REGISTERED NUMBER: SC070183 (Scotland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

FOR

STEWART LANDSCAPES (CONTRACTS) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

A D Mackenzie

D J M Laird

K Turley

SECRETARY:

A D Mackenzie

REGISTERED OFFICE:

Busby Road

Carmunnock

Glasgow

G76 9EL

REGISTERED NUMBER:

SC070183 (Scotland)

AUDITORS:

Gilmour Hamilton LLP

Statutory Auditor

37 Portland Road

KILMARNOCK

Ayrshire

KA1 2DJ

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

REVIEW OF BUSINESS

The year to 31 July 2025 was a difficult year for the company, although turnover increased from £16m to £20.3m, a number of key contracts performed poorly, resulting in a reduction in margins and an operating loss of £548,965 (2024 profit of £409,592) . Unfortunately these issues ran into the following financial year where further losses were incurred in the first half of the year. The third quarter shows a return to profitability.

As at the date of signing the accounts, the company had a healthy order book of circa £23m (with further orders expected) and the directors are confident that the overall margin from those works will return to a more sustainable level. That, combined with substantial overhead cuts, gives the directors confidence that the company can return to sustained profitability.

The losses have had an impact on the company's working capital and cash-flow is having to be actively managed. However the directors believe that the cash position has stabilised and, with forecasted profitability and expected cash flows, that the working capital position will improve over coming months.

We continue to invest in safety, management systems and plant to ensure we are well placed to deal with present and future contracts.

The Directors are focused on maintaining strong relationships with key customers and suppliers and have long established controls and procedures in place which are closely monitored and continue to serve us well.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting the business include the following:

The general economic environment - particularly the housing market

Continuing to remain competitive

Retaining existing customers and acquiring new ones

Maintaining a skilled and efficient workforce which works safely

Financial risks

The company operates in a competitive marketplace, influenced by the general economic environment, including the level of interest rates which impact the housing market. The company works closely with a number of key customers and aims to provide an excellent standard of customer service. The management team work hard to minimise contract risk and to control contract costs and profitability.

The company works with its suppliers to build long term relationships and secure the best possible prices and reliable supplies for key products.

We aim to provide a safe and enjoyable working environment for our employees and offer training and other opportunities for them to progress within the company.

The company's activities expose it to a number of financial risks, primarily credit risk.

The company monitors its customers for creditworthiness. Trade debtors and contract balances are monitored closely on an ongoing basis and provision is made for any doubtful debts where necessary.

Cash flow is closely monitored, and the company's bank deposits are held by banks with high credit ratings assigned by international credit rating agencies.

ON BEHALF OF THE BOARD:

K Turley - Director

23 July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a groundwork and civil engineering contractor.

DIVIDENDS

Interim dividends totalling £12,150 were paid during the year. No final dividend is proposed to be paid.

DIRECTORS

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

A D Mackenzie

D J M Laird

K Turley

GOING CONCERN

Based on the company's forecasted cash-flows for the period of 12 months form the date of signing of these financial statements, the directors believe that the company will have sufficient funds to continue as a going concern.

Further details of the directors assessment of going concern can be found in the accounting policies note set out on pages 13 to 15.

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, Gilmour Hamilton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

K Turley - Director

23 July 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 July 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

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of disclosures in note 1 to the financial statements concerning the company's ability to continue as a going concern. Should the company not achieve the minimum expected results, or secure the additional funding that would be required as a consequence, that would result in the existence of a material uncertainty which may cast doubt as to the company's ability to continue as a going concern. The financial statements do not include the adjustments that would be required if the company was unable to continue as a going concern.

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 three, 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:

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. A summary of the procedures we designed and executed to detect irregularities, including fraud is set out below:

- performing analytical procedures to identify unusual or unexpected relationships that may indicate

risks of material misstatement due to fraud and tested accordingly;

- reviewing correspondence with regulatory bodies, such as HMRC, and reviewing documentation

for indications of non-compliance with laws and regulations;

- determining whether the accounting policies, treatments and presentation adopted in the financial

statements is in accordance with 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);

- identifying whether there are instances of potential bias in areas with significant degrees of

judgement such as useful lives of assets subject to depreciation or amortisation;

- in addressing the risk 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;

- in addressing the risk of fraud in revenue recognition obtaining an understanding of the controls

in place and where possible testing the operating effectiveness of those controls. Substantive tests

were executed to supplement testing of controls;

- vouching balances and reconciling items in management's key control account reconciliations to

supporting documentation as at 31 July 2025; and

- carrying out detailed testing, on a sample basis, of material transactions, financial statement

categories and balances to appropriate documentary evidence to verify the completeness,

occurrence and accuracy of the reported financial statements.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, or the greater the concealment of irregularities, including fraud, the less likely we are to become aware of it.

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.

Neil McConnell BAcc CA (Senior Statutory Auditor)

for and on behalf of Gilmour Hamilton LLP

Statutory Auditor

37 Portland Road

KILMARNOCK

Ayrshire

KA1 2DJ

23 July 2026

TURNOVER

3

20,306,192

16,031,807

Changes in stocks of finished goods and work in progress

(24,099

)

56,030

20,282,093

16,087,837

Other operating income

83,663

40,585

20,365,756

16,128,422

Raw materials and consumables

7,350,046

5,698,716

Other external expenses

6,716,819

4,285,381

14,066,865

9,984,097

6,298,891

6,144,325

Staff costs

4

6,072,659

5,122,808

Depreciation

361,686

247,916

Other operating expenses

413,511

364,009

6,847,856

5,734,733

OPERATING (LOSS)/PROFIT

5

(548,965

)

409,592

Interest receivable and similar income

19,804

34,665

(529,161

)

444,257

Interest payable and similar expenses

6

21,690

16,241

(LOSS)/PROFIT BEFORE TAXATION

(550,851

)

428,016

Tax on (loss)/profit

7

(130,094

)

105,919

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(420,757

)

322,097

Retained earnings at beginning of year

1,823,951

1,814,004

Dividends

8

(12,150

)

(312,150

)

RETAINED EARNINGS AT END OF YEAR

1,391,044

1,823,951

FIXED ASSETS

Tangible assets

9

863,619

877,409

CURRENT ASSETS

Stocks

10

268,550

292,649

Debtors

11

4,410,826

3,239,154

Cash at bank

261,151

879,065

4,940,527

4,410,868

CREDITORS

Amounts falling due within one year

12

3,918,614

2,852,766

NET CURRENT ASSETS

1,021,913

1,558,102

TOTAL ASSETS LESS CURRENT LIABILITIES

1,885,532

2,435,511

CREDITORS

Amounts falling due after more than one year

13

(260,882

)

(297,845

)

PROVISIONS FOR LIABILITIES

17

(133,606

)

(213,715

)

NET ASSETS

1,491,044

1,923,951

CAPITAL AND RESERVES

Called up share capital

18

100,000

100,000

Retained earnings

19

1,391,044

1,823,951

SHAREHOLDERS' FUNDS

1,491,044

1,923,951

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

K Turley - Director

Cash flows from operating activities

Cash generated from operations

1

(200,194

)

399,091

Interest paid

(1,469

)

-

Interest element of hire purchase payments paid

(20,221

)

(16,241

)

Tax paid

(50,937

)

(74,709

)

Net cash from operating activities

(272,821

)

308,141

Cash flows from investing activities

Purchase of tangible fixed assets

(357,393

)

(542,421

)

Sale of tangible fixed assets

9,500

93,500

Interest received

19,804

34,665

Net cash from investing activities

(328,089

)

(414,256

)

Cash flows from financing activities

New hire purchase agreement

128,435

199,292

Amounts repaid to group

-

(97,200

)

Capital repayments in year

(133,289

)

(115,116

)

Equity dividends paid

(12,150

)

(312,150

)

Net cash from financing activities

(17,004

)

(325,174

)

Decrease in cash and cash equivalents

(617,914

)

(431,289

)

Cash and cash equivalents at beginning of year

2

879,065

1,310,354

Cash and cash equivalents at end of year

2

261,151

879,065

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(550,851

)

428,016

Depreciation charges

362,486

297,783

Profit on disposal of fixed assets

(800

)

(49,867

)

Finance costs

21,690

16,241

Finance income

(19,804

)

(34,665

)

(187,279

)

657,508

Decrease/(increase) in stocks

24,099

(56,030

)

Increase in trade and other debtors

(1,120,739

)

(431,686

)

Increase in trade and other creditors

1,083,725

229,299

Cash generated from operations

(200,194

)

399,091

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2025

31.7.25

1.8.24

£

£

Cash and cash equivalents

261,151

879,065

Year ended 31 July 2024

31.7.24

1.8.23

£

£

Cash and cash equivalents

879,065

1,310,354

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.8.24

Cash flow

At 31.7.25

£

£

£

Net cash

Cash at bank

879,065

(617,914

)

261,151

879,065

(617,914

)

261,151

Debt

Finance leases

(420,393

)

4,854

(415,539

)

(420,393

)

4,854

(415,539

)

Total

458,672

(613,060

)

(154,388

)

1.	STATUTORY INFORMATION

Stewart Landscapes (Contracts) Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are presented in pounds sterling which is the functional currency of the company, rounded to the nearest pound.

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.

Going concern

The directors are required to prepare the financial statements on a going concern basis unless it is inappropriate to assume that the company will continue in business.

Whilst recent losses have impacted the company's working capital position and cash flows are being actively managed, the directors have prepared forecasts for a period of twelve months from the of approval of the financial statements which show a return to profitability and positive cash flows. Whilst acknowledging the uncertainties in forecasting, the directors believe it is therefore reasonable to prepare the financial statements on a going concern basis.

The projections make key assumptions about:

The volume and pattern of turnover and payments from customers

Contract margins

Overhead costs

If actual results and expected cash flows vary adversely from the minimum forecasted (to a material extent), and additional funding was not then secured, that could impact the company's ability to continue to trade as a going concern.

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 wholly owned companies within the group.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses for the year. The key sources of estimation uncertainty are as follows:

Depreciation and amortisation of tangible and intangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The expected lives of assets and their residual values are assessed regularly and may vary depending on a number of factors including asset life cycles, maintenance programmes etc.

Contract accounting

When determining the amount to include as amounts recoverable on contracts and thereby the amount of profit to recognise on individual contracts, factors such as the stage of completion and forecasted outturn of the contract are taken into account.

Impairment of debtors and contract balances

Trade debtors and contract balances are reviewed for evidence of impairment. Factors considered are ageing, past recovery, customer creditworthiness and the stage and expected outcome of any recovery proceedings.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Groundworks, Hard/Soft Landscaping Contracts and Civil Engineering Works:

When the outcome of a contract can be estimated reliably, contract costs and turnover are recognised by reference to stage of completion at the balance sheet date. Stage of completion is measured by reference to current and projected contract costs and expected sales value, while taking into consideration cash certified at the reporting date.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss was recognised as an expense immediately with a corresponding provision.

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.

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Government grants

Government grants relating to revenue expenditure are recognised in the statement of income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation

Taxation for the year comprises current and deferred tax.

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

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 or the lease term, whichever is 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 makes payments to defined contribution pension schemes on behalf of employees. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable for the year are charged in the statement of income and retained earnings.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Employee benefits

Where employees have rendered service to the company, short term benefits (including holiday pay) to which the employees are entitled are recognised at the amount expected to be paid in exchange for that service.

3.

TURNOVER

The turnover and loss (2024 - profit) 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

£

£

Groundwork & civil engineering

20,306,192

16,031,807

20,306,192

16,031,807

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

20,306,192

16,031,807

20,306,192

16,031,807

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

5,367,436

4,554,328

Social security costs

605,345

483,399

Other pension costs

99,878

85,081

6,072,659

5,122,808

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

2025

2024

Production

107

92

Administration

22

18

129

110

2025

2024

£

£

Directors' remuneration

190,029

260,231

Directors' pension contributions to money purchase schemes

2,642

2,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

5.	OPERATING (LOSS)/PROFIT

2025

2024

£

£

Depreciation - tangible fixed assets

362,486

297,784

Profit on disposal of fixed assets

(800

)

(49,867

)

Auditor's remuneration

16,000

16,000

Government and other grant income

(83,663

)

(40,585

)

Cost of stock recognised as an expense

7,374,145

5,642,686

Operating leases

78,613

72,306

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

HMRC PAYE interest

1,421

-

HMRC corporation tax interest

48

-

Hire purchase

20,221

16,241

21,690

16,241

7.

TAXATION

Analysis of the tax (credit)/charge

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

2025

2024

£

£

Current tax:

UK corporation tax

951

49,986

Loss relief claimed

(50,936

)

-

Total current tax

(49,985

)

49,986

Deferred tax

(80,109

)

55,933

Tax on (loss)/profit

(130,094

)

105,919

UK corporation tax has been charged at 25% (2024 - 25%).

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

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

2025

2024

£

£

(Loss)/profit before tax

(550,851

)

428,016

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

(137,713

)

107,004

Effects of:

Expenses not deductible for tax purposes

6,012

4,998

Adjustments to tax charge in respect of previous periods

952

-

Relief re employment related securities

-

(5,375

)

Marginal relief

655

(708

)

Total tax (credit)/charge

(130,094

)

105,919