STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

RAINWORTH MOTORS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditor

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

J R Atherton

S C Beckett

SECRETARY:

S C Beckett

REGISTERED OFFICE:

Sherwood Oaks Business Park

Southwell Road West

Mansfield

Nottinghamshire

NG18 4GF

REGISTERED NUMBER:

03916851 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Oliver Jenkins ACCA

AUDITOR:

Hewitt Card Limited

Statutory Auditor

70-72 Nottingham Road

Mansfield

Nottinghamshire

NG18 1BN

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

Our objectives are to provide a reliable, competitive and high quality supply of motor vehicles, and after sales care to both the public and corporate customers. This is backed up by specialist knowledge built up through the combined experience of our staff.

Through this we aim to achieve an acceptable return for the shareholders and provide for longer term planning to secure the future of the Company.

REVIEW OF BUSINESS

The directors are pleased with the overall performance of the business for the year in what continues to be a challenging environment.

The Company has seen a notable decrease in both the new car and used car market..

The Company's turnover and net profit have decreased and its balance sheet position has also overall weakened at the yearend when compared to the previous year.However, the Company has seen a decrease in gross profit percentage due to increases in purchases prices which the Company has absorbed.

The key performance indicators by which financial performance is measured are as follows:-

2025

2024

Turnover

£37.9m

£34.6m

Gross profit percentage

4.12%

4.02%

Net profit

(£2k

)

(£509.9k

)

Shareholders funds

£1.45m

£1.57m

The directors are confident that the business can maintain the current level of activity despite their expectation that the economic environment will remain difficult throughout the next year.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks that we face are those arising from competition in the marketplace particularly in the form of price and supply.

In addition, effective working capital management is required to ensure that products are available at the right time.

The provision of specialist knowledge is also key to adding value and achieving our aim of a quality service and so retention of experienced and knowledgeable staff is a risk we face.

Used vehicle price volatility can also present a significant risk in the event that the market price moves rapidly between the point of purchase and the point of sale of a used vehicle. This leads to reduced margins and increased provisions on unsold stock. This risk is mitigated by a combination of regular monitoring of the used vehicle market by the company used car buyers, a focus on stock turn to reduce the length of time that used vehicles are held in stock, and regular review and re-pricing to ensure that vehicles are priced competitively in the market.

ON BEHALF OF THE BOARD:

J R Atherton - Director

8 July 2026

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

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of motor car dealers and motor engineers.

DIVIDENDS

Interim dividends per share were paid as follows:

2,531

- 31 January 2025

2,531

- 28 February 2025

2,531

- 31 March 2025

2,531

- 30 April 2025

2,531

- 31 May 2025

2,531

- 30 June 2025

2,531

- 31 July 2025

2,531

- 31 August 2025

2,531

- 30 September 2025

2,531

- 31 October 2025

2,531

- 30 November 2025

2,531

- 31 December 2025

30,372

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2025 will be £ 121,488 .

DIRECTORS

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

J R Atherton

S C Beckett

FINANCIAL INSTRUMENTS

The company uses a number of financial instruments which include loans, cash and other various items such as trade debtors and trade creditors which arise directly from its operations.

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

The directors review and agree policies for the management of each of these risks which are noted below.

Liquidity risk

The company seeks to manage risk by ensuring sufficient liquidity is available to meet operating requirements.

Market risk

Recent uncertainty in financial markets has dented consumer confidence. Steps taken by financial institutions to reduce exposure and risk have resulted in limiting available consumer credit. Initiatives led by the management team within the company have assisted in maintaining a good level of retail finance penetration.

The company policy throughout the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

Credit risk

The company's principal financial assets are freehold property, stock, cash and trade debtors. The credit risk associated with freehold property, stock and cash is limited and therefore the principal credit risk arises from its trade debtors.

To manage credit risk, the directors have implemented processes to ensure receipt of cleared funds for vehicle sales before the vehicle is released.

Other trade debtors require approved credit in advance which is supported by references and payment is required within the company's credit terms and hence credit risk is minimised.

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 auditor is unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

AUDITOR

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

ON BEHALF OF THE BOARD:

J R Atherton - Director

8 July 2026

Opinion

We have audited the financial statements of Rainworth Motors Limited (the 'company') for the year ended 31 December 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 31 December 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 Auditor 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 Auditor 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 Auditor 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:

We have adopted a risk based approach based upon analytical procedures and knowledge of the clients systems and environment it operates in.

This enables us to design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for the audit opinion.

To obtain an understanding of internal control where relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the companys internal control.

To evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

To conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern.

The likelihood of detecting irregularities is inherently difficult and we have designed our tests and procedures to reduce this risk.

- We have enquired of management and the company's solicitors around actual and potential litigation and claims.

- Review of company minutes of meetings of those charged with governance.

- Reviewing financial statements disclosure and testing supporting documentation to assess compliance with applicable laws and regulations.

- Review and testing of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions.

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 Auditor.

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 Auditor 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.

Mr Oliver Jenkins ACCA (Senior Statutory Auditor)

for and on behalf of Hewitt Card Limited

Statutory Auditor

70-72 Nottingham Road

Mansfield

Nottinghamshire

NG18 1BN

8 July 2026

TURNOVER

4

37,959,491

34,635,367

Cost of sales

36,395,021

33,243,361

GROSS PROFIT

1,564,470

1,392,006

Administrative expenses

1,176,163

2,646,796

OPERATING PROFIT/(LOSS)

6

388,307

(1,254,790

)

Interest receivable and similar income

5,594

6,765

393,901

(1,248,025

)

Amounts written off investments

8

10,000

-

383,901

(1,248,025

)

Interest payable and similar expenses

9

267,459

287,200

PROFIT/(LOSS) BEFORE TAXATION

116,442

(1,535,225

)

Tax on profit/(loss)

10

118,900

(286,316

)

LOSS FOR THE FINANCIAL YEAR

(2,458

)

(1,248,909

)

LOSS FOR THE YEAR

(2,458

)

(1,248,909

)

OTHER COMPREHENSIVE INCOME

Freehold property revaluation

-

985,283

Depreciation on revalued property

Income tax relating to other comprehensive income

-

(246,321

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

738,962

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,458

)

(509,947

)

FIXED ASSETS

Intangible assets

12

1

1

Tangible assets

13

3,990,896

4,007,706

Investments

14

65,000

75,000

4,055,897

4,082,707

CURRENT ASSETS

Stocks

15

3,934,952

4,727,542

Debtors

16

1,664,781

1,212,098

Cash at bank and in hand

174,224

333,786

5,773,957

6,273,426

CREDITORS

Amounts falling due within one year

17

7,041,569

7,544,343

NET CURRENT LIABILITIES

(1,267,612

)

(1,270,917

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,788,285

2,811,790

CREDITORS

Amounts falling due after more than one year

18

(997,347

)

(1,015,806

)

PROVISIONS FOR LIABILITIES

21

(336,099

)

(217,199

)

NET ASSETS

1,454,839

1,578,785

CAPITAL AND RESERVES

Called up share capital

22

4

4

Share premium

30,624

30,624

Revaluation reserve

720,355

738,962

Retained earnings

703,856

809,195

SHAREHOLDERS' FUNDS

1,454,839

1,578,785

The financial statements were approved by the Board of Directors and authorised for issue on 8 July 2026 and were signed on its behalf by:

S C Beckett - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

4

2,119,592

30,624

-

2,150,220

Changes in equity

Dividends

-

(61,488

)

-

-

(61,488

)

Total comprehensive income

-

(1,248,909

)

-

738,962

(509,947

)

Balance at 31 December 2024

4

809,195

30,624

738,962

1,578,785

Changes in equity

Dividends

-

(121,488

)

-

-

(121,488

)

Total comprehensive income

-

16,149

-

(18,607

)

(2,458

)

Balance at 31 December 2025

4

703,856

30,624

720,355

1,454,839

Cash flows from operating activities

Cash generated from operations

1

515,426

(783,174

)

Interest paid

(267,459

)

(287,200

)

Tax paid

60,435

(65,423

)

Net cash from operating activities

308,402

(1,135,797

)

Cash flows from investing activities

Purchase of tangible fixed assets

(124,343

)

(455,408

)

Purchase of fixed asset investments

-

(10,000

)

Sale of tangible fixed assets

14,570

-

Interest received

5,594

6,765

Net cash from investing activities

(104,179

)

(458,643

)

Cash flows from financing activities

New loans in year

132,000

750,000

Loan repayments in year

(154,516

)

(159,289

)

Amounts (to)/from related party

(22,207

)

705,494

Amount introduced by directors

120,000

120,000

Amount withdrawn by directors

(277,176

)

(308,418

)

Equity dividends paid

(121,488

)

(61,488

)

Net cash from financing activities

(323,387

)

1,046,299

Decrease in cash and cash equivalents

(119,164

)

(548,141

)

Cash and cash equivalents at beginning of year

2

293,388

841,529

Cash and cash equivalents at end of year

2

174,224

293,388

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.25

31.12.24

£

£

Profit/(loss) before taxation

116,442

(1,535,225

)

Depreciation charges

120,425

91,256

Loss on disposal of fixed assets

6,158

-

Amount written off investment

10,000

-

Finance costs

267,459

287,200

Finance income

(5,594

)

(6,765

)

514,890

(1,163,534

)

Decrease in stocks

792,590

29,949

(Increase)/decrease in trade and other debtors

(334,523

)

458,200

Decrease in trade and other creditors

(457,531

)

(107,789

)

Cash generated from operations

515,426

(783,174

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

174,224

333,786

Bank overdrafts

-

(40,398

)

174,224

293,388

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

333,786

841,529

Bank overdrafts

(40,398

)

-

293,388

841,529

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

333,786

(159,562

)

174,224

Bank overdrafts

(40,398

)

40,398

-

293,388

(119,164

)

174,224

Debt

Debts falling due within 1 year

(157,736

)

4,057

(153,679

)

Debts falling due after 1 year

(1,015,806

)

18,459

(997,347

)

(1,173,542

)

22,516

(1,151,026

)

Total

(880,154

)

(96,648

)

(976,802

)

1.	STATUTORY INFORMATION

Rainworth Motors 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.

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Sale of goods

Turnover from the sale of goods is recognised when;

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

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

- the amount of turnover can be measured reliably

- it is probable that the economic benefits associated with the transaction will flow to the company

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

Rendering of services

Turnover from a contract to provide services is recognised in the period by reference to the stage of completion of the contract when all of the following conditions are satisfied;

- the amount of turnover can be measured reliably

- it is probable that the economic benefits associated with the services will flow to the company

- the stage of completion of the contract at the reporting date can be measured reliably

- the costs incurred and the costs to complete the contract can be measured reliably

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

Straight line over 3 years

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

At each reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Consignment stock

Consignment vehicles which bear considerably more of the risks and responsibilities of ownership are regarded effectively as being under the control of the company and, in accordance with FRS 102 are included in stocks on the balance sheet, although legal title has not passed to the company. The corresponding liability is included as new vehicle funding and is secured directly on these vehicles.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements or a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

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.

4.

TURNOVER

The turnover and profit (2024 - loss) before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

31.12.25

31.12.24

£

£

Sale of goods

35,974,964

32,871,315

Sales of services

1,984,527

1,764,052

37,959,491

34,635,367

5.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

1,454,186

1,564,540

Social security costs

155,483

182,727

Other pension costs

55,828

56,968

1,665,497

1,804,235

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

31.12.25

31.12.24

Employees

58

59

31.12.25

31.12.24

£

£

Directors' remuneration

12,000

12,000