REGISTERED NUMBER: 12218895 (England and Wales)

Litecast Holdings Ltd

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 August 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

Directors:

J Leroux

B A Cooper

Ms E Sutcliffe

Registered office:

Purley Chase Estate

Pipers Lane

Ansley Common

Nuneaton

CV10 0RG

Registered number:

12218895 (England and Wales)

Auditors:

Menzies LLP, Statutory Auditors

5th Floor Hodge House

114-116 St Mary Street

Cardiff

CF10 1DY

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

The directors present the 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 group 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 group'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 group 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 group 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 group 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 and the group for the year ended 31 August 2025.

Principal activity

The principal activity of the group in the year under review was that of The principal activity of the company continued to be that of a holding company. The principal activity of the Group 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

Ms E Sutcliffe

Going concern

The directors have prepared a cash flow forecast for the group 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 group's ability to meet its liabilities over a period of at least 12 months from the date of signing these financial statements.

The group is funded via a combination of banking, finance leases, supplier facilities, director and shareholder. At the date of this report, the group 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 group require this from a cashflow perspective, which they have demonstrated post year end.

Based upon the group'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 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), 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 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, 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 Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the Consolidated Statement of 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 three, 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.

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

(Loss)/profit attributable to:

Owners of the parent

(216,373

)

191,810

Total comprehensive income attributable to:

Owners of the parent

(216,373

)

191,810

Fixed assets

Tangible assets

9

9,655,675

9,660,193

Investments

10

-

-

Investment property

11

5,635,000

5,635,000

15,290,675

15,295,193

Current assets

Stocks

12

390,872

363,262

Debtors

13

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

14

(12,066,572

)

(11,534,655

)

Net current liabilities

(9,520,479

)

(9,498,599

)

Total assets less current liabilities

5,770,196

5,796,594

Creditors

Amounts falling due after more than one year

15

(1,114,879

)

(1,406,948

)

Provisions for liabilities

19

(61,399

)

(119,355

)

Net assets

4,593,918

4,270,291

Capital and reserves

Called up share capital

20

281

200

Share premium

21

539,919

-

Retained earnings

21

4,053,718

4,270,091

Shareholders' funds

4,593,918

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

Fixed assets

Tangible assets

9

-

-

Investments

10

200

-

Investment property

11

-

-

200

-

Current assets

Debtors

13

540,000

200

Total assets less current liabilities

540,200

200

Capital and reserves

Called up share capital

20

281

200

Share premium

539,919

-

Shareholders' funds

540,200

200

Company's profit for the financial year

-

-

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 September 2023

500

4,078,281

-

4,078,781

Changes in equity

Issue of share capital

(300

)

-

-

(300

)

Total comprehensive income

-

191,810

-

191,810

Balance at 31 August 2024

200

4,270,091

-

4,270,291

Changes in equity

Issue of share capital

81

-

539,919

540,000

Total comprehensive income

-

(216,373

)

-

(216,373

)

Balance at 31 August 2025

281

4,053,718

539,919

4,593,918

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 September 2023

200

-

-

200

Changes in equity

Balance at 31 August 2024

200

-

-

200

Changes in equity

Issue of share capital

81

-

539,919

540,000

Balance at 31 August 2025

281

-

539,919

540,200

Cash flows from operating activities

Cash generated from operations

1

1,386,345

1,259,898

Interest paid

(660,985

)

(142,631

)

Interest element of finance lease payments paid

(109,602

)

-

Net cash from operating activities

615,758

1,117,267

Cash flows from investing activities

Purchase of tangible fixed assets

(743,345

)

(44,684

)

Sale of tangible fixed assets

833

134,474

Net cash from investing activities

(742,512

)

89,790

Cash flows from financing activities

Loan repayments in year

(422,705

)

(262,762

)

Capital repayments in year

(148,182

)

(381,644

)

Share issue

540,000

-

-

(87,622

)

-

(509,218

)

Net cash from financing activities

(30,887

)

(1,241,246

)

Decrease in cash and cash equivalents

(157,641

)

(34,189

)

Cash and cash equivalents at beginning of year

2

(435,679

)

(401,490

)

Cash and cash equivalents at end of year

2

(593,320

)

(435,679

)

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

2025

2024

as restated

£

£

Loss before taxation

(274,329

)

(173,204

)

Depreciation charges

739,733

754,960

Loss/(profit) on disposal of fixed assets

7,298

(49,700

)

Gain on revaluation of fixed assets

-

(489,528

)

Finance costs

770,587

739,471

1,243,289

781,999

(Increase)/decrease in stocks

(27,610

)

139,382

(Increase)/decrease in trade and other debtors

(486,299

)

39,091

Increase in trade and other creditors

656,965

299,426

Cash generated from operations

1,386,345

1,259,898

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

5,927

9,799

Bank overdrafts

(599,247

)

(445,478

)

(593,320

)

(435,679

)

Year ended 31 August 2024

31.8.24

1.9.23

as restated

£

£

Cash and cash equivalents

9,799

-

Bank overdrafts

(445,478

)

(401,490

)

(435,679

)

(401,490

)

3.	Analysis of changes in net debt

At 1.9.24

Cash flow

At 31.8.25

£

£

£

Net cash

Cash at bank

9,799

(3,872

)

5,927

Bank overdrafts

(445,478

)

(153,769

)

(599,247

)

(435,679

)

(157,641

)

(593,320

)

Debt

Finance leases

(1,883,571

)

148,182

(1,735,389

)

Debts falling due within 1 year

(6,838,588

)

422,704

(6,415,884

)

(8,722,159

)

570,886

(8,151,273

)

Total

(9,157,838

)

413,245

(8,744,593

)

1.	Statutory information

Litecast Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General 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 group 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 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 requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

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. 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

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 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 Consolidated 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 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.

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