REGISTERED NUMBER: SC088529 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 November 2025

for

YUILL & DODDS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

B A Yuill

Mrs K L Kerr

J Waddell

REGISTERED OFFICE:

Unit 6

Whistleberry Park Industrial Estate

Hamilton

ML3 0ED

REGISTERED NUMBER:

SC088529 (Scotland)

SENIOR STATUTORY AUDITOR:

Robert Pollock BA CA

AUDITORS:

Sharles Audit Limited

Statutory Auditor

29 Brandon Street

Hamilton

ML3 6DA

SOLICITORS:

Anderson Strathern

50 George Square

Glasgow

G2 1EH

The directors present their strategic report for the year ended 30 November 2025.

REVIEW OF BUSINESS

In the opinion of directors the company has had an improved trading period, albeit with pressure on margins and difficult market conditions that have affected everyone operating in this industry. The result was a profit after taxation of £218,434 (2024 - £201,777).

Some other financial KPI's are set out in the table below to show the performance of the company over the trading period.

Year to 30 November 2025

Year to 30 November 2024

Turnover

£21,378,865

£19,104,195

Profit/(Loss) after taxation

£218,434

£201,777

Gross Profit

£4,574,007

£3,979,015

Gross Profit %age

21.39%

20.83%

Turnover per employee (Driver)

£344,820

£303,241

Shareholders' funds amount to £1,188,349 (2024 - £1,146,915). We are confident that the company has sufficient reserves to finance the anticipated levels of activity in the future.

Turnover for the year ended November 2026 is likely to remain consistent and the board continues to apply tight control of margins generated and monitor overhead and secure further long term contracts.

Ongoing commercial planning within our long-term strategic framework continues to be a key factor in our commercial success. We are currently achieving 95-99% of customer monitored KPI's and this consistent operational performance has cemented strong working relationships with our customers. This is evident from our order book which reflects between 67% to 75% of our customers renewing contracts between 1 to 3 years on a rolling basis, which augurs well in our strategy to attain automatic supplier selection from our customer base.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in the road haulage industry and is therefore subject to the rise and falls within this industry in general. The market remains competitive, however the directors are confident that the high level of service given to customers and the company's reputation will ensure that it will remain a strong contender in this industry.

The company's main credit risk relates to debtors. The company is not turnover driven and has expanded its customer base. Payment histories and credit ratings of all customers are monitored closely.

The directors recognise their overall responsibility for the company's systems and internal control. The controls are designed to manage, as opposed to completely eliminate, risk. The company monitors cash flow as part of its day to day procedures.

GOING CONCERN

In adopting the going concern basis for preparing the financial statements, the directors have considered the issues impacting the company during the period, as outlined in the strategic report.

The company continues to invest in its fleet through a structured replacement programme, with vehicles typically renewed every three to four years. This investment strategy, funded through an appropriate mix of hire purchase and operating lease arrangements, ensures the fleet remains compliant with current environmental and safety regulations while maintaining high levels of utilisation. By operating a modern and efficient fleet, the company minimises downtime, controls maintenance expenditure, and supports reliable service delivery. This approach enhances operational efficiency, preserves asset value, and contributes positively to the company's long-term financial stability and going concern position .Although the net current liabilities position within the financial statements has increased to £3,294,067 the company has continued to meet its liabilities as they fall due whilst operating within facilities agreed with its bank. This has continued post year end.

The directors have reviewed trading conditions since the year end which show growth in customer contracts, along with improving results. Based on cash flow forecasts and operating budgets prepared, the directors fully believe that the company will continue to generate sufficient cash to meet its working capital requirements for at least the next 12 months, whilst continuing to work within agreed bank facilities. The company's bankers have continued to support the company since the year end and indications are that this support will continue.

The directors therefore believe that the financial statements should be prepared on a going concern basis. The financial statements do not include any adjustments that would arise should the finance facilities available to the company not continue at expected levels.

ON BEHALF OF THE BOARD:

B A Yuill - Director

31 August 2026

The directors present their report with the financial statements of the company for the year ended 30 November 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of road haulage consisting of bulk movements for the waste industry, tipping and general haulage.

DIVIDENDS

An interim dividend of £590 per share on the Ordinary B, C, D & E £1 shares was paid on 30 November 2025. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary A £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 30 November 2025 will be £ 177,000 .

DIRECTORS

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

B A Yuill

Mrs K L Kerr

J Waddell

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, Sharles Audit Limited, have indicated their willingness to be reappointed for another term and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

B A Yuill - Director

31 August 2026

Opinion

We have audited the financial statements of Yuill & Dodds Limited (the 'company') for the year ended 30 November 2025 which comprise the Income Statement, Other 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 30 November 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

We draw attention to Note 3 in the financial statements which describes a material uncertainty relating to going concern.

The company continues to invest in its fleet through a structured replacement programme, with vehicles typically renewed every three to four years. This investment strategy, funded through an appropriate mix of hire purchase and operating lease arrangements, ensures the fleet remains compliant with current environmental and safety regulations whilst maintaining high levels of utilisation. By operating a modern and efficient fleet, the company minimises downtime, controls maintenance expenditure, and supports reliable service delivery. This approach enhances operational efficiency, preserves asset value, and contributes positively to the company's long-term financial stability and going concern position.

In the shorter term however, this has resulted in a net current liability position within the financial statements. The position has increased to £3,294,067 in the financial year but the company has continued to meet its liabilities as they fall due whilst operating within facilities agreed with its bank. This has continued post year end and the directors are confident that the company will generate sufficient cash resources, whilst operating within agreed banking facilities to meet their cashflow requirements during the next 12 months.

The above indicates that a material uncertainty exists in respect of going concern. Our opinion is not modified in respect of this matter.

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:

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety, employment law, GDPR, anti-money laundering and environmental regulations. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these law and regulations and reviewed any relevant legal correspondence and invoices for evidence of non compliance.

The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to performing analytical procedures to identify unusual or unexpected relationships, testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, and challenging judgments and estimates applied in the year end adjustments to account for contract revenue and expenditure.

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.

Robert Pollock BA CA (Senior Statutory Auditor)

for and on behalf of Sharles Audit Limited

Statutory Auditor

29 Brandon Street

Hamilton

ML3 6DA

31 August 2026

TURNOVER

21,378,865

19,104,195

Cost of sales

16,804,858

15,125,180

GROSS PROFIT

4,574,007

3,979,015

Administrative expenses

3,792,210

3,334,468

781,797

644,547

Other operating income

17,897

7,493

OPERATING PROFIT

5

799,694

652,040

Interest receivable and similar income

128

68

799,822

652,108

Interest payable and similar expenses

6

527,468

399,461

PROFIT BEFORE TAXATION

272,354

252,647

Tax on profit

7

53,920

50,870

PROFIT FOR THE FINANCIAL YEAR

218,434

201,777

PROFIT FOR THE YEAR

218,434

201,777

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

218,434

201,777

FIXED ASSETS

Tangible assets

9

8,731,680

6,406,177

CURRENT ASSETS

Stocks

10

259,705

191,542

Debtors

11

4,963,805

6,278,522

Cash at bank and in hand

63,061

4,187

5,286,571

6,474,251

CREDITORS

Amounts falling due within one year

12

8,580,638

8,869,922

NET CURRENT LIABILITIES

(3,294,067

)

(2,395,671

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,437,613

4,010,506

CREDITORS

Amounts falling due after more than one year

13

(4,134,247

)

(2,802,494

)

PROVISIONS FOR LIABILITIES

17

(115,017

)

(61,097

)

NET ASSETS

1,188,349

1,146,915

CAPITAL AND RESERVES

Called up share capital

18

971,223

971,223

Capital redemption reserve

19

9,177

9,177

Retained earnings

19

207,949

166,515

SHAREHOLDERS' FUNDS

1,188,349

1,146,915

The financial statements were approved by the Board of Directors and authorised for issue on 31 August 2026 and were signed on its behalf by:

B A Yuill - Director

Mrs K L Kerr - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 December 2023

971,223

141,738

9,177

1,122,138

Changes in equity

Dividends

-

(177,000

)

-

(177,000

)

Total comprehensive income

-

201,777

-

201,777

Balance at 30 November 2024

971,223

166,515

9,177

1,146,915

Changes in equity

Dividends

-

(177,000

)

-

(177,000

)

Total comprehensive income

-

218,434

-

218,434

Balance at 30 November 2025

971,223

207,949

9,177

1,188,349

Cash flows from operating activities

Cash generated from operations

1

2,426,713

2,089,771

Interest paid

(26,626

)

(32,866

)

Interest element of hire purchase and finance lease rental payments paid

(500,842

)

(366,595

)

Tax paid

(1,506

)

29,811

Net cash from operating activities

1,897,739

1,720,121

Cash flows from investing activities

Purchase of tangible fixed assets

(4,545,122

)

(1,451,488

)

Sale of tangible fixed assets

848,044

293,983

Interest received

128

68

Net cash from investing activities

(3,696,950

)

(1,157,437

)

Cash flows from financing activities

New loans in year

83,180

-

Loan repayments in year

(20,225

)

(58,800

)

New HP/FL contracts in year

4,247,957

1,323,845

Capital repayments in year

(2,262,030

)

(1,757,970

)

Amount introduced by directors

127,895

153,917

Amount withdrawn by directors

(122,887

)

(127,895

)

Equity dividends paid

(177,000

)

(177,000

)

Net cash from financing activities

1,876,890

(643,903

)

Increase/(decrease) in cash and cash equivalents

77,679

(81,219

)

Cash and cash equivalents at beginning of year

2

(14,618

)

66,601

Cash and cash equivalents at end of year

2

63,061

(14,618

)

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

2025

2024

£

£

Profit before taxation

272,354

252,647

Depreciation charges

1,629,198

1,360,671

Profit on disposal of fixed assets

(257,621

)

(71,091

)

Finance costs

527,468

399,461

Finance income

(128

)

(68

)

2,171,271

1,941,620

Increase in stocks

(68,163

)

(35,714

)

Decrease/(increase) in trade and other debtors

1,311,215

(1,644,038

)

(Decrease)/increase in trade and other creditors

(987,610

)

1,827,903

Cash generated from operations

2,426,713

2,089,771

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 30 November 2025

30.11.25

1.12.24

£

£

Cash and cash equivalents

63,061

4,187

Bank overdrafts

-

(18,805

)

63,061

(14,618

)

Year ended 30 November 2024

30.11.24

1.12.23

£

£

Cash and cash equivalents

4,187

66,601

Bank overdrafts

(18,805

)

-

(14,618

)

66,601

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.12.24

Cash flow

At 30.11.25

£

£

£

Net cash

Cash at bank and in hand

4,187

58,874

63,061

Bank overdrafts

(18,805

)

18,805

-

(14,618

)

77,679

63,061

Debt

Hire purchase and finance leases

(4,288,185

)

(1,985,927

)

(6,274,112

)

Debts falling due within 1 year

(20,226

)

(62,957

)

(83,183

)

(4,308,411

)

(2,048,884

)

(6,357,295

)

Total

(4,323,029

)

(1,971,205

)

(6,294,234

)

1.	STATUTORY INFORMATION

Yuill & Dodds Limited 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.	STATEMENT OF COMPLIANCE

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. There were no material departures from that standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

In adopting the going concern basis for preparing the financial statements, the directors have considered the issues impacting the company during the period, as outlined in the strategic report.

The Company continues to invest in its fleet through a structured replacement programme, with vehicles typically renewed every three to four years. This investment strategy, funded through an appropriate mix of Hire Purchase and Operating Lease arrangements, ensures the fleet remains compliant with current environmental and safety regulations while maintaining high levels of utilisation. By operating a modern and efficient fleet, the Company minimises downtime, controls maintenance expenditure, and supports reliable service delivery. This approach enhances operational efficiency, preserves asset value, and contributes positively to the Company's long-term financial stability and going concern position. Although the net current liabilities position within the financial statements has increased to £3,294,067 the company has continued to meet its liabilities as they fall due whilst operating within facilities agreed with its bank. This has continued post year end.

The directors have reviewed trading conditions since the year end which show growth in customer contracts, along with improving results. Based on cash flow forecasts and operating budgets prepared, the directors fully believe that the company will continue to generate sufficient cash to meet its working capital requirements for at least the next 12 months, whilst continuing to work within agreed bank facilities. The company's bankers have continued to support the company since the year end and indications are that this support will continue.

The directors therefore believe that the financial statements should be prepared on a going concern basis. The financial statements do not include any adjustments that would arise should the finance facilities available to the company not continue at expected levels.

Turnover

Turnover is derived from haulage services supplied by the company.

Turnover is measured at the fair value of haulage services supplied, net of discounts and excluding value added tax, and is recognised at the point that the company obtains the right to consideration.

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.

Freehold property

-

10% on cost and 5% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Tangible fixed assets held for the companies own use are stated at cost less accumulated depreciation and accumulated impairment loss.

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

Expenditure of £1,000 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income statement in the period it is incurred unless part of an overall project.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to the income statement as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an expense in the period in which the reversal occurs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. 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

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the income statement on a straight line basis.

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.

Factor advances

Factor advances received against trade debtors are presented separately under current liabilities as the company bears any losses arising from the irrecoverability of these debts.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,795,151

4,383,450

Social security costs

420,435

370,872

Other pension costs

49,879

74,564

5,265,465

4,828,886

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

2025

2024

Management

3

3

Administration

10

9

Mechanics

10

11

Drivers

62

63

85

86

2025

2024

£

£

Directors' remuneration

114,000

109,960

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

1,340,627

1,372,017

Depreciation - owned assets

332,477

163,705

Depreciation - assets on hire purchase contracts and finance leases

1,296,719

1,196,965

Profit on disposal of fixed assets

(257,621

)

(71,091

)

Auditors' remuneration

8,550

8,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Other interest and charges

2,846

5,331

Loan interest

23,780

27,535

Hire purchase

407,843

285,380

Leasing

92,999

81,215

527,468

399,461

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Deferred tax

53,920

50,870

Tax on profit

53,920

50,870

8.

DIVIDENDS

2025

2024

£

£

Ordinary B, C, D & E shares of £1 each

Interim

177,000

177,000