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Registered number: 11095278
H2O Logistics Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 May 2025
H2O Logistics Limited
Contents
Contents

| Page
--- | ---
Company Information | 1
Strategic Report | 2
Directors' Report | 3—4
Independent Auditor's Report | 5—7
Statement of Income and Retained Earnings | 8
Balance Sheet | 9—10
Statement of Cash Flows | 11
Notes to the Statement of Cash Flows | 12
Notes to the Financial Statements | 13—23

Page 1
H2O Logistics Limited
Company Information
For The Year Ended 31 May 2025
Company Information

Directors | Mr Y Ognyanov
| Miss P Spasova
Company Number | 11095278
Registered Office | 9 Bank Road
| Kingswood
| Bristol
| BS15 8LS
Accountants | Evans & Partners
| 9 Bank Road
| Kingswood
| Bristol
| BS15 8LS
Auditors | ML Audit LLP
| Statutory Auditors
| Freshford House
| Redcliffe Way
| Bristol
| BS1 6NL

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H2O Logistics Limited
Strategic Report
For The Year Ended 31 May 2025
Strategic Report
The directors present their strategic report for the year ended 31 May 2025.
Review of the Business
In the Directors' opinion, the performance of the Company during the year ended 31 May 2025 was very strong, with the Company once again performing well in financial milestones in terms of turnover, gross profit and EBITDA.
The Company achieved a £24.7m turnover - an increase of 33.2% on the previous year - with EBITDA at £3.3m and Profit before tax ('PBT') £1.1m. These impressive results are testament to the management team's tenacity and commitment in pursuing and successfully delivering the aims of the directors. This performance was driven by capitalising on opportunities provided by customers dealing with the swiftly moving construction market over the course of the year.
The company's key financial and other performance indicators during the year were as follows:

| 2025 | 2024
Turnover | £24,659,604 | £18,518,818
Gross Profit | £4,031,453 | £2,540,490
EBITDA | £3,267,055 | £1,633,188

Principal Risks and Uncertainties
The success of the Company strategy and expected growth of the Company are subject to a number of identified key risks and uncertainties which are monitored on a regular basis by the management team, of which the key risk is as follows
Delivery service partner markets are predicting an upswing in market conditions throughout 2025, but this is tempered by the uncertainty surrounding the global economy following tariff changes and the impacts this will bring. It is recognised that actual events may be influenced by this and other uncertainties and the directors remain cognisant of and responsive towards external market forces.
All risks are monitored on a regular basis, with remedial action swiftly implemented where required.
On behalf of the board

Mr Y Ognyanov Director
23/10/2025

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H2O Logistics Limited
Company No. 11095278
Directors' Report For The Year Ended 31 May 2025
Directors' Report
The directors present their report and the financial statements for the year ended 31 May 2025.
Principal Activity
The company's principal activity continues to be being a delivery service partner.
Future Developments
The 2025 financial year has commenced positively, with increases in both gross and net profits seen in management figures. To maintain momentum, the Directors continue to assess opportunities for further growth, and aim to further solidify the Company's share of the construction market sector.
Dividends
During the year, the company paid dividends totalling £170,000 (2024: £84,000). No further dividends are proposed.
Financial Instruments
The company does not use any complex financial instruments. It finances its fixed asset purchases through the use of finance leases, the interest on which is fixed at the inception of the leases. Trade receivables are ordinarily received within for weeks of invoicing and and surplus cash is invested to generate a return, linked to underlying interest rates.
Directors
The directors who held office during the year were as follows:

Mr Y Ognyanov
Miss P Spasova

Future Developments
The company has continued to trade successfully since the year end, and will seek to expand its operations, should suitable opportunities arise.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgments 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.
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H2O Logistics Limited
Directors' Report (continued)
For The Year Ended 31 May 2025
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:

- so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
- they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Independent Auditors
The auditors, ML Audit LLP, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board

Mr Y Ognyanov Director | Miss P Spasova Director
23/10/2025

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Independent Auditor's Report
to the Members of
H2O Logistics Limited
Independent Auditor's Report
Opinion
We have audited the financial statements of H2O Logistics Limited for the year ended 31 May 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and the related notes, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 May 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 Auditor's 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 entity's ability to continue as a going concern for a period of at least 12 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 other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.
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Independent Auditor's Report (continued)
to the Members of
H2O Logistics Limited
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and Directors' Report 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 Directors' Report.
We have nothing to report in respect of the following matters in relation to which 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 or 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 Directors' Responsibilities Statement set out on page 3, 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 is 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.
Other matters
The comparative information for the year ended 31 May 2024 was unaudited.
Page 6
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Independent Auditor's Report (continued)
to the Members of
H2O Logistics Limited
Auditor's 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 an auditor's report 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:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
- reviewed the basis and assumptions made in calculating key estimates made by management;
- reviewed the company’s processes and controls over bank payments;
- tested the appropriateness of journal entries to mitigate the risk of management override;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; and
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

A further description of our responsibilities is available on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 that we are required to state to them in an auditor's report 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.

Guy Armitage-Norton (Senior Statutory Auditor) for and on behalf of ML Audit LLP , Statutory Auditor
04/11/2025
ML Audit LLP Statutory Auditors Freshford House Redcliffe Way Bristol BS1 6NL

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H2O Logistics Limited
Statement of Income and Retained Earnings
For The Year Ended 31 May 2025
Statement of Income and Retained Earnings

| 2025 |  | 2024
--- | --- | --- | ---
| Notes | £ |  | £
TURNOVER |  | 24,659,604 |  | 18,518,818
Cost of sales |  | (20,628,151 ) |  | (15,978,328 )
GROSS PROFIT |  | 4,031,453 |  | 2,540,490
Administrative expenses |  | (2,294,971 ) |  | (1,789,246 )
Other operating income |  | 24,000 |  | -
Fair value gains on investments |  | 7,100 |  | 3,891
OPERATING PROFIT | 4 | 1,767,582 |  | 755,135
Income from other fixed asset investments |  | 215 |  | 80
Loss on disposal of fixed assets |  | (334,354 ) |  | (260,519 )
Profit on disposal of fixed asset investments |  | 523 |  | -
Other interest receivable and similar income | 9 | 77,878 |  | 2,624
Interest payable and similar charges | 10 | (364,870 ) |  | (238,489 )
PROFIT BEFORE TAXATION |  | 1,146,974 |  | 258,831
Tax on Profit | 11 | (428,830 ) |  | 68,576
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR |  | 718,144 |  | 327,407
RETAINED EARNINGS
As at 1 June 2024 |  | 1,890,909 |  | 1,647,502
Dividends paid |  | (170,000) |  | (84,000)
As at 31 May 2025 |  | 2,439,053 |  | 1,890,909

As detailed in note 2.12, the comparatives have been re-stated to reflect a change in presentation of the company’s expenses.
The notes on pages 12 to 23 form part of these financial statements.
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H2O Logistics Limited
Balance Sheet
As At 31 May 2025
Balance Sheet

| 2025 | 2024
--- | --- | ---
| Notes | £ | £ | £ | £
FIXED ASSETS
Tangible Assets | 12 |  | 4,325,889 |  | 3,701,686
Investments | 13 |  | 381,210 |  | 203,949
|  |  | 4,707,099 |  | 3,905,635
CURRENT ASSETS
Debtors | 14 | 2,012,649 |  | 1,059,794 |
Cash at bank and in hand |  | 2,247,164 |  | 1,930,785 |
|  | 4,259,813 |  | 2,990,579 |
Creditors: Amounts Falling Due Within One Year | 15 | (3,429,388 ) |  | (2,501,965 ) |
NET CURRENT ASSETS (LIABILITIES) |  |  | 830,425 |  | 488,614
TOTAL ASSETS LESS CURRENT LIABILITIES |  |  | 5,537,524 |  | 4,394,249
Creditors: Amounts Falling Due After More Than One Year | 16 |  | (2,289,063 ) |  | (2,122,762 )
PROVISIONS FOR LIABILITIES
Deferred Taxation | 18 |  | (809,398 ) |  | (380,568 )
NET ASSETS |  |  | 2,439,063 |  | 1,890,919
CAPITAL AND RESERVES
Called up share capital | 20 |  | 10 |  | 10
Profit and Loss Account |  |  | 2,439,053 |  | 1,890,909
SHAREHOLDERS' FUNDS |  |  | 2,439,063 |  | 1,890,919

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H2O Logistics Limited
Balance Sheet (continued)
As At 31 May 2025
On behalf of the board

Mr Y Ognyanov Director
23/10/2025

The notes on pages 12 to 23 form part of these financial statements.
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H2O Logistics Limited
Statement of Cash Flows
For The Year Ended 31 May 2025
Statement of Cash Flows

| 2025 |  | 2024
| Notes | £ |  | £
Cash flows from operating activities
Net cash generated from operations | 1 | 3,922,376 |  | 1,874,725
Interest paid |  | (364,870 ) |  | (238,489 )
Tax refunded |  | - |  | 8,090
Net cash generated from operating activities |  | 3,557,506 |  | 1,644,326
Cash flows from investing activities
Purchase of tangible assets |  | (19,050 ) |  | (147,622 )
Proceeds from disposal of tangible assets |  | 626,093 |  | 646,588
Purchase of other fixed asset investments |  | (286,665 ) |  | (200,059 )
Proceeds from disposal of other fixed asset investments |  | 117,027 |  | -
Interest received |  | 78,093 |  | 2,704
Net cash generated from investing activities |  | 515,498 |  | 301,611
Cash flows from financing activities
Equity dividends paid |  | (170,000 ) |  | (84,000 )
Repayment of finance leases |  | (2,562,762 ) |  | (1,568,907 )
Amount introduced by directors |  | - |  | 2,617
Amount withdrawn by directors |  | (1,023,863) |  | -
Net cash used in financing activities |  | (3,756,625 ) |  | (1,650,290 )
Increase in cash and cash equivalents |  | 316,379 |  | 295,647
Cash and cash equivalents at beginning of year | 2 | 1,930,785 |  | 1,635,138
Cash and cash equivalents at end of year | 2 | 2,247,164 |  | 1,930,785

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H2O Logistics Limited
Notes to the Statement of Cash Flows
For The Year Ended 31 May 2025
Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Profit for the financial year | 718,144 |  | 327,407
Adjustments for:
Tax on profit | 428,830 |  | (68,576 )
Interest expense | 364,870 |  | 238,489
Interest income | (77,878 ) |  | (2,624 )
Income from investments | (215) |  | (80)
Depreciation of tangible assets | 1,833,089 |  | 1,138,492
Loss on disposal of tangible assets | 334,354 |  | 260,519
Profit on disposal of fixed asset investments | (523) |  | -
Net fair value gains recognised in profit or loss | (7,100) |  | (3,891)
Movements in working capital:
Decrease/(increase) in trade and other debtors | 66,632 |  | (240,447 )
Increase in trade and other creditors | 262,173 |  | 225,436
Net cash generated from operations | 3,922,376 |  | 1,874,725

2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Cash at bank and in hand | 2,247,164 |  | 1,930,785

3. Analysis of changes in net debt

| As at 1 June 2024 | Cash flows | New finance leases | As at 31 May 2025
--- | --- | --- | --- | ---
| £ | £ | £ | £
Cash at bank and in hand | 1,930,785 | 316,379 | - | 2,247,164
Finance leases | (3,700,591) | 2,562,762 | (3,398,689) | (4,536,518)
| (1,769,806) | 2,879,141 | (3,398,689) | (2,289,354)

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H2O Logistics Limited
Notes to the Financial Statements
For The Year Ended 31 May 2025
Notes to the Financial Statements
1. General Information
H2O Logistics Limited is a private company, limited by shares, incorporated in England & Wales, registered number 11095278 . The registered office is 9 Bank Road, Kingswood, Bristol, BS15 8LS.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Going Concern Disclosure
The company is trading profitably, and had significant cash and other liquid investments at 31 May 2025. Based on post year end trading and its ongoing contractual relationships, the directors have a strong expectation that the company will have adequate resources to meet its liabilities as they fall due for the next 12 months, and have therefore prepared the financial statements on the going concern basis.
2.3. Significant judgements and estimations
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The below is considered to be the key estimate which has had the most significant effect on amounts recognised in the financial statements.

| 2025 |  | 2024
| £ |  | £
Depreciation | 1,833,089 |  | 1,138,492

2.4. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Rendering of services
Turnover from the rendering of services is recognised based on the deliveries undertaken within the year, with any uninvoiced amounts being included in accrued income, as appropriate
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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Motor Vehicles | 33% straight line
Computer Equipment | 25% straight line

2.6. Investments
Interests in general shares are initially measured at cost and subsequently measured at fair value through profit and loss. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
2.7. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.
2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.9. Financial Instruments
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 the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
...CONTINUED
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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
2.9. Financial Instruments - continued
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable 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.
Basic financial liabilities
Basic financial liabilities, including 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
2.10. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
...CONTINUED
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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
2.10. Taxation - continued
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.11. Dividends
Interim dividends are recognised when they are paid to the Company’s shareholders. Final dividends are recognised when they are approved by shareholders
2.12. Prior year restatement
There has been a restatement of certain expense headings in the comparative Statement of Income and Retained Earnings, such that these are now presented slightly differently to how they were presented in the prior year accounts. This has had no effect on Operating Profit nor Profit before or after tax.
2.13. Finance costs
The Company's finance costs include:

- interest expense;
- the net gain or loss on the disposal of available-for-sale financial assets;
- the net gain or loss on financial assets at fair value through profit or loss;
- the foreign currency gain or loss on financial assets and financial liabilities;
- impairment losses recognised on financial assets (other than trade receivables);

Interest income or expense is recognised using the effective interest method.
3. Other Operating Income

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Other operating income | 24,000 |  | -
| 24,000 |  | -

4. Operating Profit
The operating profit is stated after charging:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Depreciation of tangible fixed assets | 1,833,089 |  | 1,138,492

Loss on disposal of tangible fixed assets | 334,354 |  | 260,519

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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Audit Services
Audit of the company's financial statements | 16,000 |  | -

6. Staff Costs
Staff costs, including directors' remuneration, were as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Wages and salaries | 64,401 |  | 26,202
Social security costs | 950 |  | 929
Other pension costs | 120,980 |  | 320,000
| 186,331 |  | 347,131

7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:

| 2025 |  | 2024
--- | --- | --- | ---
Office and administration | 3 |  | 2
| 3 |  | 2

8. Directors' remuneration

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Emoluments | 19,400 |  | 21,792
Company contributions to money purchase pension schemes | 120,000 |  | 320,000
| 139,400 |  | 341,792

The company was making contributions to defined contribution pension schemes in respect of two (2024: two) directors.
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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
9. Interest Receivable and Similar Income

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Bank interest receivable | 73,929 |  | 2,624
Other interest receivable | 3,949 |  | -
Interest from other fixed asset investments - listed | 215 |  | 80
| 78,093 |  | 2,704

10. Interest Payable and Similar Charges

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Finance charges payable under finance leases and hire purchase contracts | 364,870 |  | 238,485
Late payment tax charges | - |  | 4
| 364,870 |  | 238,489

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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
11. Tax on Profit

The tax charge/(credit) on the profit for the year was as follows:
| Tax Rate | 2025 |  | 2024
--- | --- | --- | --- | ---
| 2025 | 2024 | £ |  | £
Current tax
UK Corporation Tax | 25.0% | 25.0% | - |  | -
Prior period adjustment | - |  | (8,090 )
| - |  | (8,090 )
Deferred Tax
Deferred taxation | 428,830 |  | (60,486 )
Total tax charge for the period | 428,830 |  | (68,576 )
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
| 2025 |  | 2024
| £ |  | £
Profit before tax | 1,146,974 |  | 258,831
Tax on profit at 25% (UK standard rate) | 286,744 |  | 65,208
Expenses not deductible for tax purposes | 2,082 |  | 27,077
Prior period adjustment | - |  | (8,090 )
Revenue exempt from taxation | (1,775 ) |  | (993 )
Deferred tax from unrecognised timing difference from a prior period | 141,779 |  | (151,778 )
Total tax charge for the period | 428,830 |  | (68,576)
The company has unused tax losses of £1,088,296 (2024: £1,643,605) to carry forward against future trading profits.

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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
12. Tangible Assets

| Motor Vehicles | Computer Equipment | Total
--- | --- | --- | ---
| £ | £ | £
Cost
As at 1 June 2024 | 4,940,268 | 41,134 | 4,981,402
Additions | 3,417,739 | - | 3,417,739
Disposals | (1,501,481 ) | - | (1,501,481 )
As at 31 May 2025 | 6,856,526 | 41,134 | 6,897,660
Depreciation
As at 1 June 2024 | 1,248,280 | 31,436 | 1,279,716
Provided during the period | 1,829,051 | 4,038 | 1,833,089
Disposals | (541,034 ) | - | (541,034 )
As at 31 May 2025 | 2,536,297 | 35,474 | 2,571,771
Net Book Value
As at 31 May 2025 | 4,320,229 | 5,660 | 4,325,889
As at 1 June 2024 | 3,691,988 | 9,698 | 3,701,686

Included above are motor vehicles held under finance leases or hire purchase contracts with a net book value of £4,207,045 (2024: £3,534,506), with depreciation charged in the year of £1,719,391 (2024: £1,033,512).
13. Investments

| Unlisted
--- | ---
| £
Cost or Valuation
As at 1 June 2024 | 203,949
Additions | 286,665
Disposals | (116,696 )
Fair value adjustments | 7,292
As at 31 May 2025 | 381,210
Provision
As at 1 June 2024 | -
As at 31 May 2025 | -
Net Book Value
As at 31 May 2025 | 381,210
As at 1 June 2024 | 203,949

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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
14. Debtors

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Due within one year
Trade debtors | 975,998 |  | 1,039,694
Other debtors | 1,036,651 |  | 20,100
| 2,012,649 |  | 1,059,794

15. Creditors: Amounts Falling Due Within One Year

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Net obligations under finance lease and hire purchase contracts | 2,247,455 |  | 1,577,829
Trade creditors | 458,743 |  | 361,022
Other creditors | 18,442 |  | 60,567
Taxation and social security | 704,748 |  | 502,547
| 3,429,388 |  | 2,501,965

16. Creditors: Amounts Falling Due After More Than One Year

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Net obligations under finance lease and hire purchase contracts | 2,289,063 |  | 2,122,762

The amounts due under finance leases are secured on the assets to which they relate.
17. Obligations Under Finance Leases and Hire Purchase

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
The future minimum finance lease payments are as follows:
Not later than one year | 2,247,455 |  | 1,577,829
Later than one year and not later than five years | 2,289,063 |  | 2,122,762
| 4,536,518 |  | 3,700,591
| 4,536,518 |  | 3,700,591

18. Deferred Taxation
The provision for deferred tax is made up as follows:

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
Accelerated capital allowances | 1,081,472 |  | 791,469
Tax losses carried forward | (272,074 ) |  | (410,901 )
| 809,398 |  | 380,568

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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
19. Provisions for Liabilities

| Deferred Tax | Total
--- | --- | ---
| £ | £
As at 1 June 2024 | 380,568 | 380,568
Additions | 428,830 | 428,830
Balance at 31 May 2025 | 809,398 | 809,398

20. Share Capital

| 2025 |  | 2024
--- | --- | --- | ---
Allotted, called up and fully paid | £ |  | £
8 Ordinary A shares of £ 1.00 each | 8 |  | 8
2 Ordinary B shares of £ 1.00 each | 2 |  | 2
| 10 |  | 10

There are no differences between the rights attached to each class of share.
21. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to the profit and loss account in respect of defined contribution schemes was £120,980 (2024: £320,000).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
22. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:

| As at 1 June 2024 | Amounts advanced | Amounts repaid | Amounts written off | As at 31 May 2025
--- | --- | --- | --- | --- | ---
| £ | £ | £ | £ | £
Mr Yanaki Ognyanov | (2,188 ) | 732,546 | 222,614 | - | 509,744
Miss Petya Spasova | (2,188 ) | 732,546 | 222,614 | - | 509,744

Interest was charged on these advances at HMRC's official rate of 2.25%. The loan is repayable on demand.
Dividends paid to directors

| 2025 | 2024
--- | --- | ---
| £ | £
Mr Y Ognyanov | 85,000 | 48,000
Miss P Spasova | 85,000 | 36,000

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H2O Logistics Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 May 2025
During the year amounts totalling £75,690 (2024: £nil) were paid to close family of a director, in respect of services provided to the company.
23. Dividends

| 2025 |  | 2024
--- | --- | --- | ---
| £ |  | £
On equity shares:
Final dividend paid | 170,000 |  | 84,000

The dividends declared and paid in the year are as follows:

| 2025 |  | 2024
| £ |  | £
Ordinary A Shares £10,625 (2024: £6,000) per share | £85,000 |  | £48,000
Ordinary B Shares £42,500 (2024: £18,000) per share | £85,000 |  | £36,000
| £170,000 |  | £84,000

24. Controlling Parties
The company's ultimate controlling party is Y Ognyanov by virtue of his interest in the share capital of the company.
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