REGISTERED NUMBER: 12249030 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH SEPTEMBER 2025

FOR

HINGLEY & CALLOW OILS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Statement of Cash Flows

16

Notes to the Financial Statements

17

DIRECTORS:

Mrs A M Callow

Mrs H L Needham

J D Callow

REGISTERED OFFICE:

Severn House

Sandy Lane Industrial Estate

Stourport-On-Severn

DY13 9QB

REGISTERED NUMBER:

12249030 (England and Wales)

AUDITORS:

French Ludlam & Co Limited

Statutory Auditors and Accountants

Mountfield House

661 High Street

Kingswinford

West Midlands

DY6 8AL

The directors present their strategic report for the year ended 30th September 2025.

REVIEW OF BUSINESS

The principal activity of the company is the distribution of domestic, agricultural and industrial fuels.

Performance

The key financial performance indicators are as follows:

2025

2024

£

£

Turnover

63,467,416

60,190,258

Gross profit

4,980,114

4,186,532

Operating profit

1,636,083

900,646

Gross profit %

7.85%

6.96%

Average number of employees

36

34

Litres of wholesale fuel sold has remained consistent with 2024, however turnover has increased by 5.44% to £63,467,416 due to the continuing fluctuation of global fuel prices. Gas oil sales have fallen slightly as a direct effect of the changes in legislation which prevent the sale of gas oil to anyone other than agricultural enterprises. Domestic and commercial sales were affected by the warmer winter and cost of living crisis.

The fluctuation in prices has in turn led to an increase in the overall profit margin to 7.85%, compared to a prior period total margin of 6.96% which is in line with the "normal" pre Covid margins. Despite the volatile prices, the company and group continue to be competitive within the market sector and retain a very good customer base.

The directors are pleased with the profit levels achieved. The balance sheet is strong, with good liquidity, and the company maintains an excellent relationship with its key suppliers.

Going forward the company has no further plans to restructure, or to acquire or dispose of any operations from the group. The directors' long term strategy is to expand the company and group's market share, improve efficiency, to maximise future profitability and ensure that the company and group is able to respond quickly to increases (and decreases) in the demand for fuel.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is exposed to interest rate risk on any borrowings. However, overdraft use is rare and therefore this risk continues to be low. The bank is currently satisfied with the company's financial performance and the directors do not think there is any risk of facilities being withdrawn.

Fuel prices are monitored daily to minimise price risk and ensure the company remains competitive.

Credit risk is managed by strict credit control and thorough credit checks on new customers. Customers are encouraged to pay a regular amount by direct debit, to spread the cost of their fuel bills. This means that for most of the year many of the sales ledger accounts are in credit.

All sales are to UK customers and all suppliers are UK based. There are therefore no risks relating to exchange rate movements.

SECTION 172(1) STATEMENT

This S172 Statement explains how the directors

- have engaged with employees, suppliers, customers and others; and

- have had regard to employee interests, the need to foster the company's business relationships with suppliers, customers, and others, and the effect of the principal decisions taken by the company during the financial period.

There have been no significant key decisions made during this year following the major restructure and reorganisation of its trading divisions during 2023.

When making decisions, each director ensures that they act in the way they consider, in good faith, would most likely promote the company's success for the benefits of its members as a whole, and in so doing they have regard (among other matters) to:

The likely consequences of any decision in the long term

As a business founded in 1969 and still prospering in 2026, our longevity demonstrates a commitment to the long term. It is embedded in our culture that we work hard for our customers, look after our employees, and make decisions for the long term.

The interests of the company's employees

The directors recognise that our employees are fundamental to the success of our business and having good employees depends on our ability to attract, retain and motivate them. From pay to our health, safety and workplace environment, the directors factor the implications of decisions on employees and the wider workforce.

The need to foster the company's business relationships with suppliers, customers and others

In order to succeed, we need strong, mutually beneficial, relationships with suppliers, customers and our bank. These relationships are based on trust and openness, principals that have served us well over the years. Where we can, we try to build those relationships at a local level and go far beyond a transactional relationship. The directors are "hands on" in the business and receive regular updates from the management team on how the business is performing and how these stakeholders have been engaged.

The impact of the company's operations on the community and the environment

The directors regularly review opportunities to reduce environmental impact by complying with all relevant legislation and being aware of our responsibilities.

In order to increase our corporate social responsibility and reduce our environmental impact we will consider alternative solutions for generating power by stocking and selling HVO (hydrotreated vegetable oil) which is a fossil free environmentally friendly sustainable fuel alternative to mineral diesel.

HVO will be invaluable in helping the UK achieve its 2050 net zero target for greenhouse gas emissions as it is 100% biodegradable, sustainable and renewable.

We support our community through our sponsorship and support of local charities, sports clubs and events.

The desirability of the company maintaining a reputation for high standards of business conduct

We aim to operate with fairness in all our dealings and expect our staff to act accordingly. Where we have areas to improve, we will create action plans and implement any necessary changes.

The need to act fairly between members of the company

The company continues to be controlled by the Callow family and all members are treated fairly. The directors consider which course of action best enables delivery of long term value for the group and company. In so doing, the directors ensure that decisions made consider the interests of all members.

On an ongoing basis, the board will continue to review and challenge how engagement with stakeholders can be improved.

STREAMLINED ENERGY AND CARBON REPORTING

In line with the UK reporting guidelines, under the new Streamlined Energy and Carbon Reporting (SECR) regulations, the company details below the UK emissions and energy consumed for the year ended 30th September 2025.

The calculation methodologies followed the 2019 HM Government Environmental Reporting Guidelines and GHG Reporting Protocol - Corporate Standard. The 2025 UK Government's Conversion Factors for Company Reporting have been used, as well as an operational approach to define boundaries and scope, Reasonable estimates and assumptions consistent with such guidance have been used where necessary.

The primary data source includes:

- Consumption data and supplier invoices for electric and gas emissions;

- Expense claims for transport

- Own use fuel records and standard vehicle emission measurements.

Units

2025

2024

Emissions from combustion of fuel for transport purposes scope 1

tCO2e

693

687

Emissions from combustion fuel for heating scope 1

tCO2e

4

4

Emissions from purchased electricity scope 2

tCO2e

5

6

Emissions from business travel in employee owned vehicles at a rate of 45p per mile scope 3

tCO2e

11

11

Total gross emissions

713

708

Energy consumption used to calculate the above emissions

kWh

2,622,801

2,600,898

Intensity measurement

Turnover £M

63.5

60.2

Intensity ratio

tCo2e/£M Turnover

11.23

11.75

The company seeks to improve fuel economy by reducing the overall age profile of our truck fleet through the purchase of newer, more fuel efficient vehicles, whilst optimising our delivery routes to enable us to provide more efficient deliveries per mile travelled.

As a company we are committed to implementing solutions to reduce our impact on the environment. Our strategy involves continuous emission monitoring, reduction efforts, and carbon offsetting, all while balancing environmental responsibility with financial sustainability. This demonstrates our commitment to showing how carbon emissions can be reduced on a local scale.

The following initiatives have been undertaken:

- Solar panels have been installed at all depots

- A policy of updating older office and depot lighting to LED

-As part of a strict fleet renewal policy, all vehicles are purchased new with euro 6 engines and reduced emissions technology included

- Reduced emissions in form of grouped tanker trips

-A quantity of young native woodland trees have been planted as part of Hingley & Callow Oils Limited's environmental responsibility to help sequester carbon emissions in the future.

KEY PERFORMANCE INDICATORS (KPI)

The company is result orientated. Actual performance is measured against budgeted performance taking into account the impact of world oil prices. The main KPI's used by the company to measure performance are gross margin, earnings before interest and tax, evaluation of working capital, capacity, litres sold and cashflow.

ENVIRONMENT

The company is exposed to environmental risks due to the nature of the products it stores, transports and delivers. The sector in which the company operates is heavily regulated and monitored, and the company ensures that it complies with all relevant laws and standards and has procedures in place to manage its position in order to minimise the environmental impact of its operations. In addition, insurance policies are taken out to assist in mitigating any unforeseen events.

EMPLOYEES

The employees of the company are systematically provided with information on matters which concern them as employees. Employees are regularly consulted when decisions are taken which are likely to affect their interests. The directors continue to provide information to the employees in order to achieve employee awareness of financial and economic factors affecting the company. The company maintains a policy of giving fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. In the event of an employee becoming disabled, the company would endeavour to ensure continued employment.

HEALTH AND SAFETY

The company's policy is to conduct its business in a manner that protects the safety of those involved in its operations, customers and the public. The company strives to prevent all accidents, injuries and occupational illnesses through regular system and risk reviews, and is committed to continuous efforts to identify, eliminate or manage health and safety risks associated with its activities.

GOING CONCERN

The company has a very strong Balance Sheet and the directors have a reasonable expectation that the company has adequate resources to continue trading for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

ON BEHALF OF THE BOARD:

J D Callow - Director

23rd June 2026

The directors present their report with the financial statements of the company for the year ended 30th September 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the distribution of domestic, agricultural and industrial fuels.

DIVIDENDS

No dividends will be distributed for the year ended 30th September 2025.

DIRECTORS

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

Mrs A M Callow

Mrs H L Needham

J D Callow

DISCLOSURE IN THE STRATEGIC REPORT

The business review, financial key performance indicators and financial management risk objectives are included in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

J D Callow - Director

23rd June 2026

Opinion

We have audited the financial statements of Hingley & Callow Oils Limited (the 'company') for the year ended 30th September 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30th September 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 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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view).

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Stephen B Ludlam (Senior Statutory Auditor)

for and on behalf of French Ludlam & Co Limited

Statutory Auditors and Accountants

Mountfield House

661 High Street

Kingswinford

West Midlands

DY6 8AL

23rd June 2026

TURNOVER

63,467,416

60,190,258

Cost of sales

58,487,302

56,003,726

GROSS PROFIT

4,980,114

4,186,532

Distribution costs

875,401

855,737

Administrative expenses

2,558,690

2,449,147

3,434,091

3,304,884

1,546,023

881,648

Other operating income

3

90,060

18,998

1,636,083

900,646

Interest receivable and similar income

525,263

610,107

Interest payable and similar expenses

5

(98,925

)

(141,131

)

PROFIT BEFORE TAXATION

6

2,062,421

1,369,622

Tax on profit

7

588,198

423,357

PROFIT FOR THE FINANCIAL YEAR

1,474,223

946,265

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,474,223

946,265

FIXED ASSETS

Intangible assets

8

570,103

693,279

Tangible assets

9

3,665,827

3,925,736

Investments

10

19,000

19,000

4,254,930

4,638,015

CURRENT ASSETS

Stocks

11

1,769,531

1,313,130

Debtors

12

3,759,225

4,648,624

Cash at bank and in hand

14,829,603

12,846,245

20,358,359

18,807,999

CREDITORS

Amounts falling due within one year

13

11,259,429

11,523,003

NET CURRENT ASSETS

9,098,930

7,284,996

TOTAL ASSETS LESS CURRENT LIABILITIES

13,353,860

11,923,011

PROVISIONS FOR LIABILITIES

16

383,721

427,095

NET ASSETS

12,970,139

11,495,916

CAPITAL AND RESERVES

Called up share capital

17

10,073,460

10,073,460

Retained earnings

18

2,896,679

1,422,456

SHAREHOLDERS' FUNDS

12,970,139

11,495,916

The financial statements were approved by the Board of Directors and authorised for issue on 23rd June 2026 and were signed on its behalf by:

J D Callow - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st October 2023

10,073,460

476,191

10,549,651

Changes in equity

Total comprehensive income

-

946,265

946,265

Balance at 30th September 2024

10,073,460

1,422,456

11,495,916

Changes in equity

Total comprehensive income

-

1,474,223

1,474,223

Balance at 30th September 2025

10,073,460

2,896,679

12,970,139

Cash flows from operating activities

Cash generated from operations

1

3,653,390

(1,513,404

)

Interest paid

(10,892

)

(81,568

)

Tax paid

(482,537

)

(153,143

)

Net cash from operating activities

3,159,961

(1,748,115

)

Cash flows from investing activities

Purchase of tangible fixed assets

(191,153

)

(1,321,046

)

Sale of tangible fixed assets

27,473

7,000

Interest received

525,263

610,107

Net cash from investing activities

361,583

(703,939

)

Cash flows from financing activities

Amount introduced by directors

18,401

1,506,322

Amount withdrawn by directors

(1,556,587

)

(822,577

)

Net cash from financing activities

(1,538,186

)

683,745

Increase/(decrease) in cash and cash equivalents

1,983,358

(1,768,309

)

Cash and cash equivalents at beginning of year

2

12,846,245

14,614,554

Cash and cash equivalents at end of year

2

14,829,603

12,846,245

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

2025

2024

£

£

Profit before taxation

2,062,421

1,369,622

Depreciation charges

561,018

507,408

Profit on disposal of fixed assets

(14,253

)

(4,981

)

Finance costs

98,925

141,131

Finance income

(525,263

)

(610,107

)

2,182,848

1,403,073

(Increase)/decrease in stocks

(456,401

)

305,400

Decrease in trade and other debtors

889,399

1,174,540

Increase/(decrease) in trade and other creditors

1,037,544

(4,396,417

)

Cash generated from operations

3,653,390

(1,513,404

)

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 30th September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

14,829,603

12,846,245

Year ended 30th September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

12,846,245

14,614,554

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.24

Cash flow

At 30.9.25

£

£

£

Net cash

Cash at bank and in hand

12,846,245

1,983,358

14,829,603

12,846,245

1,983,358

14,829,603

Total

12,846,245

1,983,358

14,829,603

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities income and expenses.

The estimates and associated assumptions are based on historic experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have significant risk of material adjustment to the carrying amount of assets and liabilities are:

(a) Depreciation of tangible fixed assets - tangible fixed assets, other than freehold land and buildings, are depreciated over their useful economic lives, taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.

(b) Debtor provisions - the company has recognised provisions against specific trade debtor balances. The judgements and estimates necessary to calculate these provisions are based on historical experience and other reasonable factors. This provision is based on the age of the debtor balance and the assessed risk of recoverability. The value of trade debtors in the Debtors note is net of the provision for doubtful debts.

(c) Obsolete stock - obsolete stocks are written off and removed from the stock records when identified.

Revenue

Revenue from the sale of goods is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the previously agreed upon payment. Revenue is shown net of discounts, rebates, value added tax and other sales taxes.

Revenue is recognised at the point that the goods are delivered to or collected by the customer.

Other operating income

Other operating income is recognised in accordance with the period to which it relates.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of three businesses, has been amortised in full over its estimated useful economic life of 10 years.

Goodwill that has arisen on the restructure of the company is being amortised in full over its estimated useful economic life of 10 years.

Tangible fixed assets

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

Long leasehold

-

over the period of the lease

Plant and machinery

-

10% on cost and 10% on reducing balance

Motor vehicles

-

33% on reducing balance

No depreciation has been charged on freehold property as the estimated remaining useful economic life of the properties exceeds 50 years and a continuous policy of renewal and maintenance is undertaken. A full review of the impairment of freehold property has been completed at the end of the accounting period with no adjustments being considered necessary to the value at which these properties are shown in the financial statements. Land is not depreciated.

Impairment of assets

At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is immediately recognised in profit or loss.

If an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal in an impairment loss is recognised immediately in profit or loss.

Stocks

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

Cost is based on the cost of purchase on a first in, first out basis

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

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 3 months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Pension costs and other post-retirement benefits

The company operates two pension schemes, a self administered scheme (assets held in independently administered funds) for the directors, and an automatic enrolment scheme for the employees. Contributions payable for the year are charged in the profit and loss account.

Provisions for liabilities

Provisions are recognised where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

Operating leases

Gross earnings from operating leases are recognised in the profit and loss account on a straight line basis over the period of each lease. Any direct costs in arranging the leases are charged to the profit and loss account in the period in which they are incurred.

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

3.	OTHER OPERATING INCOME

2025

2024

£

£

Rents received

81,387

12,088

Solar generation income

8,673

6,910

90,060

18,998

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,314,686

1,393,285

Social security costs

158,031

148,978

Other pension costs

31,077

26,988

1,503,794

1,569,251

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

2025

2024

Administration

11

11

Sales and distribution

23

21

Works

2

2

36

34

The company operates two pension schemes, a self administered scheme for the directors and an automatic enrolment scheme for the benefit of the employees. The assets of the schemes are administered by independent pension providers. Pension payments recognised as an expense during the period amount to £31,077 (2024 £26,988).

2025

2024

£

£

Directors' remuneration

161,946

257,226

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

Money purchase schemes

2

2

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

-

4

Other interest

98,925

141,127

98,925

141,131

6.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

437,842

384,232

Profit on disposal of fixed assets

(14,253

)

(4,981

)

Goodwill amortisation

123,176

123,176

Auditors' remuneration

31,043

23,360

Auditors' remuneration for non audit work

28,488

41,656

Taxation compliance services

4,400

4,200

Operating lease rentals

10,600

10,000