REGISTERED NUMBER: 00797583 (England and Wales)

H.J. EVERETT (CHEMIST) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

T Baker

C Baker

N Baker

E Beech

SECRETARY:

D M Russell

REGISTERED OFFICE:

42 Bridge Road

Park Gate

Southampton

Hants

SO31 7GF

REGISTERED NUMBER:

00797583 (England and Wales)

AUDITORS:

MC Audit Limited

Statutory Auditors

Lake House

2 Port Way

Port Solent

Portsmouth

Hampshire

PO6 4TY

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

REVIEW OF BUSINESS

Everetts Pharmacy is a longstanding independent community pharmacy multiple. The principal activity of the company remains that of operating registered community pharmacies, conducting prescription dispensing, retail sales and professional healthcare services, across eleven sites in Hampshire.

Company performance, with continued consolidation and efficiencies during the year, has resulted in a net profit after tax of £226,360 (2025: Loss £3,065). This increase is attributed to the new contract stabilising the funding for core dispensing workload, and the steady increase in NHS and private additional services.

Everetts Pharmacy had paused the refitting of branches and focussed on smaller projects of functionality of services and dispensing. There is ongoing investment in centralised prescription dispensing and distribution and in training skilled staff. Drug price volatility, often not matched by funding in the NHS drug tariff, continues to be challenging, combined with an ongoing lack of B2B supplier regulation and is being mitigated to some degree at Everetts Pharmacy by the adoption of alternative purchasing software which has only been partially effective in retaining margin with considerable knowledge and expert input. Global pressures make stock sourcing an area that can continue to be improved.

Certain advanced services are 'capped' by the NHS, notably within the Pharmacy First Service bundle and New Medicine Service, which limits the available market for these. We apply for commissioned NHS services, supplemented by many private services, according to demand. Output becomes governed by team and time organisation, including upskilling all staff, but saturation leads to service offerings being spread across the group.

PRINCIPAL RISKS AND UNCERTAINTIES

The trend in community pharmacy ownership in our region continues to be for independent pharmacies to outnumber the national multiple pharmacies due to closure and mergers of branches to reduce costs across large portfolios. This leaves an increasing workload between often aggressively competitive new independent contractors, and the public still affected by the high cost of living but with less access to primary care GP access. Global issues, workforce development, and changing demand adds challenges.

The ongoing regular negotiation with DHSC is welcomed and the yearly adjustments to the new Pharmacy Contract, effective from April 2025, offers more secure NHS funding and some new opportunities to consider. Business and personal tax burdens continue to take away from this security and need separate consideration.

The continued DHSC policy of encouraging online pharmacy activity, which promotes the move from retail high street to online, is difficult for a traditional community orientated pharmacy structure but, for Everetts Pharmacy, both approaches are still necessary to survive. At Everetts Pharmacy we will continue to increase our online presence, focusing on our local customer base and improving the efficiency of our purchasing which remains key, alongside centralised dispensing, with the home delivery service as an expensive unfunded service to compete with online pharmacies. More efficient massive work hubs and online attraction of pharmacy business remain the biggest threat to the traditional high street pharmacy. 'Face-to-face' trading is preferred but markedly the least efficient method, leaving an ever-increasing proportion of pharmacy business online.

The biggest costs remain drug purchase costs and staffing, and both can continue to be improved, primarily through technology, including integrating a new IT system and dispensing method across the company in a branch by branch process.

The Company continues to deliver private services where the NHS leaves gaps and there is demand, and this is the fastest growing area, though with significant startup costs. The proximity of branches and small group strong mentality has helped the company retain much of its core business. We are proud of the community pharmacy service that we provide to our localities, despite a challenging market and improved central financial support negated by increased staff costs and taxation. This year, as with last, Everetts Pharmacy will continue to advance healthcare services by blending our strong traditional structure and set-up with further modernisation, which at last seems viable whilst the current government resides.

FINANCIAL KEY PERFORMANCE INDICATORS

The following KPls are continually reviewed by the company:

a)

Company turnover has increased to £18.4m from £17.7m in the previous period.period.

b)

The company's gross profit margin has increased to 28.8% for the year, from 27.6% in 2025. The increase, although not significant, is due to continued cost benefits from purchasing efficiencies and increased centralized dispensing, in addition to the focus on the provision of pharmacy provided services on behalf of the NHS in spite of the challenges arising from issues in NHS funding of core pharmacy services.

c)

Operating profit increased to £310k from £51k in the prior year, with profit before tax of £292k compared to the prior year figure of £20k.

ON BEHALF OF THE BOARD:

T Baker - Director

18 September 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2026.

DIRECTORS

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

T Baker

C Baker

Other changes in directors holding office are as follows:

N Baker - appointed 19 January 2026

E Beech - appointed 29 January 2026

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

T Baker - Director

18 September 2026

Opinion

We have audited the financial statements of H.J. Everett (Chemist) Limited (the 'company') for the year ended 31 March 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 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 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 page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern.

Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues and management override concerning the size of the organisation.

We set financial statement materiality based on revenue. As profit is too volatile to provide a reliable benchmark, revenue was considered a more appropriate basis, particularly as generating income is the organisation's primary focus. Our overall assessment of risk was used to determine performance materiality at an appropriate level.

Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confirmed documented systems which have been designed to act as a preventative measure against fraud and error which appear to be operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatements in areas tested.

Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override.

The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation.

Management assessed there is no going concern risk. The audit undertook a review of budgets, management accounts and the review of board minutes and came to the same conclusion as management.

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.

Paul Underwood, FCCA (Senior Statutory Auditor)

for and on behalf of MC Audit Limited

Statutory Auditors

Lake House

2 Port Way

Port Solent

Portsmouth

Hampshire

PO6 4TY

18 September 2026

TURNOVER

18,438,335

17,665,430

Cost of sales

13,147,642

12,786,733

GROSS PROFIT

5,290,693

4,878,697

Administrative expenses

5,074,314

4,901,755

216,379

(23,058

)

Other operating income

93,721

74,243

OPERATING PROFIT

5

310,100

51,185

Interest receivable and similar income

6

16,682

11,752

326,782

62,937

Interest payable and similar expenses

7

34,434

42,943

PROFIT BEFORE TAXATION

292,348

19,994

Tax on profit

8

65,988

23,059

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

226,360

(3,065

)

PROFIT/(LOSS) FOR THE YEAR

226,360

(3,065

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

226,360

(3,065

)

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

2,693,821

2,853,523

2,693,821

2,853,523

CURRENT ASSETS

Stocks

11

887,119

880,205

Debtors

12

1,940,744

1,764,767

Cash at bank and in hand

13

1,267,119

1,302,911

4,094,982

3,947,883

CREDITORS

Amounts falling due within one year

14

2,480,293

2,657,877

NET CURRENT ASSETS

1,614,689

1,290,006

TOTAL ASSETS LESS CURRENT LIABILITIES

4,308,510

4,143,529

CREDITORS

Amounts falling due after more than one year

15

(440,192

)

(497,908

)

PROVISIONS FOR LIABILITIES

18

(159,879

)

(163,542

)

NET ASSETS

3,708,439

3,482,079

CAPITAL AND RESERVES

Called up share capital

19

3,870

3,870

Share premium

20

2,670

2,670

Capital redemption reserve

20

75

75

Retained earnings

20

3,701,824

3,475,464

SHAREHOLDERS' FUNDS

3,708,439

3,482,079

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2026 and were signed on its behalf by:

T Baker - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2024

3,870

3,478,529

2,670

75

3,485,144

Changes in equity

Total comprehensive income

-

(3,065

)

-

-

(3,065

)

Balance at 31 March 2025

3,870

3,475,464

2,670

75

3,482,079

Changes in equity

Total comprehensive income

-

226,360

-

-

226,360

Balance at 31 March 2026

3,870

3,701,824

2,670

75

3,708,439

Cash flows from operating activities

Cash generated from operations

1

55,585

192,958

Interest paid

(34,434

)

(42,943

)

Tax paid

2,781

(59,195

)

Net cash from operating activities

23,932

90,820

Cash flows from investing activities

Purchase of tangible fixed assets

(22,970

)

(332,792

)

Sale of tangible fixed assets

-

95

Costs of disposing of assets

-

(1,123

)

Interest received

16,682

11,752

Net cash from investing activities

(6,288

)

(322,068

)

Cash flows from financing activities

Loan repayments in year

(53,436

)

(47,788

)

Amount repaid by director

-

350,000

Net cash from financing activities

(53,436

)

302,212

(Decrease)/increase in cash and cash equivalents

(35,792

)

70,964

Cash and cash equivalents at beginning of year

2

1,302,911

1,231,947

Cash and cash equivalents at end of year

2

1,267,119

1,302,911

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

2026

2025

£

£

Profit before taxation

292,348

19,994

Depreciation charges

180,947

185,268

Loss on disposal of fixed assets

1,724

11,705

Provision

51,403

-

Bad debts

7,847

24,953

Finance costs

34,434

42,943

Finance income

(16,682

)

(11,752

)

552,021

273,111

Increase in stocks

(6,914

)

(15,345

)

(Increase)/decrease in trade and other debtors

(183,824

)

19,933

Decrease in trade and other creditors

(305,698

)

(84,741

)

Cash generated from operations

55,585

192,958

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

1,267,119

1,302,911

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,302,911

1,231,947

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

1,302,911

(35,792

)

1,267,119

1,302,911

(35,792

)

1,267,119

Debt

Debts falling due within 1 year

(53,015

)

(4,279

)

(57,294

)

Debts falling due after 1 year

(497,908

)

57,716

(440,192

)

(550,923

)

53,437

(497,486

)

Total

751,988

17,645

769,633

1.	STATUTORY INFORMATION

H.J. Everett (Chemist) 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.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses. These estimates and judgements are based on historical experience and other relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.

During the current financial year, the directors did not make any critical accounting judgements or identify any key sources of estimation uncertainty that would have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

-

The company has transferred the significant risk and rewards of ownership to the buyer;

-

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

-

the amount of revenue can be measured reliably;

-

it is probable that the company will receive the consideration due under the transaction; and

-

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-

the amount of revenue can be measured reliably;

-

it is probable that the company will receive the consideration due under the contract;

-

the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-

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

Expenditure

Expenses are recognized on the accruals basis, when the goods or services are received, regardless of when payment is made. This ensures that expenses are matched with the related income in the period in which they are incurred.

Expenditure is recorded net of VAT. The company is subject to partial exemption for VAT. Irrecoverable VAT is charged to expenditure as and when it is incurred.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Goodwill

- 7 years

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical costs less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property

- 2-5% straight line

Long-term leasehold property

- 2-5% straight line

Short-term leasehold property

- straight line over period of lease

Motor Vehicles

- 25% reducing balance

Fixtures and Fittings

- 15-33.3% reducing balance

Office Equipment

- 15-33.3% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Tangible fixed assets are reviewed for indicators of impairment at each reporting date. If there is an indication that an asset may be impaired, the asset's recoverable amount is estimated. An impairment loss is recognised in the profit or loss account when the carrying amount of the asset exceeds its recoverable amount.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

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

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties and investments in non-puttable ordinary shares.

Trade and other debtors

Short term debtors 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

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, deposits with banks and other short-term highly liquid investments and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method

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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operate and generate income.

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

-

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

-

Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

-

Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the company can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Pension costs and other post-retirement benefits

The company operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

3.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

3,372,043

3,274,348

Social security costs

370,057

263,620

Other pension costs

84,764

82,062

3,826,864

3,620,030

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

2026

2025

Directors and salaried staff

23

24

Wages staff

141

159

164

183

4.	DIRECTORS' EMOLUMENTS

2026

2025

£

£

Directors' remuneration

132,452

131,050

Directors' pension contributions to money purchase schemes

3,577

3,446

5.	OPERATING PROFIT

The operating profit is stated after charging:

2026

2025

£

£

Hire of plant and machinery

16,431

16,937

Other operating leases

96,600

91,883

Depreciation - owned assets

180,948

185,268

Loss on disposal of fixed assets

1,724

11,705

Auditors' remuneration

10,920

10,450

Other non- audit services

3,750

2,500