REGISTERED NUMBER: SC441561 (Scotland)

Strategic Report, Report of the Directors and

Audited Financial Statements

For The Year Ended 31 December 2025

for

Insulated Render Systems (Scotland) 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

15

DIRECTORS:

J A Collum

B Collum

A E Collum

A L Collum

REGISTERED OFFICE:

74 Glencraig Street

Airdrie

ML6 9AS

REGISTERED NUMBER:

SC441561 (Scotland)

AUDITORS:

Cahill Jack Associates Limited

Chartered Accountants and Statutory Auditors

91 Alexander Street

Airdrie

North Lanarkshire

ML6 0BD

BANKERS:

Virgin Money

Symington House

7-8 North Avenue

Clydebank

G81 2NT

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

The strategic report forms part of the company's annual accounts and copies are available from the registered office given on the company information page.

REVIEW OF BUSINESS

The directors consider the results for the year to be satisfactory and in line with expectations despite the challenging trading conditions resulting from global events.

Below is a summary of the main key performance indicators (KPIs) from the amounts included within the financial statements:

2025

2024

Gross Profit % age

16.67%

17.51%

Net Profit before tax % age

1.67%

7.66%

Turnover

£12.18m

£16.04m

Net profit before tax

£1.38m

£1.38m

Net asset value

£3.99m

£4.09m

Given the straightforward nature of the business, the directors are of the opinion that the KPIs above are sufficient to enable an understanding of the development, performance and position of the company. KPIs are continuously measured internally in order to monitor comparative efficiencies and to measure the results of implemented strategies.

Turnover decreased significantly as the company entered a development stage.. The gross profit fell slightly due to further increased costs relating to direct purchases and subcontractors fees.

The directors are confident that the company has sufficient resources to enable the company's operations to continue effectively.

Going Concern

The company meets its day-to-day working capital requirements through its cash reserves. The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash reserves.

The directors have carried out a going concern assessment using forecasts across a period to the end of 2026. These forecasts include both a base case and a severe but plausible downside scenario. Across the forecast period, the company is forecast in both scenarios to be profitable and cash generative in aggregate. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months following the date of approval of the financial statements and that the company is well placed to manage business risks successfully despite the current uncertain economic outlook. The company has a strong balance sheet and is not reliant on long term bank borrowings. The financial statements have been prepared on a going concern basis.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. The key risks affecting the company are set out below:-

Competition

The company operates in a highly competitive market, particularly in respect of pricing and services availability and quality. This results in not only constant pressure on margins but also in the risk that the company may fall short of customers' expectations. In order to mitigate this risk the directors and managers ensure that the company continually monitors market prices and routinely undertakes quality control procedures in order to ensure that customer expectations are fully met. They also maintain a constant programme of innovation within the professional expertise and services offered to customers as well as regular development meetings with customers to ensure their satisfaction in the quality of service supplied.

Employees

The company's performance depends largely on the experience of its managers and staff. The loss of key individuals or the inability to recruit people with the right level of experience and skills could adversely impact on the financial performance. In order to mitigate these risks they have introduced a programme for employees to enhance continuous learning and skills improvements and has implemented an incentive scheme designed to retain key individuals.

Services provision

Given the company's focus on service availability and quality it continually monitors available services within the market plus the demands and requirements of its customers. The company retains staff of a specialist nature who regularly attend training courses both in house and externally. This ensures the required level of expertise is maintained to ensure the quality and variety of services expected by its customers.

FINANCIAL RISK MANAGEMENT

Credit and price risk

Company policies are aimed at minimising any potential exposure and require that deferred terms are only offered where customers demonstrate an appropriate payment history and satisfy credit worthiness procedures. Credit limits are subject to regular review to ensure that limits remain appropriate to the circumstances of each customer.

Liquidity risk

The company aims to mitigate liquidity risk by managing cash generations from its operations. The company also manages liquidity risk via revolving credit facilities.

Interest rate and cash flow risk

The company also uses short term deposit to ensure cash availability throughout the year.

ON BEHALF OF THE BOARD:

B Collum - Director

6 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 supply and fit of insulation related products.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £255,838 (Year 2024 - £288,100).

FUTURE DEVELOPMENTS

The company intends to continue expanding and is continually adapting its business plan to changes within the business sector.

DIRECTORS

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

J A Collum

B Collum

A E Collum

A L Collum

POLITICAL DONATIONS AND EXPENDITURE

The company made donations of £2,363 during the year.

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 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 company's auditors are aware of that information.

AUDITORS

The auditors, Cahill Jack Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B Collum - Director

6 August 2026

Opinion

We have audited the financial statements of Insulated Render Systems (Scotland) Ltd. (the 'company') for the year ended 31 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 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 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.

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

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity through communication with management and determined the most significant regulations included employment law, tax legislation, data protection laws, health and safety, bribery and corruption practices, and the Companies Act 2006.

Identified laws and regulations that were considered to have a possible direct material effect on the financial statements or the operations of the company, were communicated with the audit team who were instructed to remained alert for instances of non-compliance throughout the audit. We also ensured that the team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with these laws and regulations by questioning management and those charged with governance and corroborated by review of board minutes, HMRC correspondence and regulatory bodies.

We also assessed the risks of material misstatement in respect of fraud through enquiries of management and those charged with governance augmented by discussions with the audit team at pre audit meetings. This included an assessment of internal controls used to mitigate risks of fraud. Audit procedures were also designed to identify the main areas of weakness and address any possible material misstatements in relation to fraud.

We also considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.

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.

Antony Fraser (Senior Statutory Auditor)

Cahill Jack Associates Limited Cahill Jack Associates Limited

Chartered Accountants and Statutory Auditors

91 Alexander Street

Airdrie

North Lanarkshire

ML6 0BD

6 August 2026

TURNOVER

12,181,580

18,036,661

Cost of sales

10,151,428

14,879,020

GROSS PROFIT

2,030,152

3,157,641

Distribution costs

44,472

47,483

Administrative expenses

1,784,806

1,718,799

1,829,278

1,766,282

200,874

1,391,359

Other operating income

10,500

5,000

OPERATING PROFIT

4

211,374

1,396,359

Interest receivable and similar income

820

899

212,194

1,397,258

Interest payable and similar expenses

5

9,322

15,008

PROFIT BEFORE TAXATION

202,872

1,382,250

Tax on profit

6

40,825

349,663

PROFIT FOR THE FINANCIAL YEAR

162,047

1,032,587

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

162,047

1,032,587

FIXED ASSETS

Tangible assets

8

368,898

421,162

Investments

9

-

165,098

368,898

586,260

CURRENT ASSETS

Stocks

10

40,120

29,550

Debtors

11

3,310,473

4,360,816

Cash at bank and in hand

1,921,646

1,212,259

5,272,239

5,602,625

CREDITORS

Amounts falling due within one year

12

1,550,413

1,967,286

NET CURRENT ASSETS

3,721,826

3,635,339

TOTAL ASSETS LESS CURRENT LIABILITIES

4,090,724

4,221,599

CREDITORS

Amounts falling due after more than one year

13

(34,663

)

(65,807

)

PROVISIONS FOR LIABILITIES

17

(61,126

)

(67,066

)

NET ASSETS

3,994,935

4,088,726

CAPITAL AND RESERVES

Called up share capital

18

4,000

4,000

Retained earnings

19

3,990,935

4,084,726

SHAREHOLDERS' FUNDS

3,994,935

4,088,726

The financial statements were approved by the Board of Directors and authorised for issue on 6 August 2026 and were signed on its behalf by:

B Collum - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

4,000

3,340,239

3,344,239

Profit for the year

-

1,032,587

1,032,587

Total comprehensive income

-

1,032,587

1,032,587

Dividends

-

(288,100

)

(288,100

)

Total transactions with owners, recognised directly in equity

-

(288,100

)

(288,100

)

Balance at 31 December 2024

4,000

4,084,726

4,088,726

Profit for the year

-

162,047

162,047

Total comprehensive income

-

162,047

162,047

Dividends

-

(255,838

)

(255,838

)

Total transactions with owners, recognised directly in equity

-

(255,838

)

(255,838

)

Balance at 31 December 2025

4,000

3,990,935

3,994,935

Cash flows from operating activities

Cash generated from operations

1

1,340,266

240,671

Interest paid

(335

)

(4,499

)

Interest element of hire purchase and finance lease rental payments paid

(8,987

)

(10,509

)

Tax paid

(396,557

)

(117,674

)

Net cash from operating activities

934,387

107,989

Cash flows from investing activities

Purchase of tangible fixed assets

(179,702

)

(70,084

)

Sale of tangible fixed assets

98,591

10,401

Sale of fixed asset investments

160,000

-

Interest received

820

899

Net cash from investing activities

79,709

(58,784

)

Cash flows from financing activities

Loan repayments in year

(10,000

)

(10,000

)

Capital repayments in year

(39,347

)

(55,916

)

Amount introduced by directors

476

-

Amount withdrawn by directors

-

(14,632

)

Equity dividends paid

(255,838

)

(288,100

)

Net cash from financing activities

(304,709

)

(368,648

)

Increase/(decrease) in cash and cash equivalents

709,387

(319,443

)

Cash and cash equivalents at beginning of year

2

1,212,259

1,531,702

Cash and cash equivalents at end of year

2

1,921,646

1,212,259

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

31.12.25

31.12.24

£

£

Profit before taxation

202,872

1,382,250

Depreciation charges

113,130

146,165

Loss on disposal of fixed assets

25,343

12,724

Finance costs

9,322

15,008

Finance income

(820

)

(899

)

349,847

1,555,248

(Increase)/decrease in stocks

(10,570

)

49,005

Decrease/(increase) in trade and other debtors

1,050,343

(718,748

)

Decrease in trade and other creditors

(49,354

)

(644,834

)

Cash generated from operations

1,340,266

240,671

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

1,921,646

1,212,259

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,212,259

1,531,702

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

1,212,259

709,387

1,921,646

1,212,259

709,387

1,921,646

Debt

Hire purchase and finance leases

(128,646

)

39,347

(89,299

)

Debts falling due within 1 year

(10,000

)

2,500

(7,500

)

Debts falling due after 1 year

(7,500

)

7,500

-

(146,146

)

49,347

(96,799

)

Total

1,066,113

758,734

1,824,847

1.	STATUTORY INFORMATION

Insulated Render Systems (Scotland) Ltd. is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Significant judgements and estimates

The preparation of financial information in compliance with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The directors have identified the following areas which give rise to estimation uncertainty:

1) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and any residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account.

2) Valuation of stock and work in progress use estimations of recoverable amounts based on recent sales for items included within stock. Comparison of estimated net realisable value with written down costs may give rise to changes in values of stock reported in the accounts.

3) Debtors recoverability: For any balance considered irrecoverable, provision is made against the debtor. The remaining debtor balance at the year end not provided for, is therefore considered fully recoverable.

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 and in any future periods affected.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding trade discounts, value added tax and any other sales taxes The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from sale of goods is recognised when all of the following conditions are satisfied:

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

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction;

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

Rendering of services

Revenue from agreement to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the agreement.

Tangible fixed assets

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

Plant and machinery

-

20% on reducing balance

Motor vehicles

-

33% on cost

Computer equipment

-

33% on reducing balance

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

Land and buildings is comprised of freehold property. Buildings are depreciated using a straight line method. Land is not depreciated. Depreciation on other assets, is calculated using a reducing balance method to allocate the cost less the residual values over their estimated useful lives. The estimated useful lives and residual values are reviewed annually and revised as appropriate. Estimations are evidenced by previous disposal made by the company during current and prior accounting periods.

The company adds to the carrying amount of an item of fixed asset the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. Any carrying amount of the replaced part is written off. Repairs and maintenance are charged to the profit and loss during the year in which they are incurred except for any parts unused at the year end.

Asset residual values, useful lives and depreciation methods of relevant assets are reviewed, and adjusted prospectively if appropriate. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and recognised in the profit and loss during the year of disposal.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete, damaged and slow moving items.

Stock and work in progress comprises of various costs of items and consumables used in the performance of the company's trading activity. Estimated values are reviewed annually and revised as appropriate taking into account any trading during current and prior accounting periods.

Financial instruments

Trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, bank loans, directors' loans and forward currency contracts (derivatives).

Any bank loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. Trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. They are measured at fair value. Gains and losses arising from changes in the fair value of derivative financial instruments are included in the profit or loss in the period in which they arise.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss.

Any borrowing costs are recognised in the profit and loss account in the year in which they are incurred.

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.

Hire purchase and leasing commitments

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Assets purchased under hire purchase agreement contracts are capitalise and show as assets on the balance sheet with the related liability shown in creditors. Capital repayments are deducted from this balance abd interest charge to the profit and loss when paid.

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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than 3 months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Share capital and dividends

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividend distributions to the company’s shareholders are recognised in the profit and loss account when they have been paid.

3.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

1,348,754

1,236,151

Social security costs

173,439

134,737

Other pension costs

22,880

22,001

1,545,073

1,392,889