The directors present the strategic report for the year ended 31 December 2025.
The Directors are pleased with the 2025 performance of the Ciceley Group in what has been a more challenging trading environment for the commercial vehicle sector. Turnover decreased from £197.6 million in 2024 to £133.8 million in 2025, reflecting lower new and used vehicle sales volumes following the exceptionally strong prior year. Despite this reduction in turnover, the Group delivered a stronger gross profit margin of 12.07% compared with 9.95% in 2024, demonstrating continued focus on margin management, aftersales performance and operational discipline. Operating profit remained positive at £1.9 million and profit before taxation was £1.3 million for the year. The Group remains one of the leading Mercedes-Benz Commercial Vehicle Dealer groups and continues to maintain a strong reputation for customer service, operational resilience and brand representation.
The Directors are proud of the Group's continued performance following the completion of the extensive Mercedes-Benz Corporate Identity refurbishment programme across its sites, which has enhanced both the customer experience and the working environment for employees. The Ciceley Group celebrated 50 years as a Mercedes-Benz Commercial Vehicle Franchise in 2023 and continues to build on that heritage by representing the Mercedes-Benz and FUSO brands with a focus on customer support, long-term relationships and continued investment in the future.
Ciceley has continued to invest in its staff, facilities, systems and site security and is proud to provide a high level of customer experience. The Group continues to promote the electrification of commercial vehicles and to support customers as the market transitions to lower-emission transport solutions. The previous investment in increased electrical capacity and vehicle charging infrastructure across the sites remains an important part of the Group's readiness for future vehicle technology and supports both Mercedes-Benz Truck and Van customers. The Ciceley Group now has ten 50kW DC chargers and twenty-one 22kW AC chargers installed across its sites.
ESG is strategically very important to the Directors of Ciceley. In addition to the promotion of electrification of vehicles, Ciceley has invested £342k in 325 kw of solar panels across 3 of our sites with 216 kwh Battery storage. We are also proud to have installed 4 Beehives containing a total of 320,000 bees at two of our sites. Bees play a vital role in our environment, impacting both people and the planet. Bee populations have been declining globally over recent decades due to habitat loss, intensive farming practices, changes in weather patterns and the excessive use of agrochemicals such as pesticides. This in turn poses a threat to a variety of plants critical to human well-being and livelihoods.
Ciceley Group, a trusted name in commercial vehicle sales and support for over 50 years, has continued to progress plans for a new Mercedes-Benz and FUSO truck dealership at Eurocentral, Scotland. The investment represents the Group's commitment to bringing its customer support ethos to operators in Scotland, where Mercedes-Benz customer support has been limited in recent years. The planned dealership will support future growth opportunities and further strengthen the Group's representation of Mercedes-Benz and FUSO commercial vehicles. The Directors continue to monitor the development timetable and associated investment carefully to ensure the project is delivered in a controlled and commercially sustainable manner.
Going Concern Disclosure
The Group has sufficient financial resources and continues to maintain an appropriate liquidity position. As well as selling and maintaining high quality, desirable Mercedes-Benz Commercial Vehicles, the Group has an excellent working relationship with Mercedes-Benz. As a consequence, the directors believe that the Group is well placed to manage the business risks associated with the current trading environment.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The dealership operates in a dynamic and competitive automotive market, and as such, is exposed to a range of risks and uncertainties that could impact its performance and strategic objectives. Key risks include fluctuations in consumer demand due to economic conditions, interest rates, and fuel prices, which may affect van sales volumes. Regulatory changes, including emissions standards and electric vehicle (EV) mandates, may require significant investment in infrastructure and staff training to support the transition to electric vans. Additionally, the dealership faces competitive pressures from both traditional and emerging market players, including online vehicle retailers. Cybersecurity threats and data protection compliance also remain critical, given the increasing reliance on digital platforms for sales and customer engagement. The business actively monitors these risks and implements mitigation strategies, including inventory management, staff development, and close collaboration with Mercedes-Benz UK.
Interest rate risk
The Group does not make use of overdraft facilities and uses instant access deposit accounts to service short term cash flow requirements. There is no risk from borrowings that are affected by changes to interest rates.
Liquidity risk
The Group makes efforts to manage the financial risk by the monitoring of cash flow to ensure that the Group is able to meet its foreseeable debts as they fall due and to invest any cash assets profitably.
Credit risk
The principal credit risk of the Group arises from its trade debtors. In order to manage this credit risk, the management set credit limits for customers based on a combination of third party credit references and payment history. These credit limits are reviewed monthly by the Directors along with aged debt.
Future Developments
The Group is in a strong position financially and is capable of funding any acquisitions or growth developments should the opportunities arise.
Turnover decreased in 2025 by 32.2% to £133.8 million, having increased in 2024 by 26.1% to £197.6 million from £156.6 million in 2023. Gross profit decreased to £16.16 million, however the gross profit margin improved to 12.07% (2024: 9.95%), reflecting a stronger margin mix and continued focus on aftersales performance and operational discipline.
Operating profit decreased to £1.86 million from £2.87 million in 2024, while profit before taxation decreased to £1.26 million from £2.92 million in 2024. Net profit before taxation as a percentage of turnover was 0.94% in 2025 compared with 1.48% in 2024, reflecting the lower vehicle sales volumes in the year while maintaining positive profitability.
The Group retains a strong balance sheet. Net assets remained robust at £11.33 million (2024: £11.97 million), with net current assets of £7.07 million and cash at bank and in hand of £5.67 million at the year end. Stock levels reduced from £46.19 million in 2024 to £43.14 million in 2025, reflecting active management of inventory against market demand. Trade debtor balances remained controlled, supported by ongoing credit management and monthly review of aged debt by the Directors.
Stakeholder engagement
The s172 duty of the Companies Act 2016 requires directors to run the group for the benefit of its shareholders as a whole and in doing so the board should take into account the long-term impact of any decision, maintaining stakeholder relationships, the external impact of its activities and maintaining a reputation for high standards of business conduct. The following information sets out the ways in which these responsibilities are met.
Ciceley is very proud of its heritage as a privately-owned family run business. Three generations of the Morgan family are actively involved in the running of the business along with a Board of four Operational Directors who have a combined experience of 100 years in the Mercedes-Benz Commercial Vehicle Industry. This team of Directors meet regularly to discuss short, medium, and long-term objectives with regards to land and facilities, employees, customers, suppliers, marketing and opportunities for growth and development. The key objective is to carry on the success that Ciceley has earned as one of the top performing Mercedes-Benz Commercial Vehicle Dealers over the last decade.
Outlined below is how we engage with the key stakeholders that play a part in this success:
Employees
The employees at Ciceley are our most important asset and we encourage their engagement in the success of the Group through profit sharing and bonus schemes to reward performance in addition to industry leading pay rates. The experience and knowledge of our employees is paramount in the success of the Group and as such retention of staff is a key KPI for the stakeholders in the business.
The safety and wellbeing of our employees is of paramount importance to us with regular communication through newsletters and management of the extensive support that is available from the Group. A new manager with the responsibility for HR and Facilities was recruited in 2022 to further enhance and develop the wellbeing, development, and overall happiness at work of our employees.
Mercedes-Benz offer a comprehensive range of training courses across all areas of the business which all employees are sent on to help them keep up to date with the latest vehicle technology and developments in their area of expertise. In house training courses are also provided on a broad range of subjects such as Competition Law, The Bribery Act and Cyber Security.
As noted in the Business Review, we spend a significant amount of money in constantly updating our facilities, along with all the equipment required to allow our employees to carry out their duties to a very high standard.
Business relationship with customers and suppliers
We invest heavily in the latest technology throughout our business so that we can continue to offer quality products at short lead times. Our customers value our high degree of expertise, reliability and value for money offerings. We have built a reputation for fair dealings in our interaction with both customers and suppliers alike.
Ciceley has an excellent relationship with Mercedes-Benz Vans and Mercedes-Benz Trucks. The Directors and management team are much respected members of the Dealer community, our advice being frequently sought by the manufacturer in terms of how their own policies would influence the network and we continue to support MBV and MBT with After Sales initiatives, many on behalf of other Dealers who lack the resource or fail to effect service measures and/or breakdown recovery in a timely manner.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £1,500,000 (2024 - £2,000,000). The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and the relevant UK Government Conversion Factors for Company Reporting for the 2025 reporting year. The figures reported have been produced with the assistance of Boxfish who are experts in energy efficiency and have carried out an analysis of Ciceley's operations with regards to energy consumption and carbon emissions.
The chosen intensity measurement ratios are total gross emissions in metric tonnes CO2e per employee and per £1 million of revenue, calculated on a location-based basis for the statutory table. Market-based intensity metrics have also been considered as part of the 2025 SECR assessment.
For 2025 the location-based revenue intensity was 4.64 tCO2e per £1 million revenue and the location-based employee intensity was 2.68 tCO2e per FTE. The corresponding market-based intensity metrics were 3.54 tCO2e per £1 million revenue and 2.05 tCO2e per FTE.
During 2025 the Group continued to monitor and manage energy usage across its sites through smart metering and regular review of consumption data. Video conferencing technology continued to be used for internal meetings where appropriate, reducing the need for travel between sites.
The Group continued its programme of replacing lighting with LED fittings where refurbishments or upgrades were undertaken. Head Office, Darwen, Bolton and Carlisle have already been converted to LED lighting, with PIR controls used to reduce unnecessary consumption and to balance lux levels. The Group continues to assess further opportunities to reduce electricity consumption, including voltage optimisation where commercially viable.
The Group has invested in solar generation at its Head Office, Darwen and Carlisle sites, with 325kW of solar panels installed across three sites together with 216kWh of battery storage. During the 2025 reporting year, on-site solar consumption amounted to 89,022 kWh. These installations support the Group's objective of increasing the proportion of electricity generated from renewable sources and reducing reliance on grid electricity where practicable.
The Company car fleet has continued to move away from diesel vehicles towards hybrid and fully electric vehicles. Following the 2024 fleet renewal, the majority of the Company car fleet is now fully electric, with the remaining hybrid vehicles having an improved electric range. Company vans will continue to move from diesel to electric as replacement cycles and operational requirements allow.
The Group continues to promote the sale and use of electric vans as availability and customer demand develop. EV charging infrastructure is installed across the Group's sites, including ten 50kW DC chargers and twenty-one 22kW AC chargers, supporting both internal vehicle use and customer transition to lower-emission vehicles.
The Directors will continue to review energy consumption, vehicle fleet emissions, renewable generation, lighting efficiency and EV infrastructure as part of the Group's ongoing commitment to improving energy efficiency and reducing carbon emissions.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Ciceley Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
the matters discussed among the audit engagement team including significant component audit teams and involving relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Group's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,627,546 (2024 - £1,413,319 profit).
Ciceley Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ciceley Lane, Blackburn, Lancashire, BB1 1HQ.
The group consists of Ciceley Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A.
The consolidated group financial statements consist of the financial statements of the parent company Ciceley Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue comprises amounts recognised by the Company in respect of goods and services supplied during the period, exclusive of Value Added Tax and trade discounts.
The revenue streams of the business remain sale of motor vehicles supply of parts and accessories, and provision of service and repair facilities.
Revenue from the sale of motor vehicles represent the fair value of consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised at a single point in time when control has been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods.
Revenue from the sale of parts and accessories is recognised at a single point in time when control is transferred to the buyer, being the point of delivery or collection of goods.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
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.
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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
During the financial year, there were no significant judgments or key sources of estimation uncertainty.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2025 are as follows:
Other loans comprise amounts advanced by the directors and certain family trusts. Not all of the loans are subject to formal agreements. Interest paid on the amounts owed to the trusts has remained consistence at 3.2%. Interest rates paid on the amounts introduced by directors has increased in line with increasing Bank of England base rates across the period.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax asset set out above is not expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse as these relate in the main to short term timing differences.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The Preference Shares and the 3.2% Preference Shares do not carry any rights to vote and the holders of such shares are entitled to a fixed cumulative dividend of 4.1% and 3.2% respectively.
At the balance sheet date, the Group had capital commitments of £6,106,943 (2024: £nil) contracted but not provided for in the financial statements in respect of the construction and development of a new operational site.