REGISTERED NUMBER: NI614531 (Northern Ireland)

GRANGE FARM (NI) LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 March 2025

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Income Statement

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

George Philip Troughton

Thomas George Troughton

Thomas George Troughton

REGISTERED OFFICE:

70 Drumgrannon Road

Dungannon

Co. Tyrone

BT71 7DY

REGISTERED NUMBER:

NI614531 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

Unit 7 Dyehouse

Linen Green

Dungannon

Co. Tyrone

BT71 7HB

BANKERS:

Ulster Bank

11 Church Street

Ballymoney

Antrim

BT53 6HS

The directors present their strategic report on the company for the financial year ended 31 March 2025.

REVIEW OF BUSINESS

The directors are pleased with the financial results shown for the year ended 31 March 2025.

The directors are pursuing their strategy of growth by successfully targeting new markets and new customers, and retaining both new and existing customers through excellent customer service levels. They also aim to maximise the profitability from all revenues by continuous improvement of processes within each department of the company, generating cost savings which contribute to the bottom line.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is subject to a number of risks and uncertainties, the most important of which, along with the mitigating actions against same are;

Credit risk

The company supplies goods to customers on credit and is therefore exposed to the usual credit and cash flow risks associated with selling on credit. The company manages these risks through robust credit control procedures.

Foreign currency exchange risk

The company conducts sales in both Sterling and Euro, therefore the company is exposed to the movement in exchange rates between these currencies. For the exposure which cannot be hedged internally, the company continuously monitors market information to assess the risk and acts accordingly.

Supply chain risk

A significant portion of the company's costs relate to the procurement of high quality raw material throughout seasonal changes. Although the directors monitor these carefully, fluctuations, availability and costs can be largely outside the company's control.

Food hygiene and safety risk

Food hygiene and safety is critical to the company. The directors ensure the maintenance of excellence in food hygiene and safety at all stages of production through extensive systems and procedures.

DEVELOPMENT AND PERFORMANCE

The directors aim for year-on-year operational improvements and are committed to a long-term strategy of efficiency savings and cost management in order to achieve continuous financial improvement and improvement of cash flow. They are pleased with the results achieved over the year, and consider the gross profit margin of 17.2% and the net profit before tax percentage of 2.6% to be a satisfactory result.

EMPLOYMENT POLICY

The company is dependent on the skills and commitment of its employees in order to achieve its objectives. Company staff at every level are encouraged to make their fullest possible contribution to the company success. The company's selection, training, development and promotion policies ensure equal opportunities for all employees, regardless of gender, martial status, race, age or disability. All decisions are based on merit.

FINANCIAL KEY PERFORMANCE INDICATORS

The key performance indicators for the company are formally reviewed by the senior management team on a monthly basis. The results for these KPIs for the year ended 31 March 2025 are as follows;

KPIs

The KPIs during the financial year were as follows:

2025

2024

£

£

Turnover

20,778,584

20,774,059

Gross Profit

3,582,247

2,985,629

Profit before taxation

535,254

274,473

ON BEHALF OF THE BOARD:

Thomas George Troughton - Director

5 June 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company is the sale of eggs, potatoes & chips, meat products and fresh fruit and vegetables.

Results

The profit for the financial year after providing for depreciation and taxation amounted to £535,254 (2024 - £274,473).

DIVIDENDS

The company paid a dividend of £140,000 in the year.

FUTURE DEVELOPMENTS

The company plans, at a minimum, to continue its present activities and current trading levels, especially in the face of global inflationary pressures. Employees are kept as fully informed as practicable about developments within the business.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to 31 March 2025

George Philip Troughton

Thomas George Troughton

Thomas George Troughton

POLITICAL DONATIONS AND EXPENDITURE

The company did not make any disclosable political donations in the current financial year.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 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 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 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, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Thomas George Troughton - Director

5 June 2026

Opinion

We have audited the financial statements of Grange Farm (NI) Limited (the 'Company') for the year ended 31 March 2025 which comprise the Income Statement, 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 March 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

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 Directors' Report.

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

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

Other Matters

The financial statements for the year ended 31 March 2024, forming the corresponding figures of the financial statements for the year ended 31 March 2025, are unaudited.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr. Ryan Falls (F.C.A) (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

Unit 7 Dyehouse

Linen Green

Dungannon

Co. Tyrone

BT71 7HB

5 June 2026

TURNOVER

20,778,584

20,774,059

Cost of sales

(17,196,337

)

(17,788,430

)

GROSS PROFIT

3,582,247

2,985,629

Administrative expenses

(3,032,799

)

(2,642,446

)

OPERATING PROFIT

6

549,448

343,183

Finance costs

7

(14,194

)

(22,703

)

PROFIT BEFORE TAXATION

535,254

320,480

Tax on profit

8

(135,035

)

(46,007

)

PROFIT FOR THE FINANCIAL YEAR

400,219

274,473

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

400,219

274,473

NON-CURRENT ASSETS

Intangible assets

10

135,000

95,000

Tangible assets

11

1,384,406

1,219,293

Investment property

12

1,300,000

-

2,819,406

1,314,293

CURRENT ASSETS

Stocks

13

361,699

410,000

Receivables: amounts falling due within one year

14

1,347,642

2,839,752

Cash at bank

446,687

403,546

2,156,028

3,653,298

PAYABLES

Amounts falling due within one year

15

(2,003,800

)

(2,229,354

)

NET CURRENT ASSETS

152,228

1,423,944

TOTAL ASSETS LESS CURRENT LIABILITIES

2,971,634

2,738,237

PAYABLES

Amounts falling due after more than one year

16

(136,340

)

(203,162

)

PROVISIONS FOR LIABILITIES

19

(141,538

)

(101,538

)

NET ASSETS

2,693,756

2,433,537

CAPITAL AND RESERVES

Called up share capital

20

12

12

Retained earnings

21

2,693,744

2,433,525

SHAREHOLDERS' FUNDS

2,693,756

2,433,537

The financial statements were approved by the Board of Directors and authorised for issue on 5 June 2026 and were signed on its behalf by:

Thomas George Troughton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

12

2,309,052

2,309,064

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

274,473

274,473

Balance at 31 March 2024

12

2,433,525

2,433,537

Changes in equity

Dividends

-

(140,000

)

(140,000

)

Total comprehensive income

-

400,219

400,219

Balance at 31 March 2025

12

2,693,744

2,693,756

Cash flows from operating activities

Cash generated from operations

1

898,230

914,990

Interest paid

(14,194

)

(22,703

)

Tax paid

(46,007

)

(151,123

)

Net cash from operating activities

838,029

741,164

Cash flows from investing activities

Purchase of tangible fixed assets

(403,346

)

(424,067

)

Purchase of investment property

(1,300,000

)

-

Purchase of intangible fixed assets

(50,000

)

-

Net cash from investing activities

(1,753,346

)

(424,067

)

Cash flows from financing activities

Loan repayments in year

(66,822

)

(61,355

)

Repayment of connected party debt

1,165,280

-

Equity dividends paid

(140,000

)

(150,000

)

Net cash from financing activities

958,458

(211,355

)

Increase in cash and cash equivalents

43,141

105,742

Cash and cash equivalents at beginning of year

2

403,546

297,804

Cash and cash equivalents at end of year

2

446,687

403,546

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

2025

2024

£

£

Profit before taxation

535,254

320,480

Depreciation charges

248,233

208,000

Finance costs

14,194

22,703

797,681

551,183

Decrease/(increase) in stocks

48,301

(17,471

)

Decrease/(increase) in trade and other debtors

330,062

(33,454

)

(Decrease)/increase in trade and other creditors

(277,814

)

414,732

Cash generated from operations

898,230

914,990

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 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

446,687

403,546

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

403,546

297,804

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank

403,546

43,141

446,687

403,546

43,141

446,687

Debt

Debts falling due within 1 year

(60,000

)

-

(60,000

)

Debts falling due after 1 year

(203,162

)

66,822

(136,340

)

(263,162

)

66,822

(196,340

)

Total

140,384

109,963

250,347

1.	STATUTORY INFORMATION

Grange Farm (NI) Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

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. The financial statements are stated in Pound Sterling (£) which is also the functional currency of the company.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention. Historical cost is generally based on the fair value of consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company financial statements.

Revenue

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:

Sale of goods:

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

- the significant risks and rewards of ownership have been transferred to the buyer;

- the company retains no continuing involvement or control over the goods;

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the company, and;

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses over the last number of years, is being amortised evenly over its estimated useful life of 10 years.

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.

Property, plant and equipment

Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold property

0% Straight line

Leasehold property

7.5% Reducing balance

Fixtures, fittings and equipment

20% Reducing balance

Motor vehicles

20% Reducing balance

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Inventories

Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Financial instruments

The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by the company are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Income Statement.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

Pension costs

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. Annual contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

4.	EMPLOYEES AND DIRECTORS

The average number of persons employed (including executive directors) during the year was as follows

2025

2024

Production

58

53

Administration

10

10

68

63

Staff costs were as follow:

2025

2024

£

£

Wages and salaries

1,648,987

1,455,710

Social security costs

146,678

127,270

Pension costs

48,290

28,026

1,843,955

1,611,456

5.	DIRECTORS' REMUNERATION

2025

2024

£

£

Directors' Remuneration

157,241

84,253

The directors are considered the key management of the company.

6.	OPERATING PROFIT

2025

2024

£

£

Hire of plant and machinery

-

543

Depreciation - owned assets

238,233

168,000

Auditor's remuneration - Audit services

14,000

-

Goodwill amortisation

10,000

40,000

7.	FINANCE COSTS

2025

2024

£

£

Bank interest

14,194

22,703

8.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

95,035

46,007

Deferred tax

40,000

-

Tax on profit

135,035

46,007

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

535,254

320,480

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

133,814

80,120

Effects of:

Expenses not deductible for tax purposes

62,058

52,000

Capital allowances in excess of depreciation

(100,837

)

(85,179

)

Deferred Tax Movement

40,000

-

Marginal Rate

-

(934

)

Total tax charge

135,035

46,007

9.

DIVIDENDS

The company paid a dividend of £140,000 in 2025 (2024:150,000)