REGISTERED NUMBER: SC533323 (Scotland)

Group Strategic Report,

Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 December 2025

for

K C Holdings (Scotland) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTOR:

D W Milne

REGISTERED OFFICE:

South Suite

5 Seaward Place

Glasgow

G41 1HH

REGISTERED NUMBER:

SC533323 (Scotland)

AUDITORS:

TB Dunn & Co

Statutory Auditor

Ground Floor (part)

8000 Academy Business Park

51 Gower Street

GLASGOW

G51 1PR

The director presents his strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

2025 represented another year of resilience, investment and strategic progress for KC Holdings (Scotland ) Limited. Against a challenging global trading environment, the Group continued to demonstrate the strength of its business model, customer relationships and financial foundations.

Turnover for the year was £11.47 million, remaining broadly consistent with the £12.74 million achieved in 2024, despite continued volatility across international freight markets. Gross profit remained strong at £2.45 million, while the Group delivered a profit before taxation of £514,559 and profit after taxation of £343,365.

The Board considers this to be a particularly resilient performance. The year included a significant bad debt charge of £135,811, compared with £10,347 in the previous year, together with adverse foreign exchange movements. Notwithstanding these exceptional pressures, the underlying business remained profitable and financially robust.

Financial Strength and Resilience.

The Group continued to maintain a very strong balance sheet throughout 2025. At the year end, cash at bank stood at £3.50 million, net current assets increased to £3.136 million and net assets/shareholders funds increased to £3.39 million.

Importantly, all outstanding finance lease obligations were repaid during the year, leaving the Group with no finance lease debt at 31 December 2025. This combination of substantial cash reserves, strong net assets and the absence of finance lease debt provides KC Holdings (Scotland ) Limited with an excellent financial platform from which to pursue its future strategy.

The strength of the Group's financial position also enabled dividends of £265,000 to be distributed during the year while retained earnings nevertheless increased to £3.39 million.

REVIEW OF BUSINESS

Market and Operational Performance

The international logistics sector continued to operate against a backdrop of geopolitical uncertainty, changing global trade patterns, freight rate volatility and disruption across international supply chains.

As highlighted in the previous year's Strategic Report, KC has deliberately developed a diversified service offering and the operational flexibility to respond quickly to changing market conditions. The Board believes that this strategy continued to demonstrate its value during 2025. The Group's established customer base, experienced team, international partner network and broad range of logistics services allowed the business to navigate these conditions while maintaining a high level of customer service. The 2024 review similarly identified diversification, financial resilience, technology and investment in people as central strategic priorities.

Strategic Development

During 2025, the Group continued to focus on the long-term development of the business rather than short-term market conditions.

Investment remained focused on strengthening KC's commercial capabilities, technology, compliance, customer service and operational efficiency. The Group's objective remains to combine the flexibility and personal service associated with an independent logistics provider with the systems, governance, financial strength and international capability expected of a significantly larger organisation.

Particular emphasis continued to be placed on developing higher-value customer relationships, broadening the Company's service offering and identifying opportunities where KC's specialist knowledge, compliance capabilities and international network can provide customers with a meaningful competitive advantage.

People and Culture

The Board recognises that the continued success of KC Holdings (Scotland) Limited is fundamentally dependent upon its people. During 2025 the Group continued to invest in its team, professional development and the leadership capability required to support the next stage of growth.

The business maintained an experienced core team while continuing to develop the organisational structure required for the future. The Board remains committed to creating an environment in which employees can develop professionally, take responsibility and contribute to the Group's long-term success.

Outlook for 2026

KC Holdings (Scotland) Limited enters 2026 from a position of considerable financial strength.

The Group has substantial cash reserves, a strong balance sheet, no finance lease debt and an established, profitable core business. This provides the Board with both resilience against continuing uncertainty within global markets and the financial capacity to invest in future growth.

The strategic priorities for 2026 will include continued development of the Group's customer portfolio, expansion of higher-value and specialist logistics services, further investment in technology and commercial intelligence, continued improvement in operational efficiency, and the identification of new opportunities within both existing and developing international trade lanes.

While the Board remains mindful of continuing geopolitical and economic uncertainty, it is confident in the Group's ability to respond to changing market conditions and believes KC Holdings (Scotland) Limited is well positioned for its next stage of development.

The Board views the performance in 2025 as further evidence of the resilience of the Group. Despite significant exceptional costs and a demanding external environment, KC remained strongly profitable, maintained substantial liquidity and further strengthened its net asset position. The Group's financial resources, experienced team, established customer relationships and continued strategic investment provide a strong foundation for sustainable future growth.

I extend my appreciation to our leadership team, employees, customers and partners for their continued commitment, support and trust.

PRINCIPAL RISKS AND UNCERTAINTIES

As the Managing Director of KC Holdings (Scotland) Limited, it is imperative to provide a comprehensive overview of the principal risks and uncertainties that the company faces. This review aims to outline the strategies undertaken to mitigate these risks and navigate through uncertainties.

Currency Fluctuations:

One of the key risks affecting our operations is exposure to currency movements. With purchases conducted in both Euros and Dollars, the group faces potential fluctuations in currency exchange rates, particularly concerning Euros to Sterling and Dollars to Sterling. To mitigate this risk, the company has implemented proactive measures, which include financial instruments to hedge against adverse currency movements. These efforts contribute to stabilising our financial position and enhancing predictability in an ever-changing currency landscape.

Credit Risk Management:

The company's credit risk remains largely centred on trade debtors. This risk is managed meticulously through a multifaceted approach. Regular credit checks are conducted, encompassing both existing and prospective clients. The group diligently monitors payment patterns and credit levels, facilitating early detection of potential credit issues. This proactive approach to credit risk minimisation ensures that the company maintains a healthy balance between credit extension and risk containment.

Cash Flow Monitoring and Projection:

Cash flow stands as a lifeline of our operations. Our day-to-day procedures include rigorous cash flow monitoring and projection assessments on a monthly basis. This practice enables us to proactively address any liquidity challenges that may arise. Furthermore, ensuring the availability of adequate facilities to address unforeseen needs bolsters our financial resilience.

Navigating Global Market Conditions:

The ever-changing global market conditions, marked by escalating prices, have posed significant challenges. Despite this backdrop, the company has demonstrated resilience and adaptability. Through a steadfast commitment to excellent customer service, we have not only retained our market standing but have also worked in tandem with suppliers to ensure a consistent supply chain. This collaborative approach has not only contributed to operational stability but also strengthened our global market position.

ON BEHALF OF THE BOARD:

D W Milne - Director

24 September 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2025.

DIVIDENDS

No interim dividend was paid during the year. The director recommends a final dividend of £53 per share.

The total distribution of dividends for the year ended 31 December 2025 will be £ 265,000 .

DIRECTOR

D W Milne held office during the whole of the period from 1 January 2025 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, TB Dunn & Co, have expressed their willingness to continue in office.

ON BEHALF OF THE BOARD:

D W Milne - Director

24 September 2026

Opinion

We have audited the financial statements of K C Holdings (Scotland) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2025 and of the group's 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 group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations or fraudulent activity. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

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.

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

-

the nature of the industry and sector, control environment and business performance including the key drivers for Directors' remuneration, bonus levels and performance targets;

-

results of our enquiries of management regarding their own identification and assessment of the risks of fraud and non-compliance with laws and regulations;

-

any matters we identified having obtained and reviewed the Group's documentation of its 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;

-

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

-

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 consider the opportunities and incentives that may exist within the Group for fraud and identified the greatest potential for fraud in the cut-off of revenue recognition. In common with all audits under ISAs(UK), we are also required to perform specific procedures to respond to the risk of management override of controls.

We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosure in the financial statements. The key laws, regulations and financial reporting framework we considered in this context included the Companies Act 2006, the applicable financial reporting framework, including FRS 102, and relevant tax legislation. We also considered key indirect laws and regulations, health and safety legislation, employment law and anti-money laundering regulations.

In addition to the above, our procedures to respond to risks identified included the following:

-

assessing the adequacy of the Group's related party disclosures in the financial statements;

-

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

-

comparing information obtained during the course of the audit to external sources (such as Companies House) to identify potential undisclosed related parties;

-

making enquiries 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;

-

reading minutes of meetings of those charged with governance;

-

in addressing the fraud risk in revenue cut-off, we tested a sample of revenue transactions recorded before and after the year-end, agreeing amounts to supporting invoices and underlying records maintained by the Group's principal trading subsidiary, and assessed the timing and cut-off of transactions to ensure that revenue was recognised in the appropriate accounting period in accordance with the Group's accounting policies; 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 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.

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.

Mark Blair (Senior Statutory Auditor)

for and on behalf of TB Dunn & Co

Statutory Auditor

Ground Floor (part)

8000 Academy Business Park

51 Gower Street

GLASGOW

G51 1PR

24 September 2026

TURNOVER

3

11,466,206

12,742,252

Cost of sales

9,012,537

10,013,141

GROSS PROFIT

2,453,669

2,729,111

Administrative expenses

2,147,955

1,987,718

305,714

741,393

Other operating income

164,671

36,648

OPERATING PROFIT

5

470,385

778,041

Interest receivable and similar income

55,896

62,796

526,281

840,837

Interest payable and similar expenses

6

11,722

5,106

PROFIT BEFORE TAXATION

514,559

835,731

Tax on profit

7

171,194

252,389

PROFIT FOR THE FINANCIAL YEAR

343,365

583,342

Retained earnings at beginning of year

3,305,088

2,811,745

Dividends

9

(265,000

)

(90,000

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

3,383,453

3,305,087

Profit attributable to:

Owners of the parent

343,365

583,342

FIXED ASSETS

Intangible assets

10

110,000

220,000

Tangible assets

11

174,486

301,223

Investments

12

-

-

284,486

521,223

CURRENT ASSETS

Debtors

13

1,922,410

1,333,705

Cash at bank

3,555,281

3,756,757

5,477,691

5,090,462

CREDITORS

Amounts falling due within one year

14

2,340,789

2,183,259

NET CURRENT ASSETS

3,136,902

2,907,203

TOTAL ASSETS LESS CURRENT LIABILITIES

3,421,388

3,428,426

CREDITORS

Amounts falling due after more than one year

15

-

(57,841

)

PROVISIONS FOR LIABILITIES

18

(27,935

)

(55,498

)

NET ASSETS

3,393,453

3,315,087

CAPITAL AND RESERVES

Called up share capital

19

5,000

5,000

Capital redemption reserve

20

5,000

5,000

Retained earnings

20

3,383,453

3,305,087

SHAREHOLDERS' FUNDS

3,393,453

3,315,087

The financial statements were approved by the director and authorised for issue on 24 September 2026 and were signed by:

D W Milne - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

2,233,700

2,233,700

2,233,700

2,233,700

CURRENT ASSETS

Debtors

13

29,269

26,834

CREDITORS

Amounts falling due within one year

14

105,344

100,721

NET CURRENT LIABILITIES

(76,075

)

(73,887

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,157,625

2,159,813

CAPITAL AND RESERVES

Called up share capital

19

5,000

5,000

Retained earnings

20

2,152,625

2,154,813

SHAREHOLDERS' FUNDS

2,157,625

2,159,813

Company's profit for the financial year

262,812

83,066

The financial statements were approved by the director and authorised for issue on 24 September 2026 and were signed by:

D W Milne - Director

Cash flows from operating activities

Cash generated from operations

1

270,434

1,000,915

Interest element of hire purchase payments paid

(11,722

)

(5,106

)

Tax paid

(243,983

)

(306,242

)

Net cash from operating activities

14,729

689,567

Cash flows from investing activities

Purchase of tangible fixed assets

(955

)

(35,579

)

Sale of tangible fixed assets

57,841

-

Interest received

55,896

62,796

Net cash from investing activities

112,782

27,217

Cash flows from financing activities

Capital repayments in year

(72,188

)

(14,455

)

Amount introduced by directors

265,000

-

Amount withdrawn by directors

(256,799

)

(834

)

Related party debtor

-

(75,001

)

Equity dividends paid

(265,000

)

(90,000

)

Net cash from financing activities

(328,987

)

(180,290

)

(Decrease)/increase in cash and cash equivalents

(201,476

)

536,494

Cash and cash equivalents at beginning of year

2

3,756,757

3,220,263

Cash and cash equivalents at end of year

2

3,555,281

3,756,757

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

2025

2024

£

£

Profit before taxation

514,559

835,731

Depreciation charges

179,850

182,691

Finance costs

11,722

5,106

Finance income

(55,896

)

(62,796

)

650,235

960,732

(Increase)/decrease in trade and other debtors

(589,539

)

560,369

Increase/(decrease) in trade and other creditors

209,738

(520,186

)

Cash generated from operations

270,434

1,000,915

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

3,555,281

3,756,757

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,756,757

3,220,263

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

3,756,757

(201,476

)

3,555,281

3,756,757

(201,476

)

3,555,281

Debt

Finance leases

(72,188

)

72,188

-

(72,188

)

72,188

-

Total

3,684,569

(129,288

)

3,555,281

1.	STATUTORY INFORMATION

K C Holdings (Scotland) Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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 group consists of K C Holdings (Scotland) Limited and all of its subsidiaries.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of K C Holdings (Scotland) Limited and its subsidiary undertakings for the year ended 31 December 2025. Subsidiary undertakings are entities controlled by the Group. Control exists where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Business combinations are accounted for using the purchase method. The cost of a business combination is measured at the aggregate of the fair values at the acquisition date of assets given, equity instruments issued and liabilities incurred or assumed, together with costs directly attributable to the business combination.

The identifiable assets, liabilities and contingent liabilities of an acquired business are recognised at their fair values at the acquisition date. Where the cost of a business combination exceeds the Group's interest in the fair value of the identifiable net assets acquired, the difference is recognised as goodwill.

Where the initial accounting for a business combination is incomplete at the end of the reporting period in which the combination occurs, provisional amounts are recognised for items for which the accounting is incomplete. Any adjustments to provisional amounts arising from new information about facts and circumstances that existed at the acquisition date are recognised retrospectively within 12 months of the acquisition date.

Contingent consideration forming part of the consideration transferred is included in the cost of the business combination at its estimated fair value at the acquisition date where it can be measured reliably. Subsequent adjustments to contingent consideration are recognised in accordance with the requirements of FRS 102.

In the parent company's individual financial statements, investments in subsidiary undertakings are stated at cost less accumulated impairment losses.

All intra-group transactions, balances and unrealised gains arising from transactions between Group entities are eliminated in full on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for income and expenses during the reporting period.

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. Although these estimates are based on management's best knowledge of the amounts, events or actions, actual results may ultimately differ from those estimates.

Turnover

Turnover represents the value of services rendered to external customers in the ordinary course of the Group's activities. Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised in the accounting period in which the services are rendered and the performance obligations have been satisfied.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

10% on cost

Fixtures and fittings

-

20% on cost and 10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

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

Employee benefits

The total cost of employee benefits to which employees have become entitled because of services rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate.

Fixed asset impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Financial instruments

The company has no complex financial instruments but does hold basic financial instruments of; cash at bank, debtors and creditors.

Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities.

Trade and other debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effective of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts.

Trade and other creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost.

Provisions

A provision is initially recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

9,867,647

11,042,559

Europe

648,704

667,459

Rest of the world

949,855

1,032,234

11,466,206

12,742,252

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

982,531

1,016,259

Social security costs

114,359

113,405

Other pension costs

120,432

150,884

1,217,322

1,280,548

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

2025

2024

Director

1

1

Administration

26

28

27

29

The average number of employees by undertakings that were proportionately consolidated during the year was 27 (2024 - 29 ) .

2025

2024

£

£

Director's remuneration

90,000

90,000

Director's pension contributions to money purchase schemes

18,900

22,512

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

69,881

60,018

Other operating leases

24,851

25,062

Depreciation - owned assets

52,897

55,736

Depreciation - assets on hire purchase contracts

16,954

16,954

Goodwill amortisation

110,000

110,000

Auditors' remuneration

6,120

8,580

Foreign exchange differences

57,307

(23,020

)