REGISTERED NUMBER: 01311902 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

FOR

JOHN HANLON & CO. LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Mr J F Hanlon

Mr P J Hanlon

SECRETARY:

Mr P J Hanlon

REGISTERED OFFICE:

Highlands

Campton

Beds

SG17 5NZ

REGISTERED NUMBER:

01311902 (England and Wales)

AUDITORS:

FKCA Limited

Statutory Auditor

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

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

REVIEW OF BUSINESS

John Hanlon & Co Ltd hires, sells, and provides technical support for a range of mobile plant. It does this principally through its self drive loader rental business. It also sells and supports the Komptech range of recycling equipment throughout the UK.

In the year to August 2025, the management continued to work to increase the availability of machines on its hire fleet through the active management of the machines available for disposal, while maintaining the overall size of the fleet to meet customer demands. The availability of machines due for disposal was reduced during the year, which is directly attributable to the supply side issues following the Covid-19 pandemic.

We continue to focus on developing the Komptech presence within the UK. As well as increases on the personnel side, we have increased the number and range of Komptech machines available to hire. Going forward our expectation is that both these areas will have a significant increase in our overall activities.

The company's key performance indicators during the period were as follows:

2025

2024

Increase/ (Decrease)

£

£

Hire fleet value

37,013,359

36,024,263

2.7%

Hire fleet revenue

12,875,249

12,537,432

2.7%

Equipment sales

6,006,691

6,369,669

(5.7%)

The company has continued to view growth in its principal markets and looks to develop its presence with the delivery of market leading equipment backed by high levels of service support.

The company continues its policy of replacing older machines on the fleet where appropriate, with newer models. The company also maintains a view on the availability of new equipment while monitoring the residual values for the disposal of the ex-rental machines.

The new equipment division continues to build on its presence in the UK with the range of Komptech recycling equipment. This compliments the main business activity serving and supporting customers in our existing markets.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business is subject to a number of risks. These are principally market changes, supply chain issues and changes in the wider economy.

There is a risk of a decline in demand within one or more of the sectors in which the business operates. To mitigate this the management actively manages changes in the market it operates as well as the availability of new equipment and the disposal of redundant machines. Our aim is to be sufficiently flexible within the industry as well as responding to changing environmental trends.

There is also a risk that changes in interest rates together with foreign exchange rates could equally negatively impact our costs in both equipment and service support. To manage against these risks, we constantly monitor rates and trends. In this way, we have the ability to work with our principal suppliers and customers to anticipate these changes to our mutual benefit.

ON BEHALF OF THE BOARD:

Mr P J Hanlon - Director

29 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of industrial machines for hire.

DIVIDENDS

The profit for the year, after taxation, amounted to £506,117 (2024: £1,244,168).

No dividends have been paid in the year.

FUTURE DEVELOPMENTS

The directors aim to maintain the management policies which have resulted in the company's growth in recent years. They do not anticipate any significant changes to the underlying business of the company.

DIRECTORS

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

Mr J F Hanlon

Mr P J Hanlon

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' reports may differ from legislation in other jurisdictions.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

- so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

- the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr P J Hanlon - Director

29 May 2026

Opinion

We have audited the financial statements of John Hanlon & Co. Limited (the 'company') for the year ended 31 August 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 August 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 three, 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff and the board of directors to identify any instances of non-compliance with laws and regulations; and

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

- Performed detailed substantive testing to address completeness and accuracy of income.

- Assessed the appropriateness and application of the accounting policy concerning income recognition; and

- Performed detailed cut-off testing either side of the balance sheet date.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships.

- Tested journal entries to identify unusual transactions.

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

- Investigated the rationale behind significant or unusual transactions.

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.

Mr Stephen Mason BSc FCA (Senior Statutory Auditor)

for and on behalf of FKCA Limited

Statutory Auditor

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

29 May 2026

TURNOVER

5

21,277,830

21,210,237

Cost of sales

16,022,267

15,603,066

GROSS PROFIT

5,255,563

5,607,171

Distribution costs

114,574

62,911

Administrative expenses

2,146,646

1,825,230

2,261,220

1,888,141

2,994,343

3,719,030

Other operating income

3,129

-

OPERATING PROFIT

7

2,997,472

3,719,030

Interest payable and similar expenses

9

2,302,688

2,002,297

PROFIT BEFORE TAXATION

694,784

1,716,733

Tax on profit

10

188,667

472,565

PROFIT FOR THE FINANCIAL YEAR

506,117

1,244,168

FIXED ASSETS

Tangible assets

11

43,877,575

42,700,871

CURRENT ASSETS

Stocks

12

5,089,706

4,222,330

Debtors

13

3,260,929

3,111,712

Cash at bank

530,039

1,625,774

8,880,674

8,959,816

CREDITORS

Amounts falling due within one year

14

15,266,835

13,186,861

NET CURRENT LIABILITIES

(6,386,161

)

(4,227,045

)

TOTAL ASSETS LESS CURRENT LIABILITIES

37,491,414

38,473,826

CREDITORS

Amounts falling due after more than one year

15

(21,298,733

)

(22,966,916

)

PROVISIONS FOR LIABILITIES

19

(3,590,164

)

(3,410,510

)

NET ASSETS

12,602,517

12,096,400

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

Revaluation reserve

21

2,643,236

2,643,236

Capital redemption reserve

21

8

8

Retained earnings

21

9,949,273

9,443,156

SHAREHOLDERS' FUNDS

12,602,517

12,096,400

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2026 and were signed on its behalf by:

Mr P J Hanlon - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 September 2023

10,000

8,198,988

2,643,236

8

10,852,232

Changes in equity

Profit for the year

-

1,244,168

-

-

1,244,168

Total comprehensive income

-

1,244,168

-

-

1,244,168

Balance at 31 August 2024

10,000

9,443,156

2,643,236

8

12,096,400

Changes in equity

Profit for the year

-

506,117

-

-

506,117

Total comprehensive income

-

506,117

-

-

506,117

Balance at 31 August 2025

10,000

9,949,273

2,643,236

8

12,602,517

Cash flows from operating activities

Cash generated from operations

1

7,772,723

6,552,333

Interest paid

(89,188

)

(108,455

)

Interest element of hire purchase payments paid

(2,213,500

)

(1,893,842

)

Tax received/(paid)

(9,012

)

21,560

Net cash from operating activities

5,461,023

4,571,596

Cash flows from investing activities

Purchase of tangible fixed assets

(228,102

)

(52,577

)

Sale of tangible fixed assets

2,971,480

4,298,785

Net cash from investing activities

2,743,378

4,246,208

Cash flows from financing activities

Loan repayments in year

(138,505

)

(127,699

)

Capital repayments in the year

(9,551,266

)

(9,257,135

)

Amount introduced by directors

389,635

-

Net cash from financing activities

(9,300,136

)

(9,384,834

)

Decrease in cash and cash equivalents

(1,095,735

)

(567,030

)

Cash and cash equivalents at beginning of year

2

1,625,774

2,192,804

Cash and cash equivalents at end of year

2

530,039

1,625,774

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year

506,117

1,244,168

Depreciation charges

5,458,818

5,160,051

Profit on disposal of fixed assets

(265,076

)

(1,460,110

)

Finance costs

2,302,688

2,002,297

Taxation

188,667

472,565

8,191,214

7,418,971

Increase in stocks

(867,376

)

(1,365,627

)

Increase in trade and other debtors

(149,217

)

(253,585

)

Increase in trade and other creditors

598,102

752,574

Cash generated from operations

7,772,723

6,552,333

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2025

31.8.25

1.9.24

£

£

Cash and cash equivalents

530,039

1,625,774

Year ended 31 August 2024

31.8.24

1.9.23

£

£

Cash and cash equivalents

1,625,774

2,192,804

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.9.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank

1,625,774

(1,095,735

)

530,039

1,625,774

(1,095,735

)

530,039

Debt

Finance leases

(31,534,265

)

437,442

(31,096,823

)

Debts falling due within 1 year

(134,400

)

(18,459

)

(152,859

)

Debts falling due after 1 year

(1,215,914

)

156,963

(1,058,951

)

(32,884,579

)

575,946

(32,308,633

)

Total

(31,258,805

)

(519,789

)

(31,778,594

)

1.	STATUTORY INFORMATION

John Hanlon & Co. 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Equipment sales and other income

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Hire fleet

Rental income from hire fleet assets leased out under operating leases is recognised in the profit and loss account on a straight-line basis over the term of the lease.

Service and parts

The company recognises revenue from the provision of maintenance services as the services are performed. Revenue is measured at the fair value of the consideration received or receivable, net of discounts and sales-related taxes.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property

-

2%

Straight line

Plant & machinery

-

20%

Straight line

Motor vehicles

-

25%

Straight line

Fixtures & fittings

-

20%

Straight line

Hire fleet (50% Residual Value)

-

20%

Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Revaluation of tangible fixed assets

Freehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Statement of financial position date.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

Certain inventory items are held under finance leases. These assets are recognised at the lower of cost and net realisable value, with the corresponding lease liability recorded under obligations under finance leases.

The cost of these items is recognised in cost of sales as they are sold, with finance charges on the leases accounted for under finance costs in the profit and loss account.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

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

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Foreign currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

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.

Going concern

Current liabilities include liabilities under hire purchase contracts of £10,857,041 (2024: £9,783,263). The result is to disclose net current liabilities of £6,386,161 (2024: £4,227,045) in the accounts. The reality is that hire purchase liabilities will be matched by income during the course of the forthcoming year on a monthly basis. Excluding hire purchase liabilities, the accounts show net current assets of £4,470,880 (2024: £5,556,218) which better reflects the company's working capital position.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Debtors

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

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Creditors

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

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements had a significant effect on the amounts recognised in the financial statements:

Revaluation of freehold property

The company has opted to account for its freehold property at fair value which was determined by the Directors using evidence from observed prices in market transactions for similar properties in similar locations. No independent valuation was undertaken.

Depreciation

As stated in note 3, management have assessed the useful life of hire fleet assets as 5 years, with a 50% residual value. This assessment was based upon a review of historic results and current market factors.

Hire purchase liability

The company has opted to account for hire purchase liabilities using a sum of digit calculation on a monthly basis. This is also used to calculate the split between amounts due within one year and amounts due greater than one year.

5.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is as follows:

2025

2024

£

£

Other income

4,190

54,300

Equipment Sales

6,006,691

6,369,669

Hire fleet revenue

12,875,249

12,537,432

Service and parts sales

2,391,700

2,248,836

21,277,830

21,210,237

Analysis of turnover by country of destination:

2025

2024

£

£

United Kingdom

21,060,062

21,084,158

Europe

195,670

-

Channel Islands

84,748

126,079

21,277,830

21,210,237

6.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,212,293

538,118

Social security costs

253,391

58,010

Other pension costs

44,009

11,623

2,509,693

607,751

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

2025

2024

Directors

2

2

Admin

13

3

Repairs and servicing

30

7

Sales

5

2

Yard maintenance

1

-

51

14

Up until May 2024, the company did not have any employees. Services were provided by JJ&B Engineering, a partnership under common control. In June 2024, employees were transfered from JJ&B Engineering to John Hanlon & Co. Limited.

2025

2024

£

£

Directors' remuneration

-

-