REGISTERED NUMBER: 03250579 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

CROWN WORKSPACE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

B A Koolen

S Hardie

J C Mortimer

SECRETARY:

F V Hopping

REGISTERED OFFICE:

Heritage House

345 Southbury Road

Enfield

EN1 1TW

REGISTERED NUMBER:

03250579 (England and Wales)

AUDITORS:

GKP (Ampthill) Limited

Statutory Auditor

3 Doolittle Yard

Froghall Road

Ampthill

Bedfordshire

MK45 2NW

The directors present their strategic report for the year ended 31 December 2025. The principal activities of the company are specialist commercial relocations, workplace consultancy, design and fit out of workplace interiors, supply of sustainable office furniture and repurposed IT equipment, the provision of secure storage facilities and certain other services linked to the workplace sector.

REVIEW OF BUSINESS

Market conditions for commercial office moving remained mixed in 2025. While high-quality prime offices continued to attract demand, broader occupier behaviour remained cautious, with delayed decisions, ongoing hybrid working adoption and pressure on discretionary workplace spend. RICS UK Commercial Property Monitor Q4 2025 reported soft office occupier demand nationally, while Savills Central London Office Market Watch - November 2025 recorded Central London take-up 13% below the prior year. These conditions affected the timing and scale of client relocation and change programmes during the year.

The general UK economic backdrop remained challenging throughout 2025 too, with growth slowing progressively over the course of the year. UK GDP growth moderated from 0.7% in the first quarter to 0.1% by the second half, while real GDP per head remained broadly flat, indicating limited growth in economic output per capita. At the same time, indicators pointed to a softening labour market, with unemployment increasing to c.5% and payrolled employment declining. Inflation, whilst easing, remained above target at c.3%-4% during the year, and interest rates remained elevated, maintaining pressure on corporate borrowing costs. Against this backdrop, business confidence and investment appetite remained subdued, with evidence of delayed decision-making and reduced capital expenditure across the commercial property sector.

The company has continued to pursue a diversification strategy since the acquisition of Premier Workplace Services in late 2018; diversification into new revenue streams and regional expansion in the UK. Given the market conditions described above and an ever more competitive central London office moving market, the success of this strategy is summarised in the revenue breakdown in 2025 versus the prior year. The combined revenue from office relocations, storage and systems dropped by 10% versus the prior year, whilst the combined remaining areas of the business grew collectively by 6%.

In our previous annual report, we reported upon growth of 34% within our interior design and fit out business, and 2025 saw further growth in this area of 7% (£0.2m). Heading into 2026, the company forecasts further growth in this area having secured a number of high value projects with important clients in the early months.

Similarly, our sustainability led services, the Renew Centre and Renew IT, grew by 8%. Whilst the reuse market has become increasingly competitive in recent years with a number of new entrants both in the office furniture and IT sectors, we believe that our long-standing reputation and service excellence in these areas leave us well placed for further success. The provision of recycled office furniture and IT asset disposition services is expected to remain a key source of growth, driven by increasing ESG and regulatory pressures, rising volumes of redundant assets from hybrid working and technology refresh cycles, and the growing need for cost-effective, circular solutions that enable clients to reduce waste while recovering residual value.

Whilst the commentary above refers to specific segments of our business, the overriding aim is to provide a wider breadth of services to our customers and clients, using the combined strength of our broad product and service offering. A key example of this in the year was the King's College London project where the client sought to relocate 700 staff and fit out 10 floors across three buildings. Sustainability was central to the university's objectives, and with Crown Workspace's support, the project adopted a circular economy model focused on reuse, refurbishment, and responsible redistribution of assets. Implementing our Crown Circulate model we were able to audit 8 buildings to assess condition, location and reuse potential of all furniture (using our LENS Asset Management tool), utilise the Renew Centre to restore items to a high standard, and prioritise re-use before any procurement. From a total of 1,881 furniture items, 50% were redistributed, 23% refurbished and only 27% newly supplied; the re-use savings exceeding the original 70% target and achieving embodied carbon savings equivalent to powering 279 homes for an entire year.

The strength of this diversification strategy can be seen in the company's reported Gross Profit which dropped by only £0.1m (1%), despite the overall revenue drop of £1.3m (5%) which, as mentioned, was mostly attributable to the office removals part of the business. Another key factor underpinning the protection of the Gross Profit, came from the exit of one of our two operating properties within the Ardra Road estate in north London. We disclosed in our previous report that we took the decision not to renew the lease on units 3 & 4, and incurred the vast majority of exit costs in the 2024 financial year as evidenced by the significant increase in administrative expenses incurred in that year. The exit was completed when the lease expired in early February 2025, and hence the fixed costs associated with this property (within cost of sales), were saved for the majority of the year, with the company able to operate successfully from the other neighbouring unit and other properties within the broader Crown property portfolio. Administrative expenses dropped significantly, with the majority of this linked to the aforementioned property exit costs which had largely been incurred in 2024. The combination of all the factors mentioned above contributed to a positive Operating Profit of £0.4m for the 2025 financial year, compared to the (£1m) reported loss in 2024.

The company's progressive responsible business strategy was rewarded with a 10% improvement in our EcoVadis score, which saw us retain our Ecovadis Silver status, placing us in the top 7% of reporting companies. As well as our carbon reduction strategy, which has seen the company reduce its scope 1 and 2 emissions by over 54% against our 2019 baseline, 2025 also saw the launch of our social impact strategy focused on employment and skills within the local area. As well as this the company continues to provide invaluable support to over 900 charity partners, runs a volunteering hours programme for all staff members and donates thousands of items of furniture through its Giving Back Project.

On the people side, the company also kept up its progress of recent years and we were delighted to receive the "Investors in People Gold" recognition, together with the Investors In People (IIP) "We Invest in Wellbeing Silver" accreditation acknowledging the company's proactive approach to supporting our workforce's physical, mental, and financial wellbeing.

Looking ahead to 2026, the outlook is characterised by cautious optimism, with the UK economy expected to deliver modest positive growth of approximately 1%-1.4%, alongside easing inflation trending towards the Bank of England's 2% target and a gradual reduction in interest rates, supporting improved business confidence and investment activity. Within the commercial property sector, conditions are expected to stabilise further, with increasing transaction volumes, recovering capital flows and modest rental growth in prime office segments. However, this outlook remains subject to a high degree of geopolitical uncertainty, including recent developments in the Middle East, which continue to pose risks to inflation, energy costs and broader business sentiment.

PRINCIPAL RISKS AND UNCERTAINTIES

The board of directors and management continually monitor the key risks facing the company together with assessing the controls used for managing these risks.

The principle risks and uncertainties facing the company are as follows:

Economic conditions

Interest rates

KEY PERFORMANCE INDICATORS

Our Key Performance Indicators for the year ended 31 December 2025 and year ended 31 December 2024 are considered to be the following:

2025

2024

Gross profit percentage

30.35%

29.20%

Net profit percentage

1.38%

-4.25%

Sales per employee

£117,029

£124,015

The financial position of the company remains strong and the company is well placed to take advantage of business opportunities as they arise. The directors look forward to the future with confidence.

ON BEHALF OF THE BOARD:

S Hardie - Director

24 July 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 specialist commercial relocation services and associated solutions.

DIVIDENDS

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

DIRECTORS

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

B A Koolen

S Hardie

J C Mortimer

FINANCIAL INSTRUMENTS

The company holds or issues financial instruments in order to achieve three main objectives, being:

a) to finance its operations;

b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance;

c) for trading purposes

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.

Interest rate risk

The company's financial instruments exposure to interest rate risk is very small due to the fact that most of the instruments are on a fixed term repayment basis.

Credit Risk

The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk.

The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event of other parties failing to perform their obligations under financial instruments.

Liquidity risk

The company's policy in terms of its liquidity risk is to have good relations with its bankers and to manage operational activity and debtors closely.

Currency risk

The company's exposure to currency risk is minimal in comparison to its turnover.

DISCLOSURE IN THE STRATEGIC REPORT

The future developments of the company are disclosed in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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:

J C Mortimer - Director

24 July 2026

Opinion

We have audited the financial statements of Crown Workspace 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 and 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 six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Owing to the inherent limitations of an audit, there is unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The more removed the laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment, forgery, collusion, omission or misrepresentation.

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

-

A part of the audit planning process was to look at each area of the financial statements and ascertain the level of risk for each applicable audit assertion. Where an increased risk was identified, specific audit work was designed to ensure those risks were at the forefront of the audit work carried out.

-

During the audit planning process, important laws and regulations applying to the company were identified by making enquiries of management in addition to our own checks of the laws and regulations applying to a business of this nature.

-

The audit process has documented the systems and internal controls adopted by the company and considered their adequacy. Our audit work included testing journal entries due to an inherent risk of management override of controls.

-

An audit team planning meeting was held which communicated areas of identified risks and considered possible opportunities for fraud within the company.

-

The engagement partner assessed the experience and abilities of the engagement team to ensure they were collectively competent to identify irregularities.

-

All risks identified at the planning stage and the related audit work were reviewed and results considered to confirm that no irregularities had been identified.

-

Our audit has included a review of the disclosures in the financial statements and comparison of those disclosures with the results of our audit work to identify any disparities.

-

Analytical review of the financial statements has been undertaken at both the planning and completion stages of the audit to identify risks of irregularities and the results of the audit work carried out on those areas of risks.

-

The judgements made in making accounting estimates have been assessed as to whether they indicate potential bias.

-

Enquiries have been made of management regarding known instances of fraud, litigation or claims in progress.

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

Use of our report

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

Stephen Mason BSc FCA (Senior Statutory Auditor)

for and on behalf of GKP (Ampthill) Limited

Statutory Auditor

3 Doolittle Yard

Froghall Road

Ampthill

Bedfordshire

MK45 2NW

24 July 2026

TURNOVER

3

23,756

25,051

Cost of sales

16,545

17,737

GROSS PROFIT

7,211

7,314

Administrative expenses

6,986

8,613

225

(1,299

)

Other operating income

153

288

OPERATING PROFIT/(LOSS)

5

378

(1,011

)

Interest payable and similar expenses

6

50

54

PROFIT/(LOSS) BEFORE TAXATION

328

(1,065

)

Tax on profit/(loss)

7

31

(155

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

297

(910

)

PROFIT/(LOSS) FOR THE YEAR

297

(910

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR

297

(910

)

FIXED ASSETS

Intangible assets

8

48

94

Tangible assets

9

2,779

1,945

Investments

10

-

-

2,827

2,039

CURRENT ASSETS

Stocks

11

1,011

970

Debtors

12

7,484

8,731

Cash at bank

2,531

1,759

11,026

11,460

CREDITORS

Amounts falling due within one year

13

(5,508

)

(6,076

)

NET CURRENT ASSETS

5,518

5,384

TOTAL ASSETS LESS CURRENT LIABILITIES

8,345

7,423

CREDITORS

Amounts falling due after more than one year

14

(1,517

)

(923

)

PROVISIONS FOR LIABILITIES

17

(31

)

-

NET ASSETS

6,797

6,500

CAPITAL AND RESERVES

Called up share capital

18

3

3

Retained earnings

6,794

6,497

SHAREHOLDERS' FUNDS

6,797

6,500

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

J C Mortimer - Director

S Hardie - Director

Called up

share

Retained

Total

capital

earnings

equity

£'000

£'000

£'000

Balance at 1 January 2024

3

7,407

7,410

Changes in equity

Total comprehensive loss

-

(910

)

(910

)

Balance at 31 December 2024

3

6,497

6,500

Changes in equity

Total comprehensive income

-

297

297

Balance at 31 December 2025

3

6,794

6,797

1.	STATUTORY INFORMATION

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

The nature of the company's operations and its principal activities are set out in the Strategic Report on page 1.

The presentation currency of the financial statements is the Pound Sterling (£). All amounts in the financial statements have been rounded to the nearest £1000.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Exemptions are taken on the basis the information is included in the consolidated accounts of Crown Worldwide Limited.

Preparation of consolidated financial statements

The financial statements contain information about Crown Workspace Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Crown Worldwide Limited, Cullen Square, Deans Road, Deans Industrial Estate, Livingston, West Lothian, EH54 8SJ.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

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.

The directors do not consider there to be any critical accounting judgements.

Key sources of estimation uncertainty

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated and useful economic lives and residual values of the assets. The useful economic lives and residual vales 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. The remaining useful economic life of the asset is considered a key source of estimation uncertainty.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,value added tax and other sales taxes.

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be reliably measured;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be reliably measured;

- the costs incurred and the costs to complete the contract can be reliably measured.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being

amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

over the term of the lease

Plant and machinery

-

25% on cost and 10% on cost

Fixtures and fittings

-

33% on cost, 25% on cost, 20% on cost and 10% on cost

Motor vehicles

-

25% on cost

Stocks

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

Financial instruments

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.

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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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.

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 the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account as incurred.

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.

TURNOVER

The turnover and profit (2024 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£'000

£'000

Services

19,670

19,827

Goods

1,247

2,180

Storage

2,839

3,044

23,756

25,051

4.	EMPLOYEES AND DIRECTORS

2025

2024

£'000

£'000

Wages and salaries

8,198

8,189

Social security costs

1,057

891

Other pension costs

212

202

9,467

9,282

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

2025

2024

Sales

8

20

Administration

35

56

Operations

160

126

203

202

2025

2024

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT/(LOSS)

The operating profit (2024 - operating loss) is stated after charging/(crediting):

2025

2024

£'000

£'000

Depreciation - owned assets

235

254

Depreciation - assets on hire purchase contracts

494

414

Profit on disposal of fixed assets

(2

)

-

Goodwill amortisation

46

46

Auditors' remuneration

33

35

Foreign exchange differences

(142

)

51

Operating leases - Land and buildings

1,164

1,294

Operating leases - Motor vehicles

508

573

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£'000

£'000

Bank interest

(62

)

(35

)

Hire purchase interest

112

89

50

54

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£'000

£'000

Current tax:

UK corporation tax

-

(2

)

Deferred tax

31

(153

)

Tax on profit/(loss)

31

(155

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£'000

£'000

Profit/(loss) before tax

328

(1,065

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

82

(266

)

Effects of:

Expenses not deductible for tax purposes

11

15

Capital allowances in excess of depreciation

(234

)

(53

)

Losses carried forward

172

149

Total tax charge/(credit)

31

(155

)

8.	INTANGIBLE FIXED ASSETS

Goodwill

£'000

COST

At 1 January 2025

and 31 December 2025

413

AMORTISATION

At 1 January 2025

319

Amortisation for year

46

At 31 December 2025

365

NET BOOK VALUE

At 31 December 2025

48

At 31 December 2024

94

9.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£'000

£'000

£'000

£'000

£'000

COST

At 1 January 2025

273

1,735

1,117

1,654

4,779

Additions

91

65

-

1,475

1,631

Disposals

(115

)

(982

)

-

(178

)

(1,275

)

At 31 December 2025

249

818

1,117

2,951

5,135

DEPRECIATION

At 1 January 2025

136

1,407

628

663

2,834

Charge for year

44

171

12

502

729

Eliminated on disposal

(107

)

(925

)

-

(175

)

(1,207

)

At 31 December 2025

73

653

640

990

2,356

NET BOOK VALUE

At 31 December 2025

176

165

477

1,961

2,779

At 31 December 2024

137

328

489

991

1,945