REGISTERED NUMBER: 10663299 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 August 2025

for

The Clay Oven Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

V K Khanna

Mrs V Khanna

N Khanna

REGISTERED OFFICE:

Garlands

Sandy Lane

Northwood

Middlesex

HA6 3ER

REGISTERED NUMBER:

10663299 (England and Wales)

AUDITORS:

Prestons

Chartered Accountants

Statutory Auditors

364-368 Cranbrook Road

Gants Hill

Ilford

Essex

IG2 6HY

The directors present their strategic report of the company and the group for the year ended 31 August 2025.

REVIEW OF BUSINESS

The principal activities of the Group during the year were event catering and hotel operations.

The Group continued to provide event catering, hospitality, accommodation, conferences, weddings and associated services during the year.

Group turnover increased to £6.20 million from £6.12 million in the previous year. Operating profit decreased to £367,047 from £467,048. After finance costs and taxation, the Group reported a loss for the year of £292,869 compared with a loss of £290,410 in the previous year.

At 31 August 2025, the Group had shareholders' funds of £7.41 million compared with £7.70 million at 31 August 2024.

KEY FINANCIAL PERFORMANCE INDICATORS

The Group's key financial performance indicators during the year were as follows:

2025

2024

£

£

Turnover (continuing operations)

6,200,480

6,124,889

Operating profit

367,047

467,048

Loss after tax

(292,869

)

(290,410

)

Shareholder's funds

7,408,270

7,701,139

NON-FINANCIAL PERFORMANCE INDICATORS

Management of human resources

The directors hold regular meetings with key management employees to ensure that matters relating to employees are identified and addressed promptly. The Group continues to focus on employee retention, training and operational efficiency.

Customer service

The Group seeks to maintain a high standard of service to both corporate and private customers, with particular emphasis on the quality of the customer experience across its event catering and hotel operations.

Brand awareness

The Group continues to develop and promote its brands within its principal markets.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors regularly review the principal risks facing the Group and the effectiveness of the Group's risk-management processes.

The Group operates in competitive hospitality and event-catering markets and is exposed to increases in food, energy, labour and other operating costs. The directors seek to mitigate these risks through regular monitoring of margins, costs and pricing.

The Group is also exposed to interest-rate movements through its borrowing arrangements. The directors monitor financing costs, cash resources and compliance with lending arrangements on an ongoing basis.

Customer and supplier relationships are monitored regularly and appropriate credit-control procedures are maintained.

ON BEHALF OF THE BOARD:

N Khanna - Director

27 August 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 August 2025.

DIRECTORS

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

V K Khanna

Mrs V Khanna

N Khanna

FINANCIAL MANAGEMENT

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on bank overdrafts and loans.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

N Khanna - Director

27 August 2026

Opinion

We have audited the financial statements of The Clay Oven Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 August 2025 and of the group's loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the parent 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 group or the parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, having regard to the nature of the Group's activities in event catering, hospitality and the operation of a hotel and events venue.

We obtained an understanding of the legal and regulatory framework applicable to the Group, including the Companies Act 2006, UK tax legislation, employment law, health and safety requirements and other laws and regulations relevant to the Group's operations.

We discussed with management how the Group ensures compliance with relevant laws and regulations and considered whether there were any known or suspected instances of non-compliance.

We assessed the susceptibility of the financial statements to material misstatement, including fraud, with particular regard to revenue recognition, stock valuation, property valuations, related-party transactions, financing arrangements, management estimates and the risk of management override of controls.

Our audit procedures included testing journal entries and other adjustments, reviewing significant and unusual transactions, considering the business rationale for transactions outside the normal course of business, reviewing relevant correspondence with regulatory authorities where available and assessing the appropriateness of accounting policies, estimates and related disclosures.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with International Standards on Auditing (UK).

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.

Anwer Patel BA (Hons) FCA, BFP (Senior Statutory Auditor)

for and on behalf of Prestons

Chartered Accountants

Statutory Auditors

364-368 Cranbrook Road

Gants Hill

Ilford

Essex

IG2 6HY

27 August 2026

TURNOVER

6,200,480

6,124,889

Cost of sales

2,707,563

2,828,540

GROSS PROFIT

3,492,917

3,296,349

Administrative expenses

3,427,525

3,330,406

65,392

(34,057

)

Other operating income

301,655

501,105

OPERATING PROFIT

5

367,047

467,048

Interest receivable and similar income

61,954

6,906

429,001

473,954

Interest payable and similar expenses

6

579,712

736,846

LOSS BEFORE TAXATION

(150,711

)

(262,892

)

Tax on loss

7

142,158

27,518

LOSS FOR THE FINANCIAL YEAR

(292,869

)

(290,410

)

Loss attributable to:

Owners of the parent

(292,869

)

(290,410

)

LOSS FOR THE YEAR

(292,869

)

(290,410

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(292,869

)

(290,410

)

Total comprehensive income attributable to:

Owners of the parent

(292,869

)

(290,410

)

FIXED ASSETS

Tangible assets

9

10,724,656

11,445,835

Investments

10

130,000

130,000

Investment property

11

7,730,813

7,730,813

18,585,469

19,306,648

CURRENT ASSETS

Stocks

12

63,954

68,706

Debtors

13

2,923,826

2,888,002

Cash at bank and in hand

2,560,058

2,468,083

5,547,838

5,424,791

CREDITORS

Amounts falling due within one year

14

2,676,214

2,723,329

NET CURRENT ASSETS

2,871,624

2,701,462

TOTAL ASSETS LESS CURRENT LIABILITIES

21,457,093

22,008,110

CREDITORS

Amounts falling due after more than one year

15

(12,121,196

)

(12,379,344

)

PROVISIONS FOR LIABILITIES

18

(1,927,627

)

(1,927,627

)

NET ASSETS

7,408,270

7,701,139

CAPITAL AND RESERVES

Called up share capital

19

200,100

200,100

Retained earnings

20

7,208,170

7,501,039

SHAREHOLDERS' FUNDS

7,408,270

7,701,139

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2026 and were signed on its behalf by:

N Khanna - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

200,100

200,100

Investment property

11

-

-

200,100

200,100

TOTAL ASSETS LESS CURRENT LIABILITIES

200,100

200,100

CAPITAL AND RESERVES

Called up share capital

19

200,100

200,100

SHAREHOLDERS' FUNDS

200,100

200,100

Company's profit for the financial year

-

-

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2026 and were signed on its behalf by:

N Khanna - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

200,100

7,791,449

7,991,549

Changes in equity

Total comprehensive income

-

(290,410

)

(290,410

)

Balance at 31 August 2024

200,100

7,501,039

7,701,139

Changes in equity

Total comprehensive income

-

(292,869

)

(292,869

)

Balance at 31 August 2025

200,100

7,208,170

7,408,270

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

200,100

-

200,100

Changes in equity

Balance at 31 August 2024

200,100

-

200,100

Changes in equity

Balance at 31 August 2025

200,100

-

200,100

Cash flows from operating activities

Cash generated from operations

1

1,279,360

873,032

Interest paid

(579,712

)

(736,846

)

Tax paid

(23,359

)

(98,083

)

Net cash from operating activities

676,289

38,103

Cash flows from investing activities

Purchase of tangible fixed assets

(169,659

)

(332,953

)

Sale of tangible fixed assets

-

1,139

Interest received

61,954

6,906

Net cash from investing activities

(107,705

)

(324,908

)

Cash flows from financing activities

New loans in year

-

809,907

Loan repayments in year

(276,854

)

(237,300

)

Capital repayments in year

(16,294

)

(57,019

)

Amount introduced by directors

45,000

-

Amount withdrawn by directors

(228,461

)

(194,222

)

Net cash from financing activities

(476,609

)

321,366

Increase in cash and cash equivalents

91,975

34,561

Cash and cash equivalents at beginning of year

2

2,468,083

2,433,522

Cash and cash equivalents at end of year

2

2,560,058

2,468,083

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

31.8.25

31.8.24

£

£

Loss before taxation

(150,711

)

(262,892

)

Depreciation charges

890,837

950,954

Profit on disposal of fixed assets

-

(1,139

)

Finance costs

579,712

736,846

Finance income

(61,954

)

(6,906

)

1,257,884

1,416,863

Decrease in stocks

4,752

2,135

Increase in trade and other debtors

(55

)

(738,704

)

Increase in trade and other creditors

16,779

192,738

Cash generated from operations

1,279,360

873,032

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 August 2025

31/8/25

1/9/24

£

£

Cash and cash equivalents

2,560,058

2,468,083

Year ended 31 August 2024

31/8/24

1/9/23

£

£

Cash and cash equivalents

2,468,083

2,433,522

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/9/24

Cash flow

At 31/8/25

£

£

£

Net cash

Cash at bank and in hand

2,468,083

91,975

2,560,058

2,468,083

91,975

2,560,058

Debt

Finance leases

(17,842

)

16,294

(1,548

)

Debts falling due within 1 year

(60,000

)

20,000

(40,000

)

Debts falling due after 1 year

(12,378,051

)

256,855

(12,121,196

)

(12,455,893

)

293,149

(12,162,744

)

Total

(9,987,810

)

385,124

(9,602,686

)

1.	STATUTORY INFORMATION

The Clay Oven Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 10663299 and registered office address is Garlands, Sandy Lane, Northwood, Middlesex, United Kingdom, HA6 3ER.

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, modified to include investment property at fair value and, where applicable, financial instruments measured at fair value in accordance with FRS 102.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of The Clay Oven Group Limited and its subsidiary undertakings, The Clay Oven UK Limited and Denham Grove Hotel Limited, made up to 31 August 2025.

Subsidiary undertakings are consolidated from the date on which control is obtained by the Group and cease to be consolidated from the date on which control ceases.

The financial statements of the Group entities are prepared using consistent accounting policies for like transactions and other events in similar circumstances. Where necessary, adjustments are made on consolidation to achieve consistency of accounting policies.

All intra-group balances, transactions, income and expenses and unrealised gains and losses arising from intra-group transactions are eliminated on consolidation.

Group reconstruction

The Group was established through the insertion of The Clay Oven Group Limited as the holding company of entities which were under common control before and after the reconstruction.

The group reconstruction was accounted for using the merger accounting method in accordance with FRS 102. Accordingly, the assets and liabilities of the combining entities were incorporated into the consolidated financial statements at their existing carrying values, subject to adjustments necessary to achieve uniformity of accounting policies. No goodwill arose as a consequence of the group reconstruction.

Business combinations which do not qualify as group reconstructions are accounted for using the purchase method from the date on which control passes to the Group.

Turnover

Turnover represents the fair value of consideration receivable for goods and services supplied by the Group in the ordinary course of business, net of discounts and value added tax.

Revenue from event catering and associated services is recognised as the relevant event or service is provided.

Revenue from hotel accommodation is recognised over the period in which accommodation is provided. Revenue from food and beverage sales is recognised when the goods are supplied to the customer. Revenue from conferences, weddings, venue hire and related services is recognised as the contracted services are provided.

Rental income arising from investment property is recognised over the period to which the rental income relates and is presented within other operating income.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land

Nil

Freehold buildings

2% per annum straight line

Leasehold improvements

7 years straight line

Plant and equipments

7 years straight line

Fixtures and fittings

7 years straight line

Motor vehicles

3 years straight line

Tangible assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Investment property

The Group's investment property is stated at fair value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.

Financial instruments

Financial instruments are recognised in the Group's balance sheet when it becomes party to the contractual provisions of the instrument. The group has elected to apply the provisions of Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade debtors, amounts owed by group undertakings and cash at bank, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. They are subsequently measured at amortised cost, less any provision for impairment. Financial assets are assessed for impairment at each reporting date. Any impairment loss is recognised in profit or loss.

Basic financial liabilities, including trade creditors, bank loans, other loans, finance lease obligations and amounts owed to group undertakings, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. They are subsequently measured at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less.

Debtors and creditors receivable/ payable within one year

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

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 and assets which are held at valuation. 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

The Group provides a range of benefits to employees, including short-term benefits such as salaries and paid holiday arrangements.

Going concern

The directors have prepared and reviewed cash flow forecasts for a period of at least twelve months from the date of approval of these financial statements. These forecasts take account of expected trading performance, working capital requirements, available financing facilities, scheduled loan repayments and the wider economic environment in which the Group operates.

The Group had net current assets of £2.87m at 31 August 2025. The directors have assessed the Group’s financial position and liquidity and, after making appropriate enquiries, have not identified any material uncertainties that may cast significant doubt on the group’s ability to continue as a going concern.

On this basis, the directors are satisfied that the group has adequate resources to continue in operational existence for the foreseeable future and have therefore adopted the going concern basis of accounting in preparing these financial statements.

3.	CRITICAL ACCOUNTING JUDGEMENTS

The following are the judgements (apart from those involving estimation) that have had the most significant effect on the amounts recognised in the financial statements:

Assessment of control and consolidation

Judgement is applied in determining whether the group exercises control over certain entities in accordance with FRS 102 Section 9.

Valuation of stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Provisions are made for slow-moving and obsolete stock based on historical experience, current sales trends and future demand expectations. Changes in customer demand or product lines could result in additional provisions.

Impairment of trade receivables

The Group assesses receivables for impairment based on expected recoverability. Provisions are determined using historical loss experience, ageing analysis and specific knowledge of customer circumstances.

Useful economic lives of tangible fixed assets

Depreciation is charged over the estimated useful economic lives of assets. These estimates are reviewed annually and may be adjusted where technological changes or operational factors indicate a change in expected usage.

Deferred tax

Deferred tax assets and liabilities are recognised in respect of timing differences. Estimation is required in determining the probability of recovery of deferred tax assets and the measurement of liabilities based on enacted tax rates.

4.	EMPLOYEES AND DIRECTORS

31.8.25

31.8.24

£

£

Wages and salaries

2,149,981

2,031,464

Social security costs

109,740

115,798

Other pension costs

24,865

26,434

2,284,586

2,173,696

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

31.8.25

31.8.24

Operational and management

86

92

31.8.25

31.8.24

£

£

Directors' remuneration

60,000

60,000