REGISTERED NUMBER: 05773858 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

NORTHGATE HEALTHCARE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

A K Haines

K Haines

M K Haines

SECRETARY:

A K Haines

REGISTERED OFFICE:

White Gables

Cross Lane Head

Bridgnorth

Shropshire

WV16 4SJ

REGISTERED NUMBER:

05773858 (England and Wales)

AUDITORS:

Muras Baker Jones Limited

Chartered Accountants and Statutory Auditors

Regent House

Bath Avenue

Wolverhampton

West Midlands

WV1 4EG

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

We aim to present a balanced and comprehensive review of our business's development and performance during the year and its position at the year-end. Our review reflects the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

REVIEW OF BUSINESS

Northgate Healthcare provides residential and nursing care homes for the elderly. We currently own and operate five homes across the Midlands. We manage and assess each home individually to ensure performance is measured effectively.

We pride ourselves on the quality of our homes and the care we provide. Within our group of five homes, we provide nursing care, specialist dementia care and residential care. Nursing care is provided at both Autumn House and Ashcroft Hollow, which also provide specialist dementia and residential care along with our other three homes.

As part of our growth strategy, we continue to explore acquisition opportunities. However, during 2025 we were unable to find a suitable acquisition that meets the Northgate ethos.

All of our homes were profitable in 2025, except our newest home, Ashcroft Hollow, which has been undergoing refurbishment when occupancy allows and results in 2026 are positive. The remainder of the homes and the group as a whole are profitable during 2026. Total turnover rose compared with 2024, driven by higher fees and occupancy rates.

We have continued with the ongoing program of repairs to all homes to ensure they are kept to the high standards which we continue to meet for all of our service users. This again has resulted in a higher than average spend on repairs and maintenance at The Firs and Meadowfields, but it reflects the high standards we endeavor to maintain across the Northgate Group. The refurbishment of Autumn House finished in 2025 with the home showing better occupancy as a result.The refurbishment of Ashcroft Hollow was ongoing during the year to ensure the home meets the high standards expected across the Northgate group. We expect overall maintenance expenditure to decrease across the other homes in 2026, apart from the usual cyclical refurbishment programme. We are planning an extension on Ashcroft Hollow for which planning has been granted and this is planned for the latter part of 2026 and 2027.

Nursing care is a growing sector within the industry and the directors are satisfied that including this service at both Autumn House and now Ashcroft Hollow is worthwhile to the Northgate Healthcare group. This will ensure Northgate Healthcare can continue to provide residents with the level of care they require as their needs change.

Our staff are at the heart of the care we provide, and their dedication is central to our success. We recognise that attracting and retaining high-quality staff in the care sector remains a challenge. To support retention, we implemented wage increases in April 2025 and 2026 to remain competitive and to reward staff for their commitment. We also continue to invest in training and professional development to ensure our teams are skilled, motivated, and able to deliver the highest standard of care. To ensure staff wellbeing remains a top priority, we offer a health and wellbeing programme for staff employed over six months. This allows them 24/7 access to a GP and other support networks. This demonstrates our commitment to supporting our employees.

We are proud to maintain strong staff retention levels across our homes, which directly contributes to consistency of care, high resident satisfaction, and improved overall performance. By offering career progression, ongoing training, and a supportive working environment, we ensure our workforce feels valued and engaged.

We consider the key financial performance indicators to be those that communicate the financial performance and strength of the company as a whole, these being average occupancy rates, gross profit margin and earnings before interest, tax, depreciation and amortisation (EBITDA).

Occupancy levels improved in 2025 compared with 2024, and we are confident that this trend will continue in 2026, particularly as Ashcroft Hollow continues to build occupancy throughout the year. Resident retention and satisfaction remain high across all homes.

The company's gross profit margin is similar to 2024, at 38.96% compared to 39.99% in 2024. This is a testament to both the high standards of the homes and the care provided to our residents.

Following the new measures introduced a couple of years ago, which have continued since, this has helped achieve higher occupancy rates and better profitability across all homes in the group, with both occupancy rates and profitability increasing overall.

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to face a few external risks that could impact operations and financial performance, including:

- The effects of a further economic downturn, which could lead to further pressures on margins

- Changes in the availability of public sector funding, as a proportion of residents rely on government contributions to meet care fees.

- Changes to healthcare visas, which could lead to employment shortages throughout the sector.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control.

FINANCIAL RISK MANAGEMENT

The company's credit risk is low, being primarily attributed to its trade debtors. The company manages all credit risk, both publicly and privately funded, by monitoring payments against contractual agreements. With interest rates continuing to fall during 2025, interest costs have been lower than in 2024, but loans were renegotiated during 2026, so we expect interest costs to fall further in the current year. This has supported profitability for the year and other measures have driven an overall increase in profitability. The directors continue to manage increased costs to support continued profitability.

The company faces financial risk from the inflationary pressures on staff costs. Any future changes in the National Living Wage will have a significant impact on labour costs in the care sector as a whole. The company reviews upcoming changes to the National Living Wage and currently pays above this rate to ensure good quality care staff. The company plans future wage increases to ensure the financial stability of the company going forward and to ensure these increases do not overly impact cash flow and profitability.

ON BEHALF OF THE BOARD:

A K Haines - Director

10 September 2026

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2025 will be £ 811,419 .

FUTURE DEVELOPMENTS

The directors are confident about the continuing financial performance of the business and continue to seek opportunities to develop the business further.

DIRECTORS

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

A K Haines

K Haines

M K Haines

OUR PEOPLE

The company provides employees with information on matters of concern to them, consulting them regularly so that their views can be taken into account when making decisions that are likely to affect their interests.

DISABLED EMPLOYEES

The company is committed to a policy of recruitment and promotion based on the basis of aptitude and ability without discrimination of any kind. Particular attention is given to the training and promotion of disabled employees to ensure that their career development is not unfairly restricted by their disability, or perceptions to it.

The HR procedures make clear that full and fair consideration must be given to applications made by and the promotion of disabled persons. Where an employee becomes disabled whilst employed by the company, the HR procedures also require that reasonable effort is made to ensure they have the opportunity for continued employment within the company. Retaining of employees who become disabled whilst employed by the company is offered where appropriate.

DISCLOSURE IN THE STRATEGIC REPORT

A review of the business, principle risks and uncertainties and financial risk management are included in the Strategic Report.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Muras Baker Jones Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A K Haines - Director

10 September 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its 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 Independent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:

In planning and designing our audit tests we identify and assess the risks of material misstatement within the financial

statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the

industry and sector, the control environment and the business performance along with the results of our enquiries of

management about their own identification and assessment of risks and irregularities. 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 frameworks 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, UK tax legislation and other laws and regulations identified as risk areas identified from our discussions with management.

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

After consideration of the above risks we then carried out audit procedures including the following:

- specific tests in relation to material amounts and disclosures in the financial statements considered to be of high risk;

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

- reading minutes of management meetings;

- reviewing correspondence with H M Revenue & Customs;

- enquiring of management and reviewing any correspondence with legal advisors concerning actual and potential

litigation and claims;

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with

provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- 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.

There are inherent limitations in our audit procedures described above. The more removed that the laws and regulations are from financial transactions the less likely it is that we would be aware on non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditor's report.

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.

Nicky Gibbons BSc (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Muras Baker Jones Limited

Chartered Accountants and Statutory Auditors

Regent House

Bath Avenue

Wolverhampton

West Midlands

WV1 4EG

10 September 2026

TURNOVER

14,365,691

13,334,975

Cost of sales

(8,769,160

)

(8,001,921

)

GROSS PROFIT

5,596,531

5,333,054

Administrative expenses

(2,047,386

)

(2,290,032

)

OPERATING PROFIT

4

3,549,145

3,043,022

Interest receivable and similar income

18,006

31,650

3,567,151

3,074,672

Interest payable and similar expenses

5

(441,377

)

(524,791

)

PROFIT BEFORE TAXATION

3,125,774

2,549,881

Tax on profit

6

(676,059

)

(630,255

)

PROFIT FOR THE FINANCIAL YEAR

2,449,715

1,919,626

PROFIT FOR THE YEAR

2,449,715

1,919,626

OTHER COMPREHENSIVE INCOME

Revaluation surplus

-

(134,975

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(134,975

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,449,715

1,784,651

FIXED ASSETS

Intangible assets

8

16,001

32,000

Tangible assets

9

16,109,976

16,031,740

16,125,977

16,063,740

CURRENT ASSETS

Stocks

10

31,198

29,712

Debtors

11

1,841,750

1,660,743

Cash at bank and in hand

3,011,222

2,045,402

4,884,170

3,735,857

CREDITORS

Amounts falling due within one year

12

2,352,886

2,384,158

NET CURRENT ASSETS

2,531,284

1,351,699

TOTAL ASSETS LESS CURRENT LIABILITIES

18,657,261

17,415,439

CREDITORS

Amounts falling due after more than one year

13

(6,124,585

)

(6,525,614

)

PROVISIONS FOR LIABILITIES

17

(1,960,551

)

(1,955,996

)

NET ASSETS

10,572,125

8,933,829

CAPITAL AND RESERVES

Called up share capital

18

100

100

Revaluation reserve

19

4,468,122

4,468,122

Retained earnings

19

6,103,903

4,465,607

SHAREHOLDERS' FUNDS

10,572,125

8,933,829

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

A K Haines - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

100

3,255,929

4,603,097

7,859,126

Changes in equity

Dividends

-

(709,948

)

-

(709,948

)

Total comprehensive income

-

1,919,626

(134,975

)

1,784,651

Balance at 31 December 2024

100

4,465,607

4,468,122

8,933,829

Changes in equity

Dividends

-

(811,419

)

-

(811,419

)

Total comprehensive income

-

2,449,715

-

2,449,715

Balance at 31 December 2025

100

6,103,903

4,468,122

10,572,125

Cash flows from operating activities

Cash generated from operations

1

3,703,471

3,804,774

Interest paid

(428,738

)

(512,094

)

Interest element of hire purchase payments paid

(12,639

)

(12,697

)

Tax paid

(837,744

)

(589,279

)

Net cash from operating activities

2,424,350

2,690,704

Cash flows from investing activities

Purchase of tangible fixed assets

(275,468

)

(142,683

)

Interest received

18,006

31,650

Net cash from investing activities

(257,462

)

(111,033

)

Cash flows from financing activities

Loan repayments in year

(400,433

)

(331,991

)

Inter company loan

(370,803

)

(684,630

)

Capital repayments in year

81,745

(30,309

)

Amount introduced by directors

300,563

-

Amount withdrawn by directors

(721

)

(297,707

)

Equity dividends paid

(811,419

)

(709,948

)

Net cash from financing activities

(1,201,068

)

(2,054,585

)

Increase in cash and cash equivalents

965,820

525,086

Cash and cash equivalents at beginning of year

2

2,045,402

1,520,316

Cash and cash equivalents at end of year

2

3,011,222

2,045,402

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

2025

2024

£

£

Profit before taxation

3,125,774

2,549,881

Depreciation charges

174,223

178,626

Loss on disposal of fixed assets

39,008

-

Finance costs

441,377

524,791

Finance income

(18,006

)

(31,650

)

3,762,376

3,221,648

Increase in stocks

(1,486

)

(1,813

)

(Increase)/decrease in trade and other debtors

(97,499

)

352,581

Increase in trade and other creditors

40,080

232,358

Cash generated from operations

3,703,471

3,804,774

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

3,011,222

2,045,402

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,045,402

1,520,316

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

2,045,402

965,820

3,011,222

2,045,402

965,820

3,011,222

Debt

Finance leases

(159,146

)

(81,745

)

(240,891

)

Debts falling due within 1 year

(331,990

)

(68,444

)

(400,434

)

Debts falling due after 1 year

(6,394,321

)

468,877

(5,925,444

)

(6,885,457

)

318,688

(6,566,769

)

Total

(4,840,055

)

1,284,508

(3,555,547

)

1.	STATUTORY INFORMATION

Northgate Healthcare Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Critical accounting judgements and key sources of estimation uncertainty

In order to properly apply the company’s accounting policies, as described in note 1 above, the directors are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the directors on an ongoing basis.

Key sources of estimation uncertainty

The key sources of estimation uncertainty which have a significant effect on the amounts recognised in the financial statements are described below:

Property valuation

The care homes owned by the company have been revalued on a regular basis, the latest of these being based on professional valuations prepared in 2024 on two of the homes with the remaining two being in 2022. These have been reviewed each year by the directors. Although this complies with the relevant accounting standards there is a possibility that the realisable value of the homes may differ to the values used in the event of a sale.

Turnover

Turnover represents the fees derived from the provision of care services to residents during the year. Income is recognised on a daily basis for the provision of nursing care services.

Goodwill

Intangible assets

Intellectual property rights and books of account, being the amount paid in connection with the acquisition of a care home in 2010, are is being amortised evenly over its estimated useful economic life of 10 years. An annual impairment review has been carried out on the carrying value and an adjustment is made where necessary.

Tangible fixed assets

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

Fixtures fittings & equipment

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

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

(i) Cash and cash Equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks, and bank overdrafts.

(ii) Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are stated at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

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.

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 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.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

7,321,916

6,861,249

Social security costs

730,077

494,275

Other pension costs

251,552

219,419

8,303,545

7,574,943

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

2025

2024

Lane House

47

47

The Firs

99

113

Meadowfields

93

89

Autumn House

110

115

349

364

2025

2024

£

£

Directors' remuneration

21,125

21,125

Directors' pension contributions to money purchase schemes

120,000

100,000

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

48,058

53,515

Other operating leases

6,000

5,200

Depreciation - owned assets

89,327

87,717

Depreciation - assets on hire purchase contracts

68,897

41,756

Loss on disposal of fixed assets

39,008

-

Goodwill amortisation

15,999

49,153

Auditors' remuneration

13,251

9,300

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

428,738

508,302

Other interest

-

3,792

Hire purchase

12,639

12,697

441,377

524,791