REGISTERED NUMBER: 05718052 (England and Wales)

THE MOTORHOME DEPOT (MIDLANDS) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

P. I. Chance

Mrs J. Chance

SECRETARY:

Mrs J. Chance

REGISTERED OFFICE:

Inkford Brook

Alcester Road

Wythall

Birmingham

West Midlands

B47 6DB

REGISTERED NUMBER:

05718052 (England and Wales)

AUDITORS:

Charles Lovell & Co Limited

Chartered Certified Accountants

and Statutory Auditors

8 Church Green East

Redditch

Worcestershire

B98 8BP

The directors are pleased to present the strategic report of the company for the year ended 31 December 2025. The report provides an overview of the Company's principal activities, performance during the year and the key factors affecting its future development.

REVIEW OF BUSINESS

The company operates as a motorhome dealership, generating revenue through the purchase and resale of motorhomes, alongside ancillary income streams such as finance commissions, warranties, and servicing-related activities.

For the year ended 31 December 2025, the business turnover of £14,836,534 (2024: £14,477,840), indicates relatively stable sales levels year-on-year. However, despite this, the company has recorded a loss of £252,323, compared to the profit of £458,747 in the prior year.

Gross profit has declined year-on-year, primarily due to margin compression on vehicle sales, increased cost of purchases relative to sales & possible discounting to drive sales volumes

Closing stock remains high at £8,499,932, reflecting the capital-intensive nature of the business. This may indicate slower stock turnover or an overstocking position, both of which can negatively impact profitability and cash flow.

Operating costs have remained significant, with notable increases in staff costs, advertising and website expenditure & overheads and general administrative expenses

In addition, stock finance charges have increased significantly, placing further pressure on profitability. Overall, the combination of reduced margins and increased financing and operating costs has resulted in the reported loss for the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates within the UK motorhome retail sector, which remains sensitive to wider economic conditions. During the year, the business has been impacted by elevated interest rates, cost inflation, and increased competitive pressure, all of which have contributed to reduced margins across the industry. These factors, combined with subdued consumer confidence for discretionary purchases, have contributed to the Company reporting a loss for the year.

The motorhome market is inherently cyclical, and demand can fluctuate in response to changes in disposable income, financing costs, and broader economic uncertainty. Higher borrowing costs have also increased the company's stock funding expenses, placing additional pressure on profitability and cash flow.

The company holds a significant level of inventory, which exposes it to risks relating to stock obsolescence, valuation, and slower turnover. In a more competitive market, this may result in increased discounting to achieve sales, further impacting gross margins.

In addition, uncertainty surrounding future government policy, taxation, and regulatory requirements continues to present a risk to the business. Changes in fuel and energy costs, environmental regulations, and compliance obligations may also affect both consumer demand and operating costs.

Despite these challenges, the directors are taking steps to respond to current trading conditions. Focus remains on improving stock management, controlling costs, and protecting margins where possible. The directors believe that appropriate systems and controls are in place to manage these risks; however, continued economic uncertainty means that trading conditions are expected to remain challenging in the near term.

FINANCIAL KEY PERFORMANCE INDICATORS

The company has established and recognised key performance indicators to measure progress in achieving its key business objectives and strategies; these are reviewed on a regular basis.

The company's profitability metrics, specifically gross profit and net profit, provide a clear view of operational performance and overall financial health. These indicators highlight both the efficiency of core operations and the effectiveness of cost management.

2025

2024

Gross profit

4.02%

8.54%

Net profit before tax

(2.31%)

4.23%

Net profit after tax

(1.64%)

3.17%

STRATEGY

The company's strategy is to operate a sustainable and profitable motorhome dealership through effective cost control, strong stock management, and delivery of quality vehicles and services.

Following the loss reported for the year, we are focused on restoring profitability by improving margins, reducing discounting, and carefully managing operating costs. Stock levels are being closely monitored to improve turnover, reduce slow-moving vehicles, and lower financing costs.

Investment decisions are being made selectively, with a focus on cash flow and efficiency. The company continues to invest in marketing and customer experience to support sales and repeat business.

Overall, the strategy is to strengthen financial performance and return the business to profitability in challenging market conditions.

ENVIRONMENT

The business is impacted by evolving environmental regulations, particularly in relation to vehicle emissions and fuel efficiency. Changes in legislation and increasing consumer awareness may influence demand for motorhomes with improved environmental performance and compliance with newer standards.

Efforts are made to minimise environmental impact through responsible energy use at premises and appropriate handling of waste arising from vehicle preparation and maintenance.

We will continue to monitor environmental developments and will consider opportunities to adapt the vehicle offering and operations in line with sustainability trends where appropriate.

FUTURE DEVELOPMENTS

We are focused on returning the business to profitability through improved margin control, tighter cost management, and more efficient stock turnover.

Future plans include refining stock purchasing to better align with demand, reducing slow-moving inventory, and lowering reliance on external financing. The business will continue to invest in its online presence and sales channels to support revenue generation.

We will also monitor market conditions closely and adapt the product offering and pricing strategy as required. While trading conditions remain uncertain, the focus is on strengthening cash flow and positioning the business for sustainable growth.

ON BEHALF OF THE BOARD:

P. I. Chance - Director

10 September 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of sale of motor homes

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

P. I. Chance

Mrs J. Chance

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, Charles Lovell & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P. I. Chance - Director

10 September 2026

Opinion

We have audited the financial statements of The Motorhome Depot (Midlands) Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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.

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

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud and error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

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 applicable to the Company and the nature of the industry and the sector in which they operate. We determined that the following laws and regulations were most significant; the Companies Act 2006, the UK Corporate Governance Code and UK corporate taxation laws.

- We obtained an understanding of how the Company are complying with those legal and regulatory frameworks by making inquiries with the management of the Company and the Group's audit department.

- We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the Audit engagement team included:

- identifying and assessing the design effectiveness of controls that management has in place to

prevent and detect fraud.

- Understanding how those charged with governance considered and addressed the potential for

override of controls or other inappropriate influence over the financial reporting process.

- challenging assumptions and judgements made by management in its significant accounting

estimates.

- identifying and testing journal enteries and performing analytical procedures to identify any unusual

or unexpected relationships that may indicate risks of material misstatement due to fraud.

- assessing the extent of compliance with the relevant laws and regulations.

- We also communicated relevant identified laws and regulations and potential fraud risk to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Other matters

The financial statements for the prior year were not audited. Accordingly, we do not express an opinion on the corresponding figures and opening balances.

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.

Hadleigh Jonathan Burns (Senior Statutory Auditor)

for and on behalf of Charles Lovell & Co Limited

Chartered Certified Accountants

and Statutory Auditors

8 Church Green East

Redditch

Worcestershire

B98 8BP

10 September 2026

TURNOVER

3

14,836,534

14,477,840

Cost of sales

14,240,179

13,241,874

GROSS PROFIT

596,355

1,235,966

Administrative expenses

950,062

630,707

OPERATING (LOSS)/PROFIT

5

(353,707

)

605,259

Interest receivable and similar income

3,146

7,119

(350,561

)

612,378

Interest payable and similar expenses

6

19

664

(LOSS)/PROFIT BEFORE TAXATION

(350,580

)

611,714

Tax on (loss)/profit

7

(98,256

)

152,967

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(252,324

)

458,747

(LOSS)/PROFIT FOR THE YEAR

(252,324

)

458,747

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(252,324

)

458,747

FIXED ASSETS

Tangible assets

9

226,560

160,314

CURRENT ASSETS

Stocks

10

8,499,932

7,186,786

Debtors

11

124,997

41,301

Cash at bank and in hand

111,269

194,331

8,736,198

7,422,418

CREDITORS

Amounts falling due within one year

12

8,608,220

6,976,935

NET CURRENT ASSETS

127,978

445,483

TOTAL ASSETS LESS CURRENT LIABILITIES

354,538

605,797

PROVISIONS FOR LIABILITIES

15

41,144

40,079

NET ASSETS

313,394

565,718

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

313,294

565,618

SHAREHOLDERS' FUNDS

313,394

565,718

The financial statements were approved by the Board of Directors and authorised for issue on 10 September 2026 and were signed on its behalf by:

P. I. Chance - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

565,371

565,471

Changes in equity

Dividends

-

(458,500

)

(458,500

)

Total comprehensive income

-

458,747

458,747

Balance at 31 December 2024

100

565,618

565,718

Changes in equity

Total comprehensive income

-

(252,324

)

(252,324

)

Balance at 31 December 2025

100

313,294

313,394

Cash flows from operating activities

Cash generated from operations

1

168,041

40,058

Interest paid

(19

)

(379

)

Interest element of hire purchase or finance lease rental payments paid

-

(285

)

Tax paid

(146,834

)

-

Net cash from operating activities

21,188

39,394

Cash flows from investing activities

Purchase of tangible fixed assets

(107,396

)

(58,841

)

Interest received

3,146

7,119

Net cash from investing activities

(104,250

)

(51,722

)

Cash flows from financing activities

Equity dividends paid

-

(458,500

)

Net cash from financing activities

-

(458,500

)

Decrease in cash and cash equivalents

(83,062

)

(470,828

)

Cash and cash equivalents at beginning of year

2

194,331

665,159

Cash and cash equivalents at end of year

2

111,269

194,331

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

31.12.25

31.12.24

£

£

(Loss)/profit before taxation

(350,580

)

611,714

Depreciation charges

41,152

28,444

Finance costs

19

664

Finance income

(3,146

)

(7,119

)

(312,555

)

633,703

Increase in stocks

(1,313,146

)

(7,186,786

)

Decrease/(increase) in trade and other debtors

15,625

(41,301

)

Increase in trade and other creditors

1,778,117

6,634,442

Cash generated from operations

168,041

40,058

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

111,269

194,331

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

194,331

667,594

Bank overdrafts

-

(2,435

)

194,331

665,159

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

194,331

(83,062

)

111,269

194,331

(83,062

)

111,269

Total

194,331

(83,062

)

111,269

1.	STATUTORY INFORMATION

The Motorhome Depot (Midlands) 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.

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within accounting policies below.

The company's functional and presentational currency is pound sterling.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Turnover

Turnover represents the fair value of consideration receivable for the sale of motorhomes, servicing, and warranty-related income, net of trade discounts, value added tax, and other sales-related taxes.

Revenue is recognised in accordance with the principles of FRS 102 Section 23 as follows:

Revenue from the sale of motorhomes is recognised when control of the vehicle passes to the customer, which is typically on delivery and acceptance, at which point the significant risks and rewards of ownership have transferred.

Revenue from servicing and repair work is recognised at the point the service is completed and invoiced, as this reflects the transfer of the service to the customer.

Where warranties are provided separately or as part of a bundled sale, the portion of consideration attributable to the warranty is deferred and recognised as revenue over the period of the warranty cover, reflecting the pattern of service provision and the company's obligations under the warranty agreement.

Tangible fixed assets

Tangible assets are stated at historical cost less 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 on a straight line basis.

Depreciation is provided on the following basis:

Improvements to property

-

15% on reducing balance

Plant and machinery

-

20% on reducing balance

Fixture and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

15% on 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 profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value, in accordance with FRS 102.

Cost comprises purchase price together with directly attributable costs incurred in bringing the stock to its present location and condition.

Motorhomes: Cost is determined on a specific identification basis, reflecting the individual nature and high value of each vehicle.

Parts and accessories: Cost is determined on a weighted average basis.

Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling, and distribution.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

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 publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies 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.

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

Trade creditors are obligations to pay for goods that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less.

Financial liabilities are derecognised when the liability is extinguished, when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

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.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis.

Whilst the company incurred a loss during the year, the directors are satisfied that the company has sufficient resources to continue trading for the foreseeable future.

Further details regarding the measures undertaken to return the company to a profitable position are included within the Strategic Report. Based on the above the directors believe that preparing the accounts on a going concern basis is appropriate.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.25

31.12.24

£

£

United Kingdom

14,836,534

14,477,840

14,836,534

14,477,840

4.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

683,390

619,251

Social security costs

65,243

44,147

Other pension costs

46,627

36,533

795,260

699,931

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

31.12.25

31.12.24

Office

8

10

Sale team

3

2

Workshop

8

7

Wythall team

8

7

27

26

31.12.25

31.12.24

£

£

Directors' remuneration

21,548

18,192

Directors' pension contributions to money purchase schemes

34,000

24,000

5.	OPERATING (LOSS)/PROFIT

The operating loss (2024 - operating profit) is stated after charging:

31.12.25

31.12.24

£

£

Depreciation - owned assets

41,150

28,445

Auditors' remuneration

5,000

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.25

31.12.24

£

£

Bank interest

19

379

Hire purchase

-

285

19

664