REGISTERED NUMBER: 10437761 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

USP STEELS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

9

Statement of Income and Retained Earnings

12

Balance Sheet

13

Notes to the Financial Statements

14

DIRECTORS:

G B Costigan

R M Baraks

J D Locke

G R Wilkes

REGISTERED OFFICE:

Gibbons Industrial Park

Dudley Road

Kingswinford

West Midlands

DY6 8XF

REGISTERED NUMBER:

10437761 (England and Wales)

AUDITORS:

Blackthorns

Chartered Accountants

and Registered Auditors

Admiral House

Waterfront East

Brierley Hill

West Midlands

DY5 1XG

The directors present their strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

The trading activity continues to be the sale of sheet and plate products to various market sectors.

2025 was largely consistent throughout. Low prices, low volatility environment, stable market conditions, this allowing for greater planning on input and output.

UK hot rolled coil prices did rise through H1, before retreating to its January starting point. S275 material delivered started the year at £526/t and finished at £528/t.

USP ended 2025 with record sales volumes, 13% above budget, and 22% above 2024 performance. Sales revenues were also 5% above budget. Overall, the company recorded a NP of £0.9m. Since USP was formed in 2017 the company has recorded profits of £28.3m.

We are continuing to invest and transform the business, we are delivering against it and building the capabilities that will define our future.

RBS continue to provide funding, and we continue to enjoy an excellent relationship with them.

PROFITABILITY

Profit after tax amounted to £906,015 (2024 Loss - £751,870).

The directors consider that the result was excellent in view of the market challenges and relocating the business in full.

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to recognise areas of risk to the business and is committed to manage those key risks.

-

Stock is managed with discipline to control borrowing levels.

-

Overhead expenditure is tightly controlled.

-

Security of supply is managed by continuous close and loyal relationships with key partners

-

Financial information is shared with credit agencies.

-

The company has its debt protection policy with Tokio Marine (TMHCC) until 2025.

-

The company has a strong and loyal customer base, with continued growth in numbers and market sectors.

-

Directors and senior commercial employees monitor competitor activity and market trends.

-

The company undertakes a continuous improvement approach to people and processes.

-

The company recognises areas of risk to the business and is committed to managing those key risks.

SECTION 172(1) STATEMENT

This report sets out how the directors have had regard to the matters set out in section 172(1)(a) to (f) when performing their duties under section 172 of the Companies Act 2006. This requires directors to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so have regard (amongst other matters) to:

-

the likely consequences of any decision in the long term;

-

the interests of the company's employees;

-

the need to foster the company's business relationships with suppliers, customers and others;

-

the impact of the company's operations on the community and the environment;

-

the desirability of the company maintaining a reputation for high standards of business conduct; and

-

the need to act fairly between members of the company.

The board works closely together in the day to day running of the business and regularly discuss strategic and operational matters. The board is conscious of the impact its business decisions have on stakeholders as well as the wider impact on society.

The likely consequences of any decision in the long term

The board is mindful that certain decisions can have longer term consequences. Evaluation of proposals are based on a balance of meeting shorter term objectives and due consideration to the longer term strategy of the business.

The interests of the company's employees

The board has regard to the interests of its employees in its decision making and engages with employees as appropriate. The board recognises the importance of attracting, retaining and motivating employees and prioritises the health, safety and wellbeing of its workforce.

The need to foster business relationships with suppliers, customers and others

The board has regard to stakeholder relationships in its decision making. Both customers and suppliers are regarded with equal importance, and the board believe that forging strong relationships with both is of benefit to all parties.

The impact of the company's operations on the community and the environment

The board is aware of the potential impact of its activities on the community and the environment. Any decisions regarding operations are made with due consideration to the local community and any possible impact on the environment.

The desirability of the company maintaining a reputation for high standards of business conduct

The board is committed to maintaining the reputation it has built with customers and suppliers alike. All employees are expected to carry out their business dealings with integrity.

The need to act fairly between members of the company

All shareholders are involved in any key decision making.

KEY PERFORMANCE INDICATORS

The company measures business performance using key performance indicators with reference to turnover, gross profit and operating profit.

2025

2024

£

£

Turnover

99,161,265

96,542,206

Gross profit

7,716,003

2,777,908

Operating profit

2,442,965

148,993

Sales and margin statistics are also closely monitored.

HEALTH AND SAFETY

The company is committed to achieving the highest practicable standards in health and safety management and strives to ensure environments are safe for employees and visitors.

ENVIRONMENT

The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

ON BEHALF OF THE BOARD:

G B Costigan - Director

1 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a steel stockholder and service centre.

DIVIDENDS

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

G B Costigan

R M Baraks

J D Locke

G R Wilkes

STREAMLINED ENERGY AND CARBON REPORTING

Greenhouse gas emissions and energy consumption

Unit

2025

2024

Fuel - vehicles

tCO2e

0

0

Gas

tCO2e

5.95

0

Purchased electricity

tCO2e

406.05

26.20

Total emissions

tCO2e

412.00

26.20

Total energy consumption

kWh

2,253,838

143,503

Intensity ratio: tonnes CO2e per production staff

13.73

0.56

Key Notes & Commentary (2025 vs 2024)

The significant increase in energy consumption and emissions is due to:

o The acquisition of one business and the amalgamation of one other during 2025

o Expansion from 1 site ? 3 operating sites

2024 represented a single-site operation, whereas 2025 reflects a group structure

Energy Consumption Breakdown (2025)

Electricity (all sites): 2,221,564 kWh

Gas (new sites only): 32,274 kWh

Total Energy: 2,253,838 kWh

Note: Unlike 2024, gas is now present due to acquired entities.

Methodology

Electricity emissions calculated using UK Government 2024 conversion factor:

0.18238 kg CO2e per kWh

Gas emissions estimated using standard UK conversion factors (~0.184 kg CO2e/kWh equivalent)

Data based on metered consumption across all three sites

Operational Commentary

90% of fleet is electric vehicles (EVs), materially reducing Scope 1 transport emissions

Energy Efficiency & Carbon Reduction Actions

USP Steels Limited continues to improve energy efficiency across the enlarged group:

1. Solar Energy

Solar panels installed at one site

Provides renewable energy and reduces reliance on grid electricity

Future rollout potential across remaining sites

2. Fleet Electrification

90% of vehicles are electric

EV charging infrastructure in place

Significantly lowers transport-related emissions

3. LED Lighting

All three sites fully converted to LED lighting

Immediate reduction in electricity consumption

4. Energy Management

Monitoring of energy usage across all sites

Focus on identifying high-consumption processes post-acquisition

5. Employee Engagement

Staff encouraged to adopt energy-saving behaviours

Operational efficiencies being standardised across newly acquired businesses

The increase in energy consumption and associated emissions in 2025 reflects the acquisition of two additional businesses during the year, resulting in the expansion from a single operating site to three sites.

The Group continues to focus on reducing its environmental impact through the use of renewable energy, with solar panels installed at one site, and through fleet electrification, with approximately 90% of vehicles now electric. All sites operate with energy-efficient LED lighting.

Management continues to monitor energy usage across the enlarged Group and identify opportunities for further efficiency improvements.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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:

G B Costigan - Director

1 May 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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 seven, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

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.

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, however, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management:

- the nature of the industry and sector;

- control environment and business performance;

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

- the matters discussed amongst the audit engagement team involving relevant internal specialists, including tax, 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 have existed within the organisation and sought to identify those with the greatest potential for fraud and irregularities. In common with all audits under ISAs (UK), we also performed specific procedures to respond to the risk of management override.

We considered the legal and regulatory frameworks that affect the company, focusing on provisions of those laws and regulations that would have had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations that we considered in this context included the Companies Act 2006, tax legislation and pension regulations.

We also 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. The key laws and regulations that we considered in this context included compliance with health and safety regulations.

Audit response to risks identified

As a result of performing the above, our procedures to respond to risks identified included the following:

-

reviewing the disclosures within the financial statements 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 concerning actual and potential litigation and claims;

-

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

-

reviewing minutes of meetings involving those charged with governance, reviewing correspondence and reviewing appropriate regulatory correspondence;

-

obtaining an understanding of provisions through discussions with management in order to understand the basis of recognition, and then testing that basis;

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and

-

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.

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.

Victoria Brassington BA FCA (Senior Statutory Auditor)

for and on behalf of Blackthorns

Chartered Accountants

and Registered Auditors

Admiral House

Waterfront East

Brierley Hill

West Midlands

DY5 1XG

1 May 2026

TURNOVER

3

99,161,265

96,542,206

Cost of sales

91,445,262

93,764,298

GROSS PROFIT

7,716,003

2,777,908

Administrative expenses

5,302,727

2,628,915

2,413,276

148,993

Other operating income

29,689

-

OPERATING PROFIT

5

2,442,965

148,993

Interest payable and similar expenses

6

1,017,036

1,137,687

PROFIT/(LOSS) BEFORE TAXATION

1,425,929

(988,694

)

Tax on profit/(loss)

7

519,914

(236,824

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

906,015

(751,870

)

Retained earnings at beginning of year

10,775,002

11,526,872

RETAINED EARNINGS AT END OF YEAR

11,681,017

10,775,002

FIXED ASSETS

Intangible assets

8

5,096,556

3,559

Tangible assets

9

9,530,026

996,158

Investments

10

350,000

-

14,976,582

999,717

CURRENT ASSETS

Stocks

11

17,533,307

18,965,637

Debtors

12

36,693,127

30,732,994

Cash at bank and in hand

71,211

51,641

54,297,645

49,750,272

CREDITORS

Amounts falling due within one year

13

47,827,107

39,974,887

NET CURRENT ASSETS

6,470,538

9,775,385

TOTAL ASSETS LESS CURRENT LIABILITIES

21,447,120

10,775,102

CREDITORS

Amounts falling due after more than one year

14

(9,236,003

)

-

PROVISIONS FOR LIABILITIES

18

(530,000

)

-

NET ASSETS

11,681,117

10,775,102

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

11,681,017

10,775,002

SHAREHOLDERS' FUNDS

11,681,117

10,775,102

The financial statements were approved by the Board of Directors and authorised for issue on 1 May 2026 and were signed on its behalf by:

G B Costigan - Director

1.	STATUTORY INFORMATION

USP Steels Limited is a private company, limited by shares, registered in England and Wales, registered number 10437761. Its registered office is Gibbons Industrial Park, Dudley Road, Kingswinford, West Midlands, DY6 8XF.

The financial statements are presented in Sterling, which is the functional currency of the company.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including explanations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements the directors have made the following judgements:

Recoverability of trade debtors

Trade and other debtors are recognised to the extent that they are judged recoverable. The directors' review is performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

The directors make allowances for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable.The directors specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such differences will impact the carrying value of debtors and the charge in the statement of income and retained earnings.

Leasing

The company determines whether leases entered into by the company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.

Provisions

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

Turnover

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

Goodwill

Goodwill arises on the acquisition of a business and represents the excess of the cost of acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities of the business acquired at the acquisition date.

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.

Website development costs are being amortised evenly over their estimated useful life of four years.

Tangible fixed assets

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

Plant and machinery

-

25% on cost

Fixtures and fittings

-

5% straight line

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

Freehold property

Freehold property is recognised initially at cost, including all directly attributable costs of acquisition.

Leasehold Property

Leasehold property is recognised at cost, comprising the purchase price of the leasehold interest and any directly attributable costs of acquisition.

Going concern

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

3.

TURNOVER

In the opinion of the directors it would be seriously prejudicial to disclose geographical details regarding turnover.

4.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

3,097,095

1,661,542

Social security costs

381,816

168,050

Other pension costs

68,173

57,189

3,547,084

1,886,781

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

31.12.25

31.12.24

Sales and administration

46

17

Production

36

32

82

49

31.12.25

31.12.24

£

£

Directors' remuneration

424,106

483,003

Directors' pension contributions to money purchase schemes

1,445

2,289

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

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

31.12.25

31.12.24

£

£

Emoluments etc

213,270

233,573

5.	OPERATING PROFIT

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

31.12.25

31.12.24

£

£

Other operating leases

701,365

330,000

Depreciation - owned assets

646,112

292,271

Profit on disposal of fixed assets

(78,121

)

(12,922

)

Goodwill amortisation

198,567

-

Website Development amortisation

3,559

3,882

Auditors remuneration in respect of audit services

15,000

12,500

Auditors remuneration in respect of taxation compliance services

7,000

6,000

Auditors remuneration in respect of other non audit services

11,135

7,321

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Bank interest

1,016,138

1,137,687

Hire purchase

898

-

1,017,036

1,137,687

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

55,000

-

Prior year under / (over)

provision

64,914

(16,824

)

Total current tax

119,914

(16,824

)

Deferred tax

400,000

(220,000

)

Tax on profit/(loss)

519,914

(236,824

)

Reconciliation of total tax charge/(credit) included in profit and loss

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

31.12.25

31.12.24

£

£

Profit/(loss) before tax

1,425,929

(988,694

)

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

356,482

(247,174

)

Effects of:

Expenses not deductible for tax purposes

15,646

11,083

Capital allowances in excess of depreciation

(122,650

)

-

Depreciation in excess of capital allowances

-

58,859

Adjustments to tax charge in respect of previous periods

64,914

(16,824

)

Movement in deferred tax provision

400,000

(220,000

)

Other

775

-

Losses

(195,253

)

177,232

Total tax charge/(credit)

519,914

(236,824

)