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

McPherson Limited’s principal activity is the provision of transportation services to the spirits industry. This ranges from the transportation of raw materials and by-products through to the movement of bulk spirit to warehousing facilities and ultimately to bottling plants. The company operates from depots throughout Scotland and the North of England.

Turnover of £53.9m (2024: £53.3m) was up 1% with activity levels remaining largely constant. A combination of better sales mix, tight control of driver utilisation and lower fleet maintenance costs resulted in gross profit increasing by 11% to £9.4m (2024: £8.5m). This also helped gross profit margin improve slightly to 17% (2024: 16%). Administration costs increased by 12% on last year due to higher property maintenance and IT costs resulting in an operating profit of £4.1m (2024: £3.8m), up 8% on last year.

Credit risk: Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. Credit risk is monitored using in house credit control procedures and customers are assessed for financial reliability using external ratings agencies.

Liquidity risk: Liquidity risk refers to the risk that the company may not be able to settle or meet its financial obligations on time. This risk is monitored through regular forecasting of cash flows taking into account business performance and capital expenditure requirements and mitigated by holding a cash reserve within the business.

Health and safety: Due to the nature of its operations the company is exposed to a wide range of health and safety risks. This is managed through its health and safety and competency management systems and health and safety performance is closely monitored by the board.

Commercial: The company relies on certain key customers for a significant proportion of its turnover. The company aims to build long term relationships with its customers and to provide a high quality and responsive level of service to them. Long term service agreements are negotiated with the company’s largest customers. A significant proportion of the company’s turnover is with customers who operate in the same market sector. They can be exposed to fluctuations in demand and regulatory changes which would impact their demand for the company’s services. The company mitigates this by seeking to diversify its customer base, expand the range of logistics services it offers outside of transportation services and be able to adjust its cost base quickly in response to falls in demand.

Fuel prices: A significant proportion of the company’s costs relate to fuel. The company has in place fuel price escalator agreements with all large customers.

In 2018 the Companies (Miscellaneous Reporting) Regulations introduced a requirement for large companies to publish a statement describing how the directors have had regard to the matters set out in section 172 (1) (a) to (f) of the Companies Act 2006.

Section 172 (1) (a) to (f) requires each director to act in the way he or she considers would be most likely to promote the success of the company for the benefit of its members as a whole, with regard to the following matters:

(a) The likely consequences of any decision in the long-term

The company’s long term strategy is to continue to provide a customer focused transportation service to the spirit industry specialising in transportation and management of distillation by-products and transportation of bulk spirits. Decisions are made by the directors after considering all available relevant information and whether a course of action is consistent with the company strategy and will bring a long term benefit to the company.

(b) The interests of the company’s employees

The company’s employees are fundamental to its business. The directors aim to be a responsible employer and the health, safety and wellbeing of employees is a key consideration in the way the company operates.

(c) The need to foster the company’s business relationships with suppliers, customers and others

The directors maintain a close on-going dialogue with key customers and suppliers and seek to build long term collaborative relationships with them. Regular formal review meetings take place between the directors of the company and key customer and supplier management. Outside of formal meetings, there is a regular dialogue between the directors of the company and key customers and suppliers.

(d) The impact of the company’s operations on the community and environment

The directors have implemented an environmental policy that seeks to minimise the company’s impact of its operations on the community and the environment. The company participates in the CDP disclosure system to report on its current carbon footprint and the actions that have been taken to minimise it.

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

The directors intend to behave responsibly and ensure that management operate in a responsible manner and to a high standard of business conduct. The company has a relatively small team of managers operating within a flat management structure which enables the directors to maintain a close relationship with those people representing the company.

(f) The need to act fairly as between members of the company

The company's parent undertaking only has one ultimate owner who acts as Chairman of the company and the group.

On behalf of the board

The directors present their annual report and audited financial statements for the year ended 31 July 2025.

The company has taken advantage of the ability to flex the end of the financial period, in accordance with the Companies Act 2006 section 390 (3). Accordingly the accounts have been prepared with a financial period to 31 July 2025 (2024 - 25 July) which represents 53 weeks in comparison to 52 weeks in the prior period.

The results for the year are set out on page 11.

No interim or final dividends have been paid or declared.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company recognises the importance of its environmental responsibilities and has stringent monitoring controls on fuel consumption, a culture of recycling throughout the business and a strong focus on eliminating operational inefficiencies within its transport operations.

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 company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company engages with its employees through an Employee Consultative Group. This is a broadly representative body, which acts as a forum for communications both to and from management and both to and from employees.

Following a sustained period of expansion in the spirits industry, trading conditions for our customers in 2025/26 have been challenging. As a consequence, many customers are now seeking reduce their levels of output in order to rebalance supply and demand and reduce inventory levels. This is having a knock-on effect on the company with activity levels down on last year. In response to this the company has carefully managed it’s cost base, reducing headcount, fleet numbers and investment in fleet assets in order to protect gross profit margins.

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The company used the following energy during the year ended 31 July 2025:

All energy use and emissions arise in the UK.

Fuel consumption for the purposes of transport has been calculated by collecting data on the volume in litres or Kg of fuel consumed.

Energy usage from the purchase of electricity has been collated from supplier provided meter readings.

Energy use in MWh for transportation fuel and emissions of CO2e for transportation fuel and purchased electricity has been calculated using the 2024 UK Government GHG Conversion Factors for Company Reporting.

The vast majority of greenhouse gas emissions within the company arise from the consumption of fuel by its commercial vehicle fleet and this has therefore been the area of operations given the most focus as we continue to investigate alternative fuels and technologies that can replace conventional diesel.

The company reduced its carbon intensity measure, Kg CO2e per fleet mile by 6% on a year-on-year basis.

During the year ended 31 July 2025:

• The company has further expanded the use of Compressed Natural Gas (CNG) powered HGV vehicles to displace diesel powered HGV vehicles fuelling these vehicles with renewable CNG.

• The company used Hydrotreated Vegetable Oil (HVO) diesel from renewable sources to fuel ‘on site’ vehicles at a number of customer sites within Scotland.

• The company continued to use an electric 6 x 2 tractor unit as part of a pilot programme in collaboration with a major customer.

• The company has continued to seek to minimise ‘empty running’ within its fleet by optimising route planning and through the use of specialist hybrid trailers where appropriate.

• All of the electricity purchased by the company was from renewable sources.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the strategic report, 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 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 UK 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.

We have audited the financial statements of McPherson Limited (the 'company') for the year ended 31 July 2025 which comprise Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including 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 July 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 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 other information comprises the information included in the annual report and financial statements other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report and financial statements. 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. 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 course of 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 and 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 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.

As explained more fully in the directors' responsibilities statement set out on page 6, 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.

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.

A further description of our responsibilities for the audit of the financial statement is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors report.

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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• United Kingdom Generally Accepted Accounting Practice;

• Companies Act 2006;

• UK Corporation Tax Act 2010;

• Operators license; and

• Driver and Vehicle Standards Agency.

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls

• Revenue recognition.

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;

• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;

• Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management in their calculation of accounting estimates for potential management bias;

• Performing audit procedures to confirm the accuracy, cut off and completeness of revenue, ensuring recognised in line with the company's accounting policies;

• Reviewing documentation confirming ongoing compliance with regulatory industry requirements;

• Completion of appropriate checklists and use of our experience to assess the company’s compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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 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.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 to 26 form part of these financial statements.

McPherson Limited is a company limited by shares incorporated and domiciled in Scotland. The registered office is 37 Albyn Place, Aberdeen, AB10 1YN and the principal business address is Fisherton Garage, Aberlour, Banffshire, AB38 9LB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

McPherson Limited is a wholly owned subsidiary of McPherson Group Holdings Limited and the results of McPherson Limited are included in the consolidated financial statements of McPherson Group Holdings Limited which are publicly available from the Registrar of Companies at Companies House using: https://find-and-update.company-information.service.gov.uk/company/SC785676.

Atruet 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.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised on the performance of services and on delivery of goods when it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred can be measured reliably.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

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

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Cost is calculated using the first in first out method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the statement of comprehensive income. Reversals of impairment losses are also recognised in the statement of comprehensive income.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

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, 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.

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Trade 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets' fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the statement of comprehensive income so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

Estimates and assumptions which have a significant effect on amounts recognised in the financial statements are in relation to the useful life of tangible fixed assets.  Estimates of an assets useful life are set on the basis of the directors’ cumulative industry experience and are revised where circumstances have changed. The accounting policies applied can be found in note 1.4 of the notes to the financial statements. Depreciation and impairment losses of £4,942,552 (2024 - £4,662,296) are charged in the period and the net book value of tangible fixed assets at the year end was £20,170,777 (2024 - £16,589,479).

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

Investment income includes the following:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Deferred tax has been calculated using the rate effective in the period it is expected to reverse.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. These assets are secured under the agreements they relate to.

Included in freehold land is land at cost of £40,000 (2024 - £40,000) which is not depreciated.

The obligations under finance lease contracts are secured over the assets which the agreement relates to.

Finance lease payments represent rentals payable by the company for certain items of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Deferred tax has been calculated using the rate effective in the period it is expected to reverse.

The company operates defined contribution pension schemes for all qualifying employees. The assets of these schemes are held separately from those of the company in independently administered funds.

Capital redemption reserve is non distributable and represents shares redeemed by the company,

Retained earnings represent accumulated profits less distributions.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The operating leases represent leases of freehold land and buildings to third parties.  The leases are negotiated over terms of 1 to 5 years and rentals are fixed for 1 to 3 years. The lessees do not have an option to purchase the property at the expiry of the lease period.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

Amounts contracted for but not provided in the financial statements:

During the year the company entered into the following transactions with related parties:

No guarantees have been given or received.

The company has taken advantage of the exemption within FRS 102 Section 33 paragraph 33.1A, not to disclose transactions entered into between two or more members of the group, as the company is a wholly owned subsidiary of the group to which it is party to the transactions.