REGISTERED NUMBER: 09919910 (England and Wales)

CHATTERTONS LEGAL SERVICES LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2025

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

7

Income Statement

8

Other Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

to

23

DIRECTORS:

E F Conway

R R Ludlow

REGISTERED OFFICE:

5 South Street

Horncastle

Lincolnshire

LN9 6DS

REGISTERED NUMBER:

09919910 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tara Bellamy FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

The directors present their strategic report for the year ended 30 April 2025.

REVIEW OF BUSINESS

The principal activity of the company for the year ended 30 April 2025 is the provision of legal services from 8 main offices across the East Midlands, with 2 additional serviced offices in the East Midlands and London.

Established in 1856, Chattertons is considered to be one of oldest law firms in the UK, and since 2016 has operated under an ABS licence.

The results for the year and financial position of the company are shown in the annexed financial statements. The company considers its key performance indicators include turnover, gross profit, trading profit* and net assets.

2025

2024

£

£

Turnover

14,104,592

13,631,583

Cost of sales

6,364,493

5,690,696

Gross profit

7,740,099

7,940,887

Gross profit margin %

54.88

58.25

Trading profit

3,904,530

4,386,904

Trading profit margin %

27.68

32,18

Net assets

11,219,432

10,781,119

Earnings before interest, tax, depreciation and amortisation

4,267,881

4,558,840

*Trading profit and EBITDA includes profit from operating activities and net interest received.

Chattertons continues to pursue its growth strategy to become a significant provider of professional services in the East Midlands and beyond, through a combination of organic growth, the recruitment of additional of high-calibre professionals and exploring further acquisition opportunities. The directors completed two acquisitions namely JGQC Solicitors on 31st March 2025 and Page Nelson Limited on 1st April 2025 to further strengthen their Lincoln office. The directors continue to focus on balancing growth with prudent cost management and maintaining a strong cash position.

Chattertons Group Holdings Limited became the controlling party of Chattertons Group Limited on 29 May 2025. Richard Ludlow became the ultimate controlling party as of this date.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors are aware of their responsibilities for managing risk and regularly evaluate the risks and uncertainties that could impact on future performance.

The economy plays a part in the company's ability to operate profitability. Exposure to negative economic developments in sectors in which the company operates, either directly or indirectly through the impact on the company's bankers, suppliers or customers may result in decreased demand, increased operating costs or an inability for the business to meet its full strategic objectives.

The company operates in a competitive market, failure to compete effectively in terms of quality and price can have an adverse effect on demand and/or margins.

In addition to the uncertainties noted above, other principal risks actively managed by the company include the risks associated with potential threats to Group and customer data from malicious cyber-attack or hacking.

The company mitigates these risks by:

- A defined organisational structure with clear lines of responsibility underpinned by a corporate governance framework and a scheme of delegated authority.

- Management and staff across the organisation work closely with customers to operate as effectively as possible, whilst fostering long-term working relationships, innovative working, and good lines of communication.

- Operating a recruitment and selection process to ensure that employees are experienced and competent in their work. There is an established programme of training and development to ensure that colleagues are alert to, and responsive to customer needs whilst operating in line with the Group's corporate objectives.

- A commitment to ensuring compliance with data protection legislation and best-practice cyber security through investment and continuous improvement in these areas.

FUTURE DEVELOPMENTS

The company remains consistently profitable and there are no planned changes to the principal activities of the company in the next financial year.

ON BEHALF OF THE BOARD:

R R Ludlow - Director

13 January 2026

The directors present their report with the financial statements of the company for the year ended 30 April 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of legal services.

DIVIDENDS

An interim dividend of £2,500,000 per share was declared on 31 October 2024.

The total distribution of dividends for the year ended 30 April 2025 was £2,500,000 which was paid to the parent company Chattertons Group Limited.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

E F Conway

R R Ludlow

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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

R R Ludlow - Director

13 January 2026

Opinion

We have audited the financial statements of Chattertons Legal Services Limited (the 'company') for the year ended 30 April 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 30 April 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 four, 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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements, (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimate and judgemental areas of the financial statements such as depreciation of tangible fixed asset and calculations around amounts recoverable on contracts, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified compliance with the Solicitor Regulation Authority regulations as most likely to have such an effect.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection As required by the Solicitors Regulation Authority, the company is also subject to an annual solicitor accounts rule audit which is independent to the statutory audit. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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.

Tara Bellamy FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

14 January 2026

TURNOVER

3

14,104,592

13,631,583

Cost of sales

6,364,493

5,690,696

GROSS PROFIT

7,740,099

7,940,887

Administrative expenses

6,277,363

5,972,517

1,462,736

1,968,370

Other operating income

21,714

25,958

OPERATING PROFIT

5

1,484,450

1,994,328

Exceptional items

6

105,249

-

1,379,201

1,994,328

Interest receivable and similar income

7

4,051,790

3,546,507

5,430,991

5,540,835

Amounts written off investments

8

-

999

5,430,991

5,539,836

Interest payable and similar expenses

9

1,526,461

1,152,932

PROFIT BEFORE TAXATION

3,904,530

4,386,904

Tax on profit

10

966,217

1,131,653

PROFIT FOR THE FINANCIAL YEAR

2,938,313

3,255,251

PROFIT FOR THE YEAR

2,938,313

3,255,251

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,938,313

3,255,251

Note

Prior year adjustment

12

(566,628

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

2,371,685

FIXED ASSETS

Intangible assets

13

790,001

238,866

285,856

Tangible assets

14

366,402

386,346

380,401

Investments

15

261,832

-

-

1,418,235

625,212

666,257

CURRENT ASSETS

Debtors

16

8,359,257

7,699,003

7,189,910

Investments

-

-

999

Cash at bank and in hand

6,486,287

7,107,473

5,576,094

14,845,544

14,806,476

12,767,003

CREDITORS

Amounts falling due within one year

17

(4,965,615

)

(4,556,904

)

(3,802,345

)

NET CURRENT ASSETS

9,879,929

10,249,572

8,964,658

TOTAL ASSETS LESS CURRENT LIABILITIES

11,298,164

10,874,784

9,630,915

PROVISIONS FOR LIABILITIES

19

(78,732

)

(93,665

)

(91,206

)

NET ASSETS

11,219,432

10,781,119

9,539,709

CAPITAL AND RESERVES

Called up share capital

20

1

1

1

Retained earnings

21

11,219,431

10,781,118

9,539,708

SHAREHOLDERS' FUNDS

11,219,432

10,781,119

9,539,709

The financial statements were approved by the Board of Directors and authorised for issue on 13 January 2026 and were signed on its behalf by:

R R Ludlow - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2023

1

9,539,708

9,539,709

Changes in equity

Dividends

-

(2,013,841

)

(2,013,841

)

Total comprehensive income

-

3,821,879

3,821,879

Balance at 30 April 2024

1

11,347,746

11,347,747

Prior year adjustment

-

(566,628

)

(566,628

)

As restated

1

10,781,118

10,781,119

Changes in equity

Dividends

-

(2,500,000

)

(2,500,000

)

Total comprehensive income

-

2,938,313

2,938,313

Balance at 30 April 2025

1

11,219,431

11,219,432

Cash flows from operating activities

Cash generated from operations

1

3,137,414

2,799,822

Interest paid

(1,526,461

)

(1,152,932

)

Tax paid

(1,614,096

)

(1,112,870

)

Net cash from operating activities

(3,143

)

534,020

Cash flows from investing activities

Purchase of intangible fixed assets

(549,936

)

-

Purchase of tangible fixed assets

(50,843

)

(50,433

)

Purchase of fixed asset investments

(261,832

)

-

Interest received

4,051,790

3,546,507

Net cash from investing activities

3,189,179

3,496,074

Cash flows from financing activities

Amounts owed by group undertakings

(1,307,222

)

(2,498,715

)

Equity dividends paid

(2,500,000

)

-

Net cash from financing activities

(3,807,222

)

(2,498,715

)

(Decrease)/increase in cash and cash equivalents

(621,186

)

1,531,379

Cash and cash equivalents at beginning of year

2

7,107,473

5,576,094

Cash and cash equivalents at end of year

2

6,486,287

7,107,473

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

2025

2024

as restated

£

£

Profit before taxation

3,904,530

4,386,904

Depreciation charges

157,237

91,478

Management charges

335,430

321,860

Amounts written off investments

-

999

Finance costs

1,526,461

1,152,932

Finance income

(4,051,790

)

(3,546,507

)

1,871,868

2,407,666

Decrease/(increase) in trade and other debtors

278,497

(475,626

)

Increase in trade and other creditors

987,049

867,782

Cash generated from operations

3,137,414

2,799,822

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 30 April 2025

30.4.25

1.5.24

£

£

Cash and cash equivalents

6,486,287

7,107,473

Year ended 30 April 2024

30.4.24

1.5.23

as restated

£

£

Cash and cash equivalents

7,107,473

5,576,094

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.5.24

Cash flow

At 30.4.25

£

£

£

Net cash

Cash at bank and in hand

7,107,473

(621,186

)

6,486,287

7,107,473

(621,186

)

6,486,287

Total

7,107,473

(621,186

)

6,486,287

1.	STATUTORY INFORMATION

Chattertons Legal Services 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 (£).

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.

Preparation of consolidated financial statements

The financial statements contain information about Chattertons Legal Services Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Chattertons Group Limited, 5 South Street, Horncastle, Lincolnshire, LN9 6DS.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis and are covered within the accounting policies:

(i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property plant and equipment, and accounting policy note for the usual economic lives of each class of assets.

(ii) The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated impairment provision.

(iii) When calculating amounts recoverable on contracts, management uses historical accounting data to determine appropriate estimates to calculate the recoverable costs on matters ongoing at the end of the financial year. These estimates are based on historic success rates and average recovery rates of time incurred for each matter type.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects.

Turnover and other income

Turnover represents amounts recoverable from clients for professional services provided during the year, excluding value added tax. The company recognises turnover when the amount can be reliably measured and it is probable that economic benefits will flow.

Services provided to clients, which at the financial reporting date have not been billed, are recognised as amounts recoverable on contracts.

Revenue recognised in this manner is based on an assessment of the fair value of the services provided at the financial reporting date reflecting the stage of completion of the service rendered. Stage of completion is measured by reference to the sales value of work done to date multiplied by the historical recovery rate for a portfolio of similar clients.

Rental income is included as the company's right to receive payment is established.

Interest receivable is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2020 and 2025, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Long leasehold

-

10% on cost

Fixtures and fittings

-

25% on cost and 10% on cost

Computer equipment

-

25% on cost and 10% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

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

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charge to the income statement in the period to which they relate.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each statement of financial position date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the income statement unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Provisions

Provisions are recognised when the company has an obligation at the statement of financial position date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

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

14,104,592

13,631,583

14,104,592

13,631,583

4.	EMPLOYEES AND DIRECTORS

2025

2024

as restated

£

£

Wages and salaries

7,651,159

6,738,955

Social security costs

811,112

683,200

Other pension costs

324,764

299,389

8,787,035

7,721,544

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

2025

2024

as restated

Direct

113

114

Admin

77

75

190

189

2025

2024

as restated

£

£

Directors' remuneration

-

-

Directors' pension contributions to money purchase schemes

120,000

120,000

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

Money purchase schemes

2

2