REGISTERED NUMBER: 11380394 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

FOR

STANDGUIDE GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

to

4

Report of the Independent Auditors

5

to

8

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

to

25

DIRECTORS:

Mr J M Gambles

Mr M F Owen-Long

Mrs C Grundy

Mr G H G Baines

Mr P M Slater

REGISTERED OFFICE:

Unit G.01

Clarence Arcade

Stamford Street Central

Ashton-under-Lyne

OL6 7PT

REGISTERED NUMBER:

11380394 (England and Wales)

AUDITORS:

Allens Accountants Limited

Registered Auditors and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

The directors present their strategic report of the company and the group for the year ended 31 July 2025.

REVIEW OF BUSINESS

The financial results were in line with expectations of the Board and reflect the maturity of the contracts we operated during this period.

The EOT structure continued to be embedded through the year, with the positive aspects financially of the move to an EOT starting to impact towards the end of the financial period and continuing throughout the year 2025/26.

Standguide enjoyed a successful trading year; whilst Turnover decreased by 2.1% on the prior year to £11.88 million due to the conclusion of some contracts, a cost reduction was implemented to offset this resulting in a gross margin of 89.2% in the year (comparable to the gross margin in 2023/24 of 89.1%).

The outlook for 2025/26 is positive, with new contract wins and continuing tendering opportunities providing a boost to the margins of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The board has invested in developing strong relationships with Prime organisations and contracting authorities, with this leading to a number of contract wins and a positive outlook for the forthcoming year and thereafter. The company continues to explore new opportunities for growth in its current and complementary sectors and is exploring international partnerships.

The board remains alert to the continuing high-cost base in the economic environment, and its impact on profits across all aspects of our business. Whilst the energy cost increases have not noticeably impacted on the organisation, the board remains vigilant to the effect that this could have.

KEY FINANCIAL PERFORMANCE INDICATORS

Gross and Net margins were broadly comparative with the prior year, influenced by the continuing prevailing economic conditions and the maturity of our contracts. Cost rationalisation activities implemented towards the end of the financial period combined with positive revenue generation through our internal EOT activities and new contract wins have impacted more within the subsequent 2025/26 financial period.

The board measures operating efficiencies utilising a balance scorecard approach where indicators such as contract performance levels and profitability measures are benchmarked and assessed against internal and external information. As part of our EOT activities, we are implementing financial training throughout our company, which is showing a tangible increase in profitability levels as our employee-owners become more financially aware.

The board also analyses financial KPI's such as operating profit margin, debtor/creditor days, liquidity ratios, and wages as a percentage of sales value. These are derived from the Monthly Management Information prepared for the Board of Directors and our Senior Leadership Team.

FUTURE DEVELOPMENTS & GOING CONCERN

The outlook for 2025/26 is positive, with an expectation that margins will increase significantly due to new contract wins, greater financial performance and cost reduction activities which commenced during this financial period.

Standguide has more than sufficient cash reserves to maintain the required liquidity, ensuring that the business is a going concern and is able to realise and fund growth through further contract wins and geographical expansion.

ON BEHALF OF THE BOARD:

Mr J M Gambles - Director

24 April 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year is that of a holding company.

The principal activity of the group in the year is that of training provider.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2025.

DIRECTORS

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

Mr J M Gambles

Mr M F Owen-Long

Mrs C Grundy

Mr G H G Baines

Mr P M Slater

ENGAGEMENT WITH EMPLOYEES

The group's policy is to regularly engage with employees at meetings and appraisals to discuss matters likely to affect employees' interests. Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

DISABLED PERSONS

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career and promotion of disabled persons should, as far as possible, be identical to that of other employees. The group holds "Disability Confident - Level 3 (Leader)" status.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial risk management.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr J M Gambles - Director

24 April 2026

Opinion

We have audited the financial statements of Standguide Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 July 2025 and of the group's loss 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 pages three and 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 group's and the parent 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 group or the parent 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for the directors' remuneration, bonus levels and performance targets;

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

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

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

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedure to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management and the board of directors concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Paul Wright (Senior Statutory Auditor)

for and on behalf of Allens Accountants Limited

Registered Auditors and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

24 April 2026

TURNOVER

4

11,888,361

12,139,917

Cost of sales

1,286,624

1,326,875

GROSS PROFIT

10,601,737

10,813,042

Administrative expenses

10,681,591

10,810,008

OPERATING (LOSS)/PROFIT

6

(79,854

)

3,034

Interest receivable and similar income

40,071

86,847

(39,783

)

89,881

Interest payable and similar expenses

7

4,582

-

(LOSS)/PROFIT BEFORE TAXATION

(44,365

)

89,881

Tax on (loss)/profit

8

(4,888

)

22,747

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(39,477

)

67,134

(Loss)/profit attributable to:

Owners of the parent

(39,477

)

57,465

Non-controlling interests

-

9,669

(39,477

)

67,134

(LOSS)/PROFIT FOR THE YEAR

(39,477

)

67,134

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(39,477

)

67,134

Total comprehensive income attributable to:

Owners of the parent

(39,477

)

57,465

Non-controlling interests

-

9,669

(39,477

)

67,134

FIXED ASSETS

Tangible assets

10

81,188

102,947

Investments

11

-

-

81,188

102,947

CURRENT ASSETS

Debtors

12

2,646,698

3,281,486

Cash at bank and in hand

1,658,595

2,194,793

4,305,293

5,476,279

CREDITORS

Amounts falling due within one year

13

1,525,310

1,698,690

NET CURRENT ASSETS

2,779,983

3,777,589

TOTAL ASSETS LESS CURRENT LIABILITIES

2,861,171

3,880,536

PROVISIONS FOR LIABILITIES

15

17,783

22,671

NET ASSETS

2,843,388

3,857,865

CAPITAL AND RESERVES

Called up share capital

16

143

143

Retained earnings

17

2,843,245

3,857,722

SHAREHOLDERS' FUNDS

2,843,388

3,857,865

The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2026 and were signed on its behalf by:

Mr J M Gambles - Director

Mr M F Owen-Long - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

1,145,743

1,145,743

1,145,743

1,145,743

CURRENT ASSETS

Cash at bank

1,904

1,904

CREDITORS

Amounts falling due within one year

13

1,145,188

1,143,254

NET CURRENT LIABILITIES

(1,143,284

)

(1,141,350

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,459

4,393

CAPITAL AND RESERVES

Called up share capital

16

143

143

Retained earnings

17

2,316

4,250

SHAREHOLDERS' FUNDS

2,459

4,393

Company's profit for the financial year

973,066

249,966

The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2026 and were signed on its behalf by:

Mr J M Gambles - Director

Mr M F Owen-Long - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 August 2023

100

3,601,023

3,601,123

1,554,642

5,155,765

Changes in equity

Issue of share capital

43

-

43

-

43

Total comprehensive income

-

57,465

57,465

9,669

67,134

Distribution to EOT

-

(1,365,010

)

(1,365,010

)

-

(1,365,010

)

Disposal of subsidiary

-

-

-

(24

)

(24

)

Piecemeal acquisition of

subsidiary

-

1,564,244

1,564,244

(1,564,287

)

(43

)

Balance at 31 July 2024

143

3,857,722

3,857,865

-

3,857,865

Changes in equity

Total comprehensive income

-

(39,477

)

(39,477

)

-

(39,477

)

Distribution to EOT

-

(975,000

)

(975,000

)

-

(975,000

)

Balance at 31 July 2025

143

2,843,245

2,843,388

-

2,843,388

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2023

100

1,119,294

1,119,394

Changes in equity

Issue of share capital

43

-

43

Total comprehensive income

-

249,966

249,966

Distribution to EOT

-

(1,365,010

)

(1,365,010

)

Balance at 31 July 2024

143

4,250

4,393

Changes in equity

Total comprehensive income

-

973,066

973,066

Distribution to EOT

-

(975,000

)

(975,000

)

Balance at 31 July 2025

143

2,316

2,459

Cash flows from operating activities

Cash generated from operations

1

(504,697

)

(842,561

)

Interest paid

(4,582

)

-

Tax paid

(66,645

)

(103,882

)

Net cash from operating activities

(575,924

)

(946,443

)

Cash flows from investing activities

Purchase of tangible fixed assets

(37,671

)

(37,830

)

Sale of fixed asset investments

-

83

Cash held in subsidiary disposal

-

(1,071

)

Interest received

40,071

86,847

Net cash from investing activities

2,400

48,029

Cash flows from financing activities

Loan repayments in year

-

4,554

Amount introduced by directors

1,012,326

2,400

Amount withdrawn by directors

-

(683,439

)

Distribution to trustees

(975,000

)

(1,365,010

)

Net cash from financing activities

37,326

(2,041,495

)

Decrease in cash and cash equivalents

(536,198

)

(2,939,909

)

Cash and cash equivalents at beginning of year

2

2,194,793

5,134,702

Cash and cash equivalents at end of year

2

1,658,595

2,194,793

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(44,365

)

89,881

Depreciation charges

59,430

65,021

Profit on disposal of fixed assets

-

(13

)

Gain on subsidiary disposal

-

(13

)

Finance costs

4,582

-

Finance income

(40,071

)

(86,847

)

(20,424

)

68,029

Increase in trade and other debtors

(198,828

)

(823,117

)

Decrease in trade and other creditors

(285,445

)

(87,473

)

Cash generated from operations

(504,697

)

(842,561

)

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 July 2025

31/7/25

1/8/24

£

£

Cash and cash equivalents

1,658,595

2,194,793

Year ended 31 July 2024

31/7/24

1/8/23

£

£

Cash and cash equivalents

2,194,793

5,134,702

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/24

Cash flow

At 31/7/25

£

£

£

Net cash

Cash at bank and in hand

2,194,793

(536,198

)

1,658,595

2,194,793

(536,198

)

1,658,595

Total

2,194,793

(536,198

)

1,658,595

1.	STATUTORY INFORMATION

Standguide Group 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

Basis of consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 31 July 2025.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination.

Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated balance sheet immediately below goodwill.

All inter-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Income recognition

Turnover is measured at fair value of the consideration receivable and represents the total amount receivable for services provided in the normal course of business, excluding Value Added Tax and trade discounts.

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract.

Tangible fixed assets

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

Fixtures & fittings

-

33% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

33% on cost

Debtors

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

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Creditors

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

Interest bearing borrowings

Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.

The group enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, together with loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable in one year), including loans and other accounts receivable and payable, are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable in one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration, expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence if impairment is found, an impairment loss is recognised in the statement of comprehensive income.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

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

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Dividends

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies above, 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

4.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

11,888,361

12,139,917

11,888,361

12,139,917