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

Lawcris Panel Products Ltd ("Lawcris") remains one of the UK's leading distributors of decorative panels, laminates and worktops, supplying a diverse range of sectors including furniture manufacturing, shopfitting, caravan manufacturing, and display and exhibition construction.

The company is a privately owned limited company operating from three sites in Leeds, West Yorkshire. The business continues to benefit from strong shareholder involvement and a management structure that enables agile decision-making and a clear focus on long-term objectives.

The directors are pleased with the company's performance during the year. Turnover increased by 7.94% to £117.001 million, reflecting continued demand across key market sectors and the success of product range expansion initiatives. Gross profit margins remained resilient at 24.51% (2024: 24.98%) despite ongoing market pressures and competitive pricing conditions.

The company continues to maintain a disciplined approach to cost management, with overheads closely monitored through regular variance analysis and operational reviews. Significant investment has also been made in stock availability and new product introductions to support customer demand and strengthen market position.

The balance sheet remains robust, with shareholders' funds increasing to £4,646,829 (2024: £4,621,111). This strong financial position provides a solid platform from which the business can continue to invest in growth opportunities, operational efficiencies and employee development.

The directors remain confident in the company's long-term prospects and believe Lawcris is well positioned to achieve sustainable growth through its commitment to customer service, supplier partnerships, product innovation and operational excellence.

The management of the business and execution of its strategy are subject to a number of risks and uncertainties that are continually monitored and reviewed by the directors.

Competitive Market Conditions

The markets in which the company operates remain highly competitive and price sensitive. Many products distributed by the company are widely available from alternative suppliers, placing significant emphasis on service quality, product availability and operational efficiency.

To mitigate this risk, the company continues to invest in stock availability, customer service, logistics capabilities and the development of supplier relationships to maintain its competitive advantage.

Supply Chain Risk

Global supply chain disruption and raw material availability continue to present challenges to the industry. The company actively manages this risk through close collaboration with existing suppliers, the development of alternative supply channels and regular reviews of inventory levels.

Maintaining strong supplier relationships remains a key strategic priority to ensure continuity of supply and support future growth.

Economic and Geopolitical Uncertainty

Economic uncertainty continues to affect both customer demand and operating costs. Ongoing geopolitical tensions, including the conflict in Ukraine and instability within the Middle East, have the potential to impact supply chains, inflation and market confidence.

The company continues to monitor these developments closely while maintaining prudent control over working capital through effective management of debtors, creditors and cash flow. Open communication with customers, suppliers and other stakeholders remains essential during periods of uncertainty.

Foreign Currency Risk

As a distributor sourcing products from international markets, the company is exposed to fluctuations in foreign currency exchange rates. Exchange rate volatility can influence product costs and margin performance.

The directors regularly monitor currency movements and work closely with suppliers to minimise pricing volatility and protect profitability where possible.

The directors monitor a range of financial and operational measures to assess business performance and support decision-making.

Key financial performance indicators during the year were as follows:

Turnover increased by 7.94% during the year, driven by strong demand across key sectors and the introduction of new product ranges. Gross profit margins remained stable despite challenging market conditions.

Stock levels increased to £8,182,245 (2024: £6,509,667), reflecting strategic investment in inventory and the introduction of additional product lines designed to support future sales growth and improve customer service levels.

In addition to financial measures, the company continues to develop and expand the use of non-financial performance indicators within its management reporting framework. Existing measures have already contributed to improvements in employee attendance and transport efficiency, while additional operational metrics are being introduced to support continuous improvement initiatives throughout the business.

Emissions and Energy Consumption

Energy Consumption and Greenhouse Gas Emissions for the Year Ended 31 December 2025

The company's emissions intensity ratio is 40:1 based on total CO₂e emissions per £ of turnover.

Energy consumption and greenhouse gas emissions for the year ended 31st December 2024

The carbon intensity ratio for the reporting period is 41:1, calculated as the total Co2e emissions per £ of turnover.

Methodology

Electricity and gas consumption data has been obtained from supplier invoices covering the financial year. Electricity consumption has been converted using an emissions factor of 0.21233 and gas consumption using an emissions factor of 0.18316.

Forklift truck fuel consumption has been calculated using supplier purchase records and converted using an emissions factor of 1.55709.

Commercial vehicle and car fuel consumption has been calculated from supplier records and converted using an emissions factor of 2.51233 for diesel fuel.

The company remains committed to reducing emissions through fleet modernisation, improved operational efficiency and investment in lower-carbon technologies.

The company does not actively use financial instruments as part of its risk management strategy. It remains exposed to normal credit and cash flow risks associated with trading activities, which are managed through established credit control procedures and regular monitoring.

The company continues to focus on reducing waste, increasing recycling rates and improving operational efficiency across all areas of the business. Investment in modern vehicles, equipment and technology remains central to achieving these objectives.

Employees remain at the heart of the organisation's success. Ongoing investment in training and development, including the continued utilisation of the Apprenticeship Levy Scheme, supports both individual progression and the future capability of the business.

The company also maintains a strong commitment to ethical business practices. Its anti-slavery and human trafficking policy is supported by appropriate systems and controls designed to prevent such practices within its operations and supply chains.

Looking ahead, the directors remain cautiously optimistic regarding the company's prospects. While economic uncertainty, geopolitical challenges and market competition are expected to persist, the company enters 2026 with a strong balance sheet, diversified supplier base, experienced workforce and expanding product portfolio. Continued investment in people, customer service, operational efficiency and sustainable growth initiatives is expected to support strong performance in the years ahead.

The directors acknowledge their duty under Section 172 of the Companies Act 2006 to promote the long-term success of the company for the benefit of its members while having regard to the interests of employees, customers, suppliers, the wider community and the environment.

A key strength of the business is its ability to respond quickly to changing market conditions while maintaining a clear focus on its long-term strategic objectives. When making decisions, the directors carefully consider the likely consequences for all stakeholders and the sustainable success of the company.

Employees

Employees remain the company's most valuable asset and are fundamental to the achievement of its long-term goals. The company continues to invest in employee development through competitive remuneration, benefits, training programmes and career development opportunities.

Significant emphasis is placed on employee engagement, wellbeing and maintaining a positive working environment. The directors recognise that a motivated and skilled workforce is essential to delivering exceptional service and supporting future growth.

Customers and Suppliers

Maintaining strong relationships with customers and suppliers is critical to the company's success. The business actively engages with both groups through regular communication, collaborative planning and ongoing product development initiatives.

The company continues to invest in new and innovative product ranges, working closely with suppliers to ensure customers have access to high-quality products that meet changing market demands. These investments are supported through targeted marketing activity designed to maximise long-term returns and strengthen market position.

Environment

The company remains committed to reducing its environmental impact and improving sustainability wherever practical and commercially viable.

During the year, the business continued its programme of reducing vehicle emissions through the replacement of conventional vehicles with hybrid and electric alternatives. Environmental considerations also form part of the investment appraisal process for equipment purchases, with preference given to energy-efficient technologies where appropriate.

Community

Lawcris recognises the importance of supporting the communities in which it operates. The company continues to contribute through charitable donations, sponsorship of local sports clubs and support for community initiatives.

Business Conduct

The reputation of the company is one of its most important assets. The directors remain committed to conducting business with integrity, fairness and transparency while maintaining the highest standards of professional and ethical behaviour.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The results for the year are set out on page 12.

An interim ordinary dividend was paid amounting to £5,000,000 (2024 - £6,000,000). The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

For details on the company's business relationships with suppliers, customers and other key stakeholders, see narrative on the Strategic Report.

For details on the long term effects of principal business decisions made by the company, see narrative on the Strategic Report.

The directors are responsible for preparing the annual report 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of Lawcris Panel Products Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias; and 

• Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Lawcris Panel Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Knowsthorpe Gate, Cross Green Industrial Estate, Leeds, LS9 0NP.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for wood based sheet materials in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, with cost comprising direct materials.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

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.

The depreciation policy has been set according to managements' experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £1,422,867 (2024 - £1,296,352), which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Of the above dividend, £3,000,000 was paid to the holders of A Ordinary shares and £2,000,000 was paid to the holders of B Ordinary shares.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the year end, the company has accrued for £nil (2024 - £nil) of pension costs which have not been paid to the scheme provider.

Each share is entitled to one vote in any circumstances. A Ordinary shares are entitled to 60% distribution of dividends and B Ordinary shares are entitled to 40% distribution of dividends.

The company has operating leases for building premises and company cars.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

As at the year end, the following capital agreements were agreed upon but not yet paid:

After the reporting date, the company entered into a invoice discounting facility with a lender.

The facility is on a recourse basis, secured by a fixed and floating charge over the company’s assets, and is intended to support working capital.

As this arrangement was entered into after the reporting date, it is treated as a non‑adjusting post balance sheet event and has not been recognised in these financial statements.

During the year the company entered into the following transactions with related parties:

Dividends relating to Mr C J Hopton £3,000,000 (2024 - £3,600,000) and Mr S P Hall £2,000,000 (2024 - £2,400,000) are included within the below balances.

The directors listed had directors' current accounts during the year, the movements on which are outlined in the table shown.

Director's loans have no interest charge and no fixed date for repayment.

These balances are included within Creditors: amounts falling due within one year; Other creditors.

No guarantees have been given or received.

The ultimate controlling party is Mr C J Hopton, a director.