REGISTERED NUMBER: 02915724 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Law Distribution Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

9

Statement of Financial Position

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

14

DIRECTORS:

J P T Law

A P Turner

Miss A Carus

D A J McGuire

REGISTERED OFFICE:

Warehouse One

Kilbuck Lane

Haydock

St. Helens

WA11 9SZ

REGISTERED NUMBER:

02915724 (England and Wales)

AUDITORS:

Hardy & Company (Hyde) Ltd

Chartered Certified Accountants

& Statutory Auditors

Onward Chambers

34 Market Street

Hyde

Cheshire

SK14 1AH

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

REVIEW OF BUSINESS

The year ended 31 December 2025 was a period of operational and commercial change for the Company. During the year, management implemented measures aimed at improving operational efficiency, strengthening commercial discipline and enhancing financial performance.

Turnover increased compared with the prior year, reflecting new customer activity and improved utilisation of available warehouse capacity, alongside the managed exit from certain lower-margin or operationally unviable contracts. Gross profit and operating profit improved significantly year on year, reflecting the combined effects of revenue growth, changes in contract mix and tighter cost control.

Operational focus during the year included improvements in warehouse throughput, fleet utilisation, debtor management and cash controls, together with embedding clearer accountability across operational sites. As a result, profitability and cash generation improved and the Company ended the year in a stronger financial position than the prior period.

The key performance indicators for the year are as follows:

Revenue increased by £1.6m, representing growth of 8.8%. This growth reflects both new customer wins and an improved quality of revenue.

As a result, operating profit improved significantly, increasing to £445,562, with this performance carrying through to profit before tax, which grew to £433,071. This was mainly due to to mix of growth and operational efficiencies.

These results reflect the operational and commercial changes implemented during the year, alongside the formal approval of the five-year strategic plan, creating a positive outlook for the business and a greater clarity of direction internally.

STRATEGY AND FUTURE DEVELOPMENT

During 2025, the directors formally approved a five-year strategic plan intended to support sustainable and disciplined growth. The strategy is structured around strengthening core operations, investment in technology and appropriate capacity planning. The Company continues to prioritise operational stability, compliance and service quality, supported by investment in management information and operational systems to enhance planning, forecasting and decision-making. The directors also continue to assess options for supporting future capacity requirements, including potential additional sites or acquisition opportunities, where these align with the Company's strategic and financial objectives.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the Company include market and cost pressures, particularly inflationary impacts on labour, fuel and property costs; capacity constraints should customer demand exceed existing warehousing and fleet capabilities; and labour availability and retention in a competitive sector.

The directors monitor these risks on an ongoing basis and seek to mitigate them through active cost management, contract review processes and workforce engagement. The Company is increasing automation and AI-driven operational efficiencies. The company is considering options for additional sites or acquisition of other Companies to increase capacity further.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

During the year, the Company reviewed its environmental, social and governance priorities to inform long-term strategic planning. Actions completed during 2025 included the installation of solar panels at warehouse facilities and the introduction of electric vehicle charging infrastructure. The Company continues to explore opportunities to reduce its environmental impact, including the phased introduction of electric vehicles from 2026, subject to operational and commercial considerations.

In 2025 this marked a cultural shift in the business with investments in safety, leadership training, and communication.

The Company completed a review of the organisation, supported by Liverpool University and assessed industry trends alongside competitor and customer expectations, enabling the Company to embed clear environmental, social and governance initiatives into the long-term strategy.

OUTLOOK

The directors consider that the Company is well positioned for continued operational improvement and measured growth. During 2026, the focus will remain on strengthening core operations, further embedding technology-enabled planning and reporting, and preparing for future capacity requirements in line with the Company's strategic plan.

ON BEHALF OF THE BOARD:

Miss A Carus - Director

11 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 haulage and warehousing.

DIVIDENDS

An interim dividend of £23.33 per share was paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2025 will be £175,000.

DIRECTORS

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

J P T Law

A P Turner

Other changes in directors holding office are as follows:

Mrs D J Law - resigned 6 October 2025

S Moyser - resigned 5 September 2025

Miss A Carus - appointed 28 April 2025

D A J McGuire - appointed 1 October 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Hardy & Company (Hyde) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Miss A Carus - Director

11 May 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 misstatement in respect of irregularities, including fraud.The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

Based on our understanding of the Company we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditures, and management bias in accounting estimates and judgemental areas of the financial statements such as revenue recognition.

Audit procedures performed by the engagement team included: - discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

- understanding of management's internal controls designed to prevent and detect irregularities.

- reviewing the litigation records in so far as it related to non-compliance with laws and regulations and fraud.

- reviewing relevant meeting minutes.

- designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.

- testing transactions entered into outside of the normal course of the Company's business: and

- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

There are inherent limitations in the audit procedures described above and 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment, for example, forgery or intentional misrepresentations, or through collusion.

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 Campbell (Senior Statutory Auditor)

for and on behalf of Hardy & Company (Hyde) Ltd

Chartered Certified Accountants

& Statutory Auditors

Onward Chambers

34 Market Street

Hyde

Cheshire

SK14 1AH

11 May 2026

TURNOVER

19,615,920

18,029,631

Cost of sales

12,196,310

12,141,470

GROSS PROFIT

7,419,610

5,888,161

Administrative expenses

7,023,048

5,879,827

396,562

8,334

Other operating income

49,000

37,806

OPERATING PROFIT

4

445,562

46,140

Interest receivable and similar income

2,235

12,166

447,797

58,306

Interest payable and similar expenses

5

14,726

25,116

PROFIT BEFORE TAXATION

433,071

33,190

Tax on profit

6

111,089

2,875

PROFIT FOR THE FINANCIAL YEAR

321,982

30,315

Retained earnings at beginning of year

2,421,990

2,561,675

Dividends

7

(175,000

)

(170,000

)

RETAINED EARNINGS AT END OF YEAR

2,568,972

2,421,990

FIXED ASSETS

Tangible assets

8

671,414

879,753

Investments

9

150,410

150,410

Investment property

10

409,000

299,909

1,230,824

1,330,072

CURRENT ASSETS

Stocks

11

4,963

5,667

Debtors

12

4,470,910

4,086,501

Cash at bank and in hand

699,354

560,150

5,175,227

4,652,318

CREDITORS

Amounts falling due within one year

13

3,243,008

2,969,966

NET CURRENT ASSETS

1,932,219

1,682,352

TOTAL ASSETS LESS CURRENT LIABILITIES

3,163,043

3,012,424

CREDITORS

Amounts falling due after more than one year

14

-

(70,396

)

PROVISIONS FOR LIABILITIES

17

(593,971

)

(519,938

)

NET ASSETS

2,569,072

2,422,090

CAPITAL AND RESERVES

Called up share capital

18

75

75

Capital redemption reserve

19

25

25

Retained earnings

19

2,568,972

2,421,990

SHAREHOLDERS' FUNDS

2,569,072

2,422,090

The financial statements were approved by the Board of Directors and authorised for issue on 11 May 2026 and were signed on its behalf by:

Miss A Carus - Director

Cash flows from operating activities

Cash generated from operations

1

441,591

441,115

Interest paid

(1,332

)

(183

)

Interest element of hire purchase payments paid

(13,394

)

(24,933

)

Tax paid

(57,569

)

32,911

Net cash from operating activities

369,296

448,910

Cash flows from investing activities

Purchase of tangible fixed assets

(142,646

)

(121,488

)

Sale of tangible fixed assets

99

21,000

Sale of fixed asset investments

-

75

Interest received

2,235

12,166

Net cash from investing activities

(140,312

)

(88,247

)

Cash flows from financing activities

Capital repayments in year

(84,475

)

(209,049

)

Amount introduced by directors

246,402

45,604

Amount withdrawn by directors

(231,897

)

(71,403

)

Equity dividends paid

(175,000

)

(170,000

)

Net cash from financing activities

(244,970

)

(404,848

)

Decrease in cash and cash equivalents

(15,986

)

(44,185

)

Cash and cash equivalents at beginning of year

2

560,150

604,335

Cash and cash equivalents at end of year

2

544,164

560,150

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

31.12.25

31.12.24

£

£

Profit before taxation

433,071

33,190

Depreciation charges

350,863

331,744

Loss/(profit) on disposal of fixed assets

23

(7,253

)

Gain on revaluation of fixed assets

(109,091

)

-

Finance costs

14,726

25,116

Finance income

(2,235

)

(12,166

)

687,357

370,631

Decrease in stocks

704

1,447

Increase in trade and other debtors

(298,914

)

(182,130

)

Increase in trade and other creditors

52,444

251,167

Cash generated from operations

441,591

441,115

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

699,354

560,150

Bank overdrafts

(155,190

)

-

544,164

560,150

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

560,150

604,335

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

560,150

139,204

699,354

Bank overdrafts

-

(155,190

)

(155,190

)

560,150

(15,986

)

544,164

Debt

Finance leases

(154,871

)

84,475

(70,396

)

(154,871

)

84,475

(70,396

)

Total

405,279

68,489

473,768

1.	STATUTORY INFORMATION

Law Distribution Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

The preparation of the financial statements requires management to make estimates, judgements and assumptions that affect the amounts reported. These judgements and estimates are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There are no significant judgements or estimates.

Turnover

Revenue is measured at the fair value of the consideration received or receivable for services rendered, net of discounts and Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Tangible fixed assets

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

Long leasehold

-

10% on cost

Plant and machinery

-

at varying rates on cost

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Grants

Grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment properties are revalued at the accounting date and the aggregate surplus or temporary deficit is recognised in the profit and loss account. A reserve transfer to the non distributable reserve account is then made.

Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

No depreciation or amortisation is provided. Any permanent diminutions in value below cost are charged in the profit and loss account.

This treatment is a departure from the requirements of the Companies Act concerning the depreciation of fixed assets.

The Directors consider that as these properties are not held for consumption but for investment, to depreciate them would not give a true and fair view, and that it is necessary to adopt FRS 102 for the accounts to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

Each property has been valued individually and not as part of a portfolio. No account has been taken of any inter-company leases or arrangements, nor any mortgages, debentures or other charges, and no allowance has been made for any expenses of realisation nor for any taxation which might arise in the event of a disposal. The figures also do not reflect any element of special purchaser value following a merger of interests or sale to an owner or occupier of an adjoining property.

Where properties have not been included in the valuation review, they are included at cost or at the Directors' assessment of open market value.

Stocks

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

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

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.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Balance sheet and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

3.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

6,696,945

5,811,392

Other pension costs

111,683

106,886

6,808,628

5,918,278

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

31.12.25

31.12.24

Director

5

3

Office

35

20

Drivers

48

54

Warehouse

83

86

171

163

31.12.25

31.12.24

£

£

Directors' remuneration

381,916

148,603

Information regarding the highest paid director for the year ended 31 December 2025 is as follows:

31.12.25

£

Emoluments etc

136,499

4.	OPERATING PROFIT

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

31.12.25

31.12.24

£

£

Hire of plant and machinery

418,905

400,376

Depreciation - owned assets

350,863

331,743

Loss/(profit) on disposal of fixed assets

23

(7,253

)

Auditors' remuneration

7,600

7,550

Foreign exchange differences

4,204

9,253

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Interest on overdue tax

1,332

183

Hire purchase

13,394

24,933

14,726

25,116

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

137,056

57,569

Deferred tax

(25,967

)

(54,694

)

Tax on profit

111,089

2,875

Reconciliation of total tax charge 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 before tax

433,071

33,190

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

108,268

8,298

Effects of:

Expenses not deductible for tax purposes

8,742

6,089

Income not taxable for tax purposes

(4,910

)

(3,617

)

Depreciation in excess of capital allowances

52,010

55,922

Deferred taxation

(53,239

)

(54,693

)

Brought forward Losses

-

(9,054

)

Pension accrual

218

-

Marginal relief

-

(70

)

Total tax charge

111,089

2,875

7.

DIVIDENDS

31.12.25

31.12.24

£

£

Ordinary shares of 1p each

Interim

175,000

170,000