REGISTERED NUMBER: 05120063 (England and Wales)

Strategic report, report of the director and

Financial statements for the year ended 31st October 2025

For

Premier Logistics(UK)Limited

Page

Company information

1

Strategic report

2

Report of the director

4

Report of the independent auditors

6

Income statement

10

Balance sheet

11

Statement of changes in equity

12

Cash flow statement

13

Notes to the cash flow statement

14

Notes to the financial statements

15

DIRECTOR:

L P Christopher

REGISTERED OFFICE:

Premier House

Beveridge Lane

Bardon

Leicester

Leicestershire

LE67 1TA

REGISTERED NUMBER:

05120063 (England and Wales)

AUDITORS:

Ark&Co Ltd - Statutory Auditors

The Maltings

2 Anderson Rd

Bearwood

Birmingham

West Midlands

B66 4AR

I am pleased to present our strategic report for the year ending 31st October 2025. This report outlines our performance, challenges, and opportunities as well as our strategies for the future.

REVIEW OF BUSINESS

PERFORMANCE

The business has demonstrated resilient growth this year with turnover increasing to £13,122,507 (2024; £12,216,645). The resulting gross profit margin was £3,591,224 (27.4%) compared to 2024's £3,708,359 (30.4%).

Key expenses have been well controlled resulting in a profit before taxation of £205,272 (1.6%) compared to the 2024 result of £351,661 (2.9%). Whilst this represents a decrease in profit percentage, it reflects ongoing investment in our fleet and infrastructure to support future growth.

The company's balance sheet continues to strengthen with net assets at the year end increasing to £3,108,956 (2024: £3,052,389). Working capital has been effectively managed with careful attention to cash flow throughout the year.

We continue to make operational efficiencies through improved fleet management and fuel consumption optimisation. Our investment in newer, more fuel-efficient vehicles is yielding returns through reduced maintenance costs and improved driver retention.

Capital expenditure was focused primarily on motor vehicles and trailers which are necessary to support operations.

During the year the company invested in new fixed assets at a cost of £4,572,943 (2024; £1,132,211). The company's commitment to fleet renewal has enabled it to effectively manage its average MPG and achieve further reduction in maintenance costs, supporting both operational efficiency and our environmental goals.

We have consistently received positive feedback from our customers for our quality of service, which remains a key differentiator in our competitive market.

PRINCIPAL RISKS AND UNCERTAINTIES

As a logistics company, continued risks and uncertainties remain:

Fuel costs continue to represent a significant expense (£1,461,699 in 2025 compared to £1,319,578 in 2024). Volatility in fuel prices could impact profitability if increases cannot be passed on to customers. To mitigate this risk the company incorporates appropriate fuel scale surcharges into its contracts.

HGV driver availability remains challenging in the sector, making it difficult to attract and retain sufficient experienced drivers, potentially impacting capacity and growth. The company endeavours to mitigate this risk through competitive remuneration, investment in driver training and use of agency staff as required.

The wider economic environment continues to create uncertainty that may influence customer spending patterns and supply chain dynamics. We remain flexible to changing customer needs.

DEVELOPMENT AND PERFORMANCE

Moving forward, we recognise these ongoing challenges and ensure that adequate systems and procedures are in place to ensure that the company continues to retain its strong position and is not adversely affected by these challenges. We are implementing enhanced digital solutions to improve route planning and load optimisation, which will further reduce fuel consumption and environmental impact.

We continue seeking opportunities for growth and development, with a particular focus on expanding our warehousing operations which showed strong potential this year. We will focus on deepening relationships with existing customers whilst targeting new sectors where our reputation for quality service and reliability can create competitive advantage.

KEY FINANCIAL PERFORMANCE INDICATORS

The key financial indicator for the company is the gross margin which was 27.4% (2024: 30.4%).

This is reviewed on a weekly and monthly basis to identify any corrective action required to maintain and improve performance. The slight reduction in margin reflects increased competition in the sector and some cost pressures that were not fully passed through to customers.

Other key indicators are the ongoing review of fleet profitability by careful management of fuel consumption and empty loads. Cashflow projections are prepared and reviewed on a weekly basis, with increased focus on debtor management following previous year's experience.

CONCLUSION

In conclusion, I am confident that Premier Logistics is well-positioned for success in the years ahead. We have a strong foundation, a proven track record of resilience, and a clear vision for the future. By remaining focused on our customers, continuing to invest in our fleet and technology, and developing our service offerings, we will continue to grow and adapt in this challenging and dynamic industry.

ON BEHALF OF THE BOARD:

L P Christopher - Director

31st July 2026

The director presents his report with the financial statements of the company for the year ended 31st October 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of warehousing, haulage and logistics.

DIVIDENDS

No interim dividends were paid during the year ended 31st October 2025.

The director recommends final dividends per share as follows:

Ordinary A & B £1 shares

£1,340

Ordinary C and D £1 shares

£18,935

The total distribution of dividends for the year ended 31st October 2025 will be £ 104,870 .

RESEARCH AND DEVELOPMENT

The company continues to invest in research and development in order to improve route and job planning.

DIRECTOR

L P Christopher held office during the whole of the period from 1st November 2024 to the date of this report.

DONATIONS

Non-political donations in the year amounted to £34,609 (2024: £20,922).

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic report, the Report of the director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Ark&Co Ltd - Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

L P Christopher - Director

31st July 2026

Opinion

We have audited the financial statements of Premier Logistics(UK)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 profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic report and the Report of the director, 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 director 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 director 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 director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of director's responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

As auditors, we have planned and performed our procedures and audit testing in a manner designed to identify and assess the risks of material misstatement due to fraud or error.

We gained an understanding of the legal and regulatory framework applicable to the Company and the haulage industry within which it operates, and considered the risk of acts by the Company that were not in line with the applicable laws and regulations, including fraud.

We understood how the Company is complying with those laws and regulations by:

- making enquiries of management concerning actual and potential litigation and claims. We corroborated our enquiries by obtaining an understanding of management's procedures relating to detecting and responding to the risks of fraud and whether they have any knowledge of any actual, suspected or alleged fraud;

- we performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluation of business rationale of material transactions outside the normal course of business;

- we reviewed accounting estimates for any bias;

- we reviewed in detail any fines, legal and professional expenses incurred along with correspondence with regulatory bodies to evaluate whether there were any instances of non-compliance: and

- we performed detailed audit testing in specific areas to ensure that income and expenditure is correctly recorded and is a genuine income or expense of the company.

Our audit procedures were designed to respond to risks of material misstatement of the financial statements, recognising that the risk of not detecting a materials 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulation is from the events and transactions reflected in financial statements, 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.

Gurnek Ark BCom FCA (Senior Statutory Auditor)

for and on behalf of Ark&Co Ltd - Statutory Auditors

The Maltings

2 Anderson Rd

Bearwood

Birmingham

West Midlands

B66 4AR

31st July 2026

TURNOVER

3

13,122,507

12,216,645

Cost of sales

9,531,283

8,508,286

GROSS PROFIT

3,591,224

3,708,359

Administrative expenses

3,188,092

3,245,338

OPERATING PROFIT

5

403,132

463,021

Interest receivable and similar income

9,441

25,779

412,573

488,800

Interest payable and similar expenses

7

207,301

137,139

PROFIT BEFORE TAXATION

205,272

351,661

Tax on profit

8

43,835

216,878

PROFIT FOR THE FINANCIAL YEAR

161,437

134,783

FIXED ASSETS

Intangible assets

10

152,449

238,583

Tangible assets

11

5,975,485

3,009,476

6,127,934

3,248,059

CURRENT ASSETS

Stocks

12

53,210

34,846

Debtors

13

3,945,803

3,148,634

Cash at bank

14

247,958

1,076,124

4,246,971

4,259,604

CREDITORS

Amounts falling due within one year

15

3,541,996

2,355,555

NET CURRENT ASSETS

704,975

1,904,049

TOTAL ASSETS LESS CURRENT LIABILITIES

6,832,909

5,152,108

CREDITORS

Amounts falling due after more than one year

16

(2,872,141

)

(1,291,742

)

PROVISIONS FOR LIABILITIES

19

(851,812

)

(807,977

)

NET ASSETS

3,108,956

3,052,389

CAPITAL AND RESERVES

Called up share capital

20

52

52

Capital redemption reserve

21

60

60

Retained earnings

21

3,108,844

3,052,277

SHAREHOLDERS' FUNDS

3,108,956

3,052,389

The financial statements were approved by the director and authorised for issue on 31st July 2026 and were signed by:

L P Christopher - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st November 2023

50

3,022,214

60

3,022,324

Changes in equity

Issue of share capital

2

-

-

2

Dividends

-

(104,720

)

-

(104,720

)

Total comprehensive income

-

134,783

-

134,783

Balance at 31st October 2024

52

3,052,277

60

3,052,389

Changes in equity

Dividends

-

(104,870

)

-

(104,870

)

Total comprehensive income

-

161,437

-

161,437

Balance at 31st October 2025

52

3,108,844

60

3,108,956

Cash flows from operating activities

Cash generated from operations

1

1,469,452

1,483,887

Interest paid

(23,080

)

(22,159

)

Interest element of hire purchase payments paid

(184,221

)

(114,980

)

Tax paid

(153,819

)

(198,982

)

Net cash from operating activities

1,108,332

1,147,766

Cash flows from investing activities

Purchase of tangible fixed assets

(4,572,943

)

(1,132,211

)

Sale of tangible fixed assets

599,465

269,167

Roundings

(1

)

-

Interest received

9,441

25,779

Net cash from investing activities

(3,964,038

)

(837,265

)

Cash flows from financing activities

Capital repayments in year

2,132,410

(133,337

)

Amount withdrawn by directors

-

(10,927

)

Share issue

-

2

Equity dividends paid

(104,870

)

(104,720

)

Net cash from financing activities

2,027,540

(248,982

)

(Decrease)/increase in cash and cash equivalents

(828,166

)

61,519

Cash and cash equivalents at beginning of year

2

1,076,124

1,014,605

Cash and cash equivalents at end of year

2

247,958

1,076,124

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

31/10/25

31/10/24

£

£

Profit before taxation

205,272

351,661

Depreciation charges

1,333,205

1,073,902

Profit on disposal of fixed assets

(239,601

)

(33,429

)

Finance costs

207,301

137,139

Finance income

(9,441

)

(25,779

)

1,496,736

1,503,494

(Increase)/decrease in stocks

(18,364

)

12,798

Increase in trade and other debtors

(797,169

)

(66,264

)

Increase in trade and other creditors

788,249

33,859

Cash generated from operations

1,469,452

1,483,887

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

247,958

1,076,124

Year ended 31st October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

1,076,124

1,014,605

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank

1,076,124

(828,166

)

247,958

1,076,124

(828,166

)

247,958

Debt

Finance leases

(2,065,736

)

(2,132,410

)

(4,198,146

)

(2,065,736

)

(2,132,410

)

(4,198,146

)

Total

(989,612

)

(2,960,576

)

(3,950,188

)

1.	STATUTORY INFORMATION

Premier Logistics(UK)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.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In categorising leases as finance operating leases the directors make a judgement as to whether significant risks and rewards of ownership have transferred to the company as lessee. Management refers to lease documentation to ensure correct treatment.

Key sources of estimation uncertainty - Tangible fixed assets' depreciation

The assessment of the useful economic lives and the method of depreciating tangible fixed assets requires judgement. Depreciation is charged to the statement of income based on the useful economic life selected, which requires an estimation of the period and profile over which the company expects to consume the future economic benefits embodied by the assets.

Estimate of useful economic lives and residual values are made by management based upon the fleet's actual operating condition, historical replacement cycles and the Company's own maintenance and disposal records.

Turnover

Revenue is recognised when all of the following criteria are met:

- The company has delivered goods or provided services to the customer.

- The price of the service is fixed and determinable.

- Collectibility of the payment is reasonably assured.

Haulage Revenue is recognised at the time the delivery is completed.

Revenue from storage services is recognised over time as services are provided. The company recognises revenue each month for the storage services provided during that month.

The company's payment terms vary depending on the customer and the type of service provided. The company recognises revenue when it is earned, regardless of whether payment has been received.

Contractual Arrangements: If the company has a contractual arrangement with a customer that specifies the terms and conditions of the services to be provided, revenue is recognised in accordance with the terms of the contract.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of the trading assets of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

The annual amortisation charge is £86,134. Net book value of Goodwill at 31 October 2025 was £152,449 (2024:£238,583)

The company tests goodwill for impairment at least annually or when there is an indication that the fair value of the asset acquired has decreased below its carrying value. Impairment is determined by comparing the fair value of the asset to its carrying value.

If the fair value of the asset is less than its carrying value, an impairment loss is recognised for the amount of the difference. The impairment loss reduces the carrying value of goodwill and is recorded as an expense in the income statement.

The company performed an impairment test during the current reporting period and no impairment loss was recorded.

During the current reporting period, the company did not make any acquisitions that required the recognition of goodwill.

Any future changes in the goodwill balance due to acquisitions or impairment losses will be disclosed in the notes to the financial statements for the period in which they occur.

Tangible fixed assets

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

Freehold property

-

not provided

Improvements to property

-

20% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

20% on cost and at varying rates on cost

Computer equipment

-

33% on reducing balance

Stocks

Stock comprises fuel stock used by the company vehicles and is not for re-sale.. Vehicle fuel stock is stated at cost on a FIFO basis.

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 amounts due from companies under common control 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets, other than those held at fair value through the statement of income, 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 the statement of income.

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 third 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 amounts due from companies under common control, 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.

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 carry back against previous years' profits / other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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 (2025 £83,400 and 2024 £105,212). At the year-end there were no amounts due to or from the pension scheme.