Interest received

25,575

14,621

Net cash from investing activities

(56,296

)

(139,495

)

Cash flows from financing activities

Loan repayments in year

(106,001

)

(106,001

)

Capital repayments in year

(40,642

)

18,065

Amount withdrawn by directors

(188,518

)

(599,082

)

Equity dividends paid

(90,000

)

(97,250

)

Net cash from financing activities

(425,161

)

(784,268

)

Increase in cash and cash equivalents

242,305

706,287

Cash and cash equivalents at beginning of year

2

1,194,916

488,629

Cash and cash equivalents at end of year

2

1,437,221

1,194,916

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

2025

2024

as restated

£

£

Profit before taxation

144,246

773,381

Depreciation charges

84,534

65,397

Profit on disposal of fixed assets

-

(6,029

)

Finance costs

28,892

38,467

Finance income

(25,575

)

(14,621

)

232,097

856,595

Decrease in stocks

85,000

15,000

(Increase)/decrease in trade and other debtors

(95,932

)

795,965

Increase/(decrease) in trade and other creditors

531,487

(13,655

)

Cash generated from operations

752,652

1,653,905

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,437,221

1,194,916

Year ended 31 March 2024

31.3.24

1.4.23

as restated

£

£

Cash and cash equivalents

1,194,916

488,629

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

1,194,916

242,305

1,437,221

1,194,916

242,305

1,437,221

Debt

Finance leases

(123,946

)

40,642

(83,304

)

Debts falling due within 1 year

(106,000

)

-

(106,000

)

Debts falling due after 1 year

(141,334

)

106,000

(35,334

)

(371,280

)

146,642

(224,638

)

Total

823,636

388,947

1,212,583

1.	STATUTORY INFORMATION

Pace Interiors 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the entity. Amounts are rounded to the nearest £1.

These are single entity financial statements.

Summary of significant policies and key accounting estimates

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

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances

The company accounts for long term contracts under FRS102, specifically using the percentage of costs incurred to arrive at a contract value - resulting in amounts payable or amounts recoverable on contracts - see revenue policy for more details.

The nature of this involves significant judgement which can change as time progresses. The scale of this work covers large aspects of the financial statements and it is a key estimation area of the business. Management review this monthly taking into account specific factors in the job to ensure that the long term contracts are accounted for in accordance with FRS102 in all material aspects and the estimate applied is reasonable and supported.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured;

- it is probable that future economic benefits will flow to the entity

- and specific criteria have been met for each of the company's activities.

Contract revenue recognition

The company deals with long term contracts and in arriving at a value for these contacts the company uses the percentage of completion method with reference to the incurred costs on the job at that date against the total expected costs. This percentage is applied to the contract value and amounts invoiced are deducted from the calculation to arrive at either amounts payable on contracts (recorded in creditors) or amounts recoverable on contracts (recorded in debtors). The client performs these calculations monthly and continually reviews the details of each job when applying the estimate of costs expected, as the job progresses the most up to date knowledge of the job is applied which can vary each month. The movements are posted through turnover.

Tangible fixed assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment loss.

The cost of the tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the costs of assets, other than land and properties over their estimated useful lives, as follows:

Asset Class

Depreciation method and rate

Plant and machinery

25% reducing balance

Fixtures and fittings

25% reducing balance

Motor vehicles

25% reducing balance

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

Financial instruments

Basic financial liabilities

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

Classification of financial liabilities

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

Impairment of financial assets

Financial assets, other than those held at fair value, which are dealt with through profit and loss, are assessed for indicators of impairment at each reporting end date.

Derecognition of financial liabilities and assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled.

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

Financial instruments continued

Classification

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off tie recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Recognition unit measurement

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently reviewed for impairment at regular intervals.

Other financial assets

Other financial assets, including investment properties are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.

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 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

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.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.

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price. Amounts are reviewed periodically and where amounts are not considered recoverable a provision is made and the net amount is recorded within profit and loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Borrowings

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Stocks

Stocks are stated at the lower of cost and net realisable value and represent consumables used in the workshop. Amounts are reviewed for impairment regularly and any amounts are released to the profit and loss where necessary.

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:

2025

2024

as restated

£

£

United Kingdom

13,208,642

14,908,379

13,208,642

14,908,379

4.	EMPLOYEES AND DIRECTORS

2025

2024

as restated

£

£

Wages and salaries

3,026,804

2,537,832

Social security costs

335,991

274,783

Other pension costs

61,868

148,774

3,424,663

2,961,389

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

2025

2024

as restated

Administrative

21

20

Workshop

40

33

Key management

4

4

65

57

2025

2024

as restated

£

£

Director's remuneration

23,536

22,109

Director's pension contributions to money purchase schemes

-

100,000

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

Money purchase schemes

1

1

5.	OPERATING PROFIT

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

2025

2024

as restated

£

£

Hire of plant and machinery

66,871

57,658

Other operating leases

204,194

224,275

Depreciation - owned assets

84,534

65,396

Profit on disposal of fixed assets

-

(6,029

)

Foreign exchange differences

15

-

6.	AUDITORS' REMUNERATION

2025

2024

as restated

£

£

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

19,000

-

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

as restated

£

£

Bank interest

14,824

22,255

Other interest payable

4,407

5,205

Hire purchase

9,661

11,007

28,892

38,467

8.

TAXATION

Analysis of the tax credit

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

2025

2024

as restated

£

£

Current tax:

UK corporation tax

38,939

185,109

R&D claim re prior periods

(323,174

)

(286,781

)

Total current tax

(284,235

)

(101,672

)

Deferred tax

14,703

18,002

Tax on profit

(269,532

)

(83,670

)

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:

2025

2024

as restated

£

£

Profit before tax

144,246

773,381

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

36,062

193,345

Effects of:

Expenses not deductible for tax purposes

2,211

15,451

Capital allowances in excess of depreciation

-

(23,687

)

Depreciation in excess of capital allowances

666

-

R & D claim re prior period

(323,174

)

(286,781

)

Deferred tax

14,703

18,002

Total tax credit

(269,532

)

(83,670

)

9.

DIVIDENDS

2025

2024

as restated

£

£

Ordinary shares shares of £1 each

Interim

90,000

97,250

10.	PRIOR YEAR ADJUSTMENT

The comparative balance sheet has been restated to reclassify work in progress of £1,671,244 to amounts recoverable on contracts of £1,867,673 (debtors) and amounts payable on contracts of £196,429 (creditors) to reflect construction contract accounting under FRS102.

There is no impact on profit and loss for this restatement, it is a reclassification between debtors and creditors only.