REGISTERED NUMBER: 00673483 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

GILBERTS (BLACKPOOL) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

DIRECTORS:

Mrs S M Haslam

Mr M J Wills

Mr J J Haslam DIPM, MCIM, MBA

Mr P G Haslam

Mr R G J Jones

Mr D F Harding

Mr K S Riley

REGISTERED OFFICE:

Clifton Road

Marton

Blackpool

Lancashire

FY4 4QT

REGISTERED NUMBER:

00673483 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Statutory Auditor

17 St Peters Place

Fleetwood

Lancashire

FY7 6EB

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

REVIEW OF BUSINESS

For the year ended 2025, the Company set a turnover budget of £23.1 million, representing a prudent but measured forecast. Pleasingly, the Company exceeded both turnover and profit expectations for the year, reflecting strong operational performance and the successful maximisation of available opportunities.

At the start of 2025, the Company carried forward a substantial order book from 2024, consisting primarily of Natural Ventilation projects but also a significant commercial workload. The commercial element of this workload was unusual in that it extended well into the new year, reflecting in longer lead times than typically experienced. Order intake during the first five months of the year followed a similar pattern, with healthy volumes but extended delivery timelines. In particular, the carried-over natural ventilation workload placed significant demands on production capacity due to both its scale and delivery requirements. This presented some operational challenges during the early part of the year however with a good product mix and output holding at full capacity our financial performance was able to significantly exceed expectations.

The key financial and other performance indicators during the year were as follows:

2025

2024

Change

£'000

£'000

%

Turnover

25,810

23,864

8.1

Operating profit

2,467

1,786

69.3

Net current assets

5,480

5,334

10.6

From May onwards, a noticeable change in industry confidence emerged as previously anticipated legislative changes came into force. Sales activity and order placement slowed, and the market became increasingly cautious and contractual in nature. The strong performance achieved in late 2024 and early 2025 created a degree of resilience that mitigated the impact of these changes until the final quarter.

Sales force reorganisation and an increase in team numbers under our new sales director has provided a new and fresh impetus with positive traction in both key clients and industry specifiers. Despite lower levels of industry confidence our enquiry rates remain strong and order levels still satisfactory as we close out 2025

Overall therefore , 2025 represented a successful year for the Company. Construction forecasts for 2025 were complex, with signs of major projects and sector growth tempered by increased costs and legislative pressures on project budgets. This assessment proved to be broadly accurate, with both positive market opportunities and elements of uncertainty materialising during the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The slowdown visualised during the second half of 2025 started to take hold in the last quarter. Together with further uncertainties, legislative changes and increased business costs announced in the 2025 Budget, this has created a more challenging outlook for 2026. The continuing uncertain economic environment in both the UK and global markets, alongside stubbornly high interest rates, reduced but still persistent inflation and the ongoing cost-of-living pressures, are all factors expected to influence activity within the construction sector.

The economic outlook for the UK remains uncertain. Further government policy changes affecting businesses have been announced, and the full implications of these measures, both positive and negative, are yet to be fully understood. Recent developments in the middle east simply fuel this uncertainty with energy costs now likely to present further challenges.

In recognition the Company is budgeting for a limited potential slowdown in demand while simultaneously planning operational improvements, efficiency gains and strategic initiatives aimed at maximising market opportunities. The Company's strong industry reputation for quality and service continues to support these efforts.

Conclusion

The Company remains financially and strategically stable and continues to invest in the future through additional plant, energy-saving initiatives and the implementation of new ERP software system. For the year ahead, prospects remain good and, correspondingly, the Company has set a realistic turnover budget of £21.1 million. This target reflects the current level of order bookings and incorporates the anticipated impact of increased business costs, legislative changes, persistent inflation and the ongoing cost-of-living pressures on the construction market.

ON BEHALF OF THE BOARD:

Mr J J Haslam DIPM, MCIM, MBA - Director

18 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 designers and manufacturers of air distribution products, smoke fire dampers and natural ventilation systems.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

Ordinary £1

-

£3925

- 31 December 2025

B Ordinary £1

-

£2873

- 8 April 2025

D Ordinary £1

-

£3900

- 8 April 2025

The total distribution of dividends for the year ended 31 December 2025 will be £ 1,818,280 .

RESEARCH AND DEVELOPMENT

The company is continually investing in research and development work to maintain its position at the forefront of the industry.

FUTURE DEVELOPMENTS

Our mission is to become the market leader in Air Distribution Grilles, Diffusers, Louvres, Dampers and Natural Ventilation products.

We will develop and embrace new energy efficient technologies, manufacturing efficient designs that provide for healthy and comfortable ventilation solutions in all types of building. Our philosophy is to supply the highest quality of "value engineered" products to satisfy market needs.

Divisionalised centres of excellence will continue to evolve to create business units empowered to meet market opportunities and demand helping to sustain stable growth and profitability for the lasting benefit of both shareholders and employees.

DIRECTORS

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

Mrs S M Haslam

Mr M J Wills

Mr J J Haslam DIPM, MCIM, MBA

Mr P G Haslam

Mr R G J Jones

Other changes in directors holding office are as follows:

Mr I Rogers - resigned 31 October 2025

Mr D F Harding - appointed 31 October 2025

Mr K S Riley was appointed as a director after 31 December 2025 but prior to the date of this report.

Mr C Clarke ceased to be a director after 31 December 2025 but prior to the date of this report.

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.

ON BEHALF OF THE BOARD:

Mr J J Haslam DIPM, MCIM, MBA - Director

18 May 2026

Opinion

We have audited the financial statements of Gilberts (Blackpool) Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, 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 five, 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.

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

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 are detailed below.

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the HVAC sector.

In accordance with ISA (UK) 240, we addressed the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether judgements made in making accounting estimates are indicative of potential bias; evaluated the business rationale of ant significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks indentified included the following:

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

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

- enquiring of management concerning actual, potential litigation and claims, and instances of non compliance with laws and regulations; and

- reading minutes of meeting of those charge with governance.

There are inherent limitations in an audit. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely that the audit would detect it. The risk of not detecting a material misstatement due to fraud is higher than for one resulting from error, as fraud may involve deliberate concealment.

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.

Martin Wigley MSc ACA ATII (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor

17 St Peters Place

Fleetwood

Lancashire

FY7 6EB

18 May 2026

REVENUE

25,810,002

23,864,176

Cost of sales

14,728,831

14,434,094

GROSS PROFIT

11,081,171

9,430,082

Distribution costs

2,430,628

2,364,447

Administrative expenses

6,183,860

5,354,772

8,614,488

7,719,219

2,466,683

1,710,863

Other operating income

-

75,204

OPERATING PROFIT

5

2,466,683

1,786,067

Interest receivable and similar income

160,064

216,985

2,626,747

2,003,052

Interest payable and similar expenses

6

255,253

295,152

Other finance costs

17

3,000

1,000

258,253

296,152

PROFIT BEFORE TAXATION

2,368,494

1,706,900

Tax on profit

7

529,711

356,437

PROFIT FOR THE FINANCIAL YEAR

1,838,783

1,350,463

PROFIT FOR THE YEAR

1,838,783

1,350,463

OTHER COMPREHENSIVE INCOME

Return on plan assets (excluding amounts

(136,000

)

(999,000

)

included in net interest cost)

Experience gains and losses arising

(38,000

)

(10,000

)

Effects of changes in demographic and

7,000

1,256,000

financial assumptions

Surplus that is not recoverable

17,000

(333,000

)

Loss on curtailments

Income tax relating to components of

150,000

86,000

other comprehensive income

Interest charged

3,000

1,000

Income tax relating to components of other comprehensive income

(750

)

(250

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

2,250

750

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,841,033

1,351,213

FIXED ASSETS

Property, plant and equipment

9

1,676,658

1,924,444

CURRENT ASSETS

Inventories

10

2,847,000

2,657,000

Debtors

11

5,195,276

4,883,607

Cash at bank and in hand

8,111,249

6,644,197

16,153,525

14,184,804

CREDITORS

Amounts falling due within one year

12

(10,584,021

)

(8,850,670

)

NET CURRENT ASSETS

5,569,504

5,334,134

TOTAL ASSETS LESS CURRENT LIABILITIES

7,246,162

7,258,578

PROVISIONS FOR LIABILITIES

14

(297,162

)

(332,331

)

NET ASSETS

6,949,000

6,926,247

CAPITAL AND RESERVES

Called up share capital

15

486

486

Capital redemption reserve

16

55

55

Retained earnings

16

6,948,459

6,925,706

SHAREHOLDERS' FUNDS

6,949,000

6,926,247

The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2026 and were signed on its behalf by:

Mr J J Haslam DIPM, MCIM, MBA - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

486

6,723,785

55

6,724,326

Changes in equity

Dividends

-

(1,149,292

)

-

(1,149,292

)

Total comprehensive income

-

1,351,213

-

1,351,213

Balance at 31 December 2024

486

6,925,706

55

6,926,247

Changes in equity

Dividends

-

(1,818,280

)

-

(1,818,280

)

Total comprehensive income

-

1,841,033

-

1,841,033

Balance at 31 December 2025

486

6,948,459

55

6,949,000

Cash flows from operating activities

Cash generated from operations

1

2,650,876

2,099,950

Tax paid

(415,406

)

(501,393

)

Net cash from operating activities

2,235,470

1,598,557

Cash flows from investing activities

Purchase of tangible fixed assets

(207,105

)

(629,622

)

Sale of tangible fixed assets

96,892

67,102

Interest received

160,064

216,985

Net cash from investing activities

49,851

(345,535

)

Cash flows from financing activities

Amount introduced by directors

245,791

345,430

Amount withdrawn by directors

(1,064,060

)

(1,549,885

)

Net cash from financing activities

(818,269

)

(1,204,455

)

Increase in cash and cash equivalents

1,467,052

48,567

Cash and cash equivalents at beginning of year

2

6,644,197

6,595,630

Cash and cash equivalents at end of year

2

8,111,249

6,644,197

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

2025

2024

£

£

Profit before taxation

2,368,494

1,706,900

Depreciation charges

380,246

370,264

Profit on disposal of fixed assets

(22,246

)

(10,698

)

Finance costs

258,253

296,152

Finance income

(160,064

)

(216,985

)

2,824,683

2,145,633

Increase in inventories

(190,000

)

(220,000

)

(Increase)/decrease in trade and other debtors

(311,670

)

159,115

Increase in trade and other creditors

327,863

15,202

Cash generated from operations

2,650,876

2,099,950

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

8,111,249

6,644,197

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

6,644,197

6,595,630

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

6,644,197

1,467,052

8,111,249

6,644,197

1,467,052

8,111,249

Total

6,644,197

1,467,052

8,111,249

1.	STATUTORY INFORMATION

Gilberts (Blackpool) 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.

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.

Turnover

Where turnover relates to services provided under contracts turnover is recognised to the extent that there is a right to consideration and is recorded at the value of the consideration due. Where a contract has only been partially completed at the balance sheet date turnover represents the value of the service provided to date based on a proportion of the total expected consideration at completion. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Where turnover represents sales of goods net of VAT and trade discounts it is recognised when the goods are physically delivered to the customer.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

- 2% on cost

Leasehold property

- Over the period of the lease

Plant and machinery

- 15% on reducing balance

Fixtures and fittings

- 15% on reducing balance

Motor vehicles

- 25% on reducing balance

Computer equipment

- 20% on reducing balance

No depreciation is provided on freehold land.

Stocks

Raw materials stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is actual cost except for aluminium extrusions where a weighted average cost is used. Net realisable value represents estimated selling price less costs to complete and sell.

Work in progress (all non long-term) is valued at the lower of cost and net realisable value. Cost includes materials and labour and an allocation of overheads.

Financial instruments

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 benefit pension scheme which is closed to new membership and to new accruals. Consequently there is no pension charge.

The company also contributes to a group personal pension scheme on behalf of employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the Company's accounting policies and key source of estimation uncertainty

The following are the key sources of estimation uncertainty that the directors have assessed as being applicable to the entity and that have the most significant effect on the amounts recognised in the financial statements. It is deemed that there are no critical accounting judgements.

Fixed assets

The accounting for fixed assets requires the use of estimates in two principal areas: useful economic lives and impairment. Useful lives are reviewed with reference to expected technological changes, usage patterns, and the physical condition of each asset. Impairment assessments involve forecasting future cash flows to determine whether an impairment charge is required. Details of fixed assets are disclosed in note 8, and depreciation rates are disclosed in note 2.

Work in progress

Work in progress represents the value of ongoing jobs at the year end. Management estimates the stage of completion for each job and applies percentage-of-completion valuation based on incurred costs. Cost percentages are regularly reviewed.

Receivables

The recoverable amount of receivables is estimated based on expected future cash inflows. Management considers historical collection rates, ageing profiles, and current economic conditions when determining any required impairment provisions.

Post-employment benefits

For the defined benefit scheme, pension valuations have been performed using specialist advice obtained from independent qualified actuaries. In performing these valuations, significant actuarial assumptions have been made to determine the defined benefit obligation, in particular with regard to discount rate, inflation and mortality. Details of assumptions used are set out in note 17 employee benefit obligations.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

9,783,707

9,014,854

Social security costs

62,205

48,720

Other pension costs

463,536

507,594

10,309,448

9,571,168

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

2025

2024

Directors

7

7

Technical

11

11

Management

12

13

Administration and sales

44

45

Production

164

160

238

236

2025

2024

£

£

Directors' remuneration

525,625

411,882

Directors' pension contributions to money purchase schemes

73,977

50,159

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

154,916

130,686

Pension contributions to money purchase schemes

17,241

14,109

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

51,524

57,142

Other operating leases

434,936

398,457

Depreciation - owned assets

380,245

370,264

Profit on disposal of fixed assets

(22,246

)

(10,698

)

Auditors' remuneration

20,500

19,425

Auditors' remuneration for non audit work

12,500

11,725

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Directors loan interest

255,253

295,152