REGISTERED NUMBER: 07689770 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

for

Longacres Garden Centre Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

J M Erridge

N P Long

C J Long

REGISTERED OFFICE:

Longacres Nursery

London Road

Bagshot

Surrey

GU19 5JB

REGISTERED NUMBER:

07689770 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

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

REVIEW OF BUSINESS

The board presents a review of the development and performance of the company during the year under review and its position at the year end. This review is consistent with the size and nature of the company and is written in the context of risks and uncertainties it faces.

During the period under review, the directors are pleased to report a small increase of 1.2% in sales over the previous year.

The company increased its gross profit margin from 34.6% to 36.6% and, despite continued inflationary pressures from wages and energy prices, profit before tax increased from £1,285,787 to £2,365,051.

The directors aim to maintain the company's existing management policies which have resulted in the company's successful period of trading. These policies include the intention to grow sales and maintain control over costs. There has been substantial investment in the year including a new restaurant at Bagshot which is expected to increase growth in the years to come, along with the recent launch of a new butchery concession on-site. Further progress has also been made in the introduction of additional solar energy installations, to help reduce energy costs while early repayment of some bank loans has helped reduce interest charges.

The directors consider that the results for the period to be satisfactory and are confident that the company will continue to trade profitably in the future. The continuing profitability has left the company in a sound financial position at the end of the year and is in line with the company's expectations.

KEY PERFORMANCE INDICATORS

The company regularly reports and monitors its performance against strategic objectives by means of key performance indicators (KPI’s). The principle KPI’s being turnover, gross profit margins, profit before taxation and liquidity.

2025

2024

£

£

Turnover

61,924,850

61,180,051

Gross profit margin

36.6%

34.6%

Profit before taxation

2,365,051

1,285,787

Net Current Assets

3,811,290

4,757,577

Cash generated from operations

6,322,854

940,610

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the company and the nature of its trading strategy are subject to a number of risks. The company operates a thorough risk assessment and management process which involves a formal review of all the risks identified and introducing processes to monitor and mitigate each risk, where possible.

The company's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank loans. The main purpose of these instruments is to provide funds for the company's operations. Their existence exposes the group to a number of financial risks, which have been considered and are managed as follows:

Cost inflation and supply chain

The company continues to have a strong supply chain system, which allows it to negotiate better purchasing terms and work with suppliers to improve supply chain efficiency. However, the company remains exposed to periods of cost inflation and continually assesses any risks identified with the aim of mitigating the threats these may have on the company's operations and profitability.

Operational risk

Operational risk is the risk of a direct or indirect loss resulting from the inadequacies or failures of processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk, the company maintains a system of comprehensive policies and a control framework which is designed to provide a sound and well-controlled operational environment.

Liquidity risk

Liquidity risk is the risk that the company will have insufficient resources to meet its financial liabilities as they fall due. The company's strategy to managing liquidity risk is to ensure that the company has sufficient funds to meet all its potential liabilities as they fall due.

Interest rate risk

Interest rate risk is the risk that the financial performance of the company will be adversely affected by adverse fluctuations on interest rates being charged to the company on its financial instruments. The interest rate risk is managed by the ongoing monitoring and assessment of its borrowings and the interest rate charged. This is deemed sufficient to mitigate this risk.

Credit risk

The company is exposed to credit risk through trade debtors arising from wholesale customers and concession partners. As the majority of company revenue is generated through retail sales settled at the point of sale via cash, debit card, credit card and other electronic payment methods, overall credit risk exposure remains limited.

Currency risk

Currency risk is the risk that the financial performance of the company will be adversely affected by adverse fluctuations in foreign currencies used by the company. The company has minimal exposure to foreign currency risk.

The directors review the principal risks and uncertainties facing the company on a regular basis and ensure systems and policies are continuously updated to reflect any changes, they work in an efficient manner to minimise those risks and help achieve the company's objectives.

GOING CONCERN

The company's business activities, together with the factors likely to affect its future development, performance and position are set out above. After making enquiries, the directors have an expectation that the company's net current assets as at 31 December 2025 of £3.8m are more than sufficient to provide adequate resources to continue in operational existence for the foreseeable future.

The directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.

SECTION 172(1) STATEMENT

The Directors act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to all matters set out in section 172 of the Companies Act 2006 when performing their duties and when making decisions for the long term.

Please refer to the Report of the Directors for further details regarding engagement with their employees and other stakeholders.

ON BEHALF OF THE BOARD:

N P Long - Director

15 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 garden centre operators. The company operated from six sites for the whole of the year.

DIVIDENDS

Interim dividends of £681,000 (2024: £496,000) were paid in the year. The directors recommend that no final dividend be paid.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

J M Erridge

N P Long

C J Long

ENGAGEMENT WITH EMPLOYEES

The company gives full consideration to applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to all employees for training, career development and promotion.

Longacres is a family run business with directors working alongside staff and regularly having debriefs with shop management, supervisors, buyers and other staff: this allows employees to influence the decision-making process and encourages an awareness of the financial and economic factors affecting the performance of their departments, shops and the company as a whole. It also provides opportunities for employees to feedback information on matters of concern to them.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Customer service is at the forefront of Longacres success and we are very much dependent on our employees to provide a first-class service to help us retain our competitiveness in such difficult times for the retail market. A dedicated customer service team, Facebook, Trust Pilot and other social media outlets all help provide essential feedback so the company can monitor our progress and adapt quickly to changing demands.

The supply of many varied quality products at competitive prices requires a large number of supply chains to be working effectively.

STREAMLINED ENERGY AND CARBON REPORTING

The SECR disclosures presents the company’s carbon footprints within the UK for scope 1,2 and 3 emissions

based on SECR Legislation, as appropriate intensity metric, the total energy use of electricity, gas and transport

fuel and an energy efficiency actions summary taken during the relevant financial year.

2025

2024

UK Energy consumption used to calculate emissions (kWh)

5,061,064

3,385,780

Associated Greenhouse gas emissions (Kg CO2e)

1,018,274

971,329

Associated Greenhouse gas emissions per £ turnover (Kg CO2e)

0.016

0.016

UK energy use covers total electricity purchases by the company for its own use, total quantity of consumption of gas as fuel and total fuel used for business travel.

Associated Greenhouse gases have been calculated using 'GHG Reporting Protocol - Corporate Standard' methodology.

The company continues to search for direct savings in energy and associated carbon emissions through operational and technological improvements.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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, WP Audit Services LLP, have indicated their willingness to continue in office.

ON BEHALF OF THE BOARD:

N P Long - Director

15 September 2026

Opinion

We have audited the financial statements of Longacres Garden Centre Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of 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 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 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:

We obtained an understanding of the legal and regulatory framework that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context include the Companies Act and tax legislation. In addition we considered the provisions of other laws and regulations that do not have an effect on the financial statements but compliance with which may be fundamental to the company's ability to incur or to avoid a material penalty, including the company's operating licences and environmental regulations.

Our procedures in response to the risks identified included reviewing the financial statements disclosures and testing supporting documentation to assess compliance with the provisions of relevant laws and regulations considered to have a direct effect in the financial statements, enquiring of management concerning actual or potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, reading minutes of meetings of those charged with governance, reviewing correspondence with relevant regulatory authorities and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential audit risks 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.

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.

Stuart Wright (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

15 September 2026

REVENUE

3

61,924,850

61,180,051

Cost of sales

(39,275,704

)

(39,993,721

)

GROSS PROFIT

22,649,146

21,186,330

Administrative expenses

(21,306,649

)

(20,853,232

)

1,342,497

333,098

Other operating income

4

1,147,716

1,120,232

OPERATING PROFIT

6

2,490,213

1,453,330

Income from shares in group undertakings

-

1,092,153

Interest receivable and similar income

86,381

91,205

2,576,594

2,636,688

Amounts written off investments

7

-

(963,168

)

2,576,594

1,673,520

Interest payable and similar expenses

8

(211,543

)

(387,733

)

PROFIT BEFORE TAXATION

2,365,051

1,285,787

Tax on profit

9

(1,251,523

)

(840,065

)

PROFIT FOR THE FINANCIAL YEAR

1,113,528

445,722

FIXED ASSETS

Intangible assets

11

4,898,039

5,985,505

Property, plant and equipment

12

17,616,769

17,051,609

22,514,808

23,037,114

CURRENT ASSETS

Inventories

13

6,307,248

6,129,726

Debtors

14

2,491,944

2,265,725

Cash at bank

3,107,415

2,203,352

11,906,607

10,598,803

CREDITORS

Amounts falling due within one year

15

(8,095,317

)

(5,841,226

)

NET CURRENT ASSETS

3,811,290

4,757,577

TOTAL ASSETS LESS CURRENT LIABILITIES

26,326,098

27,794,691

CREDITORS

Amounts falling due after more than one year

16

(1,226,041

)

(3,128,125

)

PROVISIONS FOR LIABILITIES

20

(487,063

)

(486,100

)

NET ASSETS

24,612,994

24,180,466

CAPITAL AND RESERVES

Called up share capital

21

9,501,000

9,501,000

Retained earnings

22

15,111,994

14,679,466

24,612,994

24,180,466

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2026 and were signed on its behalf by:

N P Long - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

9,501,000

14,729,744

24,230,744

Changes in equity

Dividends

-

(496,000

)

(496,000

)

Total comprehensive income

-

445,722

445,722

Balance at 31 December 2024

9,501,000

14,679,466

24,180,466

Changes in equity

Dividends

-

(681,000

)

(681,000

)

Total comprehensive income

-

1,113,528

1,113,528

Balance at 31 December 2025

9,501,000

15,111,994

24,612,994

Cash flows from operating activities

Cash generated from operations

1

6,322,854

940,610

Interest paid

(211,543

)

(387,733

)

Tax paid

(510,722

)

(668,262

)

Net cash from operating activities

5,600,589

(115,385

)

Cash flows from investing activities

Purchase of tangible fixed assets

(2,087,534

)

(960,605

)

Sale of tangible fixed assets

7,803

8,809

Interest received

86,381

91,205

Dividends received

-

1,092,153

Net cash from investing activities

(1,993,350

)

231,562

Cash flows from financing activities

New loans in year

1,250,000

-

Loan repayments in year

(3,027,084

)

(412,500

)

Amount introduced by directors

29,697

-

Amount withdrawn by directors

(274,789

)

(448,696

)

Equity dividends paid

(681,000

)

(496,000

)

Net cash from financing activities

(2,703,176

)

(1,357,196

)

Increase/(decrease) in cash and cash equivalents

904,063

(1,241,019

)

Cash and cash equivalents at beginning of year

2

2,203,352

3,444,371

Cash and cash equivalents at end of year

2

3,107,415

2,203,352

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

31/12/25

31/12/24

£

£

Profit before taxation

2,365,051

1,285,787

Depreciation charges

2,593,991

2,366,846

Loss/(profit) on disposal of fixed assets

8,046

(2,142

)

Amounts written off investments

-

963,168

Finance costs

211,543

387,733

Finance income

(86,381

)

(1,183,358

)

5,092,250

3,818,034

Increase in inventories

(177,522

)

(70,899

)

(Increase)/decrease in trade and other debtors

(446,057

)

520,366

Increase/(decrease) in trade and other creditors

1,854,183

(3,326,891

)

Cash generated from operations

6,322,854

940,610

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

3,107,415

2,203,352

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

2,203,352

3,444,371

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

2,203,352

904,063

3,107,415

2,203,352

904,063

3,107,415

Debt

Debts falling due within 1 year

(412,500

)

(125,000

)

(537,500

)

Debts falling due after 1 year

(3,128,125

)

1,902,084

(1,226,041

)

(3,540,625

)

1,777,084

(1,763,541

)

Total

(1,337,273

)

2,681,147

1,343,874

1.	STATUTORY INFORMATION

Longacres Garden Centre 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 applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis.

The financial statements are presented in Sterling (£), which is the functional currency of the company.

Going concern

After reviewing the company's cash position, forecasts and projections for a period of 12 months from the accounts signing date, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

The company operates a number of stores for the sale of a range of products. Sales of goods are recognised on sale to the customer, which is considered the point of delivery. Store sales are usually paid by cash, credit or payment card.

Sales are made to store customers with a right to return within 28 days, subject to certain conditions regarding the usage. Accumulated experience is used to estimate and provide for such returns at the time of sale.

The company acts as agent in its concession arrangements, as such gross takings are excluded from turnover. Rental income earned from its concessions are accrued on a time basis and recognised within 'other operating income'.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Goodwill, being the amount paid in connection with the acquisition of businesses in 2011, 2016, 2019 and 2023 is deemed to have estimated useful lives of between 5 and 20 years.

Goodwill is assessed at each reporting date to determine whether there is any indication of impairment.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost 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.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following rates:

Freehold and property - straight line over 20 years

Long leasehold property - over the term of the lease

Plant and machinery - 20% on cost

Motor vehicles - 20% on cost

Fixtures and fittings - 10% on cost

Computer equipment - 33% on cost

Improvements to property - straight line over 20 years

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.

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Foreign currencies

Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

Operating leases: the company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

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.

The Company operates 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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Financial instruments

The Company has elected to apply the provisions of Sections 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102, in full, 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.

Financial assets

Debtors

Debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where an arrangement with a debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of debtors is established when there is evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event accruing after the impairment loss was recognised, are recognised immediately in profit or loss.

Financial instruments (continued)

Creditors

Creditors which are payable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, 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. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Dividends

Dividends are recognised as liabilities once they are no longer at the discretion of the company.

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions 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 discussed below.

Assessment of impairment indicators for tangible and intangible assets

The directors exercise judgement in assessing whether there are indicators that tangible and intangible assets may be impaired. This assessment includes consideration of factors such as the economic performance of the related business activities, future profitability, market conditions and the expected future use of the assets. Where indicators of impairment exist, estimates are made of the recoverable amount of the relevant assets.

Assessment of inventory provisions

Judgement is applied in determining the level of provision required against inventories. This assessment takes into account the age, condition and expected future saleability of inventory, together with historical experience and current market demand.

Key sources of estimation uncertainty

Goodwill

The amortisation of goodwill requires management to exercise judgement in determining the appropriate useful life of acquired goodwill and assessing whether indicators of impairment exist. These estimates are based on expected future economic benefits, historical performance and market conditions. Changes in these assumptions could materially affect the amortisation charge recognised in the period.

Property, plant and equipment

Property, plant and equipment are depreciated over their estimated useful lives. The estimation of useful economic lives and residual values requires judgement and is reviewed annually. The assessment of residual value and useful life is inherently subjective as it is made on the basis of historic experience of asset replacement which may in future not prove to be accurate.

3.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

All revenue arose within the United Kingdom.

4.	OTHER OPERATING INCOME

31/12/25

31/12/24

£

£

Rents received

1,147,716

1,118,527

Sundry receipts

-

1,705

1,147,716

1,120,232