REGISTERED NUMBER: 02058115 (England and Wales)

MARSHALLS TRANSPORT (EVESHAM) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of 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

16

DIRECTORS:

G S W Simpson

B M Simpson

D J Allely

P C Allely

SECRETARY:

G S W Simpson

REGISTERED OFFICE:

Pershore Airfield

Long Lane

Throckmorton

Pershore

Worcestershire

WR10 2JH

REGISTERED NUMBER:

02058115 (England and Wales)

SENIOR STATUTORY AUDITOR:

Hadleigh Jonathan Burns

AUDITORS:

Charles Lovell & Co Limited

Chartered Certified Accountants

and Statutory Auditors

8 Church Green East

Redditch

Worcestershire

B98 8BP

The directors are pleased to present the strategic report of the company for the year ended 31 October 2025. The report provides an overview of the Company's principal activities, performance during the year and the key factors affecting its future development.

REVIEW OF BUSINESS

During the year ended 31 October 2025, the company operated as a provider of road haulage and related logistics services. The year saw a significant improvement in financial performance compared with previous periods. The company returned to a gross profit of £1,416,719 (2024 £1,345,233) and net profit before tax of £598,137 (2024 £1,691,185 - which included a gain on revaluation of investment property of £1,357,420 ) compared with the prior financial years.

Turnover levels remained broadly consistent, while management focused on tighter cost control across key operating expenses. The most significant costs continued to relate to haulage operations, including drivers' wages, fuel costs, vehicle repairs and pallet track charges. Although fuel and wage costs remained high, these were more effectively managed during the year.

Administrative expenses were controlled, with relatively stable overheads such as rents, utilities, professional fees and payroll costs. Depreciation charges remained consistent with prior years, reflecting continued investment in tangible fixed assets.

Overall, the improvement in results reflects management's focus on operational efficiency, cost management and stabilising trading activity following challenging market conditions in earlier years.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company operates in a challenging economic environment characterised by elevated interest rates, cost inflation, and intense competition within the haulage sector. These factors continue to place pressure on margins across the wider logistics industry, and subdued economic growth in the UK remains a key risk.

In addition, ongoing uncertainty surrounding future government taxation and regulatory policy creates further risk for the business. Changes in fuel costs, labour availability, and compliance requirements also have the potential to impact operating performance.

Despite these challenges, the directors remain confident in the Company's resilience. The business has delivered a strong performance during the year and continues to benefit from established customer relationships, effective cost controls, and robust internal procedures. The directors believe that appropriate systems, policies, and controls are in place to mitigate these risks and support the Company's continued growth and stability.

FINANCIAL KEY PERFORMANCE INDICATORS

The group has established and recognised key performance indicators to measure progress in achieving its key business objectives and strategies; these are reviewed on a regular basis.

The company's profitability metrics, specifically gross profit and net profit, provide a clear view of operational performance and overall financial health. These indicators highlight both the efficiency of core operations and the effectiveness of cost management.

2025

2024

Gross profit

16.13%

15.81%

Net profit before tax

5.79%

3.92%

Net profit after tax

4.20%

2.54%

STRATEGY

The Company's strategy is to operate a profitable and sustainable haulage business by providing a reliable service to its customers while maintaining strong cost control and operational efficiency.

In light of current economic conditions, the directors' focus is on maximising utilisation of the existing fleet and depot network, alongside careful management of capital expenditure and cash flows. Investment decisions are made selectively and are subject to appropriate commercial and financial appraisal.

The directors recognise the importance of recruiting and retaining skilled drivers and operational staff and remain committed to maintaining competitive remuneration and appropriate training to support the ongoing needs of the business.

ENVIRONMENT

The Company is mindful of the environmental impact of its haulage operations and seeks to operate in compliance with all relevant environmental legislation and regulations.

The directors aim to reduce environmental impact through the ongoing maintenance and, where appropriate, renewal of the vehicle fleet to improve fuel efficiency and emissions performance. Operational practices are kept under review to promote efficient vehicle utilisation and responsible driving behaviour.

Environmental considerations are taken into account when making operational and investment decisions, and the directors consider these measures to support both regulatory compliance and operational efficiency.

FUTURE DEVELOPMENTS

The company's immediate focus is on consolidating its market position and protecting margins against rising operational costs. We will continue to prioritise deepening relationships with existing customers and securing long-term contracts.

Recognising the industry-wide skills shortage, we will maintain our commitment to driver recruitment, accredited training, and retention initiatives to safeguard service reliability.

Despite the uncertain economic outlook regarding interest rates and taxation, the directors are confident that prudent financial management and strong customer relationships will enable the company to navigate these challenges effectively.

ON BEHALF OF THE BOARD:

B M Simpson - Director

24 June 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of haulage contractors and the provision of storage facilities

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of 4,000 per share.

The total distribution of dividends for the year ended 31 October 2025 will be £ 400,000 .

DIRECTORS

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

G S W Simpson

B M Simpson

D J Allely

P C Allely

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Charles Lovell & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B M Simpson - Director

24 June 2026

Opinion

We have audited the financial statements of Marshalls Transport (Evesham) Limited (the 'company') for the year ended 31 October 2025 which comprise the Statement of 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 profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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:

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud and error; and to respond appropriately to those risks. 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 and performed in accordance with the ISAs (UK).

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

- We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the nature of the industry and the sector in which they operate. We determined that the following laws and regulations were most significant; the Companies Act 2006, the UK Corporate Governance Code and UK corporate taxation laws.

- We obtained an understanding of how the Company are complying with those legal and regulatory frameworks by making inquiries with the management of the Company and the Group's audit department.

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

- identifying and assessing the design effectiveness of controls that management has in place to

prevent and detect fraud.

- Understanding how those charged with governance considered and addressed the potential for

override of controls or other inappropriate influence over the financial reporting process.

- challenging assumptions and judgements made by management in its significant accounting

estimates.

- identifying and testing journal enteries and performing analytical procedures to identify any unusual

or unexpected relationships that may indicate risks of material misstatement due to fraud.

- assessing the extent of compliance with the relevant laws and regulations.

- We also communicated relevant identified laws and regulations and potential fraud risk to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Hadleigh Jonathan Burns (Senior Statutory Auditor)

for and on behalf of Charles Lovell & Co Limited

Chartered Certified Accountants

and Statutory Auditors

8 Church Green East

Redditch

Worcestershire

B98 8BP

24 June 2026

TURNOVER

8,783,357

8,506,827

Cost of sales

7,366,638

7,161,594

GROSS PROFIT

1,416,719

1,345,233

Administrative expenses

1,050,714

(216,099

)

366,005

1,561,332

Other operating income

242,597

142,216

OPERATING PROFIT

4

608,602

1,703,548

Income from fixed asset investments

2,581

7,813

Interest receivable and similar income

26,377

22,180

28,958

29,993

637,560

1,733,541

Interest payable and similar expenses

5

39,423

42,356

PROFIT BEFORE TAXATION

598,137

1,691,185

Tax on profit

6

162,059

117,076

PROFIT FOR THE FINANCIAL YEAR

436,078

1,574,109

OTHER COMPREHENSIVE INCOME

-

(339,355

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(339,355

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

436,078

1,234,754

FIXED ASSETS

Tangible assets

8

4,331,607

4,519,973

Investments

9

98,752

10,000

Investment property

10

2,267,490

2,267,490

6,697,849

6,797,463

CURRENT ASSETS

Stocks

11

34,978

54,165

Debtors

12

2,100,908

1,783,091

Cash at bank and in hand

1,175,123

1,351,960

3,311,009

3,189,216

CREDITORS

Amounts falling due within one year

13

1,711,294

1,589,252

NET CURRENT ASSETS

1,599,715

1,599,964

TOTAL ASSETS LESS CURRENT LIABILITIES

8,297,564

8,397,427

CREDITORS

Amounts falling due after more than one year

14

(1,262,340

)

(1,363,429

)

PROVISIONS FOR LIABILITIES

17

(548,629

)

(583,481

)

NET ASSETS

6,486,595

6,450,517

CAPITAL AND RESERVES

Called up share capital

18

100

100

Fair value reserve

19

1,018,065

1,018,065

Retained earnings

19

5,468,430

5,432,352

SHAREHOLDERS' FUNDS

6,486,595

6,450,517

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2026 and were signed on its behalf by:

B M Simpson - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 November 2023

100

5,215,663

-

5,215,763

Total comprehensive income

-

216,689

1,018,065

1,234,754

Balance at 31 October 2024

100

5,432,352

1,018,065

6,450,517

Dividends

-

(400,000

)

-

(400,000

)

Total comprehensive income

-

436,078

-

436,078

Balance at 31 October 2025

100

5,468,430

1,018,065

6,486,595

Cash flows from operating activities

Cash generated from operations

1

908,420

966,114

Interest paid

(39,423

)

(42,356

)

Tax paid

(137,563

)

(122,595

)

Net cash from operating activities

731,434

801,163

Cash flows from investing activities

Purchase of tangible fixed assets

(231,219

)

(276,086

)

Purchase of fixed asset investments

(98,752

)

-

Sale of tangible fixed assets

34,950

48,500

Sale of fixed asset investments

98,752

-

Interest received

26,377

22,180

Dividends received

2,581

7,813

Net cash from investing activities

(167,311

)

(197,593

)

Cash flows from financing activities

Loan repayments in year

(107,391

)

(104,459

)

Amount withdrawn by directors

(233,569

)

(39,921

)

Equity dividends paid

(400,000

)

-

Net cash from financing activities

(740,960

)

(144,380

)

(Decrease)/increase in cash and cash equivalents

(176,837

)

459,190

Cash and cash equivalents at beginning of year

2

1,351,960

892,770

Cash and cash equivalents at end of year

2

1,175,123

1,351,960

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

31.10.25

31.10.24

£

£

Profit before taxation

598,137

1,691,185

Depreciation charges

381,161

462,676

(Profit)/loss on disposal of fixed assets

(85,277

)

27,697

Gain on revaluation of fixed assets

-

(1,357,420

)

Impairment charge

-

82,376

Finance costs

39,423

42,356

Finance income

(28,958

)

(29,993

)

904,486

918,877

Decrease/(increase) in stocks

19,187

(7,627

)

Increase in trade and other debtors

(209,507

)

(47,911

)

Increase in trade and other creditors

194,254

102,775

Cash generated from operations

908,420

966,114

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

1,175,123

1,351,960

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

1,351,960

892,770

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

1,351,960

(176,837

)

1,175,123

1,351,960

(176,837

)

1,175,123

Debt

Debts falling due within 1 year

(107,392

)

6,302

(101,090

)

Debts falling due after 1 year

(1,363,429

)

101,089

(1,262,340

)

(1,470,821

)

107,391

(1,363,430

)

Total

(118,861

)

(69,446

)

(188,307

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within accounting policies below.

The company's functional and presentational currency is pound sterling.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Valuation of investment property

The valuation of the investment property made by the directors involves significant judgement. As the investment property is not quoted in an active market, its carrying value is determined using valuation techniques that require assumptions regarding future performance and market conditions. Actual results may differ from these estimates, and changes in the assumptions used could have a material impact on the valuation of the investment.

Turnover

Turnover is recognised in accordance with FRS 102 Section 23 and represents the fair value of consideration receivable for services provided, net of VAT and discounts. Haulage and pallet network income is recognised when the transportation service is completed, storage income is recognised over the period the storage is provided, and rental income is recognised on a straight-line basis over the term of the rental agreement. Amounts invoiced in advance of services provided are recognised as deferred income.

Tangible fixed assets

Tangible assets are stated at historical cost less 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives on a straight line basis.

Depreciation is provided on the following basis:

Freehold prop

-

at varying rates on cost

Plant and machinery

-

20% on cost

Mobile plant and vehicles

-

at varying rates on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate,or if there is an indication of a significant 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 profit or loss.

Investment property

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

Stocks

Stock is measured at the lower of cost and net realisable value. Cost includes all costs incurred in bringing inventories to their present location and condition and is determined using the First-In, First-Out (FIFO) method. Any write-down to net realisable value is recognised in profit or loss in the period incurred.

Financial instruments

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

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

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

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 publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies 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 payments discounted at a market rate of interest.

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

Trade creditors are obligations to pay for goods that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less.

Financial liabilities are derecognised when the liability is extinguished, when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and 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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

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.

3.	EMPLOYEES AND DIRECTORS

31.10.25

31.10.24

£

£

Wages and salaries

2,321,230

2,335,747

Social security costs

25,209

30,277

Other pension costs

37,290

80,101

2,383,729

2,446,125

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

31.10.25

31.10.24

Driving staff

41

45

Warehouse staff

8

7

Mechanic staff

5

4

Office staff

8

8

Directors

3

3

65

67

31.10.25

31.10.24

£

£

Directors' remuneration

215,746

166,480

Directors' pension contributions to money purchase schemes

-

40,000