REGISTERED NUMBER: 07810668 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2025

FOR

ELMBRIDGE SUPPLIES COMPANY UK LTD

Page

Company information

1

Strategic report

2

Report of the directors

4

Report of the independent auditors

6

Statement of comprehensive income

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

16

Directors:

B Freeman

R Freeman

A Freeman

Secretary:

B Freeman

Registered office:

Unit 4a Davy Way

Gateway 12 Business Park

Gloucester

GL2 2BY

Registered number:

07810668 (England and Wales)

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

Review of business

The principal activity of the company is the sale of engineering supplies, industrial coatings and spray equipment.

Results & performance

The directors are pleased with the Company’s performance for the year ended 31 December 2025 and expect the business to continue these activities for the foreseeable future.

During the year, the Company achieved turnover of £15.7m, compared with £14.5m in the prior year, representing an increase of 8.3%. This growth has been achieved organically, as Elmbridge continues to execute its strategy of expanding both its customer base and the quality of its customer relationships. Trading conditions became more challenging as the year progressed, reflecting wider pressures within the construction industry.

Despite these headwinds, the Company improved its gross profit margin to 17.7%, compared with 16.7% in 2024. Administrative expenses were tightly controlled, and other operating income was maximised where possible.

As a result, profitability increased significantly, with profit rising from £144k in 2024 to £536k in 2025.

The Company has maintained a strong balance sheet, with net current assets of £915k (2024: £842k) and total net assets of £1.58m (2024: £1.51m).

The Company continues to progress its growth strategy and is planning the acquisition of a complementary business in early 2026.

Market & economic environment

Trading during the year was influenced by increasingly challenging economic conditions, including high interest rates, persistent inflation, labour shortages and an ongoing skills gap. Market conditions were mixed, with increased public sector investment offset by a slowdown in private sector activity.

Despite this environment, the Company continued to grow, supported by strong relationships with existing customers and success in acquiring new business.

Principal risks & uncertainties

The directors recognise a number of key risks and uncertainties that could impact future performance:

- Macroeconomic conditions: Prolonged inflation and reduced consumer confidence, potentially exacerbated by geopolitical tensions, may affect demand.

- Competition: Pressure from established competitors and new market entrants could impact margins.

- Operational risks: Dependence on key personnel, rising transport and fuel costs, and supply chain reliability.

- Regulatory changes: Future changes in policy or taxation may influence trading conditions.

The Company continues to monitor these risks closely and has implemented mitigation strategies, including maintaining a diversified customer base, investing in systems and people, and applying prudent financial management.

Key performance indicators

The Board monitors performance using a range of key performance indicators (KPIs), including:

- Revenue growth (current year: £15.7m, an increase of 8.3%)

- OTIF (on-time, in-full deliveries)

- Gross profit margin (%)

- EBITDA / operating profit margin (%)

- Customer retention and new customer acquisition

- Staff turnover and engagement

- Identification and development of growth opportunities

These KPIs demonstrate steady progress against the Company’s strategic objectives.

Future outlook & strategy

Looking ahead, the Company remains focused on:

- Expanding market share through investment in sales systems, personnel, marketing support, product innovation and product range expansion

- Enhancing customer experience and retention through improved UK-wide service capability and leveraging in-house expertise

- Separating ‘Capital Sales’ function to its own department to maximise current Pipeline of Opportunities

- Building organisational capability through staff development and cultural initiatives

- Maintaining disciplined financial management to support sustainable growth

- Pursuing future acquisition opportunities

While the wider economic environment remains uncertain, the directors are confident that the Company is well positioned to deliver continued growth and long-term shareholder value, supported by its expansion plans.

On behalf of the board:

B Freeman - Director

21st July 2026

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

Dividends

Interim dividends of £6,000 were paid in 4 equal instalments during the year.

Interim dividends of £150,000 were also paid in 2 instalments on 23rd April 2025 and 16th December 2025.

The directors recommend that no final dividend be paid on any shares.

The total distribution of dividends for the year ended 31st December 2025 will be £324,000.

Directors

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

B Freeman

R Freeman

A Freeman

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, Chris Duckett (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

B Freeman - Director

21st July 2026

Opinion

We have audited the financial statements of Elmbridge Supplies Company UK Ltd (the 'company') for the year ended 31st December 2025 which comprise the Statement of 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 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was 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;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industrial sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

-

understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

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, if any.

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.

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.

Chris Duckett (Senior Statutory Auditor)

for and on behalf of Chris Duckett (Audit) Limited

Chartered Accountants & Statutory Auditors

Network House

Thorn Office Centre

Rotherwas

Hereford

HR2 6JT

21st July 2026

Turnover

15,690,309

14,487,383

Cost of sales

12,919,455

12,065,844

Gross profit

2,770,854

2,421,539

Administrative expenses

2,243,687

2,234,920

527,167

186,619

Other operating income

32,681

8,505

Operating profit

5

559,848

195,124

Group loan written off

6

-

80,393

Impairment of investment

6

-

(107,053

)

559,848

168,464

Interest receivable & similar income

910

9

560,758

168,473

Interest payable & similar income

7

24,578

24,237

Profit before taxation

536,180

144,236

Tax on profit

8

135,405

41,000

Profit for the financial year

400,775

103,236

Other comprehensive income

-

-

Total comprehensive income for the year

400,775

103,236

Fixed assets

Intangible assets

10

35,625

40,000

Tangible assets

11

923,152

1,010,613

Investments

12

2

2

958,779

1,050,615

Current assets

Stocks

13

1,863,385

1,883,824

Debtors

14

2,016,218

1,842,847

Cash at bank and in hand

214,698

339,741

4,094,301

4,066,412

Creditors

Amounts falling due within one year

15

3,179,193

3,224,788

Net current assets

915,108

841,624

Total assets less current liabilities

1,873,887

1,892,239

Creditors

Amounts falling due after more than one year

16

(89,316

)

(160,443

)

Provisions for liabilities

18

(199,800

)

(223,800

)

Net assets

1,584,771

1,507,996

Capital and reserves

Called up share capital

19

222,222

222,222

Share premium

20

77,777

77,777

Retained earnings

20

1,284,772

1,207,997

Shareholders' funds

1,584,771

1,507,996

The financial statements were approved by the Board of Directors and authorised for issue on 21st July 2026 and were signed on its behalf by:

B Freeman - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st January 2024

222,222

1,128,761

77,777

1,428,760

Changes in equity

Dividends

-

(24,000

)

-

(24,000

)

Total comprehensive income

-

103,236

-

103,236

Balance at 31st December 2024

222,222

1,207,997

77,777

1,507,996

Changes in equity

Dividends

-

(324,000

)

-

(324,000

)

Total comprehensive income

-

400,775

-

400,775

Balance at 31st December 2025

222,222

1,284,772

77,777

1,584,771

Cash flows from operating activities

Cash generated from operations

1

533,770

376,997

Interest paid

(2,289

)

(616

)

Interest element of hire purchase payments paid

(22,289

)

(23,621

)

Tax paid

(13,905

)

-

Net cash from operating activities

495,287

352,760

Cash flows from investing activities

Purchase of tangible fixed assets

(247,964

)

(292,889

)

Purchase of fixed asset investments

-

(81,294

)

Sale of tangible fixed assets

84,000

87,666

Interest received

910

9

Net cash from investing activities

(163,054

)

(286,508

)

Cash flows from financing activities

Capital repayments in year

(181,728

)

(171,736

)

Movement in group balance

48,452

(194,208

)

Equity dividends paid

(324,000

)

(24,000

)

Net cash from financing activities

(457,276

)

(389,944

)

Decrease in cash and cash equivalents

(125,043

)

(323,692

)

Cash and cash equivalents at beginning of year

2

339,741

663,433

Cash and cash equivalents at end of year

2

214,698

339,741

1.	Reconciliation of profit before taxation to cash generated from operations

31.12.25

31.12.24

£

£

Profit before taxation

536,180

144,236

Depreciation charges

327,418

230,541

(Profit)/loss on disposal of fixed assets

(4,309

)

21,294

Impairment of investment

-

107,053

Finance costs

24,578

24,237

Finance income

(910

)

(9

)

882,957

527,352

Decrease/(increase) in stocks

20,439

(171,411

)

Increase in trade and other debtors

(167,415

)

(20,127

)

(Decrease)/increase in trade and other creditors

(202,211

)

41,183

Cash generated from operations

533,770

376,997

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 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

214,698

339,741

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

339,741

663,433

3.	Analysis of changes in net funds/(debt)

Other

non-cash

At 1.1.25

Cash flow

changes

At 31.12.25

£

£

£

£

Net cash

Cash at bank

and in hand

339,741

(125,043

)

214,698

339,741

(125,043

)

214,698

Debt

Finance leases

(332,792

)

181,728

(67,309

)

(218,373

)

(332,792

)

181,728

(67,309

)

(218,373

)

Total

6,949

56,685

(67,309

)

(3,675

)

1.	Statutory information

Elmbridge Supplies Company UK Ltd 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.

Preparation of consolidated financial statements

The financial statements contain information about Elmbridge Supplies Company UK Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, ESC Spinnaker Ltd, Unit 4a Davy Way, Gateway 12 Business Park, Gloucester, GL2 2BY.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013 and 2023, has been amortised evenly over the estimated useful life of five years. The goodwill has now been amortised in full for the acquisition in 2013.

Tangible fixed assets

Tangible fixed assets are stated in the balance sheet at cost less depreciation.

Depreciation is provided to write off the cost of tangible fixed assets over their estimated useful lives, or if held under a finance lease, over the lease term, whichever is the shorter.

The company previously applied the reducing balance method for depreciation of certain classes of assets. During the year, the company reviewed its depreciation policies and determined that the straight line method more accurately reflects the pattern of consumption of the economic benefits of these assets. The change has been applied prospectively and has not had a material impact on the financial statements. The rates used now are:

Plant & equipment

- 20%, 33% & 50% straight line

Motor vehicles

- 25% straight line

Fixtures, fittings & office equipment

- 20% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase & 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 the profit or loss on a straight line basis over the period of the lease.

Pension costs & 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.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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 receivables and cash and bank balances, are measured at transaction price less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at the cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after 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 assets original effective interest rate. The impairment loss is recognised in profit or loss.

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all of the risks and rewards of the 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 group after deducing all of its liabilities.

Basic financial liabilities, including trade and other payables are measured at the transaction price. Other financial liabilities, including bank loans, loans from fellow group companies and preference shares that are classified as debt, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

3.	Critical accounting judgements & key sources of estimation uncertainty

The following judgements and estimations have been made in the process of applying the company's accounting policies that have had the most significant effect on amounts recognised in the financial statements.

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 it affects only that period or in both current and future periods.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economical lives and residual values of the assets. These are assessed by the Directors on an annual basis.

4.	Employees (including officers)

31.12.25

31.12.24

£

£

Wages and salaries

1,946,380

1,651,229

Social security costs

231,015

155,762

Other pension costs

32,926

21,273

2,210,321

1,828,264