REGISTERED NUMBER: 14709182 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

FAVSCO 23 LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

Mr N A Favas

Mr W J Wetherell

Mr K Beastall

REGISTERED OFFICE:

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

REGISTERED NUMBER:

14709182 (England and Wales)

AUDITORS:

Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

The directors present the Strategic Report together with the audited financial statements for the period ended 31 December 2025.

REVIEW OF BUSINESS

The principal activities of the company during the period was that of residential property estate agency, and residential letting and property management.

The results for the company as set out on page 11 show a pre-tax profit of £2,542,148.

The Sales Market had recovered in 2024, from a lull in 2023, and the business was able to build still further on this in 2025 with an additional 4% increase in total Listing fees, and a further 9% increase in Net Sales fees. The level of sales falling through were 5% lower than the prior year. The average fee value of each sale also rose again, being 5% higher than 2024. March saw the temporary lifting of Stamp Duty end, resulting in a rush on sales exchanging, which in that one month were 77% higher than March 24. Even though this March spike saw a significant emptying of the sales pipeline, strong Sales throughout the year meant the pipeline was still able to finish some 7% higher than Dec 24, which bodes well for the 2026 financial year.

Landlords having already experienced the headwind of increased taxation and legislation, then had the added pressure of the proposed Renters Rights Act start to solidify before achieving Royal Accent in October 2025. Even though this further subdued many landlords from entering the field, or expanding their portfolios, business strategies were applied that resulted in a 7% increase in revenue from lettings compared to prior year. Demand from tenants remained strong and a shortage of available properties for rent, continued to create upwards pressure on market rents.

The acquisition of a lettings book in August 2025 added to some of the improved lettings result, and further acquisitions remain part of a central lettings strategy for 2026. A fresh income stream introduced during the year, that was in addition to the 7% year on year growth, was that of offering a simple utilities and media package to tenants, which approximately 20% opt to take up. 2025 also saw the 5 year EICR cycle of tests and certification anniversary, which started to boost activity and income from the mid-year, and will run for 12 months, thus bringing a similar benefit to 2026 income.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company recognises that successfully managing its risks is essential to support its activities. The board regularly assesses the key risks facing the business and strategies for mitigating those risks.

The principal risks facing the Company and the strategies for mitigating those risks is set out below:

Residential Sales Market

The housing market in the UK has ties to the overall performance of the UK economy, which is cyclical in nature. It is also heavily affected by customer sentiment. The outlook for the housing market is good, and predictions of a Base Rate cut and mortgage products becoming more affordable, will help with consumer confidence. The America introducing tariffs around the world did little to dampen activity. Continued talk of anything of a Cost of Living crisis has done little to dissuade Sellers and Buyers, who may well be feeling the benefit of Living Wage increases and generally affordable mortgage rates. The value of fees in the Sales Agreed pipeline carried forward into 2026 provide a solid starting point for the coming year. The Company continues to create a strong balance between the residential business, the residential lettings and property management business, and the referral income for related financial services. This balance should lessen the impact of any future instability in the housing market.

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

Lettings and Property Management

Whilst Legislative changes, namely the Renters Rights Act, has led to some Landlords undertaking a commercial review as to whether or not they should continue letting or sell their existing property(ies) ahead of any changes coming in to force, this may also lead landlords that rent properties on a DIY basis, to seek the help and support provided when using an agent to Let and Manage their portfolios. When increased legislation was introduced in Wales (Rent Smart Wales), a significant number of Landlords opted away from managing their own properties, and instead appoint an agent to do so on their behalf. Our sole Welsh office (Rhyl), saw the largest percentage growth of its fully managed portfolio of any of our 46 offices.

A revision of fees relating to lettings are ready for the impact of the Renters Right Act in 2026 to ensure they are appropriate for when the Bill passes into law, and the business is poised to overcome, and take advantage, of the changes. The acquisition of a Lettings business(es) is also a key objective to help grow the managed lettings portfolio.

Employee Retention Risk

The Company is heavily reliant on the skills, motivation and training of its people and therefore a key risk to the business is the loss of experienced and skilled employees, especially at a time when the UK labour market means there is a shortage of these people available.

The Company has once again increased basic salaries, taking into account another increase in the Living Wage. Our own in-house Trainer provides individual personal development and clear progression routes through the business for employees, to ensure that experienced and skilled employees are retained.

Rewards and incentives continue, including a £1,000 monthly prize draw for those gaining a 5 star review in the month, top performers away day, dinner and overnight stays. The reduction in archaic, outdated, lengthy opening times over bank holidays and festive periods has been well received, and December 2025 saw each of the circa 350 employee receive a personal Christmas Hamper from the Directors.

Cashflow

Due to the unpredictable nature of the sales market and the high level of fixed cost within the Company, cashflow is a significant risk area should the sales market suffer a sudden and unexpected downturn. The Company mitigates this risk by ensuring a strong balance between revenue streams and maintaining a strong bank balance.

GOING CONCERN

The directors have reviewed the forecasts for the 2026 and 2027 financial years, including performing stress testing for unexpected market conditions, such as a 10% reduction in residential sales in 2027 against 2026 full year projections, and are confident that the business will continue to trade profitably for the foreseeable future.

The cash position of the company is strong and the Directors do not believe that obtaining additional financing will be problematic should the need arise

FINANCIAL KEY PERFORMANCE INDICATORS

The Directors hold monthly board meetings where the Company performance is discussed in detail. The most significant KPI's that are monitored in the business are shown in the table below:

2025

2024

Revenue

£22,189,240

£20,179,626

Net profit before tax

£2,542,148

£1,457,231

ON BEHALF OF THE BOARD:

Mr N A Favas - Director

17 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of residential property estate agency, and residential letting and property management.

DIVIDENDS

An Interim Dividend of £271.93 per on the Ordinary A Shares 1,140 was paid in the reporting period.

An Interim Dividend of £250 per on the Ordinary B Shares 360 was paid in the reporting period.

An Interim Dividend of £490 per on the Ordinary C Shares 500 was paid in the reporting period.

The total distributions for the year ended 31 December 2025 will be £645,000.

DIRECTORS

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

Mr N A Favas

Mr W J Wetherell

Mr K Beastall

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, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr N A Favas - Director

17 August 2026

Opinion

We have audited the financial statements of Favsco 23 Ltd (the 'company') for the year ended 31 December 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 31 December 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 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 five, 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:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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.

Thomas Smart (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

17 August 2026

TURNOVER

3

22,189,240

20,179,626

Cost of sales

(3,118,643

)

(3,106,493

)

GROSS PROFIT

19,070,597

17,073,133

Administrative expenses

(16,554,006

)

(15,625,217

)

OPERATING PROFIT

5

2,516,591

1,447,916

Interest receivable and similar income

25,557

-

2,542,148

1,447,916

Interest payable and similar expenses

6

-

9,315

PROFIT BEFORE TAXATION

2,542,148

1,457,231

Tax on profit

7

(652,061

)

(358,652

)

PROFIT FOR THE FINANCIAL YEAR

1,890,087

1,098,579

PROFIT FOR THE YEAR

1,890,087

1,098,579

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,890,087

1,098,579

FIXED ASSETS

Intangible assets

9

314,306

-

Tangible assets

10

438,110

300,203

752,416

300,203

CURRENT ASSETS

Debtors

11

1,201,732

1,165,920

Cash at bank

2,820,132

1,700,582

4,021,864

2,866,502

CREDITORS

Amounts falling due within one year

12

(2,311,869

)

(1,970,885

)

NET CURRENT ASSETS

1,709,995

895,617

TOTAL ASSETS LESS CURRENT LIABILITIES

2,462,411

1,195,820

PROVISIONS FOR LIABILITIES

15

(96,555

)

(75,051

)

NET ASSETS

2,365,856

1,120,769

CAPITAL AND RESERVES

Called up share capital

16

2,000

2,000

Retained earnings

17

2,363,856

1,118,769

SHAREHOLDERS' FUNDS

2,365,856

1,120,769

The financial statements were approved by the Board of Directors and authorised for issue on 17 August 2026 and were signed on its behalf by:

Mr N A Favas - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

20,190

21,190

Changes in equity

Issue of share capital

1,000

-

1,000

Total comprehensive income

-

1,098,579

1,098,579

Balance at 31 December 2024

2,000

1,118,769

1,120,769

Changes in equity

Dividends

-

(645,000

)

(645,000

)

Total comprehensive income

-

1,890,087

1,890,087

Balance at 31 December 2025

2,000

2,363,856

2,365,856

Cash flows from operating activities

Cash generated from operations

1

2,314,635

1,155,285

Interest paid

-

9,315

Tax paid

(311,868

)

-

Net cash from operating activities

2,002,767

1,164,600

Cash flows from investing activities

Purchase of intangible fixed assets

(328,500

)

-

Purchase of tangible fixed assets

(194,907

)

(229,112

)

Interest received

25,557

-

Net cash from investing activities

(497,850

)

(229,112

)

Cash flows from financing activities

New loans in year

328,500

-

Loan repayments in year

(77,867

)

(300,000

)

Equity dividends paid

(636,000

)

-

Net cash from financing activities

(385,367

)

(300,000

)

Increase in cash and cash equivalents

1,119,550

635,488

Cash and cash equivalents at beginning of year

2

1,700,582

1,065,094

Cash and cash equivalents at end of year

2

2,820,132

1,700,582

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

2025

2024

£

£

Profit before taxation

2,542,148

1,457,231

Depreciation charges

107,694

42,476

Finance costs

-

(9,315

)

Finance income

(25,557

)

-

2,624,285

1,490,392

Increase in trade and other debtors

(44,812

)

(445,061

)

(Decrease)/increase in trade and other creditors

(264,838

)

109,954

Cash generated from operations

2,314,635

1,155,285

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 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

2,820,132

1,700,582

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,700,582

1,065,094

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

1,700,582

1,119,550

2,820,132

1,700,582

1,119,550

2,820,132

Debt

Debts falling due within 1 year

-

(250,633

)

(250,633

)

-

(250,633

)

(250,633

)

Total

1,700,582

868,917

2,569,499

1.	STATUTORY INFORMATION

Favsco 23 Ltd is a private company, limited by shares, registered in England and Wales. The companies registered number is 14709182 and the registered office address is 5 Brooklands Place, Brooklands Road, Sales, M33 3SD.

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 directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognsed 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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Trade debtor recoverability

Amounts recoverable on trade debtors are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The directors make estimates as to the recoverability of these debts and provide for them accordingly.

Turnover

Revenue from the exchange fees in the residential sales business is recognised by reference to the legal exchange date of the housing transaction. Revenue from the supply or surveying and valuation services is recognised upon the completion of the professional survey or valuation by the surveyor, and therefore at a point in time. Revenue from lettings, asset management and conveyancing services is recognised on completion of the service being provided, and therefore at a point in time. In the case of lettings and asset management services, revenue is recognised monthly once the Company has materially satisfied its performance obligations, such as the collection of rent.

Goodwill

Goodwill relates to the amount paid in connection with the acquisition of a property letting business in 2025, which is being amortised evenly over its estimated useful economic life of 3 yeas.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

Short leasehold - 10% on cost

Fixtures and fittings - 33% reducing balance

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

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

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

Basic financial assets, which include trade debtors, other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade creditors, other creditors, amounts owed to group undertakings and directors loan accounts that are classified as debt, 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.

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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.

Going concern

At the balance sheet date of 31 December 2025, the company made a profit for the year of £1,890,087 and had net assets at that date of £2,365,856. The directors consider that the company has sufficient working capital to enable it to continue to trade and meet its liabilities as they fall due for at least the next twelve months from the date of approval of the financial statements.

The directors have reviewed the forecasts for the 2026 and 2027 financial years, including performing stress testing for unexpected market conditions, and are confident that the business will continue to trade profitably for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements for the year ended 31 December 2025.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

22,189,240

20,179,626

22,189,240

20,179,626

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

9,683,294

9,323,138

Social security costs

1,129,951

914,997

Other pension costs

301,831

398,472

11,115,076

10,636,607

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

2025

2024

Employees

324

342

Directors

3

3

327

345

2025

2024

£

£

Directors' remuneration

244,706

313,726

Directors' pension contributions to money purchase schemes

12,533

7,813

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

96,681

133,423

Pension contributions to money purchase schemes

4,750

3,250

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Other operating leases

962,380

766,509

Depreciation - owned assets

57,000

42,475

Goodwill amortisation

50,694

-

Auditors remuneration

20,600

20,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other loan interest

-

(9,315

)

7.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

630,557

311,993

Deferred tax

21,504

46,659

Tax on profit

652,061

358,652

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:

2025

2024

£

£

Profit before tax

2,542,148

1,457,231

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

635,537

364,308

Effects of:

Expenses not deductible for tax purposes

(12,221

)

767

Capital allowances in excess of depreciation

-

(46,659

)

Depreciation in excess of capital allowances

7,241

-

Utilisation of tax losses

-

(6,423

)

Deferred tax movement

21,504

46,659

Total tax charge

652,061

358,652

8.

DIVIDENDS

An Interim Dividend of £271.93 per on the Ordinary A Shares 1,140 was paid in the reporting period.

An Interim Dividend of £250 per on the Ordinary B Shares 360 was paid in the reporting period.

An Interim Dividend of £490 per on the Ordinary C Shares 500 was paid in the reporting period.

The total distributions for the year ended 31 December 2025 will be £645,000.