REGISTERED NUMBER: 07843566 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2025

FOR

HTS SPARES LIMITED

Page

Company information

1

Strategic report

2

Report of the directors

4

Report of the independent auditors

6

Statement of income and retained earnings

10

Balance sheet

11

Cash flow statement

12

Notes to the cash flow statement

13

Notes to the financial statements

15

Directors:

G Knappett

J Knappett

S C Knappett

M L Knappett

R D Knappett

Registered office:

Surrey House

Beacon Road

Rotherwas Industrial Estate

Hereford

HR2 6JF

Registered number:

07843566 (England and Wales)

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

The principal activity of the Company is the sale of parts and machinery to the construction industry.

Review of business

This year saw an increase in sales to £13.86m (2024: £12.84m) due to excellent product offering and customer service. Profit before tax came in at £2.00m (2024: £1.54m) to give another satisfactory result this year.

The cash balances remained strong at £1.23m (2024: £1.77m), at the year end 31st December 2025, allowing the Company to take advantage of the opportunities as they arise.

The working capital cycle was uneventful with no significant movement in stock, debtors or creditors.

At the year end the Company had shareholders' funds of £5.25m (2024: 4.93m), therefore the directors believe that there is a strong foundation to build the business further with sound strategic planning and investment opportunities.

Principal risks and uncertainties

The key business risks and uncertainties affecting the Company are considered to relate to:

-

Market conditions within the construction industry in the UK

-

Geopolitical events resulting in supply chain disruptions

-

Loss of key customers due to strategic change of direction

- New lower grade entrants into the market

- Government policies that do not promote business growth

The Company aims to differentiate its service by delivering consistently high- quality products coupled with a strategy of continuous improvement in both service offering and range of goods. The directors closely monitor the state of the market and can react quickly to any strategic change that may be needed.

The whole company went through an intensive rebranding exercise for 2025 which resulted in a strategic shift to more own label products thus strengthening the enterprise value as a whole and ensuring we remain relevant in the upcoming years. This has resulted in a large number of products now being distributed under our own brand labels increasing the enterprise value.

With this in mind the directors believe that the quality of the products and the different service level offerings will help mitigate these risks and expect to see satisfactory results in 2026.

Key performance indicators

The company utilises a range of measures across all departments to assess its performance on the most appropriate time basis. These range from financial measures through to forecasting, operational, selling and marketing indicators throughout the whole company and within the relevant departments.

Development and performance

We have overcome the many challenges that interest and inflation rate rises have brought us in the previous years which have had a direct impact on the UK construction market. The current Government and its potential new legislation will bring its own challenges, but we believe the Company is in a strong position to make the most of the growth opportunities as they arise. To achieve this, our strategic focus alongside our customary sterling service to our customers will be to continually bring in new ranges of products to compliment our offering whilst making it easy for our customers.

During 2026 the Company is investing in a new ERP system and website to further enhance our efficiencies across the business resulting in improved services to our clients providing a platform for further growth.

On behalf of the board:

G Knappett - Director

16th September 2026

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

Dividends

The total distribution of dividends for the year ended 31st December 2025 was £1,175,000.

Further dividends totalling £880,000 were duly authorised and paid on 28th January 2026. The directors recommend that no further dividend is paid and the remainder be transferred to reserves.

Research and development

The company invests in research and development in order to improve the customer experience.

Future developments

The directors expect continued improvement in the level of activity and operational profits for the forthcoming year ending 31st December 2026. No changes in the operational activities are expected in the foreseeable future.

Directors

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

G Knappett

J Knappett

S C Knappett

M L Knappett

R D Knappett

Other changes in directors holding office are as follows:

I Knappett - resigned 1st January 2025

Financial instruments

The company enters into no complex financial instruments.

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 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 auditors are aware of that information.

Auditors

The auditors, Chris Duckett (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

G Knappett - Director

16th September 2026

Opinion

We have audited the financial statements of HTS Spares Limited (the 'company') for the year ended 31st December 2025 which comprise the Statement of income and retained earnings, Balance sheet, 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 31st 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Report of the directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of directors' responsibilities set out on pages four and five, 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the goods supply sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

-

understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Rachael Winfieldale (Senior Statutory Auditor)

for and on behalf of Chris Duckett (Audit) Limited

Chartered Accountants & Statutory Auditors

Network House

Thorn Office Centre

Rotherwas

Hereford

HR2 6JT

16th September 2026

Turnover

13,860,184

12,840,469

Cost of sales

9,005,881

8,313,645

Gross profit

4,854,303

4,526,824

Administrative expenses

2,910,651

2,510,665

1,943,652

2,016,159

Other operating income

-

7,550

1,943,652

2,023,709

Exceptional item

4

-

519,617

1,943,652

1,504,092

Interest receivable & similar income

46,287

33,612

Profit before taxation

5

1,989,939

1,537,704

Tax on profit

6

499,077

515,821

Profit for the financial year

1,490,862

1,021,883

Retained earnings at beginning of year

4,930,125

6,158,242

Dividends

7

(1,175,000

)

(2,250,000

)

Retained earnings at end of year

5,245,987

4,930,125

Fixed assets

Tangible assets

9

637,117

442,775

Current assets

Stocks

10

1,952,482

1,778,218

Debtors

11

2,752,127

2,152,069

Cash at bank and in hand

1,229,706

1,774,204

5,934,315

5,704,491

Creditors

Amounts falling due within one year

12

1,175,257

1,062,240

Net current assets

4,759,058

4,642,251

Total assets less current liabilities

5,396,175

5,085,026

Creditors

Amounts falling due after more than one year

13

(18,888

)

(48,469

)

Provisions for liabilities

15

(130,300

)

(97,100

)

Accruals & deferred income

16

-

(8,332

)

Net assets

5,246,987

4,931,125

Capital and reserves

Called up share capital

17

1,000

1,000

Retained earnings

18

5,245,987

4,930,125

Shareholders' funds

5,246,987

4,931,125

The financial statements were approved by the Board of Directors and authorised for issue on 16th September 2026 and were signed on its behalf by:

G Knappett - Director

Cash flows from operating activities

Cash generated from operations

1

1,723,929

2,097,210

Tax paid

(539,455

)

(489,168

)

Net cash from operating activities

1,184,474

1,608,042

Cash flows from investing activities

Purchase of tangible fixed assets

(440,954

)

(185,590

)

Sale of tangible fixed assets

4,600

90,990

Interest received

46,287

33,612

Net cash from investing activities

(390,067

)

(60,988

)

Cash flows from financing activities

Capital repayments in year

(29,582

)

(41,546

)

Movement in group undertakings

(134,034

)

876,130

Movement in related parties

(289

)

-

Equity dividends paid

(1,175,000

)

(2,250,000

)

Net cash from financing activities

(1,338,905

)

(1,415,416

)

(Decrease)/increase in cash and cash equivalents

(544,498

)

131,638

Cash and cash equivalents at beginning of year

2

1,774,204

1,642,566

Cash and cash equivalents at end of year

2

1,229,706

1,774,204

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

31.12.25

31.12.24

£

£

Profit before taxation

1,989,939

1,537,704

Depreciation charges

223,357

184,965

Loss/(profit) on disposal of fixed assets

18,655

(26,843

)

Finance income

(46,287

)

(33,612

)

2,185,664

1,662,214

(Increase)/decrease in stocks

(174,264

)

205,431

(Increase)/decrease in trade and other debtors

(434,394

)

285,996

Increase/(decrease) in trade and other creditors

146,923

(56,431

)

Cash generated from operations

1,723,929

2,097,210

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 31st December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

1,229,706

1,774,204

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,774,204

1,642,566

3.	Analysis of changes in net funds

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

1,774,204

(544,498

)

1,229,706

1,774,204

(544,498

)

1,229,706

Debt

Finance leases

(76,801

)

29,582

(47,219

)

(76,801

)

29,582

(47,219

)

Total

1,697,403

(514,916

)

1,182,487

1.	Statutory information

HTS Spares Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements & estimates

The following judgements and estimations have been made in the process of applying the company's accounting policies that have had the most significant effect on amounts recognised in the financial statements.

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

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economical lives and residual values of the assets. These are assessed by the Directors on an annual basis.

Stock provision

In calculating the stock provision, the Directors assess the nature and condition of the items in stock at the year end and how long they have been held. This provision is included within the stock balance in notes.

Turnover

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

Tangible fixed assets

Tangible fixed assets are stated in the Balance Sheet at cost less depreciation.

Depreciation is provided to write off the cost of fixed assets over their estimated useful lives at the

following rates:

Plant & equipment

20%-33% straight line

Motor vehicles

25% straight line

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

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.

Research & development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase & leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs & 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.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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

Basic financial assets, which include trade and other receivables and cash and bank balances, are measured at transaction price less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Other financial assets

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 the cost less impairment.

Impairment of financial assets

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after 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 assets 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all of the risks and rewards of the 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.

Classification of financial liabilities

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 group after deducing all of its liabilities.

Basic financial liabilities, including trade and other payables are measured at the transaction price. Other financial liabilities, including bank loans, loans from fellow group companies and preference shares that are classified as debt, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Other financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

3.	Employees (including officers)

31.12.25

31.12.24

£

£

Wages and salaries

1,858,908

1,765,229

Social security costs

211,375

176,588

Other pension costs

28,124

24,988

2,098,407

1,966,805

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

31.12.25

31.12.24

Admin & sales

36

36

Production & distribution

13

13

49

49

31.12.25

31.12.24

£

£

Directors' remuneration

93,159

167,692

4.	Exceptional items

31.12.25

31.12.24

£

£

Exceptional item

-

(519,617

)

During the year ended 31.12.24, the company's filter business was moved into a separate subsidiary, Holm Global Limited. This subsidiary was subsequently demerged.

5.	Profit before taxation

The profit is stated after charging/(crediting):

31.12.25

31.12.24

£

£

Vehicle operating leases

48,295

72,016

Depreciation - owned assets

198,568

160,176

Depreciation - assets on hire purchase contracts

24,789

24,789

Loss/(profit) on disposal of fixed assets

18,655

(26,843

)

Auditors' remuneration

13,500

12,500

Foreign exchange differences

(308

)

(17

)

Fees for non-audit services

25,900

25,800

Amortisation of grant

(8,332

)

(8,333

)

6.

Taxation

Analysis of the tax charge

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

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

465,900

499,800

UK corporation tax prior year

(23

)

(79

)

Total current tax

465,877

499,721

Deferred tax

33,200

16,100

Tax on profit

499,077

515,821

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

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

31.12.25

31.12.24

£

£

Profit before tax

1,989,939

1,537,704

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

497,485

384,426

Effects of:

Expenses not deductible for tax purposes

1,690

131,478

Income not taxable for tax purposes

(2,083

)

(2,083

)

Capital allowances in excess of depreciation

(31,192

)

(14,021

)

Adjustments to tax charge in respect of previous periods

(23

)

(79

)

Deferred tax movement

33,200

16,100

Total tax charge

499,077

515,821

7.

Dividends

31.12.25

31.12.24

£

£

Ordinary shares shares of £1 each

Interim

1,175,000

2,250,000

8.	Post year end dividends

Further dividend of £880,000 was duly authorised and paid on 28th January 2026.