The directors present the strategic report for the year ended 31 March 2026.

From April 2025, the business was faced with further significant increases in wage costs. This included a 6.7% increase in the National Living Wage and increases to employer national insurance contributions and a reduction in thresholds. This meant the overall increase was too significant for the business to absorb, like it had done in the previous financial year.

Subsequently, our customers were asked to support an increase in both labour and general consumable costs. Pro-actively however the business was able to mitigate some of the increases with a reduction in energy surcharge costs.

These increases have allowed the business to maintain its margins and to remain profitable for the third year in a row with a profit of £429,383 for the year ending 31st March 2026. This is a similar result for 2025 with a profit of £451,965 being generated and likewise with a similar profit of £432,528 in 2024. The Directors view these consecutive and consistent levels of a profit to be a significant achievement in an industry that has faced continuous cost pressures and geopolitical factors during this period.

Turnover in year was £12,210,882 reducing by 21% from £15,457,395 in 2025.This was due to a continued reduction in the sale of components that include child parts for assembly operations which in the year were only £590K, compared to £1.8M in 2023. But the overriding reason was due to our main automotive customer being subject to an IT cyber attack that resulted in no components being supplied for nearly a 6-week period. Following this period of inactivity, when production re-commenced, the Directors were grateful that pre-cyber attack volumes were achieved quickly and remained that way for the remainder of the financial year.

The balance sheet has again benefited from this third year of profits resulting in the net current liabilities figure becoming positive at £120,041, the first time for several years. In 2025 it was (£249,283) so an overall improvement of some £369,234. Similarly, the long-term debt has continued to reduce from (£351,239) in 2025 and now stands at only (£152,311). Reducing both short-term and long-term debt has resulted in a reduction of interest payable from (£330,339) in 2025 to (£224,369) in the year ending 31st March 2026.

Additional financial support was provided by one of our valued customers in the year.

Price Risk

During the financial year, raw material (aluminium ingot) prices have again remained stable at a slightly lower average of £2,101 per metric ton, compared to £2,125 last year. Any movement in prices, up or down, are mitigated by agreements that allow the business to pass on any movements in price to the customer. However, since the start of the new financial, due to the latest conflict in Iran, prices have increased significantly and currently stand at £2,810 per metric ton.

Interest Rate Risk

The group's invoice discounting facility is linked to the Bank of England base rate, which has continued to reduce gradually from its 16 year high of 5.25% and currently stands at 3.75% This has therefore reduced the element of interest rate risk faced by the business, especially as levels of debt are reducing. The future for interest rates is somewhat clouded due to increases in inflation as a result of the continued conflicts in the middle east.

Economy Risk

Due to various geopolitical factors, including conflicts in the Middle East and Tariffs being imposed by the USA and closer to home with another pending change in Prime Minister, the outlook for the UK economy is still fragile. With such issues beyond the control of the business, there is very little that can be done to mitigate such risks.

Energy Risk

Even though there have been recent reductions in the wholesale energy prices, following a peak in February 2026, there is still volatility in the energy markets. However, the business was able to renew contracts prior to this peak and even though there was still an increase per annum, it was much lower than it could have been. The contracts signed were for 24 months, therefore removing the energy risk for the next 2 financial years.

Analysis using key performance indicators:

Profit ratio

Pre-tax profit margin 3.52% (2025: 2.92%)

Activity ratio

Stock turnover 11.6% (2025: 8.3%)

Interest cover 2.91 (2025: 2.37)

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activity of the company continued to be that of aluminium pressure and gravity diecasters and machinists.

The results for the year are set out on page 9.

No ordinary dividends were paid. 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:

The latest conflict in the Middle East, like at the start of the troubles in Ukraine and Russia, has resulted in energy prices increasing significantly. This has a knock-on effect throughout the global economy as transport and production costs spiral upwards in most industries. Subsequently, suppliers are now following a trend of adding surcharges to the products they supply, which adds to the overall operating costs of the business. In addition, the National Living Wage increased again in April 2026 by 4.1%.

Energy contracts were renewed in February 2026, just before the markets spiked, so this kept the overall increase down, but there was still an increase nevertheless. The new contracts commenced in April 26 and are fixed for 24 months.

All of these latest costs pressures resulted in the Directors having no option but to approach the customer base with a general price increase request. These requests have been accepted and will therefore greatly assist in the business remaining profitable for a fourth consecutive year. Margins are constantly under pressure and even low % levels are difficult to maintain.

The company is committed to maintaining the highest levels of quality and delivery performance, to ensure our customers get value for money and to further enhance the strong relationships that are already in place. We remain appreciative of the continued support provided by our loyal and most valued customers.

At the time of writing, the latest cost pressure is from the aluminium markets, as prices have increased over 34% in the first 6 months of the calendar year. Even though there are mechanisms in place to reflect movements in the markets, as the increase has been so significant and in such a short period of time, the purchase prices are currently still more than selling prices. This is resulting in a monthly loss on metal and is an additional drain on cash flow. The Directors understand that the markets may have reached their peak, but the concern is that prices will not fall as quickly as they have increased, so the correction of profitability and cash flow may not occur in the current financial year, if ever.

Despite the negative impact of the metal scenario detailed above, the cash position is forecast to remain positive. The dependency upon the invoice discounting facility provided by HSBC plc, will continue to reduce to a much lower level compared to previous years. In addition, the CBILS loan for £1M that was taken out at the start of the COVID-19 pandemic to provide working capital, was recently paid off in full. There has been no new debt taken out, so overall the long-term liability will continue to reduce this year to almost zero and so will the associated finance costs.

New parts are entering production this year for the BEV market which are CNC machined and assembled. Some parts also contain a laser etching process which is a new process for the business. Overall though sales are forecast to reduce compared to the previous year, so parts with extended process routes that allow for extra added value to be generated will assist in the business remaining profitable.

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

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; 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.

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.

We have audited the financial statements of J.H. Lavender & Company Limited (the 'company') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 March 2026 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.

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the aluminium die casting 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, data protection, employment, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing correspondence with relevant regulators.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:

• Discussions with directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• Confirming our understanding of controls by performing a walk through test or observation and enquiry;

• Performing analytical procedures to identify any unusual or unexpected relationships;

• Challenging assumptions and judgements made by management in its significant accounting estimates;

• Identifying and testing journal entries;

• Reviewing unusual or unexpected transactions; and

• Agreeing the financial statement disclosures to underlying supporting documentation.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. 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 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.

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.

The notes on pages 12 to 24 form part of these financial statements.

The notes on pages 12 to 24 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The notes on pages 12 to 24 form part of these financial statements.

J.H. Lavender & Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hall Green Works, Crankhall Lane, West Bromwich, West Midlands, B71 3JZ.

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 £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of J.H. Lavender (Holdings) Ltd. These consolidated financial statements are available from its registered office, Hall Green Works, Crankhall Lane, West Bromwich, West Midlands, B71 3JZ.

With the company remaining in a profit-making position for a sustained period, this has enabled a further improvement in the net current liabilities position from (£249,823) in 2025 to £120,041 in 2026. This is the first time a positive figure has been reported for several years and with profits forecast for subsequent years this position should continue.true

In addition, following a further significant reduction of 56.6% in long-term finance from (£351,239) to (£152,311) in 2026, at the end of the current financial year (31st March 2027) long-term finance liabilities are anticipated to be close to zero.

HSBC plc continue to provide working capital support via an invoice discounting facility and a new trade finance facility specifically for funding tooling. For capital purchases, HSBC plc continue to provide the option for asset finance if required.

At the time of approving the directors believe 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 goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

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.

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 assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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.

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.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Other operating income includes a material one-off compensation receipt relating to business interruption.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2025 - 2).

The actual credit 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:

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Included in the above trade debtors are balance totalling £239,119 (2025: £3,027,359) that are subject to invoice finance arrangements. The trade debtor balances have been transferred to the counterparty, though the transactions does not qualify for derecognition on the basis that the late payment risk is retained by the company. The associated liability recognised in creditors amounts to £115,142 (2025: £2,786,847).

The finance leases are secured by a chattels mortgage, date 01/10/2010, and there is a legal assignment of contract monies, dated 26/03/2014, both with HSBC Asset Finance (UK) Ltd and HSBC Equipment Finance (UK) Ltd.

The invoice discounting account is secured by a fixed charge on non-vesting debts and floating charge, dated 22/09/2009, with HSBC Invoice Finance (UK) Ltd.

The bank borrowings are further secured by a debenture with HSBC Bank Plc, dated 24/09/2009, a composite company unlimited multilateral unlimited guarantee with HSBC Plc dated 24/09/2009, a legal assignment of contract monies, with HSBC Bank Plc, dated 10/07/2012 and a chattels mortgage, against certain machinery, with HSBC Equipment Finance (UK) Ltd, dated 16/01/2020.

The CBILS loan is also covered by a guarantee in favour of HSBC UK Bank plc given by the directors guaranteeing all liabilities, limited to £100,000 in total.

The CBILS loan had an initial repayment free period of 12 months from the date the loan is drawn. It is then repayable by equal instalments over 60 months with an interest rate of 3.99% per annum over the BoE base rate.

The Company holds two RLS loans, the first of which was drawn down in January 2022 and had an initial repayment free period of 6 months from the date the loan is drawn. It is then repayable by equal instalments over 66 months with a fixed interest rate of 5.06%. The second RLS loan was drawn down in November 2022 and had a 6 month period free of capital repayments. The loan is repayable over 66 equal installments and has an interest rate set at 3.99% above the BoE base rate.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

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

The parent company of J.H. Lavender & Company Ltd is J.H. Lavender (Holdings) Ltd.

The directors of J.H. Lavender (Holdings) Ltd are regarded as its controlling parties by virtue of their ability to act in concert in respect of the operations of the company.

J.H. Lavender & Company Ltd is consolidated into J.H. Lavender (Holdings) Ltd group accounts. Copies of group accounts can be obtained from the Company Secretary, Hall Green Works, Crankhall Lane, West Bromwich, West Midlands, B71 3JZ.