REGISTERED NUMBER: 05187690 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

WORLD OPTIONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

S M Butler

J A Edwards

S Spaccia

R Farris

REGISTERED OFFICE:

c/o 3a Tournament Court

Tournament Fields

Warwick

Warwickshire

CV34 6LG

REGISTERED NUMBER:

05187690 (England and Wales)

SENIOR STATUTORY AUDITOR:

Richard John Barnes FCCA

AUDITORS:

Studholme-Bell Limited

Chartered Certified Accountants

Vantage House

3 East Terrace Business Park

Euxton Lane, Euxton

Chorley

Lancashire

PR7 6TB

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

REVIEW OF BUSINESS

World Options Limited is a premier provider of bespoke courier and freight management solutions, which are predominantly supplied to commercial entities.

The directors are pleased to report that the results of World Options Limited continue to show a strong level of trading in the current year. Revenue growth has exceeded expectations and costs have continued to be monitored to ensure maximum profits are achieved. The overall performance of the company has been strong post year end and the directors expect further growth over the coming years. The balance sheet demonstrates a robust increasing net assets position which ensures cashflow is strong and the company is able to meet its obligations on a day-to-day basis.

FUTURE DEVELOPMENTS

World Options Limited continues to develop and nurture strong relationships with key customers by providing a reliable and quality service. The company continues to invest heavily in both its bespoke offering and customer relationships to ensure it retains its strong position in the current global market and continues to secure new contracts and build on its reputation.

KEY PERFORMANCE INDICATORS

The directors monitor the progress of World Options Limited's strategy and individual elements by reference to the following key performance indicators:

Financial - key performance indicators

31 December 2025

31 December 2024

Turnover

£40.6m

£38.1m

Gross profit

£9.0m

£7.9m

Gross profit (percentage)

22.17%

20.61%

Earnings before interest, tax, depreciation, amortisation and impairment of non-financial assets (EBITDA)

£6.6m

£4.4m

Investment in development of core software and systems

£1.0m

£2.0m

Cash flow movement

£0.03m

£0.4m

Non-financial key performance indicators

Average number of employees

45

50

During the year ended 31 December 2025 the company saw growth in business activity, with turnover generated increasing by 6.6% from £38.1m in 2024, to £40.6m in 2025.

The company remains focused on minimising overheads and costs that are directly attributable to sales.

Direct costs relating to sales generated amounted to £31.6m in 2025, (2024: £30.2m), which translates into a gross profit percentage of 22.17% in 2025, compared to 20.61% in 2024. The improved profit margin has been achieved as a result of greater use of economies of scale.

Wages and salary costs increased by £0.2m to £2.0m in 2025.

World Options acquired 51% of 3 companies as at the end of 31/03/2025. These companies generated an EBITDA of £0.6m between April and December 2025. Growth generated in 2025 were both as a result of organic and inorganic activities.

World Options Limited has continued to invest in computer software and portal development, during the year ended 31 December 2025 with such expenditure amounting to £1.0m, during the year.

Intangible fixed assets as at 31 December 2025 attained a carrying net book value of £4.2m compared to £5.2m for the year ended 31 December 2024. The balance mainly reflects the purchase of computer software and investment in the company's bespoke portal development, offset in part by the annual amortisation charge.

Current assets amounted to £13m as at 31 December 2025, compared to a value of £8.3m as at 31 December 2024. Trade debtors increased by £1.1m, this does not come as a shock as turnover increased dramatically by year end. Amounts owed by subsidiaries and associated companies increased by £1.8m and finally prepayments increased by £1.7m.

Current liabilities amounted to £12.0m as at 31 December 2025, compared to £7m at 31 December 2024, with the main movement being the increase in the use of the invoice discounting facility from £0.5m in 2024 to £1m in 2025, an increase in trade creditors totalling £2.3m as a result of the increase in turnover and spend with our supplying partners, and an increase in other liabilities including intercompany movements totalling £2.2m.

Shareholders funds as at 31 December 2025 amounted to £7.3m, compared to £6.4m as at 31 December 2024 showing growth in the year of £0.9m.

PRINCIPLE RISKS AND UNCERTAINTIES

Financial risk management

The nature of World Options Limited's operations expose it to a variety of financial risks that include the effects of credit risk, liquidity risk and interest rate cash flow risk, through fluctuation in interest rates. The company has in place, a risk management programme that seeks to limit the adverse effects on the financial performance of the company. Due to the nature of the company, World Options Limited remains exposed to foreign exchange risk, however, this risk is deemed to be manageable as any foreign exchange gains and losses are recognised immediately by the company, hence the directors always have a good working knowledge of the level of risk to the entity.

Credit risk

World Options Limited has implemented policies that require appropriate credit checks to be completed on potential customers before sales are made. Customers are subject to considered and appropriate credit limits and strong credit control procedures are in place.

Liquidity risk

World Options Limited continues to ensure it has sufficient funds in place to meets its day to day operations. The company attains cash reserves of £0.3m as at 31 December 2025 which the directors feel is sufficient to satisfy current liabilities as and when they fall due. Strong credit control procedures remain in place to ensure that trade debtors are converted into bank receipts on a timely basis. For additional assurance and to ensure effective cashflow, invoice factoring is used by the company.

.

ON BEHALF OF THE BOARD:

S Spaccia - Director

23 June 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of bespoke courier solutions.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £ 1,500,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

S M Butler

J A Edwards

S Spaccia

Other changes in directors holding office are as follows:

P Cominone - resigned 10 July 2025

G Rudi - resigned 20 October 2025

R Farris - appointed 10 July 2025

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.

ON BEHALF OF THE BOARD:

S Spaccia - Director

23 June 2026

Opinion

We have audited the financial statements of World Options Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

As auditors of the above named entity, we have undertaken audit testing, discussions and examination of the company, that are capable of detecting irregularities, including fraud are detailed below:

i) We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined the Companies Act 2006 to be the most significant laws and regulations to the entity. We enquired of management whether there were any instances of non-compliance with laws and regulations or whether they had any knowledge of actual or suspected fraud. We discussed and compared the result of our enquiries to supporting documentation. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud.

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

- Evaluation of the processes and controls established to address the risks related to irregularities and fraud;

- Testing manual journal entries, in particular journal entries relating to accounting estimates and entries that were deemed material and those that related to unusual transactions;

- Identifying and testing related party transactions.

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

iv) When assessing the potential risks of material misstatement to the financial statements, we obtained an understanding of:

The Company's operations, including the nature of its revenue sources, expected financial statement disclosures and business risks, that may result in a risk of material misstatement;

- We undertake and document an analytical review at the planning and completion stage of our audit, to ensure that all material items have been identified and can be explained.

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.

Richard John Barnes FCCA (Senior Statutory Auditor)

for and on behalf of Studholme-Bell Limited

Chartered Certified Accountants

Vantage House

3 East Terrace Business Park

Euxton Lane, Euxton

Chorley

Lancashire

PR7 6TB

23 June 2026

TURNOVER

40,644,916

38,092,155

Cost of sales

31,633,714

30,240,331

GROSS PROFIT

9,011,202

7,851,824

Administrative expenses

5,644,845

5,243,077

3,366,357

2,608,747

Other operating income

460,343

-

OPERATING PROFIT

4

3,826,700

2,608,747

Interest payable and similar expenses

5

302,631

107,920

PROFIT BEFORE TAXATION

3,524,069

2,500,827

Tax on profit

6

1,089,748

492,054

PROFIT FOR THE FINANCIAL YEAR

2,434,321

2,008,773

PROFIT FOR THE YEAR

2,434,321

2,008,773

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,434,321

2,008,773

FIXED ASSETS

Intangible assets

8

4,231,038

5,170,531

Tangible assets

9

102,715

106,196

Investments

10

3,367,426

4

7,701,179

5,276,731

CURRENT ASSETS

Debtors

11

12,692,408

7,974,063

Cash at bank

321,319

292,797

13,013,727

8,266,860

CREDITORS

Amounts falling due within one year

12

11,859,601

6,961,438

NET CURRENT ASSETS

1,154,126

1,305,422

TOTAL ASSETS LESS CURRENT LIABILITIES

8,855,305

6,582,153

CREDITORS

Amounts falling due after more than one year

13

(1,457,143

)

(119,539

)

PROVISIONS FOR LIABILITIES

17

(25,678

)

(24,451

)

NET ASSETS

7,372,484

6,438,163

CAPITAL AND RESERVES

Called up share capital

18

5,250

5,250

Retained earnings

19

7,367,234

6,432,913

SHAREHOLDERS' FUNDS

7,372,484

6,438,163

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

S Spaccia - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

5,250

5,424,140

5,429,390

Changes in equity

Dividends

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

2,008,773

2,008,773

Balance at 31 December 2024

5,250

6,432,913

6,438,163

Changes in equity

Dividends

-

(1,500,000

)

(1,500,000

)

Total comprehensive income

-

2,434,321

2,434,321

Balance at 31 December 2025

5,250

7,367,234

7,372,484

Cash flows from operating activities

Cash generated from operations

1

4,442,336

3,716,764

Interest paid

(302,631

)

(100,873

)

Interest element of finance lease payments paid

-

(7,047

)

Tax paid

(580,613

)

(37,976

)

Net cash from operating activities

3,559,092

3,570,868

Cash flows from investing activities

Purchase of intangible fixed assets

(991,986

)

(1,979,183

)

Purchase of tangible fixed assets

(58,499

)

(24,039

)

Purchase of fixed asset investments

(3,367,422

)

-

Sale of intangible fixed assets

102,884

-

Sale of tangible fixed assets

54,445

71,097

Net cash from investing activities

(4,260,578

)

(1,932,125

)

Cash flows from financing activities

New loans in year

1,755,269

-

Loan repayments in year

(81,667

)

(140,000

)

Movement on invoice discounting

571,068

(642,200

)

Capital repayments in year

(14,662

)

(91,823

)

Equity dividends paid

(1,500,000

)

(1,000,000

)

Net cash from financing activities

730,008

(1,874,023

)

Increase/(decrease) in cash and cash equivalents

28,522

(235,280

)

Cash and cash equivalents at beginning of year

2

292,797

528,077

Cash and cash equivalents at end of year

2

321,319

292,797

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

31.12.25

31.12.24

£

£

Profit before taxation

3,524,069

2,500,827

Depreciation charges

1,854,121

1,840,173

Profit on disposal of fixed assets

(17,991

)

(32,353

)

Movement on inter company

(1,150,218

)

110,875

Finance costs

302,631

107,920

4,512,612

4,527,442

Increase in trade and other debtors

(2,877,510

)

(449,772

)

Increase/(decrease) in trade and other creditors

2,807,234

(360,906

)

Cash generated from operations

4,442,336

3,716,764

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 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

321,319

292,797

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

292,797

528,077

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

292,797

28,522

321,319

292,797

28,522

321,319

Debt

Finance leases

(51,332

)

14,662

(36,670

)

Debts falling due within 1 year

(592,489

)

(810,860

)

(1,403,349

)

Debts falling due after 1 year

(81,667

)

(1,375,476

)

(1,457,143

)

(725,488

)

(2,171,674

)

(2,897,162

)

Total

(432,691

)

(2,143,152

)

(2,575,843

)

1.	STATUTORY INFORMATION

World Options 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

The financial statements have been prepared in accordance with FRS 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 presentation currency of the financial statements is the Pound Sterling (£).

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements and estimates made by management in preparing these financial statements include:

- Amortisation;

- Depreciation; and

- Financial instruments.

Income recognition

Turnover represents the invoiced value of the supply of courier services, net of value added tax, trade discounts and payments that are made to franchise entities.

The services provided to customers are invoiced on completion of the service and recognised on a daily basis.

Goodwill

Goodwill arising on the acquisition of a business in 2005, capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 10 years. Provision is made for any impairment.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. Computer software is being amortised evenly over its estimated useful life of 5 years and Franchise terminations are being amortised evenly over their specific economic lives ranging between 13 months and 3 years.

Tangible fixed assets

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

Fixtures and fittings - 20% straight line

Computer equipment - 20% straight line

Motor vehicles - 20% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research is expended to the profit and loss account in the year in which it is incurred.

Expenditure on development costs are capitalised as an asset of the company, where the costs can be ascertained, the project is viable and can be identified. Capitalised development costs are written off over their useful economic life.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

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

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

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.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties.

Debt instruments such as other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; debt instruments that are payable or receivable with one year, typically trade payables and receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

3.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

1,746,620

1,560,133

Social security costs

182,887

161,516

Other pension costs

103,260

114,119

2,032,767

1,835,768