Company registration number 12750258 (England and Wales)
PROCTER BROTHERS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
PROCTER BROTHERS LTD
COMPANY INFORMATION
DIRECTORS
Mr A. J. Davies
Ms M. Evans
Mr R. D. Evans
Ms S. Goman
Mr J. P. Procter
Mr G. S. Selway
SECRETARY
Mr G. S. Selway
COMPANY NUMBER
12750258
REGISTERED OFFICE
11 Pantglas Industrial Estate
Bedwas
Caerphilly
CF83 8XD
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
NEWPORT
South Wales
NP10 8FY
PROCTER BROTHERS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Statement of cash flows
15 - 16
Notes to the financial statements
17 - 34
PROCTER BROTHERS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 1 -

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

The report has been prepared by the directors in accordance with the requirements of section 414 of the Companies Act 2006.

PRINCIPAL ACTIVITIES

The principal activities of the Company are the design, manufacture, and installation of: machine safety guards, commercial gates, fencing, security systems, and street furniture; plus the direct sale of fencing, railings, gates, and associated products to trade and construction companies.

REVIEW OF THE BUSINESS

The Directors believe the main performance indicators are Turnover, Gross Profit Margin, Profit before Taxation, and EBITDA. Performance of the Company in 2025 is as follows (£'000):

2025
2024
£'000
£'000
Turnover
10,694
12,294
Gross profit (%)
36.32%
32.53%
EBITDA
543
602
Profit before taxation
181
259

Turnover decreased by 13% during the year following reduced activity levels across certain areas of the business. Despite the reduction in revenue, the Company achieved an improved gross profit margin through continued focus on pricing, operational efficiencies and product mix.

EBITDA and profit before taxation were lower than the prior year as a result of reduced turnover during the year. However, the directors remain satisfied with the overall performance of the business and the continued profitability of the Company.

Following the year end, the Company undertook a restructuring exercise aimed at improving operational efficiency and strengthening the business for future trading periods. The directors believe these changes will place the Company in a stronger position going forward. Continued investment in research and development activities also contributed positively to the Company’s future growth prospects.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company operates in a competitive market and is exposed to a number of commercial and operational risks.

Key risks faced by the Company include fluctuations in demand within the construction and industrial sectors, increases in raw material and labour costs, pricing pressures from competitors, and the retention and recruitment of skilled employees.

The directors continually monitor these risks and seek to mitigate them through maintaining strong customer relationships, regular review of pricing and margins, diversification of suppliers and continued investment in staff development and operational processes.

PROCTER BROTHERS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 2 -

Commercial risk

Potential customers and contracts are subject to financial evaluation to ensure that risks relating to contract terms, creditworthiness and potential raw material price fluctuations are considered prior to entering into contracts. Regular commercial and financial reviews of performance are undertaken throughout each project to ensure risks are identified and addressed on a timely basis.

Debt and interest risk

The Company’s borrowings are subject to the achievement of certain financial covenants. In addition, the Company funds part of its working capital requirements through invoice financing arrangements which are exposed to changes in interest rates.

The Company manages these risks through careful monitoring of cash flow requirements, regular review of covenant compliance and maintaining appropriate banking facilities.

Credit risk

At 30 September 2025, a single customer balance made up 6% of debt recoverable (2024: 29%). The change in proportion was due to a single large project in progress at the prior year end which was subsequently settled in line with agreed terms. The Company considers there to be minimal risk arising from this balance as the customer is a reputable business that pays to terms.

Credit risk in respect of accounts receivable is diversified due to the large number of companies comprising the customer base and their dispersion across different industries. There is a comprehensive credit policy in place and exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount and credit risk is mitigated through payment terms, including cash in advance, and credit insurance. Credit evaluation is performed by an independent team to ensure proper segregation of duties.

Macro-economic risk

Ongoing economic uncertainty continues to impact inflationary pressures, raw material costs and wage expectations across the sectors in which the Company operates. These factors may also affect customers’ investment decisions and project activity.

The directors continue to monitor market conditions carefully and seek to mitigate the impact of cost increases through operational efficiencies, pricing reviews and proactive management of customer relationships. Whilst market conditions remain challenging, the Company has continued to trade profitably and maintain a strong pipeline of opportunities.

EMPLOYMENT

At 30 September 2025 the Company had 92 employees (2024: 98).

The Company is an equal opportunity employer, supporting laws that prohibit discrimination based on a person’s race, colour, gender, national origin, age, religion, disability, marital status, sexual orientation or other legally protected characteristics. The Company can state with assurance that neither slavery nor human trafficking exists in the business, nor are we aware that these practices exist in our supply chain.

PROCTER BROTHERS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 3 -
FUTURE OUTLOOK

Trading in the new financial year has commenced positively, with improved margins achieved on work performed and a number of new contracts secured. The Company continues to maintain a strong pipeline of opportunities and, following the post year-end restructuring exercise, the directors believe the business is well positioned to improve operational efficiency and support future profitable growth. The directors therefore remain confident in the Company’s prospects for the forthcoming financial year.

On behalf of the board

Mr J. P. Procter
Director
6 July 2026
PROCTER BROTHERS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2025.

RESULTS AND DIVIDENDS

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £9,400. The directors do not recommend payment of a further dividend.

DIRECTORS

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A. J. Davies
Ms M. Evans
Mr R. D. Evans
Ms S. Goman
Mr J. M. Halton
(Resigned 10 April 2026)
Mr J. P. Procter
Mr G. S. Selway
Mr T. Shapland
(Resigned 2 April 2026)
STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the annual 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). 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; and

- 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.

PROCTER BROTHERS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 5 -
STATEMENT OF DISCLOSURE TO AUDITOR

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

MEDIUM-SIZED COMPANIES EXEMPTION

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and

- they have taken all steps that they ought to have taken as director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors.

On behalf of the board
Mr J. P. Procter
Director
6 July 2026
PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD
- 6 -
Opinion

We have audited the financial statements of Procter Brothers Ltd (the 'company') for the year ended 30 September 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 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 Auditor's 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.

PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 7 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

- the information given in the strategic report and the directors' r eport 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 identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which 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.

PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 8 -
Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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 is 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.

Auditor's 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 auditor's 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 9 -
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 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.
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.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor's 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.

PROCTER BROTHERS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROCTER BROTHERS LTD (CONTINUED)
- 10 -
Ataf Salim
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
NEWPORT
South Wales
NP10 8FY
6 July 2026
PROCTER BROTHERS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 11 -
2025
2024
Notes
£
£
TURNOVER
3
10,693,798
12,294,018
Cost of sales
(6,810,301)
(8,294,896)
GROSS PROFIT
3,883,497
3,999,122
Distribution costs
(140,311)
(165,363)
Administrative expenses
(3,603,757)
(3,552,807)
Other operating income
168,114
124,574
OPERATING PROFIT
4
307,543
405,526
Interest receivable and similar income
8
3,882
2,370
Interest payable and similar expenses
9
(130,732)
(149,010)
PROFIT BEFORE TAXATION
180,693
258,886
Tax on profit
10
(18,619)
(7,820)
PROFIT FOR THE FINANCIAL YEAR
162,074
251,066

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PROCTER BROTHERS LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2025
30 September 2025
- 12 -
2025
2024
Notes
£
£
FIXED ASSETS
Intangible assets
12
230,119
242,435
Tangible assets
13
1,195,686
1,209,985
1,425,805
1,452,420
CURRENT ASSETS
Stocks
14
343,902
527,934
Debtors
15
2,592,926
3,148,075
Cash at bank and in hand
290,496
338,385
3,227,324
4,014,394
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
16
(2,299,102)
(3,089,584)
NET CURRENT ASSETS
928,222
924,810
TOTAL ASSETS LESS CURRENT LIABILITIES
2,354,027
2,377,230
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
17
(640,617)
(816,330)
PROVISIONS FOR LIABILITIES
Deferred tax liability
20
(92,203)
(92,367)
NET ASSETS
1,621,207
1,468,533
CAPITAL AND RESERVES
Called up share capital
23
94,000
94,000
Capital redemption reserve
6,000
6,000
Profit and loss reserves
1,521,207
1,368,533
TOTAL EQUITY
1,621,207
1,468,533

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 6 July 2026 and are signed on its behalf by:
PROCTER BROTHERS LTD
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2025
30 September 2025
- 13 -
Mr J. P. Procter
Director
Company registration number 12750258 (England and Wales)
PROCTER BROTHERS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 1 OCTOBER 2023
94,000
6,000
1,117,467
1,217,467
YEAR ENDED 30 SEPTEMBER 2024:
Profit and total comprehensive income
-
-
251,066
251,066
BALANCE AT 30 SEPTEMBER 2024
94,000
6,000
1,368,533
1,468,533
YEAR ENDED 30 SEPTEMBER 2025:
Profit and total comprehensive income
-
-
162,074
162,074
Dividends
11
-
-
(9,400)
(9,400)
BALANCE AT 30 SEPTEMBER 2025
94,000
6,000
1,521,207
1,621,207
PROCTER BROTHERS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 15 -
2025
2024
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
162,074
251,066
Adjustments for:
Taxation (credited)/charged
(80,237)
7,820
Finance costs
130,732
149,010
Investment income
(3,882)
(2,370)
Government grant income
(13,546)
(107,439)
Gain on disposal of tangible fixed assets
(2,104)
(4,588)
Amortisation and impairment of intangible assets
135,886
111,173
Depreciation and impairment of tangible fixed assets
99,532
85,485
Movements in working capital:
Decrease in stocks
184,032
14,460
Decrease in debtors
635,222
405,853
Decrease in creditors
(874,335)
(421,494)
Cash generated from operations
373,374
488,976
Interest received
3,882
2,370
Interest paid
(130,732)
(149,010)
Net cash inflow from operating activities
246,524
342,336
INVESTING ACTIVITIES
Purchase of intangible assets
(123,570)
(100,720)
Purchase of tangible fixed assets
(46,983)
(104,233)
Proceeds from disposal of tangible fixed assets
2,854
14,388
Net cash used in investing activities
(167,699)
(190,565)
FINANCING ACTIVITIES
Movement in ID facility
55,992
(57,066)
Repayment of bank loans
(151,938)
(154,492)
Payment of finance leases obligations
(46,368)
(37,203)
Government grant income
25,000
42,526
Dividends paid
(9,400)
-
0
Net cash used in financing activities
(126,714)
(206,235)
PROCTER BROTHERS LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2025
2024
Notes
£
£
- 16 -
NET DECREASE IN CASH AND CASH EQUIVALENTS
(47,889)
(54,464)
Cash and cash equivalents at beginning of year
338,385
392,849
CASH AND CASH EQUIVALENTS AT END OF YEAR
290,496
338,385
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 17 -
1
ACCOUNTING POLICIES
Company information

Procter Brothers Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 11 Pantglas Industrial Estate, Bedwas, Caerphilly, CF83 8XD.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

1.2
Going concern

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

1.3
Turnover

Turnover represents the amounts derived from the provision of goods and services which fall within the company's ordinary activities and is stated net of VAT.

Turnover is recognised on delivery or in cases where the company undertakes long term contracts turnover is recognised by reference to the stage of completion.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that is probable the expenses will be recovered.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

- It is technically feasible to complete the intangible asset so that it will be available for use or sale;

- There is the intention to complete the intangible asset and use or sell it;

- There is the ability to use or sell the intangible asset;

- The use or sale of the intangible asset will generate probable future economic benefits;

- There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and

- The expenditure attributable to the intangible asset during its development can be measured reliably.

- Expenditure that does not meet the above criteria is expensed as incurred.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
20% straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2-10% straight line on buildings & nil on land
Plant and machinery
10-33% straight line
Fixtures and fittings
10-50% straight line
Equipment
20-50% straight line
Motor vehicles
20-33% straight line
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 19 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 20 -
1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

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 profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 21 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 22 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
ACCOUNTING POLICIES
(Continued)
- 23 -
1.16
Government grants

Government grants are recognised at the fair value of the asset receive d 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.

1.17

Invoice discounting facility

The company has in place an invoice discount facility based on the value of trade receivables. Under this arrangement the company has retained both the credit and late payment risk associated with the receivables. As the company has retained substantially all the risk and rewards of ownership of the receivables, it continues to recognise the receivables in the balance sheet with advances from the facility provider treated as a separate liability. The expenses associated with this facility are included within interest payable within the profit and loss account.

FRS 102 does not provide guidance on the treatment of factored debts in a cash flow statement. The invoice discounting facility factors debts with recourse, with the advances from the factor treated as an other creditor in the balance sheet. FRS 102 requires cash flows to be analysed under the standard headings according to the substance of the transactions that give rise to them. Operating cash flows including the cash flows from the receivables are treated as if the factoring had not been entered into. Management feel this method of presentation best reflects the substance of the relationship entered into.

2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the 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 and future periods where the revision affects both current and future periods.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(Continued)
- 24 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provisions

Provisions are included against bad debts. These provisions require management's best estimate of the costs that will be incurred based on contractual agreements, historical experience and current knowledge of the trading difficulties of customers.

Amounts recoverable on contracts

Some of the company's contracts are considered to be of the nature of contracts. In order for the accounts to reflect the level of activity during the period, turnover and profit are recognised on a prudent basis as the work proceeds. A full provision is made for contract losses as soon as they are forseen. The amounts of contracts, at costs incurred, net of amounts transferred to cost of sales after deducting foreseeable losses and payments on account not matched with turnover are included in work in in progress.

3
TURNOVER AND OTHER REVENUE
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
10,693,798
12,294,018
2025
2024
£
£
Other revenue
Interest income
3,882
2,370
Grants received
13,547
107,439

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 25 -
4
OPERATING PROFIT
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
17
(17)
Government grants
(13,547)
(107,439)
Depreciation of tangible fixed assets
99,532
85,485
Profit on disposal of tangible fixed assets
(2,104)
(4,588)
Amortisation of intangible assets
135,886
111,173
Impairment of trade debtors
24,598
83,200
5
AUDITOR'S REMUNERATION
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
4,719
9,130
6
EMPLOYEES

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Production Staff
49
52
Admin Staff
35
38
Directors
8
8
Total
92
98

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,827,033
3,917,284
Pension costs
118,036
109,263
3,945,069
4,026,547
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
6
EMPLOYEES
(Continued)
- 26 -

Gross salaries of £113,277 (202 4: £92,662) and direct costs of £10,293 (2024: £8,058) were capitalised as part of development costs.

7
DIRECTORS' REMUNERATION
2025
2024
£
£
Remuneration for qualifying services
596,769
586,081
Company pension contributions to defined contribution schemes
32,337
20,969
629,106
607,050

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2024 - 8).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
106,339
103,351
Company pension contributions to defined contribution schemes
6,258
3,815
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2025
2024
£
£
Interest income
Other interest income
3,882
2,370
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
65,331
67,840
Other finance costs:
Interest on finance leases and hire purchase contracts
14,039
14,285
Other interest
51,362
66,885
130,732
149,010
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 27 -
10
TAXATION
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
18,619
7,820

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
180,693
258,886
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
45,173
64,722
Tax effect of expenses that are not deductible in determining taxable profit
6,548
6,895
Adjustments in respect of prior years
(33,102)
-
0
Research and development tax credit
-
0
(63,797)
Taxation charge for the year
18,619
7,820
11
DIVIDENDS
2025
2024
£
£
Final paid
9,400
-
0
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 28 -
12
INTANGIBLE FIXED ASSETS
Development costs
£
Cost
At 1 October 2024
555,864
Additions - internally developed
123,570
At 30 September 2025
679,434
Amortisation and impairment
At 1 October 2024
313,429
Amortisation charged for the year
135,886
At 30 September 2025
449,315
Carrying amount
At 30 September 2025
230,119
At 30 September 2024
242,435
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 29 -
13
TANGIBLE FIXED ASSETS
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2024
847,480
374,122
60,532
86,469
86,210
1,454,813
Additions
47,839
28,925
-
0
6,019
3,200
85,983
Disposals
-
0
(1,500)
-
0
-
0
(13,365)
(14,865)
At 30 September 2025
895,319
401,547
60,532
92,488
76,045
1,525,931
Depreciation and impairment
At 1 October 2024
21,389
130,295
23,160
37,720
32,264
244,828
Depreciation charged in the year
13,700
49,623
4,834
16,450
14,925
99,532
Eliminated in respect of disposals
-
0
(750)
-
0
-
0
(13,365)
(14,115)
At 30 September 2025
35,089
179,168
27,994
54,170
33,824
330,245
Carrying amount
At 30 September 2025
860,230
222,379
32,538
38,318
42,221
1,195,686
At 30 September 2024
826,091
243,827
37,372
48,749
53,946
1,209,985

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Plant and machinery
134,000
148,400
Motor vehicles
39,377
53,946
Freehold property
37,050
-
210,427
202,346

Included within freehold property is land amounting to £500,000 which is not depreciated.

PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 30 -
14
STOCKS
2025
2024
£
£
Raw materials and consumables
288,162
363,211
Work in progress
55,740
164,723
343,902
527,934

Included in stock is a provision of £41,580 (2024: £54,341).

15
DEBTORS
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,083,203
2,933,109
Corporation tax recoverable
80,073
-
0
Other debtors
67,033
27,811
Prepayments and accrued income
362,617
187,155
2,592,926
3,148,075

Included within trade debtors are retentions totaling £5,364 (2024: £3 5,582) that are due in more than one year.

16
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2025
2024
Notes
£
£
Bank loans
18
166,321
151,937
Obligations under finance leases
19
54,310
43,333
Trade creditors
700,864
1,112,652
Taxation and social security
166,543
280,480
Government grants
21
16,047
13,547
Other creditors
1,056,362
1,091,269
Accruals and deferred income
138,655
396,366
2,299,102
3,089,584
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
16
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
(Continued)
- 31 -

The bank loan is secured with a fixed and floating charge over the assets of the company. Personal guarantees totalling £324,135 plus interest, costs, and expenses have been given by seven directors.

The above includes secured creditors of £54,310 (2024: £43,333). These balances are secured over the assets to which they relate.

Included within other creditors is an amount of £997,154 (2024: £941,162) which is secured on trade debtors. A personal guarantee of £200,000 plus interest, costs, and expenses has also been given by a director.

17
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2025
2024
Notes
£
£
Bank loans and overdrafts
18
498,763
665,085
Obligations under finance leases
19
73,717
92,062
Government grants
21
68,137
59,183
640,617
816,330
Creditors which fall due after five years are payable as follows:
Payable by instalments
(67,097)
(140,293)

The bank loan is secured with a fixed and floating charge over the assets of the company. Personal guarantees have been provided by seven directors totaling £324,135 plus interest, costs and expenses.

The above includes secured creditors of £73,717 (2024: £92,062). These balances are secured over the assets to which they relate.

18
LOANS AND OVERDRAFTS
2025
2024
£
£
Bank loans
665,084
817,022
Payable within one year
166,321
151,937
Payable after one year
498,763
665,085
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
18
LOANS AND OVERDRAFTS
(Continued)
- 32 -

The bank loan is secured with a fixed and floating charge over the assets of the company. Personal guarantees totalling £324,135 plus interest, costs, and expenses have been given by seven directors.

Detailed above is the amount of the bank loan which is due later then 5 years from the balance sheet date. The loan will be fully repaid by 31 August 2031 and incurs a fixed rate of interest of 8% per annum.

19
FINANCE LEASE OBLIGATIONS
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
64,948
54,849
In two to five years
81,691
101,202
146,639
156,051
Less: future finance charges
(18,612)
(20,656)
128,027
135,395

Finance lease payments represent rentals payable by the company for certain items of plant & machinery motor vehicles, and building improvements. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
DEFERRED TAXATION

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
107,586
107,101
Tax losses
(70,466)
(70,000)
Asset on other timing
55,083
55,266
92,203
92,367
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
20
DEFERRED TAXATION
(Continued)
- 33 -
2025
Movements in the year:
£
Liability at 1 October 2024
92,367
Other
(164)
Liability at 30 September 2025
92,203
21
GOVERNMENT GRANTS
2025
2024
£
£
Arising from government grants
84,184
72,730
Included in the financial statements as follows:
Current liabilities
16,047
13,547
Non-current liabilities
68,137
59,183
84,184
72,730

Government grants recognised directly in income equated and recognised in other operating income equate to £13,547 (2024: £107,439).

22
RETIREMENT BENEFIT SCHEMES
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,036
109,263

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
SHARE CAPITAL
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1000 each
94
94
94,000
94,000
PROCTER BROTHERS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 34 -
24
RESERVES

Called up share capital - This represents the nominal value of shares that have been issued.

Profit and loss account - This reserve records retained earnings and accumulated losses.

Capital redemption reserve - This undistributable reserve represents the nominal value of shares that have been bought back and ensures the maintenance of the capital base of the Company.

25
DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Personal guarantees have been given by seven directors totalling £324,135 plus interest, costs, and expenses in relation to a bank loan.

In addition, a personal guarantee has been given by a director of £200,000 plus interest, costs, and expenses in relation to a loan included within other creditors.

26
ANALYSIS OF CHANGES IN NET DEBT
1 October 2024
Cash flows
New finance leases
30 September 2025
£
£
£
£
Cash at bank and in hand
338,385
(47,889)
-
290,496
Borrowings excluding overdrafts
(817,022)
151,938
-
(665,084)
Lease liabilities
(135,395)
46,368
(39,000)
(128,027)
(614,032)
150,417
(39,000)
(502,615)
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