REGISTERED NUMBER: 16243780 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements

for the Period 12 February 2025 to 31 December 2025

for

R S Commercials Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

Mr G J Amos

REGISTERED OFFICE:

P P S Commercials Limited

Pilsworth Industrial Estate

Pilsworth Road

Bury

Lancashire

BL9 8RD

REGISTERED NUMBER:

16243780 (England and Wales)

AUDITORS:

Harts Limited

Chartered Accountants and Statutory Auditors

Westminster House

10 Westminster Road

Macclesfield

Cheshire

SK10 1BX

The director presents his strategic report of the company and the group for the period 12 February 2025 to 31 December 2025.

REVIEW OF BUSINESS

The overall business performance was in line with the director's expectations during this period.

PRINCIPAL RISKS AND UNCERTAINTIES

The director considers the key risks and uncertainties affecting the group to be the availability and cost of vehicle parts.

Financial risk management objectives and policies

The group uses various financial instruments, including a bank overdraft.

The main risks arising from the group's financial instruments are market risk, cash flow interest rate risk, credit risk and liquidity risk. The director reviews and agrees policies for managing each of these risks.

Interest rate risk

The group finances its operations through a mixture of retained profits and a bank overdraft.

Credit risk

The group's principle financial assets are cash and trade debtors. The principle credit risk arises therefore from its trade debtors. To help manage the risk, the group has in place credit approved limits and checks.

DEVELOPMENT AND PERFORMANCE

The director is focussed on effectively managing both cash flow and costs due to the impacts of inflation and is continually seeking new opportunities. There is continued focus on its core business and investment in its staff in order to deliver an effective service to all customers.

The director is pleased to report continued profits and increased product development in the year.

KEY PERFORMANCE INDICATORS

The director considers the financial key performance indicators for the group to be return on labour and gross profit margin.

FUTURE DEVELOPMENTS

The director expects that the group will continue to benefit from the efficiency drive in recent years and are optimistic about the potential for revenue and profit growth.

The group is focussed on minimising its environmental impact and is committed to becoming a carbon neutral organisation by 2030.

ON BEHALF OF THE BOARD:

Mr G J Amos - Director

29 September 2026

The director presents his report with the financial statements of the company and the group for the period 12 February 2025 to 31 December 2025.

INCORPORATION

The group was incorporated on 11 February 2025 .

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of The principal activity of the group is that of commercial vehicle repairers body manufacturers.

DIVIDENDS

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

DIRECTOR

Mr G J Amos held office during the whole of the period from 12 February 2025 to the date of this report.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

At the time of the approval of this report, and during the period, qualifying third party indemnity provisions were in place for the benefit of the director.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with section 414A of the Companies Act 2006, the group has prepared a strategic report which can be found on page 2 and which includes a fair review of the group’s business and a description of the principal risks and uncertainties facing the group.

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, Harts Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr G J Amos - Director

29 September 2026

Opinion

We have audited the financial statements of R S Commercials Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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 period 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 three, 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:

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most significant are laws and regulations relating to its operations, such as ISO 9001 and health and safety standards.

We understood how the Group complies with those frameworks by making inquiries of management and the head of technical, and confirmation to identify any non-compliance with laws and regulations.

We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur by discussion with directors to understand where it's considered there was a susceptibility to fraud. We considered the controls that the Group has established to address risks identified, or that otherwise prevent, deter and detect fraud.

To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships; investigated the rationale behind significant or unusual transactions; and tested journal entries to identify unusual transactions. Controls have also been considered that the group has established to address risks identified, or that otherwise prevent, defer and detect fraud. No susceptibilities were identified in these controls.

Because of 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.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations that could materially impact the financial statements. Taking into accounts our understanding of the Group, our procedures involved enquires of management and focussed testing as appropriate with consideration to risk assessment.

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.

Melissa Bowers FCCA (Senior Statutory Auditor)

for and on behalf of Harts Limited

Chartered Accountants and Statutory Auditors

Westminster House

10 Westminster Road

Macclesfield

Cheshire

SK10 1BX

30 September 2026

TURNOVER

18,389,151

Cost of sales

(12,979,341

)

GROSS PROFIT

5,409,810

Administrative expenses

(4,420,987

)

988,823

Other operating income

209,203

OPERATING PROFIT

5

1,198,026

Interest receivable and similar income

31,609

1,229,635

Interest payable and similar expenses

7

(279,188

)

PROFIT BEFORE TAXATION

950,447

Tax on profit

8

(356,826

)

PROFIT FOR THE FINANCIAL PERIOD

593,621

Profit attributable to:

Owners of the parent

299,779

Non-controlling interests

293,842

593,621

PROFIT FOR THE PERIOD

593,621

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

593,621

Total comprehensive income attributable to:

Owners of the parent

299,779

Non-controlling interests

293,842

593,621

FIXED ASSETS

Intangible assets

10

2,528,260

Tangible assets

11

918,200

Investments

12

-

3,446,460

CURRENT ASSETS

Stocks

13

2,804,270

Debtors

14

4,704,745

Cash at bank and in hand

796,337

8,305,352

CREDITORS

Amounts falling due within one year

15

(4,520,151

)

NET CURRENT ASSETS

3,785,201

TOTAL ASSETS LESS CURRENT LIABILITIES

7,231,661

CREDITORS

Amounts falling due after more than one year

16

(2,902,204

)

PROVISIONS FOR LIABILITIES

20

(136,185

)

NET ASSETS

4,193,272

CAPITAL AND RESERVES

Called up share capital

21

99

Retained earnings

22

299,779

SHAREHOLDERS' FUNDS

299,878

NON-CONTROLLING INTERESTS

23

3,893,394

TOTAL EQUITY

4,193,272

The financial statements were approved by the director and authorised for issue on 29 September 2026 and were signed by:

Mr G J Amos - Director

FIXED ASSETS

Intangible assets

10

-

Tangible assets

11

-

Investments

12

6,426,119

6,426,119

CURRENT ASSETS

Debtors

14

99

CREDITORS

Amounts falling due within one year

15

(6,426,119

)

NET CURRENT LIABILITIES

(6,426,020

)

TOTAL ASSETS LESS CURRENT LIABILITIES

99

CAPITAL AND RESERVES

Called up share capital

21

99

SHAREHOLDERS' FUNDS

99

Company's profit for the financial year

-

The financial statements were approved by the director and authorised for issue on 29 September 2026 and were signed by:

Mr G J Amos - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Changes in equity

Issue of share capital

99

-

99

-

99

Total comprehensive income

-

299,779

299,779

293,842

593,621

Balance at 31 December 2025

99

299,779

299,878

293,842

593,720

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

99

-

99

Balance at 31 December 2025

99

-

99

Cash flows from operating activities

Cash generated from operations

1

483,637

Interest paid

(248,723

)

Interest element of hire purchase payments paid

(30,465

)

Tax paid

(662,500

)

Taxation refund

116,715

Net cash from operating activities

(341,336

)

Cash flows from investing activities

Purchase of intangible fixed assets

(2,753,849

)

Purchase of tangible fixed assets

(31,721

)

Interest received

31,609

Net cash from investing activities

(2,753,961

)

Cash flows from financing activities

New loans in year

4,500,000

Loan repayments in year

(750,110

)

Loans received

329,434

Capital repayments in year

(154,643

)

Amount withdrawn by directors

(33,146

)

Share issue

99

Net cash from financing activities

3,891,634

Increase in cash and cash equivalents

796,337

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

796,337

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

£

Profit before taxation

950,447

Depreciation charges

413,755

Finance costs

279,188

Finance income

(31,609

)

1,611,781

Decrease in stocks

997,820

Increase in trade and other debtors

(101,432

)

Decrease in trade and other creditors

(2,024,532

)

Cash generated from operations

483,637

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:

Period ended 31 December 2025

31.12.25

12.2.25

£

£

Cash and cash equivalents

796,337

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 12.2.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

-

796,337

796,337

-

796,337

796,337

Debt

Finance leases

-

(386,668

)

(386,668

)

Debts falling due within 1 year

-

(1,071,941

)

(1,071,941

)

Debts falling due after 1 year

-

(2,677,949

)

(2,677,949

)

-

(4,136,558

)

(4,136,558

)

Total

-

(3,340,221

)

(3,340,221

)

1.	STATUTORY INFORMATION

R S Commercials Holdings 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are rounded to the nearest £1, and the presentation currency is UK Pound Sterling (£).

Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting when preparing the financial statements.

Basis of consolidation

The consolidated financial statements incorporate those of R S Commercials Ltd and its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amounts 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

The estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Stocks: A provision in the amount of £320,089 (2024: £327,361) for old and obsolete stock has been estimated by the director to ensure that stock is correctly stated at the lower of cost and net realisable value.

Contingent consideration: The Group is required to pay contingent consideration of £1 million if the acquired business achieves profits of £10.5 million over the three-year period following acquisition. Based on the performance of the business to the reporting date, management considers that achievement of the required profit threshold is not probable. Accordingly, no amount of contingent consideration has been included in the cost of the business combination.

Turnover

Sale of goods

Turnover is recognised at the fair value of the consideration received or receivable, excluding trade discounts, settlement discounts and volume rebates, for sale of goods and is shown net of VAT and other sales related taxes.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2025, is being amortised evenly over its estimated useful life of ten years.

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.

Improvements to property

-

Over the period of the lease

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost and 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment charge in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

Financial instruments

Financial instruments are recognised when the Group becomes party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at transaction price, including transaction costs, except where the arrangement constitutes a financing transaction, in which case the instrument is initially measured at the present value of the future payments or receipts is counted at a market rate of interest for a similar debt instrument.

The Group has elected to apply the recognition and measurement provisions of Sections 11 and 12 of FRS 102.

Basic financial instruments

Basic financial assets, including trade and other receivables and cash and cash equivalents, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. They are subsequently measured at amortised cost using the effective interest method, less any impairment losses.

Basic financial liabilities, including trade and other payables and interest-bearing loans and borrowings, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. They are subsequently measured at amortised cost using the effective interest method.

Financial assets and liabilities that are due within one year and do not constitute financing transactions are generally measured at the undiscounted amount of the cash or other consideration expected to be received or paid.

At each reporting date, financial assets measured at amortised cost are assessed for objective evidence of impairment. Any impairment loss identified is recognised immediately in profit or loss.

Other financial instruments

Financial instruments that do not meet the definition of basic financial instruments are accounted for in accordance with Section 12 of FRS 102 and are generally measured at fair value, with changes in fair value recognised in profit or loss, unless the instrument qualifies for and is accounted for under the specific requirements for hedge accounting or another applicable exception.

Derecognition

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires.

Taxation

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

3.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

4,634,866

Social security costs

529,652

Other pension costs

183,195

5,347,713

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

Management

2

Operatives

128

Administration

5

135

4.	DIRECTORS' EMOLUMENTS

£

Director's remuneration

316,667

Director's pension contributions to money purchase schemes

30,667

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

Information regarding the highest paid director is as follows:

£

Emoluments etc

316,667

Pension contributions to money purchase schemes

30,667

5.	OPERATING PROFIT

£

Hire of plant and machinery

61,482

Depreciation - owned assets

58,452

Depreciation - assets on hire purchase contracts

129,714

Operating lease charges

137,735

6.	AUDITORS' REMUNERATION

£

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

19,792

Auditors' remuneration for non audit work

7,457

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

£

Bank interest

245,713

Other interest

3,010

Hire purchase interest

30,465

279,188

8.

TAXATION

Analysis of the tax charge

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

£

Current tax:

UK corporation tax

375,920

(Over) Under provision in prior year

3,028

Total current tax

378,948

Deferred tax

(22,122

)

Tax on profit

356,826