REGISTERED NUMBER: SC373245 (Scotland)

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 28 February 2026

for

Davis Track Hire Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit & Loss Account

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:

T Davis

J B Davis

SECRETARY:

J B Davis

REGISTERED OFFICE:

103a Main Street

Newmains

Wishaw

ML2 9BG

REGISTERED NUMBER:

SC373245 (Scotland)

AUDITORS:

Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

The directors present their strategic report for the year ended 28 February 2026.

The purpose of the strategic report is to inform members of the company and help them to assess how the directors have performed their duty under section 172 (duty to promote the success of the company).

REVIEW OF BUSINESS

The directors are satisfied with the performance of the company in the financial year under review which continue the positive results of recent years.

Turnover for the year increased to £12,218,887 (2025 - £11,402,228) reflecting a 7.2% increase. Overall gross profit

rose to £6,986,915 (2025 - £6,569,232) reflecting a gross margin of 57.2% (2025 - 57.6%).

Distribution costs rose by £22,967 to £221,050 (2025 - £198,083). Administrative expenses of £2,975,887 (2025 - £3,053,021) were incurred, equating to a decrease of 2.53%. A gain on disposal of £529,961 was realised for the sale of plant & machinery in the year (2025 - £146,156).

Pre-tax profit for the year rose to £3,270,166 (2025 - £2,827,625) reflecting a 15.7% increase on the previous year.

Going forward, the directors are confident that the strong financial position at the year end as reflected in these financial statements stands the company in good stead for continued performance and growth. The net assets position has increased significantly in the year, whilst profits earned are re-invested in the business, with a total capital spend in the year in excess of £3.75m.

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks and uncertainties facing the business relate mainly to the overall economic factors such as the Iran and Ukraine conflicts, inflation, or US tariffs. Whilst these are not industry specific concerns, there is notable potential for these factors to negatively affect the economy as a whole. In addition, as the company grows, reinvestment is required, leading to potential liquidity and cash flow risks. These are the main risks facing the company.

The investment made and growth opportunities being pursued are indicative of the pro-active approach adopted by management whilst maintaining a diverse range of customers across a range of industries - this has enabled the company to successfully meet its stated objectives.

Financial and cash flow risk is considered & managed carefully due to significant reinvestment being made into operations. This is managed with the assistance of financial reporting and forecasts which are reviewed regularly in light of subsequent events. The management team look to retain a level of reserves sufficient to meet ongoing liabilities whilst simultaneously growing the business.

The directors consider that the company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities. Consequently, the company does not enter into any formally designated hedging arrangements.

These are the most significant risks that may adversely affect business strategy, financial position or future performance. Senior management meet regularly to identify risk factors which may affect the business, evaluating the risk of these materialising and the financial or strategic impact of such events, in order to apply relevant and effective mitigating factors.

ON BEHALF OF THE BOARD:

J B Davis - Director

5 August 2026

The directors present their report with the financial statements of the company for the year ended 28 February 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply and installation of temporary tracks or roads.

DIVIDENDS

Interim dividends per share were paid as follows:

£4,984

- 31 March 2025

£4,071

- 30 April 2025

£5,018

- 31 May 2025

£4,484

- 30 June 2025

£14,571

- 31 July 2025

£10,518

- 31 August 2025

£34,071

- 30 September 2025

£2,500

- 31 October 2025

£3,000

- 30 November 2025

£4,000

- 28 February 2026

£87,217

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 28 February 2026 will be £ 872,170 .

FUTURE DEVELOPMENTS

The company plans to continue developing and investing in its operations in order to continue growing whilst maintaining the high levels of service provided to customers that have led to performance seen in recent years.

DIRECTORS

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

T Davis

J B Davis

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Gillespie & Anderson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J B Davis - Director

5 August 2026

Opinion

We have audited the financial statements of Davis Track Hire Ltd (the 'company') for the year ended 28 February 2026 which comprise the Profit & Loss Account, 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 28 February 2026 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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:

Our approach and assessment were as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

Enquire of management and review supporting documentation concerning the company's policies and procedures relating to:

- identify, evaluate and comply with laws and regulations and their awareness of any instances of non-compliance;

- detect and respond to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud;

- internal controls established to mitigate risks related to, unusual items, fraud or non-compliance with laws and regulations.

Obtain an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006 and Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", together with health and safety regulations, money laundering regulations, employment legislation and data protection legislation.

Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

Review all Minutes of Meetings of those charged with governance, reports and correspondence with HMRC and legal advisers.

Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents.

Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations.

To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters which we are required to address

Comparative information in the financial statements is derived from the company's prior period financial statements

which were not audited.

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.

Alun Johnstone BAcc CA (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

5 August 2026

TURNOVER

3

12,218,887

11,402,228

Cost of sales

5,231,972

4,832,996

GROSS PROFIT

6,986,915

6,569,232

Distribution costs

221,050

198,083

Administrative expenses

2,975,887

3,053,021

3,196,937

3,251,104

3,789,978

3,318,128

Other operating income

11,808

11,808

OPERATING PROFIT

5

3,801,786

3,329,936

Interest receivable and similar income

852

342

3,802,638

3,330,278

Interest payable and similar expenses

6

532,472

502,653

PROFIT BEFORE TAXATION

3,270,166

2,827,625

Tax on profit

7

1,063,003

703,960

PROFIT FOR THE FINANCIAL YEAR

2,207,163

2,123,665

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,207,163

2,123,665

FIXED ASSETS

Tangible assets

9

13,065,503

11,251,693

Investment property

10

936,400

373,050

14,001,903

11,624,743

CURRENT ASSETS

Debtors

11

1,808,793

1,517,456

Cash at bank and in hand

716,092

870,943

2,524,885

2,388,399

CREDITORS

Amounts falling due within one year

12

3,800,876

3,570,116

NET CURRENT LIABILITIES

(1,275,991

)

(1,181,717

)

TOTAL ASSETS LESS CURRENT LIABILITIES

12,725,912

10,443,026

CREDITORS

Amounts falling due after more than one year

13

(3,476,527

)

(3,591,637

)

PROVISIONS FOR LIABILITIES

17

(3,107,773

)

(2,044,770

)

NET ASSETS

6,141,612

4,806,619

CAPITAL AND RESERVES

Called up share capital

18

10

10

Retained earnings

19

6,141,602

4,806,609

SHAREHOLDERS' FUNDS

6,141,612

4,806,619

The financial statements were approved by the Board of Directors and authorised for issue on 5 August 2026 and were signed on its behalf by:

J B Davis - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2024

10

3,452,274

3,452,284

Changes in equity

Profit for the year

-

2,123,665

2,123,665

Total comprehensive income

-

2,123,665

2,123,665

Dividends

-

(769,330

)

(769,330

)

Balance at 28 February 2025

10

4,806,609

4,806,619

Changes in equity

Profit for the year

-

2,207,163

2,207,163

Total comprehensive income

-

2,207,163

2,207,163

Dividends

-

(872,170

)

(872,170

)

Balance at 28 February 2026

10

6,141,602

6,141,612

Cash flows from operating activities

Cash generated from operations

1

4,940,110

4,283,466

Interest paid

(29,051

)

(59,803

)

Interest element of hire purchase payments paid

(503,421

)

(442,850

)

Net cash from operating activities

4,407,638

3,780,813

Cash flows from investing activities

Purchase of tangible fixed assets

(3,752,685

)

(3,201,267

)

Purchase of investment property

(563,350

)

-

Sale of tangible fixed assets

663,300

535,450

Interest received

852

342

Net cash from investing activities

(3,651,883

)

(2,665,475

)

Cash flows from financing activities

Loan repayments in year

(283,115

)

(358,355

)

Capital repayments in year

237,479

333,371

Amount introduced by directors

1,375,292

744,405

Amount withdrawn by directors

(1,368,092

)

(744,387

)

Equity dividends paid

(872,170

)

(769,330

)

Net cash from financing activities

(910,606

)

(794,296

)

(Decrease)/increase in cash and cash equivalents

(154,851

)

321,042

Cash and cash equivalents at beginning of year

2

870,943

549,901

Cash and cash equivalents at end of year

2

716,092

870,943

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

2026

2025

(Unaudited)

£

£

Profit before taxation

3,270,166

2,827,625

Depreciation charges

1,805,539

1,435,465

Profit on disposal of fixed assets

(529,961

)

(146,156

)

Finance costs

532,472

502,653

Finance income

(852

)

(342

)

5,077,364

4,619,245

Increase in trade and other debtors

(291,337

)

(386,080

)

Increase in trade and other creditors

154,083

50,301

Cash generated from operations

4,940,110

4,283,466

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 28 February 2026

28.2.26

1.3.25

£

£

Cash and cash equivalents

716,092

870,943

Year ended 28 February 2025

28.2.25

1.3.24

(Unaudited)

£

£

Cash and cash equivalents

870,943

549,901

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.3.25

Cash flow

At 28.2.26

£

£

£

Net cash

Cash at bank and in hand

870,943

(154,851

)

716,092

870,943

(154,851

)

716,092

Debt

Finance leases

(5,760,887

)

(237,479

)

(5,998,366

)

Debts falling due within 1 year

(277,395

)

267,288

(10,107

)

Debts falling due after 1 year

(167,254

)

15,824

(151,430

)

(6,205,536

)

45,633

(6,159,903

)

Total

(5,334,593

)

(109,218

)

(5,443,811

)

1.	STATUTORY INFORMATION

Davis Track Hire Ltd 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 presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

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.

The financial statements are prepared on the going concern basis of accounting as, in the opinion of the directors, there are no matters of material uncertainty which cast doubt on the company's ability to continue.

Significant judgements and estimates

In preparing the financial statements, management are required to make judgements, estimates and assumptions, based on historical experience and other relevant factors. Actual results may differ from these best estimates, which are reviewed on an ongoing basis.

The significant items in the financial statements where these judgements are required (and the factors in play) include debtors (likelihood of recovery), fixed assets (depreciation rates & useful lives), and the going concern basis of accounting.

Turnover

Turnover derived from ordinary activities is measured at the fair value of consideration received or receivable and represents the net sales of goods (excluding value added tax, sales discounts and rebates) after adjusting for work in progress.

Such turnover is recognised when the company becomes entitled to the income concerned and when the outcome of the transaction can be reliably measured. This occurs when:

- the company has transferred to the buyer the significant risks and rewards of ownership of the goods;

- the company no longer retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- it is probable that the economic benefits associated with the transaction will flow to the company; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably

In respect of contracts for on-going services, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Turnover in respect of contracts for on-going services is recognised by reference to the value of costs incurred for the period, making allowances for future uncertainties and warranty works.

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.

Plant and machinery

-

25% on cost, 20% on reducing balance, 20% on cost and 6.67% on cost

Fixtures and fittings

-

33% on reducing balance and 25% on reducing balance

Motor vehicles

-

33.3% on cost and 25% on reducing balance

Factors such as a change in how an asset is used, significant unexpected wear and tear, technological advancement, and changes in market prices may indicate that the residual value or useful life of an asset has changed since the most recent annual reporting date. If such indicators are present, the company will review its previous estimates and, if current expectations differ, amend the residual value, depreciation method or useful life, accounting for such revisions as a change in an accounting estimate in accordance with FRS 102.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Financial instruments

The company has no complex financial instruments but does hold basic financial instruments of cash at bank, debtors and creditors.

Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities.

Trade and other debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effect of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts.

Trade and other creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit & Loss Account, 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.

Employee benefits

The total cost of employee benefits to which employees have become entitled as a result of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate.

Provision for liabilities

A provision is initially recognised when there is an obligation at the balance sheet as the result of a past event, it is probable that there will be a transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

4.	EMPLOYEES AND DIRECTORS

2026

2025

(Unaudited)

£

£

Wages and salaries

2,534,462

2,150,888

Social security costs

315,055

214,510

Other pension costs

58,447

52,339

2,907,964

2,417,737

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

2026

2025

(Unaudited)

69

57

2026

2025

(Unaudited)

£

£

Directors' remuneration

49,000

46,602

5.	OPERATING PROFIT

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

2026

2025

(Unaudited)

£

£

Hire of plant and machinery

8,792

83,272

Depreciation - owned assets

408,315

281,388

Depreciation - assets on hire purchase contracts

1,397,221

1,154,076

Profit on disposal of fixed assets

(529,961

)

(146,156

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

(Unaudited)

£

£

Bank loan interest

29,051

59,803

Hire purchase

499,851

439,430

Leasing

3,570

3,420

532,472

502,653

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2026

2025

(Unaudited)

£

£

Deferred tax

1,063,003

703,960

Tax on profit

1,063,003

703,960

Reconciliation of total tax 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:

2026

2025

(Unaudited)

£

£

Profit before tax

3,270,166

2,827,625

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

817,542

706,906

Effects of:

Expenses not deductible for tax purposes

8,610

2,657

Capital allowances in excess of depreciation

(620,095

)

(458,867

)

Utilisation of tax losses

(315,334

)

(278,517

)

Tax on capital gains

109,277

27,821

Increase in deferred tax provision

1,063,003

703,960

Total tax charge

1,063,003

703,960

8.

DIVIDENDS

2026

2025

(Unaudited)

£

£

Ordinary shares of £1 each

Interim

872,170

769,330