REGISTERED NUMBER: 03619863 (England and Wales)

Litecast Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 August 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

Directors:

J Leroux

B A Cooper

E Sutcliffe

Secretary:

J Leroux

Registered office:

Purley Chase Estate

Pipers Lane

Ansley Common

Nuneaton

CV10 0RG

Registered number:

03619863 (England and Wales)

Auditors:

Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

Bank:

NatWest Bank PLC

250 Bishopsgate

London

EC2M 4AA

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

Fair review of the business

The business remains in a period of debt reduction following the delays and increased construction costs for the factory, the build of which was delayed significantly by the pandemic. Working capital remains limited and strict credit controls are in place with customer as a result. This lack of working capital is restricting growth, as our ability to trade with companies who are unwilling (or unable) to settle their invoices promptly is severely limited.

This strict policy invariably continues to have an impact on sales, but conversely ensures the debtor book remains impeccable and the company has only suffered £5K bad debts in the last 4 financial years (0.00001%).

Principal risks and uncertainties

The biggest concern to the business continues to be the overall debt and interest rates, with the total cost of interest exceeding £750k in the year.

The demand from the housing market was stable in the period but remains circa 30-40% below where it needs to be to meet the national supply of pre-stressed flooring. The move towards improved insulation in new-builds definitely playing to our strengths.

Customer concentration remains of no concern with no single client comprising more than 10% of turnover.

Development and performance

The directors remain committed to the ethos of providing the best quality product in the market, backed by industry-leading levels of service and lead-times. The company's determination to reduce its carbon footprint has seen significant investment in recent years, the benefits of which has not yet been capitalised on with limited budget for a large-scale re-branding and marketing exercise.

Energy costs for the period were lower than they were 10 years ago thanks to the extensive investment in renewable energy, battery storage of the excess solar power and replacement of older diesel vehicles with new, electric models.

The launch of the new "wide-beam" product in December 2024 has meant the company is able to cater for longer spans without needing to use the deeper and more expensive 225mm deep beams. Sales of the Wide Beam product hit almost £1M in the 9 months of the period it was manufactured.

Key performance indicators

Sales increased by almost 20% as a result of a combination of the addition of the wide beam product, a general softening of gross margins on the 150mm narrow beam and an overall increase in the volume of EPS (polystyrene) being sold with the floor beams.

Gross margins reduced from 29% (FY24) to 28% (FY25) primarily due to this increase in the volume of EPS panels and the reduced margin on those products, which are primarily merchanted but not handled.

Administrative costs and overheads remained incredibly consistent once again with an increase of just 2% which was mainly due to repairs to factory equipment.

Production efficiency is monitored monthly and productivity is measured by "Linear Metres of product cast per Hour of productive labour worked" and this KPI improved by 20% from FY24 to FY25 - an indication of the hard work in the factory.

Future developments

The company has spent the last couple of years improving its production and back-office efficiency and is now in a position to soften the pricing without adversely affecting the gross margin of the product. As such, the focus is shifting towards to renewing the relationships with some of the higher volume clients that were lost during the difficult transition period of the factory relocation.

The company disposed of its investments properties after the period and reduced the debt-service costs appreciably, improving working capital and allowing the build up of stock over the Winter, something that was previously difficult with the limited working capital.

On behalf of the board:

J Leroux - Director

27 August 2026

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

Principal activity

The principal activity of the company continued to be the manufacture of flooring products.

Dividends

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

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Directors

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

J Leroux

B A Cooper

E Sutcliffe

Financial instruments

The Company uses various financial instruments which include cash, loans and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations.

The existence of these financial instruments exposes the Company to a number of financial risks, which are described in more detail below.

Market prices

The majority of purchases (raw materials and finished products) are procured from within the UK, with a small amount of raw materials being sourced from the EU. In order to mitigate the risk of disruption and currency fluctuations the Directors will secure exchange rates at time of ordering and spread the orders between UK and EU based suppliers.

Liquidity risk

The Company is constantly reviewing its liquidity and the decision was made post year-end to issue new share capital in Litecast Limited's immediate parent, Litecast Holdings Limited in order increase working capital in the business. A shareholder loan has also been provided to the Company. The business is still reviewing disposal of non-business-critical investment assets but has not received suitable offers at the time of filing.

Interest rate risk

The Bank of England base rate rose sharply during the prior period and with Company debt on variable rates. This meant the interest expense incurred during the year was appreciably higher than projected. With rates expected to stay high for some time, bank interest is one of the highest expenses the business will be subject to until such time as the debt is reduced or interest rates soften

Credit risk

The Company utilises a comprehensive credit-control system which incorporates live automated credit checks from two different credit reference agencies prior to each delivery. Any changes to the clients’ credit limit will prevent a delivery from taking place until the credit report is reviewed by a member of the finance team. As a result of this tight control on customer credit accounts, the Company has not suffered any bad debts for 3 full financial years.

Going concern

The directors have prepared a cash flow forecast for the Company covering the period from the date of approval of

these financial statements through to 31 August 2027. This assessment considers the current trading position,

availability of debt facilities and future prospects in relation to the Company's ability to meet its liabilities over a

period of at least 12 months from the date of signing these financial statements.

The Company is funded via a combination of banking, finance leases, supplier facilities, director and shareholder

funding. At the date of this report, the Company has secured refinancing in December 2025 and therefore these new facilities will be in place within the period of the going concern assessment.

In addition, the shareholders and directors have guaranteed and agreed not to receive any payment should the

Company require this from a cashflow perspective, which they have demonstrated post year end.

Based upon the Company's anticipated outcome of the matters described above, the current level of

trading and the cash flows expected to be generated, the directors have continued to prepare the financial

statements on a going concern basis.

Statement of directors' responsibilities

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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, Menzies LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

J Leroux - Director

27 August 2026

Opinion

We have audited the financial statements of Litecast Limited (the 'company') for the year ended 31 August 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 August 2025 and of its 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 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 planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.

Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include:

-

Discussing with Directors and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities;

-

Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally;

-

Assessing the risk of management override and review and testing of journal entries made into the accounting system;

-

Challenging assumptions and judgements made by the company in relation to the significant accounting estimates employed in the preparation of the financial statements;

-

Discussing with Directors and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non compliance.

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.

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.

Clive Edwards (Senior Statutory Auditor)

for and on behalf of Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

28 August 2026

Turnover

12,081,713

10,233,694

Cost of sales

(8,704,686

)

(7,319,050

)

Gross profit

3,377,027

2,914,644

Administrative expenses

(3,249,376

)

(3,179,879

)

127,651

(265,235

)

Other operating income

368,607

341,974

Operating profit

496,258

76,739

Gain/loss on revaluation of assets

-

489,528

496,258

566,267

Interest payable and similar expenses

4

(770,587

)

(739,471

)

Loss before taxation

5

(274,329

)

(173,204

)

Tax on loss

6

57,956

365,014

(Loss)/profit for the financial year

(216,373

)

191,810

Other comprehensive income

-

-

Total comprehensive income for the year

(216,373

)

191,810

Fixed assets

Tangible assets

8

9,655,675

9,660,193

Investment property

9

5,635,000

5,635,000

15,290,675

15,295,193

Current assets

Stocks

10

390,872

363,262

Debtors

11

2,149,294

1,662,995

Cash at bank

5,927

9,799

2,546,093

2,036,056

Creditors

Amounts falling due within one year

12

(12,606,572

)

(11,534,655

)

Net current liabilities

(10,060,479

)

(9,498,599

)

Total assets less current liabilities

5,230,196

5,796,594

Creditors

Amounts falling due after more than one year

13

(1,114,879

)

(1,406,948

)

Provisions for liabilities

17

(61,399

)

(119,355

)

Net assets

4,053,918

4,270,291

Capital and reserves

Called up share capital

18

200

200

Retained earnings

4,053,718

4,270,091

Shareholders' funds

4,053,918

4,270,291

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:

J Leroux - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

200

4,078,281

4,078,481

Changes in equity

Total comprehensive income

-

191,810

191,810

Balance at 31 August 2024

200

4,270,091

4,270,291

Changes in equity

Total comprehensive income

-

(216,373

)

(216,373

)

Balance at 31 August 2025

200

4,053,718

4,053,918

1.	Statutory information

Litecast Limited 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.

Going concern

The directors have prepared a cash flow forecast for the Company covering the period from the date of approval of these financial statements through to 31 August 2027. This assessment considers the current trading position, availability of debt facilities and future prospects in relation to the Company’s ability to meet its liabilities over a period of at least 12 months from the date of signing these financial statements. Based on this assessment, the Directors believe the going concern basis remains appropriate.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key judgements

The directors believe there are no critical judgements (apart from those involving estimates) that will have a significant effect on amounts recognised in the financial statements.

Key sources of estimation uncertainty

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

Depreciation and residual value

The assessment of the useful economic lives and the method of depreciating tangible fixed assets requires judgement. Depreciation is charged to the statement of income and retained earnings based on the useful economic life selected, which requires an estimation of the period and profile over which the Company expects to consume the future economic benefits embodied in the assets. The depreciation charge for the year was £739,732 (2024: £754,959) and the carrying value of tangible fixed assets was £9,655,675 (2024:£9,660,193).

Investment property

Investment properties are stated at their fair value. In order to determine the fair value of the investment properties the directors have a valuation performed at each year end by a relevantly qualified firm of Chartered Surveyors, who are not connected with the Company, who utilise various assumptions based on historical experience and current trends. The assumptions used in the valuation are sensitive to external factors and changes to those assumptions could affect the valuation of the investment properties. The valuations are made on an open market value basis by reference to market evidence of transaction prices for similar properties, further details of which can be found in note 8. At the year end the carrying value of investment properties was £5,635,000 (2024: £5,635,000).

Turnover

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

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

20%-25% reducing balance or lease period

Freehold land is not depreciated.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially

recognised at cost, which includes the purchase cost and any directly attributable expenditure.

Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Stocks

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

3.	Employees and directors

2025

2024

as restated

£

£

Wages and salaries

2,095,832

2,240,997

Social security costs

216,112

209,824

Other pension costs

87,530

54,121

2,399,474

2,504,942

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

2025

2024

as restated

Productive Labour

45

45

Office

24

22

Consultants

7

6

Directors

3

3

79

76

2025

2024

as restated

£

£

Directors' remuneration

273,466

278,525

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

as restated

£

£

Emoluments etc

122,798

124,595

The directors are considered to be the key management personal. There are no other key management personnel in the year ended 31 August 2025.

4.

Interest payable and similar expenses

2025

2024

as restated

£

£

Bank interest

660,985

645,918

Other interest

-

5,931

Hire purchase

109,602

87,622

770,587

739,471

5.	Loss before taxation

The loss is stated after charging/(crediting):

2025

2024

as restated

£

£

Hire of plant and machinery

43,460

24,198

Depreciation - owned assets

739,732

754,959

Loss/(profit) on disposal of fixed assets

7,298

(49,700

)

Auditors' remuneration

38,445

41,750

Other non- audit services

25,630

29,700

6.

Taxation

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2025

2024

as restated

£

£

Deferred tax

(57,956

)

(365,014

)

Tax on loss

(57,956

)

(365,014

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

as restated

£

£

Loss before tax

(274,329

)

(173,204

)

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

(68,582

)

(43,301

)

Effects of:

Expenses not deductible for tax purposes

10,626

4,803

Deferred tax adjustments in respect of prior years

-

(326,516

)

Total tax credit

(57,956

)

(365,014

)

7.	Prior year adjustment

The Company has restated the comparative figures to recognise a deferred tax asset in respect of tax losses brought forward that were not included in the prior year deferred tax calculation. The adjustment of £579,130 increases deferred tax assets and retained earnings at the comparative reporting date.

8.	Tangible fixed assets

Freehold

Plant and

property

machinery

Totals

£

£

£

Cost

At 1 September 2024

8,086,174

5,558,364

13,644,538

Additions

95,150

648,195

743,345

Disposals

-

(22,630

)

(22,630

)

At 31 August 2025

8,181,324

6,183,929

14,365,253

Depreciation

At 1 September 2024

488,050

3,496,295

3,984,345

Charge for year

151,160

588,572

739,732

Eliminated on disposal

-

(14,499

)

(14,499

)

At 31 August 2025

639,210

4,070,368

4,709,578

Net book value

At 31 August 2025

7,542,114

2,113,561

9,655,675

At 31 August 2024

7,598,124

2,062,069

9,660,193

The net carrying value of tangible fixed assets includes £1,499,637 (2024: £1,776,521) in respect of assets held under finance leases.

9.	Investment property

Total

£

Fair value

At 1 September 2024

and 31 August 2025

5,635,000

Net book value

At 31 August 2025

5,635,000

At 31 August 2024

5,635,000

Investment property comprises freehold land and buildings that was revalued on 29 May 2025 by Colliers International Property Consultants Limited who are external to the company.The basis of this valuation was open market value. Whilst the valuation was conducted before the year end, the directors are satisfied that the market evidence used within the valuation is also relevant as at 31 August 2025, therefore the valuation is appropriate to use.

The historical cost of the investment property at the year end was £3,773,083 (2024: £3,773,083).

10.

Stocks

2025

2024

as restated

£

£

Stocks

390,872

363,262

11.

Debtors: amounts falling due within one year

2025

2024

as restated

£

£

Trade debtors

1,970,501

1,488,647

Other debtors

178,793

174,348

2,149,294

1,662,995

12.

Creditors: amounts falling due within one year

2025

2024

as restated

£

£

Bank loans and overdrafts (see note 14)

7,015,231

7,284,066

Finance leases (see note 15)

620,510

476,623

Trade creditors

3,580,481

2,902,356

Amounts owed to group undertakings

540,000

-

Social security and other taxes

277,736

356,594

Other creditors

487,785

300,797

Accruals and deferred income

84,829

214,219

12,606,572

11,534,655

13.

Creditors: amounts falling due after more than one year

2025

2024

as restated

£

£

Finance leases (see note 15)

1,114,879

1,406,948

14.

Loans

An analysis of the maturity of loans is given below:

2025

2024

as restated

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

599,347

445,478

Bank loans

6,415,884

6,838,588

7,015,231

7,284,066

15.	Leasing agreements

Minimum lease payments fall due as follows:

Finance leases

2025

2024

as restated

£

£

Net obligations repayable:

Within one year

620,510

476,623

Between one and five years

1,114,879

1,406,948

1,735,389

1,883,571

Finance lease payments represent rentals payable by the company for certain items of plant and machinery.Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5.7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance leases are secured by the related assets.