REGISTERED NUMBER: 04089690 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2025

FOR

TERRA FIRMA PIPELINE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr L Wells

Mr I J Wells

SECRETARY:

Ms L Warren

REGISTERED OFFICE:

CS110

Codham Hall (South)

Great Warley

Brentwood

Essex

CM13 3JJ

REGISTERED NUMBER:

04089690 (England and Wales)

AUDITORS:

ESW Limited

Chartered Accountants

& Registered Auditors

162-164 High Street

Rayleigh

Essex

SS6 7BS

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

REVIEW OF BUSINESS

I present the financial results for the year ended 31st October 2025 which reflect a very turbulent financial period for the Company.

The company delivered turnover of approximately £8.3 million and a gross profit of circa £0.9 million (10.4% margin). The 2.2% fall in gross margin levels (in absolute terms) from the previous year is disappointing but not unexpected given the cessation of the Company's gas contracts in October 2024. The significant fall in turnover coupled with the time lag for certain costs to be adjusted to the lower level of turnover is the key reasons for the lower margins. The Directors immediate focus following the cessation of the contracts was to focus the business towards its water and complex works customer contracts and these efforts minimized the impact of the change in turnover.

Administrative expenses decreased 40% year on year as the cost base had to be cut to match the reduced levels of turnover. There was a lag in reducing the administrative cost base following the cessation of the contracts referred to previously. The cost base was reduced further throughout the current financial year and was stabilized in late Summer and the cost run rate is currently more inline with the turnover levels being generated by the Company. The Board's focus during the year under review and following the year end has been to maximise turnover from its customer base and drive gross margin and cost efficiencies.

We continue to focus on cost savings throughout the company to seek to improve our gross margin and increase operating profitability.

The Key Performance Indicators are considered to be:

Sales £8.3m (2024 - £35m) - down 76% - gas contracts terminated

Gross profit £0.9m (2024 - £4.4m) - down 80% - gas contracts terminated

Gross margin 10.4% (2024 - 12.6%) - down 2.2%

Operating loss £2.3m (2024 - loss £0.16m)

INVESTMENT AND FUTURE DEVELOPMENTS

Capital investment decreased in 2024/25 and a number of significant disposals were made following the contract cessations so that the Company's asset base better reflected its trading levels.

The value of the company's fixed asset base excluding property at the end of the 2024/25 financial year was £2.6 million. The company's bankers and shareholders remain supportive of the company's working capital needs.

CUSTOMERS

The pipeline for the beginning of 2025/26 financial year was very challenging. The gas operations ceased around the end of October 2024 and the change in the Company's sales pipeline for 2024/25 has reflected the new sales mix. The board anticipates growth in the current financial year and improving margins from its water and complex works contracts.

The Company is now focused on servicing a discreet number of clients in the water and complex works space and those clients are all considered to be blue chip in nature.

OUTLOOK

The Board is cautiously optimistic for the current financial period and will continue to focus on turnover growth, margin improvement and administrative efficiencies to lower costs.

ON BEHALF OF THE BOARD:

Mr I J Wells - Director

27th July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of utility contractors.

DIVIDENDS

The total distribution of dividends for the year ended 31st October 2025 will be £ 1,310,000 .

DIRECTORS

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

Mr L Wells

Mr I J Wells

FINANCIAL INSTRUMENTS

The company's operations expose it to a variety of financial risks that include the effect of changes in liquidity risk and interest rate risk.The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Liquidity risk

The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure it has sufficient available funds for operations and planned extensions.

Interest rate cash flow risk

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances held on deposit.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board.

Price risk

The company's exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, ESW Limited, will be proposed for appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr I J Wells - Director

27th July 2026

Opinion

We have audited the financial statements of Terra Firma Pipeline Limited (the 'company') for the year ended 31st October 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 31st October 2025 and of its loss 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.

Emphasis of matter

We draw attention to Note 2 to the financial statements, which describes the directors’ assessment of the company’s ability to continue as a going concern. The company incurred a loss during the year and is dependent on continued financial support from its shareholders and bank facilities. As stated in Note 2, the directors have received confirmation of ongoing support and have concluded that the going concern basis of preparation is appropriate. Our opinion is not modified in respect of this matter.

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

The company is subject to numerous laws and regulations that could reasonably be expected to have a material effect on the financial statements. From our general commercial experience and discussion with management, we identified the following laws and regulations; health and safety, employment law and taxes, financial reporting and distributable profits.

Our audit procedures to address potential fraud and non-compliance with laws and regulations included:

- Enquiry of management and staff

- Review of legal documentation and correspondence

- Analytical review to identify unexpected account movements and investigation of variances

- Assessment of potential management override by review of journals and unusual accounting entries

- Identification and review of transactions with related parties

- Review of year end cut-off and after date transactions

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Cracknell (Senior Statutory Auditor)

for and on behalf of ESW Limited

Chartered Accountants

& Registered Auditors

162-164 High Street

Rayleigh

Essex

SS6 7BS

27th July 2026

TURNOVER

3

8,250,343

34,919,086

Cost of sales

(7,390,301

)

(30,516,296

)

GROSS PROFIT

860,042

4,402,790

Administrative expenses

(3,210,040

)

(4,638,777

)

(2,349,998

)

(235,987

)

Other operating income

38,437

72,464

OPERATING LOSS

5

(2,311,561

)

(163,523

)

Interest receivable and similar income

1,685

1,554

(2,309,876

)

(161,969

)

Interest payable and similar expenses

6

(246,665

)

(297,174

)

LOSS BEFORE TAXATION

(2,556,541

)

(459,143

)

Tax on loss

7

649,766

567,961

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,906,775

)

108,818

(LOSS)/PROFIT FOR THE YEAR

(1,906,775

)

108,818

OTHER COMPREHENSIVE INCOME

-

(9,560

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(9,560

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,906,775

)

99,258

FIXED ASSETS

Tangible assets

9

2,618,445

7,992,015

CURRENT ASSETS

Debtors

10

2,658,922

4,559,465

Cash at bank

326,716

876,720

2,985,638

5,436,185

CREDITORS

Amounts falling due within one year

11

(1,868,516

)

(4,254,102

)

NET CURRENT ASSETS

1,117,122

1,182,083

TOTAL ASSETS LESS CURRENT LIABILITIES

3,735,567

9,174,098

CREDITORS

Amounts falling due after more than one year

12

(731,106

)

(2,578,647

)

PROVISIONS FOR LIABILITIES

16

(539,786

)

(914,001

)

NET ASSETS

2,464,675

5,681,450

CAPITAL AND RESERVES

Called up share capital

17

99

99

Revaluation reserve

18

-

369,460

Capital redemption reserve

18

99

99

Retained earnings

18

2,464,477

5,311,792

SHAREHOLDERS' FUNDS

2,464,675

5,681,450

The financial statements were approved by the Board of Directors and authorised for issue on 27th July 2026 and were signed on its behalf by:

Mr I J Wells - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1st November 2023

99

5,262,974

379,020

99

5,642,192

Changes in equity

Dividends

-

(60,000

)

-

-

(60,000

)

Total comprehensive income

-

108,818

(9,560

)

-

99,258

Balance at 31st October 2024

99

5,311,792

369,460

99

5,681,450

Changes in equity

Dividends

-

(1,310,000

)

-

-

(1,310,000

)

Total comprehensive income

-

(1,537,315

)

(369,460

)

-

(1,906,775

)

Balance at 31st October 2025

99

2,464,477

-

99

2,464,675

Cash flows from operating activities

Cash generated from operations

1

(1,567,808

)

2,048,347

Interest paid

(92,582

)

(179,442

)

Interest element of hire purchase payments paid

(154,083

)

(117,732

)

Taxation refund

283,184

268,815

Net cash from operating activities

(1,531,289

)

2,019,988

Cash flows from investing activities

Purchase of tangible fixed assets

(176,196

)

(22,387

)

Sale of tangible fixed assets

4,778,773

203,734

Interest received

1,685

1,554

Net cash from investing activities

4,604,262

182,901

Cash flows from financing activities

New loans/hire purchase in year

210,864

-

Loan repayments in year

(1,625,089

)

(341,342

)

Hire purchase repayments in year

(909,575

)

(1,012,631

)

Amount withdrawn by directors

10,823

(10,859

)

Equity dividends paid

(1,310,000

)

(60,000

)

Net cash from financing activities

(3,622,977

)

(1,424,832

)

(Decrease)/increase in cash and cash equivalents

(550,004

)

778,057

Cash and cash equivalents at beginning of year

2

876,720

98,663

Cash and cash equivalents at end of year

2

326,716

876,720

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

2025

2024

£

£

Loss before taxation

(2,556,541

)

(459,143

)

Depreciation charges

277,359

537,559

Loss on disposal of fixed assets

493,634

178,199

Finance costs

246,665

297,174

Finance income

(1,685

)

(1,554

)

(1,540,568

)

552,235

Decrease in trade and other debtors

1,900,543

267,108

(Decrease)/increase in trade and other creditors

(1,927,783

)

1,229,004

Cash generated from operations

(1,567,808

)

2,048,347

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 31st October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

326,716

876,720

Year ended 31st October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

876,720

98,663

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank

876,720

(550,004

)

326,716

876,720

(550,004

)

326,716

Debt

Finance leases

(1,682,647

)

698,711

(983,936

)

Debts falling due within 1 year

(334,425

)

266,972

(67,453

)

Debts falling due after 1 year

(1,523,395

)

1,358,117

(165,278

)

(3,540,467

)

2,323,800

(1,216,667

)

Total

(2,663,747

)

1,773,796

(889,951

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared on a going concern basis. The company incurred a loss of £2,556,000 for the year ended 31st October 2025 primarily due to ongoing strategic realignment of its operations, transitioning away from residential gas-related activities toward water infrastructure services and commercial gas-related activities as detailed in the strategic report. This restructuring has now been completed, and the company is optimistic that results for the current financial year will show a considerable improvement to an approximate break-even position.

The company is presently reliant on the continued financial support of its ultimate shareholder and existing funding facilities. The shareholder has confirmed their intention to provide financial support for the foreseeable future, and the company continues to have access to the funding currently in place.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services

provided in the normal course of business and is shown net of VAT and discounts.

Rendering of services:

Turnover from rendering of 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:

1. the amount of turnover can be measured reliably;

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

3. the stage of completion of the contract at the end of the reporting period can be measured reliably; and

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

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.

Freehold property

-

2% on cost

Improvements to property

-

20% on reducing balance

Plant and machinery

-

10% on reducing balance

Motor vehicles

-

10% on reducing balance

Computer equipment

-

33% on reducing balance

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12

'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the

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

Basic financial assets

Basic financial assets, which include trade and other 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of

impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit and loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at

transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest.

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

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Equity instruments

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

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.

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.

3.

TURNOVER

The turnover and 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

£

£

Rendering of services

8,250,343

34,919,086

8,250,343

34,919,086

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

8,250,343

34,919,086

8,250,343

34,919,086

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,344,310

2,484,607

Social security costs

155,105

255,337

Other pension costs

45,250

65,551

1,544,665

2,805,495

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

2025

2024

Employees

28

47

Directors

2

2

30

49

2025

2024

£

£

Directors' remuneration

89,189

73,162

5.	OPERATING LOSS

The operating loss is stated after charging:

2025

2024

£

£

Hire of plant, machinery and

vehicles

1,325,410

4,794,075

Depreciation - owned assets

73,055

197,656

Depreciation - assets on hire purchase contracts

204,302

349,466

Loss on disposal of fixed assets

493,634

178,199

Auditors' remuneration

30,000

30,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

92,582

179,442

Hire purchase

154,083

117,732

246,665

297,174