Everbright Lodge Ltd

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

L Ma

Mrs Y Wang

Mrs Y Guan

Ms X Tian

Mrs C Ou

K Liu

S Cao

Ms Z Wang

Ms Y Zhou

Ms B Fang

Mrs Y Zhou

SECRETARY:

Miss Q Hou

REGISTERED OFFICE:

48 - 52 Penny Lane

Mossley Hill

Liverpool

Merseyside

L18 1DG

REGISTERED NUMBER:

09622667 (England and Wales)

AUDITORS:

Mitchell Charlesworth (Audit) Limited

14th Floor

The Plaza

Old Hall Street

Liverpool

Merseyside

L3 9QJ

The directors present their strategic report for the year ended 30 June 2025.

REVIEW OF BUSINESS

The company's principal activity during the year continued to be the operation of hotels.

The company used key financial and performance indicators, such as turnover and gross profit margin, alongside occupancy levels and average room rates, to evaluate hotel performance.

Turnover in 2024 was £4,474,347 where as in 2025 turnover was £4,554,493 therefore an increase of £80,146

Gross profit margin remained at the same level in 2025 as 2024 of 49%

The year saw trade continue at a similar capacity, with both sites operating fully, leading to stable turnover and profitability levels.This trade has continued beyond the year end and the net asset position is expected to remain into 2026.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors regularly assess the risks facing the business. The principal risks and uncertainties for the company are broadly categorised as market-based risks, legislative risks, and financing risks:

Market Risks

The company operates in a highly competitive environment, and the directors continually assess customer needs and preferences, along with the activities of competitors, to ensure the best possible customer experience.

Legislative Risks

The company’s operations are subject to regulatory requirements, and the directors closely monitor compliance to ensure that the highest standards of hygiene and safety are maintained.

Financing Risks

The company must maintain adequate levels of working capital to manage ongoing operations effectively. This is closely monitored through regular financial reviews.

EMPLOYEES

The group continues to adhere to the Health & Safety at Work Act, ensuring the welfare of its employees remains a priority.

The group fully considers applications for employment from individuals with disabilities, provided that the requirements of the role can be effectively met by a disabled person.

POLICY ON PAYMENTS TO CREDITORS

Creditors are paid in accordance with the agreed terms of business established with suppliers.

Due to the nature of the company’s operations and the terms agreed with suppliers, the directors have not provided an average creditor days figure, as it is not deemed beneficial.

ON BEHALF OF THE BOARD:

Director

23 September 2026

The directors present their report with the financial statements of the company for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the operation of hotels.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2024 to the date of this report.

L Ma

Mrs Y Wang

Mrs Y Guan

Ms X Tian

Mrs C Ou

K Liu

S Cao

Ms Z Wang

Ms Y Zhou

Ms B Fang

Mrs Y Zhou

Other changes in directors holding office are as follows:

Mrs J Li - resigned 1 July 2024

FINANCIAL INSTRUMENTS

The group utilises conventional working capital to finance day-to-day operations, and the figures in the accounts represent the absolute values of amounts recoverable and payable.

STRATEGIC REPORT

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the Strategic Report on pages 1 and 2.

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, Mitchell Charlesworth (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

L Ma - Director

23 September 2026

Opinion

We have audited the financial statements of Everbright Lodge Ltd (the 'company') for the year ended 30 June 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 30 June 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 three, 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

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

- the nature of the industry and sector, control environment and business performance;

- the company's own assessment of the risks that irregularities may occur either as a result of fraud or error;

- the results of our enquiries of management of their own identification of and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in the following areas:

(i) The presentation of the Statement of Comprehensive Income, (ii) the accounting policy for revenue recognition (iii) understatement of creditors. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing 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 included the UK Companies Act.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

" reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;

" enquiring of management concerning actual and potential litigation and claims;

" performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

" 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 fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Richard Johnson RI (Senior Statutory Auditor)

for and on behalf of Mitchell Charlesworth (Audit) Limited

14th Floor

The Plaza

Old Hall Street

Liverpool

Merseyside

L3 9QJ

23 September 2026

TURNOVER

4

4,554,493

4,474,347

Cost of sales

2,302,043

2,284,625

GROSS PROFIT

2,252,450

2,189,722

Administrative expenses

1,666,973

1,724,133

585,477

465,589

Other operating income

(20,000

)

258,300

OPERATING PROFIT

6

565,477

723,889

Interest payable and similar expenses

8

341,634

274,174

PROFIT BEFORE TAXATION

223,843

449,715

Tax on profit

9

25,894

130,031

PROFIT FOR THE FINANCIAL YEAR

197,949

319,684

PROFIT FOR THE YEAR

197,949

319,684

OTHER COMPREHENSIVE INCOME

Revaluation in year

-

(31,791

)

Income tax relating to other comprehensive income

-

7,948

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(23,843

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

197,949

295,841

FIXED ASSETS

Tangible assets

10

8,472,430

8,446,992

CURRENT ASSETS

Stocks

11

26,186

25,517

Debtors

12

1,596,625

393,715

Cash at bank and in hand

315,310

294,012

1,938,121

713,244

CREDITORS

Amounts falling due within one year

13

3,303,402

2,111,379

NET CURRENT LIABILITIES

(1,365,281

)

(1,398,135

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,107,149

7,048,857

CREDITORS

Amounts falling due after more than one year

14

(3,910,649

)

(4,067,591

)

PROVISIONS FOR LIABILITIES

16

(882,750

)

(865,465

)

NET ASSETS

2,313,750

2,115,801

CAPITAL AND RESERVES

Called up share capital

17

1,660

1,660

Revaluation reserve

18

2,079,351

2,079,351

Retained earnings

18

232,739

34,790

SHAREHOLDERS' FUNDS

2,313,750

2,115,801

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

L Ma - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 July 2023

1,660

(284,894

)

2,103,194

1,819,960

Changes in equity

Total comprehensive income

-

319,684

(23,843

)

295,841

Balance at 30 June 2024

1,660

34,790

2,079,351

2,115,801

Changes in equity

Total comprehensive income

-

197,949

-

197,949

Balance at 30 June 2025

1,660

232,739

2,079,351

2,313,750

Cash flows from operating activities

Cash generated from operations

1

(1,101,703

)

1,342,093

Interest paid

(341,634

)

(274,174

)

Net cash from operating activities

(1,443,337

)

1,067,919

Cash flows from investing activities

Purchase of tangible fixed assets

(86,314

)

(184,310

)

Net cash from investing activities

(86,314

)

(184,310

)

Cash flows from financing activities

New loans in year

4,317,835

-

Loan repayments in year

(2,307,169

)

(130,454

)

Amount introduced by directors

1,985,001

410,450

Amount withdrawn by directors

(2,444,718

)

(1,305,000

)

Net cash from financing activities

1,550,949

(1,025,004

)

Increase/(decrease) in cash and cash equivalents

21,298

(141,395

)

Cash and cash equivalents at beginning of year

2

294,012

435,407

Cash and cash equivalents at end of year

2

315,310

294,012

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

2025

2024

£

£

Profit before taxation

223,843

449,715

Depreciation charges

60,876

137,697

Finance costs

341,634

274,174

626,353

861,586

(Increase)/decrease in stocks

(669

)

8,075

Increase in trade and other debtors

(1,202,910

)

(137,139

)

(Decrease)/increase in trade and other creditors

(524,477

)

609,571

Cash generated from operations

(1,101,703

)

1,342,093

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 30 June 2025

30.6.25

1.7.24

£

£

Cash and cash equivalents

315,310

294,012

Year ended 30 June 2024

30.6.24

1.7.23

£

£

Cash and cash equivalents

294,012

435,407

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.24

Cash flow

At 30.6.25

£

£

£

Net cash

Cash at bank and in hand

294,012

21,298

315,310

294,012

21,298

315,310

Debt

Debts falling due within 1 year

(150,989

)

(202,608

)

(353,597

)

Debts falling due after 1 year

(2,102,591

)

(1,808,058

)

(3,910,649

)

(2,253,580

)

(2,010,666

)

(4,264,246

)

Total

(1,959,568

)

(1,989,368

)

(3,948,936

)

1.	STATUTORY INFORMATION

Everbright Lodge Ltd 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 as modified by the revaluation of certain assets.

Turnover

Turnover derived is from hotel operations and arose wholly in the United Kingdom. Turnover is recognised when services are rendered. The turnover of the hotel is primarily derived from the rentals of rooms, concerts and banqueting, food and beverage sales.

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The company recognises revenue when (a) the amount of revenue can be measured reliably and (b) it is probable that the future economic benefit will flow to the company.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% straight line

Improvements to property - 10% straight line

Fixtures and fittings - 25% on reducing balance

The directors review the estimated useful lives and residual values of tangible fixed assets at each reporting date. Where the estimated residual value of an asset is equal to or greater than its carrying amount, no depreciation is charged as the depreciable amount is nil.

Stocks

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

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction Is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of Its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt Instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.Although there is a net current liability position, this is primarily as a result of the directors loan accounts. Whilst these loans are now technically repayable on demand the directors do not intend to request repayment until affordable without jeopardising day to day working capital, the directors are therefore confident that the current assets plus the cash generated from the trade of the business is sufficient to cover the liabilities as they fall due.

The financial statements have been prepared on a going concern basis due to the director's continued funding and bank facility being sufficient to support the company's cash flow going forward.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Key sources of estimation uncertainty

Recoverability of debtors

Bad debts are recognised where there are indicators of non-recoverability, and appropriate action has been taken to recover the debt unsuccessfully. When assessing recoverability, the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual groups of customers.

Impairment of fixed assets

Where an indication of impairment exists, the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.

4.

TURNOVER

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

An analysis of turnover by class of business is given below:

2025

2024

£

£

Turnover

4,554,493

4,474,347

4,554,493

4,474,347

5.	EMPLOYEES AND DIRECTORS

2025 2024

£ £

Wages and salaries 1,740,269 1,644,180

Social security costs 150,627 116,729

Other pension costs 28,733 22,406

________ ________

1,919,629 1,783,315

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

2025 2024

Operations 89 116

2025 2024

£ £

Directors' remuneration - -

______ _____

All directors and key management personnel are remunerated through other associated companies.

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

2,233

3,802

Depreciation - owned assets

60,876

137,698

7.	AUDITORS' REMUNERATION

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

11,750

6,167

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

295,083

178,211

Other loan interest

42,500

95,963

HMRC interest

4,051

-

341,634

274,174

9.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

8,609

-

Deferred tax

17,285

130,031

Tax on profit

25,894

130,031

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

223,843

449,715

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

55,961

112,429

Effects of:

Depreciation in excess of capital allowances

7,876

12,300

Utilisation of tax losses

40,290

97,553

Unrecognised deferred tax assets

(78,233

)

(92,251

)

Total tax charge

25,894

130,031

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 30 June 2025.

2024

Gross

Tax

Net

£

£

£

Revaluation in year

(31,791

)

7,948

(23,843

)