REGISTERED NUMBER: 01567069 (England and Wales)

Mona Tractor Company Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 October 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mr J G Jones

Mrs S M Jones

SECRETARY:

Mr J G Jones

REGISTERED OFFICE:

Mona Tractor Company Limited

Industrial Estate Road

Llangefni

Gwynedd

LL77 7JA

REGISTERED NUMBER:

01567069 (England and Wales)

AUDITORS:

Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

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

REVIEW OF BUSINESS

This review is written to present a balanced and comprehensive review of the development and performance of our business and its position at the year end. Our review is consistent with the size and nature of our business and it includes an assessment of the risks and uncertainties that we face.

The results of the business are set out in the Income Statement, and these show a profit on ordinary activities before tax of £21,555 (2024: £231,264).

The company's continued association with John Deere, the dedication shown by members of each of our outlets together with constant review of overheads by the directors have all contributed to the results in the year ended 31st October 2025.

The performance of the company demonstrates its commitment to quality offerings and customer service, as despite the challenging and uncertain market conditions that the agricultural industry is facing, not least due to the increase in cost of most goods & services, interest rate & inflationary pressure on the company and our customers etc. Despite this the company's turnover remained stable. This being the case, the business will aim to continue to build upon the strong underlying platform created in this and previous year as it continues to grow.

During the current financial period, the company has continued to invest in products, people and services offerings in order to carry on providing a high level of customer service and satisfaction, whilst at the same time attempting to mitigate any conditions, occurrence and risks that are outside of its control.

The business is well places to continue to grow profitably, maintaining reasonable margins and develop both its products and servicing offerings to new and existing customers.

The directors have also taken full consideration of the impact of the current global environment & market. Based upon the level of support available by the stakeholders and co-operation of its employees, the directors are confident that the ongoing impact of the world events will not detrimentally inhibit the ability of the company to trade on normal terms.

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to be an important part of the agricultural community in the north of Wales and sees itself as a key part of the materials handling and facilities service sectors in the region. In order that the company's position in these markets is not unduly compromised, there is a clear risk management strategy in place which enables and supports the business and helps in the identification and management of perceived risks.

The principal future risk remains the tightness of finance available to our credit customers. While uncertainty remains in the agricultural sector and subsidies continue to contract, trading may possibly see some eventual signs of contraction.

Finance risk

The company finances its activities through a combination of directors' loans, bank loans, hire purchase contracts and cash deposits. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors arise directly from the company's operating activates. The company does not trade in financial instruments and has no form of financial derivatives. Currently the company does not generally trade outside of the United Kingdom and is not therefore exposed to foreign currency risk.

The main risk associated with the company's financial assets and liabilities are set below, together with the policies adopted by the directors' for their management.

Interest rate risk

The company pays fixed rates of interest on most of its borrowings. As a result of using fixed rates, the directors take the view that the current level of loan debt does not necessitate any hedging action to reduce the risk but this policy is kept under periodic review.

Credit risk

The directors' objective is to actively manage the risk of financial loss due to bad debts. Standard payment terms call for regular monthly payments in full within 30 days of the month end. The credit worthiness of customers is assessed before a contract is entered into with them. The company also actively manages the collection of payments to ensure that they are received prompt and in accordance with agreed terms, thereby ensuring that the company's exposure to bad debt is minmisied.

Global Events

Global Events invariably have an impact on costs, which will eventually need to be passed on to the customers. The company will always hold out as long as possible so as to ensure that the customers received the best deal.

The increase in the cost of good & services will also undoubtedly affect our customers buying power, and so competitiveness will be key to maintaining the current level of profitability.

FINANCIAL KEY PERFORMANCE INDICATORS (KPI'S)

The Board monitors the progress of the company with regard to a number of KPI's.

2025

2024

Turnover

£15,174,686

£12,241,766

Earnings before interest & tax

£88,041

£428,394

Profit/(loss) before tax

£21,555

£231,264

Headcount

37

41

NON- FINANCIAL KEY PERFORMANCE INDICATIONS

The directors consider it crucial that the company maintains a reputation for the highest standard of business conduct and are responsible for setting, reviewing and upholding the culture, values and standards of this family business. As such the directors seek to sustain and develop its strong & stable partnership with all of the company's customers, employees & suppliers, and provide outstanding service & products.

The key non-financial performance indicators are therefore deemed to be:

Our people

The success of the business relies on attracting, retaining and motivating our team, and so seek to ensure that the company is and inspiring place to work.

Our customers

The company continually assesses the priorities related to customers so as the enhance and maintain relationship over the long-term and so we regularly engage with all our customers base to keep abreast of their requirements.

Our suppliers

The company maintains a high level of engagement with all of its suppliers, but particularly our key brand partners, John Deere, with whom a constant dialogue is maintained. This being so as to ensure the brands are represented to the best of the company's ability and that all of their high standards are not only met, but surpassed.

In addition to the above, environmental matters are monitored, reviewed and where possible improvement actions implemented by the directors in order to improve the company's environmental credentials.

ON BEHALF OF THE BOARD:

Mr J G Jones - Director

4 June 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2025.

DIRECTORS

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

Mr J G Jones

Mrs S M Jones

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Salisbury & Company Business Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J G Jones - Director

4 June 2026

Opinion

We have audited the financial statements of Mona Tractor Company Limited (the 'company') for the year ended 31 October 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 October 2025 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned in accordance with ISA (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: The Companies Act 2006, FRS 102 the 'Financial Reporting Standards applicable in the UK and Republic of Ireland' and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations or fraud;

- Obtaining an understanding of the internal controls that management have in place to prevent and detect fraud;

- Challenging assumptions and judgements made by management in its significant accounting estimates;

- Reviewing the financial statement disclosures and assessing the appropriateness of the accounting policies used;

- Identifying and testing journal entries, in particular manual or unusual entries;

- Obtaining third party confirmations of all the companies banking arrangements;

- Performing analytical procedures to identify any unusual or unexpected relationships;

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting.

The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's knowledge of the industry in which the client operates in and understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Aled Roberts (Senior Statutory Auditor)

for and on behalf of Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

4 June 2026

TURNOVER

15,174,686

12,241,766

Cost of sales

(13,632,070

)

(10,566,293

)

GROSS PROFIT

1,542,616

1,675,473

Administrative expenses

(1,468,075

)

(1,260,579

)

74,541

414,894

Other operating income

13,500

13,500

OPERATING PROFIT

5

88,041

428,394

Interest receivable and similar income

-

26

88,041

428,420

Interest payable and similar expenses

6

(66,486

)

(197,156

)

PROFIT BEFORE TAXATION

21,555

231,264

Tax on profit

7

(23,555

)

(62,064

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(2,000

)

169,200

(LOSS)/PROFIT FOR THE YEAR

(2,000

)

169,200

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,000

)

169,200

FIXED ASSETS

Tangible assets

8

505,523

568,677

CURRENT ASSETS

Stocks

9

5,534,895

6,106,002

Debtors

10

1,248,998

974,882

Cash in hand

21

21

6,783,914

7,080,905

CREDITORS

Amounts falling due within one year

11

4,024,738

4,235,338

NET CURRENT ASSETS

2,759,176

2,845,567

TOTAL ASSETS LESS CURRENT LIABILITIES

3,264,699

3,414,244

CREDITORS

Amounts falling due after more than one year

12

(191,333

)

(341,237

)

PROVISIONS FOR LIABILITIES

16

(44,580

)

(42,221

)

NET ASSETS

3,028,786

3,030,786

CAPITAL AND RESERVES

Called up share capital

17

42,012

42,012

Retained earnings

18

2,986,774

2,988,774

SHAREHOLDERS' FUNDS

3,028,786

3,030,786

The financial statements were approved by the Board of Directors and authorised for issue on 4 June 2026 and were signed on its behalf by:

Mr J G Jones - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

-

2,819,574

2,819,574

Changes in equity

Issue of share capital

42,012

-

42,012

Total comprehensive income

-

169,200

169,200

Balance at 31 October 2024

42,012

2,988,774

3,030,786

Changes in equity

Total comprehensive income

-

(2,000

)

(2,000

)

Balance at 31 October 2025

42,012

2,986,774

3,028,786

Cash flows from operating activities

Cash generated from operations

1

882,642

720,346

Interest paid

(62,619

)

(189,928

)

Interest element of hire purchase payments paid

(3,867

)

(7,228

)

Tax paid

(73,356

)

(43,609

)

Net cash from operating activities

742,800

479,581

Cash flows from investing activities

Purchase of tangible fixed assets

(67,025

)

(53,673

)

Sale of tangible fixed assets

5,250

-

Interest received

-

26

Net cash from investing activities

(61,775

)

(53,647

)

Cash flows from financing activities

Loan repayments in year

(398,305

)

(398,305

)

Capital repayments in year

(53,884

)

(65,508

)

Amount withdrawn by directors

(103,491

)

(60,132

)

Net cash from financing activities

(555,680

)

(523,945

)

Increase/(decrease) in cash and cash equivalents

125,345

(98,011

)

Cash and cash equivalents at beginning of year

2

(136,758

)

(38,747

)

Cash and cash equivalents at end of year

2

(11,413

)

(136,758

)

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

2025

2024

£

£

Profit before taxation

21,555

231,264

Depreciation charges

130,179

131,644

Profit on disposal of fixed assets

(5,250

)

-

Government grants

(13,500

)

(13,500

)

Finance costs

66,486

197,156

Finance income

-

(26

)

199,470

546,538

Decrease in stocks

571,107

2,006,356

(Increase)/decrease in trade and other debtors

(274,116

)

494,009

Increase/(decrease) in trade and other creditors

386,181

(2,326,557

)

Cash generated from operations

882,642

720,346

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 October 2025

31/10/25

1/11/24

£

£

Cash and cash equivalents

21

21

Bank overdrafts

(11,434

)

(136,779

)

(11,413

)

(136,758

)

Year ended 31 October 2024

31/10/24

1/11/23

£

£

Cash and cash equivalents

21

-

Bank overdrafts

(136,779

)

(38,747

)

(136,758

)

(38,747

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/11/24

Cash flow

At 31/10/25

£

£

£

Net cash

Cash at bank and in hand

21

-

21

Bank overdrafts

(136,779

)

125,345

(11,434

)

(136,758

)

125,345

(11,413

)

Debt

Finance leases

(74,742

)

53,884

(20,858

)

Debts falling due within 1 year

(398,305

)

282,769

(115,536

)

Debts falling due after 1 year

(198,869

)

115,536

(83,333

)

(671,916

)

452,189

(219,727

)

Total

(808,674

)

577,534

(231,140

)

1.	STATUTORY INFORMATION

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

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

2.	GOING CONCERN

At the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The financial statements have also been prepared in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgments, estimates and assumptions about carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation

Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made regarding consumer demand and expected selling prices.

Debt recoverability

Provisions are made at the year end for bad debts. Calculation of these provisions require judgements to be made by the directors, which include historic trends and other elements of judgement.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and are shown net of value added tax and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risk and reward of ownership is passed to the buyer (usually on hand over or dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

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

Land is not depreciated. Depreciation on other assets is provided at the following annual rates in order to allocate the cost of the assets, less their residual value, over their estimated useful lives:

Leasehold improvements - 5% on cost, which represents a 20 year write down period.

Plant and machinery - 25% on cost

Motor vehicles - 25% on cost

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

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

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Stocks

Stocks are stated at the lower of cost & net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

Work in progress and finished goods include labour and attributable overheads.

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

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 non-puttable ordinary shares.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Finance & borrowing costs

Finance costs

Finance costs are charged to the profit & loss over the term of the debt using the effective interest method. Issue costs are recognised as they are incurred.

Borrowing costs

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

Cash & cash equivalents

Cash 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

Provision for liabilities

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

Provisions are charged as an expense to the profit & 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.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

Debtors & creditors

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 impairments.

Creditors

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

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,440,835

1,405,974

Social security costs

155,120

125,945

Other pension costs

40,584

38,144

1,636,539

1,570,063

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

2025

2024

Directors

2

2

Employees

35

39

37

41

Directors' pension contributions for the year amounted to £13,596 (2024: £12,904)

The number of directors to whom retirement benefits are accruing is 2 (2024: 2)

5.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

87,812

89,278

Depreciation - assets on hire purchase contracts

42,367

42,366

Profit on disposal of fixed assets

(5,250

)

-

Auditors' remuneration

29,029

15,655

Auditors' remuneration for non audit work

-

995

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

41,024

91,033

Other Loan Interest

21,595

98,895

Hire purchase

3,867

7,228

66,486

197,156

7.

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

21,196

71,890

Deferred tax

2,359

(9,826

)

Tax on profit

23,555

62,064