REGISTERED NUMBER: 09260561 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 August 2025

for

OTIUM SERVICES AND FACILITIES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Directors' Responsibilities Statement

6

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

R L Spence

P R Rafferty

M Robertson

T J Fifield

REGISTERED OFFICE:

Unit C2A Comet Studios

De Havilland Court

Penn Street

Amersham

Buckinghamshire

HP7 0PX

REGISTERED NUMBER:

09260561 (England and Wales)

SENIOR STATUTORY AUDITOR:

Adele Lawton

AUDITORS:

Lawton Bradford Accountants Limited

Chartered Certified Accountants

And Statutory Auditors

7 Marconi Gate

Stafford

ST18 0FZ

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

REVIEW OF BUSINESS

The Company's financial performance for the year reflects its continued focus on the provision of commercial contract cleaning services across the United Kingdom. Revenue was primarily generated from contracts within the Company's core sectors of gyms and nurseries, predominantly servicing national operators, which remain the main drivers of turnover. During the year, the Company also extended its operations into the university education sector, securing contracts that align well with its established operating model due to their high footfall, large scale environments.

In support of this growth and to strengthen operational delivery, the business undertook a management restructure during the period. This included the appointment of new Account Managers responsible for National Accounts and a reorganisation of management responsibilities to provide stronger geographical coverage across the contract portfolio. The restructure was implemented with the objective of improving operational efficiency and supporting sustainable performance across the contract portfolio. This enhanced structure has improved operational oversight and consistency of service delivery, with early benefits reflected in improved audit results and increased levels of client satisfaction.

A small number of contracts sit outside the Company's core sectors; however, these contributed an insignificant proportion of total revenue and had no material impact on profitability for the year.

PRINCIPAL RISKS AND UNCERTAINTIES

Customer and credit risk

The company supplies a range of markets and customers in order to avoid reliance on a single customer and the associated risks. The company uses credit insurance with agreed credit limits to minimise its exposure to credit risk.

Supplier and product risk

The company uses a relatively small number of suppliers in order to maintain a reliable supply of products in the quantities required. There are a large number of suppliers available to minimise the risk of product supply.

Liquidity risk

The company forecasts its future cash flows on a daily basis and ensures it has sufficient reserves and facilities to meet all its obligations. The business finances its operations through a mixture of existing working capital, secured bank borrowings and against trade debtors and directors loans.

Interest rate risk

The company maintains close relationships with its bankers and finance providers in order to ensure the interest rate risk is managed effectively.

EMPLOYEES

The company has continued to give full and fair consideration to applications made by persons of all diversities, having regard to their respective aptitudes and abilities, and to ensure that they benefit from training and career development programmes in common with all employees. The company has continued its policy of employee involvement by making information available to employees through the medium of frequent staff meetings, together with personal appraisals and feedback sessions.

PAYMENT OF CREDITORS

The company does not follow any published code or statement on payment practice. However, it is the company's policy to settle all amounts due to its creditors on a timely basis, taking into account the credit terms by each supplier.

LIKELY FUTURE DEVELOPMENTS

The Company enters the 2026 financial year in a stronger operational and financial position following a successful turnaround, with the Board confident in the sustainability of improved performance. The Chairman is pleased with the progress made during the year and looks forward to a successful 2026 accounting period.

Otium Services and Facilities is now realising the benefits of operational efficiencies implemented towards the end of FY2024. These improvements have driven increased turnover and higher gross profit during the year, with the full financial benefit expected to be more clearly reflected in the FY2026 results as the efficiencies continue to embed across the business.

The Company has completed a programme of streamlining its operating processes to improve management effectiveness and reduce the cost of supply. These efficiencies have been achieved through a combination of enhanced internal training and targeted investment in technology, supporting more efficient service delivery and improved operational control.

Looking ahead, the Company will continue to pursue new client opportunities and further diversify beyond its core markets to reduce future sector risk. As part of this strategy, Otium plans to recruit a Business Development Director to support organic growth and will seek to complete one or more acquisitions, where suitable opportunities arise, to strengthen and scale the overall business.

KEY PERFORMANCE INDICATORS

At Otium Facilities and Services we recognise that we can only deliver excellent standards of service to our clients by having a successful, sustainable and dynamic company.

To enable this, we use two Key Performance Indicators; Revenue and Net Profit.

Turnover was stable with a small increase from £15,452,472 in 2024 to £15,528,264 in 2025 in line with expectations.

Net profit has increased from £9,213 in 2024 to £246,643 in 2025 following the restructuring of the internal management and operations structure within the company. This project was undertaken in order to improve the operational efficiency of the business and therefore also improve the performance and profitability. The project was successfully completed during the financial year ended 31 August 2024 and it has resulted in improved financial performance during the 2025 financial period and this will continue moving forward.

We are exceptionally proud of our commercial performance, especially when combined with our excellent front line services levels.

AUDITORS

Lawton Bradford Accountants Limited

ON BEHALF OF THE BOARD:

M Robertson - Director

29 May 2026

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

DIVIDENDS

No dividends will be distributed for the year to 31 August 2025 (2024: £0 dividends were voted).

DIRECTORS

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

R L Spence

P R Rafferty

M Robertson

T J Fifield

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made charitable donations of £1,450 (2024: £2,973) none of these were political.

RESULTS REVIEW

The company's key performance numbers for the year were:

Year

2025

2024

Turnover

15,528,264

15,452,472

Gross Profit

2,055,513

1,757,930

Net Assets

861,573

663,946

The company aims to continue to grow its client base organically, while expanding into additional target areas.

The company has the structure in place and operational scope to grow in these target areas.

ENGAGEMENT WITH EMPLOYEES

The Company operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. During the year, the policy of providing employees with information about the company has continued through the Company's website and interactive employee applications. Regular meetings are held between local management and employees to allow free flow of information and ideas. Employees participate directly in the success of the business through bonus mechanisms.

DISABLED EMPLOYEES

The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the Company's policy to provide continuing employment wherever practicable in the same or and alternative position and to provide appropriate training to achieve this aim.

STREAMLINED ENERGY AND CARBON REPORTING

The Company is subject to report greenhouse gas (""GHG") emissions and energy usage in the Directors' Report in line with the Companies (Directors' Report) and the Limited Liability Partnerships (Energy and Carbon) Regulations 2018.

Methodology

The Company is committed to specific environmental-based targets, including using sustainable paper products, electric vehicles and efficient route planning. All of these creating a reducing carbon emissions over the next five years.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

M Robertson - Director

29 May 2026

The directors are responsible for preparing the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare the financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with Financial Reporting Standards 102 as adopted for use in the UK and Republic of Ireland. The financial statements are required by law to 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 year. In preparing these financial statements, the directors are required to

- select suitable accounting policies and then apply them consistently;

- make judgements and 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 which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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 corporate and financial information on the company's website.

Opinion

We have audited the financial statements of Otium Services And Facilities 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, the Report of the Directors and the Directors' Responsibilities Statement, 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 Directors' Responsibilities Statement set out on page six, 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 is detailed below.

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 & The Health and Safety act 1974.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to doubtful debt provisions, inventory valuations & depreciation methods.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Performing a verification of key assets.

- Obtaining third-party confirmation of material bank and loan balances.

- Documenting and verifying all significant related party balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

Adele Lawton (Senior Statutory Auditor)

for and on behalf of Lawton Bradford Accountants Limited

Chartered Certified Accountants

And Statutory Auditors

7 Marconi Gate

Stafford

ST18 0FZ

29 May 2026

Lawton Bradford Accountants Limited, Chartered Accountants and Statutory

Auditors

TURNOVER

3

15,528,264

15,452,472

Cost of sales

13,472,751

13,694,542

GROSS PROFIT

2,055,513

1,757,930

Administrative expenses

1,738,219

1,653,726

OPERATING PROFIT

5

317,294

104,204

Interest receivable and similar income

2

3

317,296

104,207

Interest payable and similar expenses

6

70,653

94,994

PROFIT BEFORE TAXATION

246,643

9,213

Tax on profit

7

49,016

(140,380

)

PROFIT FOR THE FINANCIAL YEAR

197,627

149,593

PROFIT FOR THE YEAR

197,627

149,593

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

197,627

149,593

FIXED ASSETS

Intangible assets

8

-

1,285,769

Tangible assets

9

538,973

687,289

538,973

1,973,058

CURRENT ASSETS

Stocks

10

246,250

236,185

Debtors

11

2,079,345

2,499,786

Cash at bank

1,325,240

36,271

3,650,835

2,772,242

CREDITORS

Amounts falling due within one year

12

3,046,899

3,700,754

NET CURRENT ASSETS/(LIABILITIES)

603,936

(928,512

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,142,909

1,044,546

CREDITORS

Amounts falling due after more than one year

13

(223,025

)

(371,304

)

PROVISIONS FOR LIABILITIES

17

(58,311

)

(9,296

)

NET ASSETS

861,573

663,946

CAPITAL AND RESERVES

Called up share capital

18

1,350

1,350

Share premium

19

249,650

249,650

Retained earnings

19

610,573

412,946

SHAREHOLDERS' FUNDS

861,573

663,946

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:

M Robertson - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 September 2023

1,350

263,353

249,650

514,353

Changes in equity

Total comprehensive income

-

149,593

-

149,593

Balance at 31 August 2024

1,350

412,946

249,650

663,946

Changes in equity

Total comprehensive income

-

197,627

-

197,627

Balance at 31 August 2025

1,350

610,573

249,650

861,573

Cash flows from operating activities

Cash generated from operations

1

(503,190

)

986,470

Interest paid

(70,653

)

(94,994

)

Tax paid

-

(25,194

)

Net cash from operating activities

(573,843

)

866,282

Cash flows from investing activities

Purchase of intangible fixed assets

-

(295,076

)

Purchase of tangible fixed assets

(85,807

)

(505,753

)

Sale of intangible fixed assets

1,800,000

-

Sale of tangible fixed assets

82,946

1,266

Interest received

2

3

Net cash from investing activities

1,797,141

(799,560

)

Cash flows from financing activities

Loan repayments in year

(121,584

)

(118,939

)

Capital repayments in year

(70,746

)

70,746

Amount introduced by directors

258,001

-

Amount withdrawn by directors

-

(98,313

)

Net cash from financing activities

65,671

(146,506

)

Increase/(decrease) in cash and cash equivalents

1,288,969

(79,784

)

Cash and cash equivalents at beginning of year

2

36,271

116,055

Cash and cash equivalents at end of year

2

1,325,240

36,271

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

2025

2024

£

£

Profit before taxation

246,643

9,213

Depreciation charges

134,124

357,041

Profit on disposal of fixed assets

(514,231

)

(1,266

)

Finance costs

70,653

94,994

Finance income

(2

)

(3

)

(62,813

)

459,979

Increase in stocks

(10,065

)

(107,165

)

Decrease/(increase) in trade and other debtors

152,398

(477,966

)

(Decrease)/increase in trade and other creditors

(582,710

)

1,111,622

Cash generated from operations

(503,190

)

986,470

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

1,325,240

36,271

Year ended 31 August 2024

31/8/24

1/9/23

£

£

Cash and cash equivalents

36,271

116,055

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1/9/24

Cash flow

At 31/8/25

£

£

£

Net cash

Cash at bank

36,271

1,288,969

1,325,240

36,271

1,288,969

1,325,240

Debt

Finance leases

(70,746

)

70,746

-

Debts falling due within 1 year

(137,541

)

(9,643

)

(147,184

)

Debts falling due after 1 year

(371,304

)

148,279

(223,025

)

(579,591

)

209,382

(370,209

)

Total

(543,320

)

1,498,351

955,031

1.	STATUTORY INFORMATION

Otium Services and Facilities Ltd is a private company, limited by shares, registered in England and Wales.

Registered Office:

Unit C2A Comet Studios

De Havilland Court, Penn Street

Amersham

Buckinghamshire

HP7 0PX

Registered number: 09260561

Head Office:

Unit C2A Comet Studios

De Havilland Court, Penn Street

Amersham

Buckinghamshire

HP7 0PX

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 ("FRS 102"), the financial reporting standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.

Judgements in applying accounting policies and key sources of uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

Turnover

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

The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

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

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with acquisition of a business in 2023 and 2024, was being amortised evenly over its estimated useful life of ten years. This has been written off as part of the disposal.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

In determining estimated residual values and depreciation rates on vehicles, management considers many factors, including used car market conditions, anticipated holding periods, fleet mix, buyback guarantees and historic experience. Management regularly monitors residual values and the need, if any, to adjust depreciation rates.

The annual depreciation and amortisation charge on tangible fixed assets, goodwill and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values of the assets are amended when necessary to reflect current estimates.

Depreciation is provided on the following basis:

- Plant and machinery - 25% reducing balance/8 years of ownership

- Fixtures and fittings - 3 years of ownership

- Office equipment - 1 - 3 years of ownership

- Motor vehicles - 25% reducing balance

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

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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

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.

Going concern

The directors review the on going working capital of the company to ensure that there are sufficient reserves to meet its financial liabilities to continue trading in the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.

3.

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 given below:

2025

2024

£

£

Services

15,528,264

15,452,472

15,528,264

15,452,472

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

15,528,264

15,452,472

15,528,264

15,452,472

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

12,773,861

12,749,110

Social security costs

860,825

623,189

Other pension costs

177,319

180,872

13,812,005

13,553,171

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

2025

2024

Management

26

34

Operations

1,027

1,096

1,053

1,130

2025

2024

£

£

Directors' remuneration

90,200

77,575

Directors' pension contributions to money purchase schemes

766

766

5.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

171,153

112,725

Depreciation - owned assets

151,177

209,734

Profit on disposal of fixed assets

(514,231

)

(1,266

)

Goodwill amortisation

-

147,307

Auditors' remuneration

15,895

15,000