REGISTERED NUMBER: 01778045 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

R. Hannon Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

R M Hannon

R Hannon

SECRETARY:

Miss M Barrett

REGISTERED OFFICE:

Herridge Farmhouse

Collingbourne Ducis

Marlborough

Wiltshire

SN8 3EG

REGISTERED NUMBER:

01778045 (England and Wales)

AUDITORS:

Morley & Co (UK) Ltd

Statutory Auditor, Chartered Certified Accountants

2 Cricklade Court

Old Town

Swindon

Wiltshire

SN1 3EY

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

REVIEW OF BUSINESS

The principal activity of the company is racehorse training and bloodstock dealing.

The key financial and other performance indicators during the year were as follows:

2025

2024

£

£

Turnover

6,432,151

6,465,564

Turnover growth/(fall)

0%

4%

Gross profit margin

28%

33%

Profit/(Loss) before tax

(414,398)

187,307

Shareholders' Funds

16,523,862

16,851,878

Core turnover remained consistent with the prior year however there was a decline in commissions and percentage which was offset by an increase in bloodstock dealings. It is expected that the company's core income operation will remain consistent year on year with fluctuations in bloodstock dealings, commissions received and percentages due to the competitiveness of the racing industry, the number of horses in training, prize money on offer and the market for buying and selling race horses.

The business continues to maintain its training facilities along with facing general inflationary pressures to the costs of staff wages and goods and services. The company has been able to pass through some of these costs with modest increases in training fees however from time to time the business has to carry out significant works to existing structures to ensure the longevity of the facilities which in 2025 has included works on maintaining the gallops of c£170,000 and works on the roofs of the stabling facilities costing c£270,000.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's directors meet on a regular basis to evaluate the company's principal risks and uncertainties.

The principal risks and uncertainties facing the company are broadly grouped as: competitive, regulatory and financial instrument risk.

Competitive Risks

The company is reliant on its continued success in training race horses to both retain existing owners and attract new owners. Whilst the Directors believe that the company will continue to successfully train winning horses, there is always a degree of uncertainty as to outcomes in the horse racing industry.

Regulatory Risks

The British Horseracing Authority (BHA) governs and regulates horse racing in the UK and therefore the company are subject to the standards laid down by the BHA. Changes to the standards set by the BHA could have a material impact on the company's operations. The company is also subject to risks associated with horse racing and agriculture such as the outbreak of disease which could have material impact on the company's operations.

Financial Instrument Risks

The company's principal financial instruments comprise bank balances, investments in managed funds, trade debtors, trade creditors and loans to/from the company. The main purpose of these instruments is to finance the company's operations and protect the company from events that might hinder the company's performance objectives. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet liabilities as they fall due. Loans comprise loans to/from the directors. The business manages liquidity risk by ensuring that there are sufficient funds to meet the payments. The company does not use financial derivatives.

Exposure to price, credit, liquidity and cash flow risk

Price risk arises on financial instruments because of changes in, for example, commodity prices or equity prices. The company holds an investment portfolio, which includes listed investments, which it does not intend to sell in the short term as the funds are intended to be used for future investment in the company's trade when suitable opportunities arise. The investment portfolio is carried at fair value and is exposed to price risk but this exposure is within the company's risk appetite.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate debt. The company has no significant external debt and maintains a significant cash reserve so as to mitigate any risk.

ON BEHALF OF THE BOARD:

R Hannon - Director

21 September 2026

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

DIVIDENDS

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

FUTURE DEVELOPMENTS

The directors have continued with their policy of maintaining and improving facilities to support the growth of the business. This policy includes ownership of the land and training facilities that it operates from, rather than renting. To this end, the directors have continued to retain profits in the form of cash and short-term, actively managed investments to provide the company with sufficient working capital and with a view to making specifically identified investments in the near future in barns and key staff accommodation.

The directors aim to maintain the management policies and business lines which have resulted in the company's success in recent years. They consider that the next year will show results broadly consistent with the current year.

DIRECTORS

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

R M Hannon

R Hannon

Other changes in directors holding office are as follows:

Mrs J A Hannon - deceased 15 September 2025

FINANCIAL INSTRUMENTS

Details of financial instruments are provided in the strategic report on page 3.

POLITICAL DONATIONS AND EXPENDITURE

The company made no political donations during the current or previous year.

GOING CONCERN

The company's business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, details of its financial instruments and its exposures to price, credit,liquidity and cash flow risk are described in the Strategic Report on page 3.

DISCLOSURE IN THE STRATEGIC REPORT

The Directors' Business Review and assessment of the Principal Risks & Uncertainties have been 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, Morley & Co (UK) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Hannon - Director

21 September 2026

Opinion

We have audited the financial statements of R. Hannon Ltd (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 loss 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 six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

a. The nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;

b. Enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to:

b.i. Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

b.ii. Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

b.iii. The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

b.iv. Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements, such as provisions of the UK Companies Act, pensions legislation and tax legislation or that had a fundamental effect on the operations of the company, General Data Protection requirements and Anti-bribery and corruption policy.

In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override. Our procedures to respond to risks identified included the following:

a. 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;

b. Enquiring of management and external legal counsel concerning actual and potential litigation and claims;

c. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

d. Reading minutes of meetings of those charged with governance and correspondence with regulators.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Paul King F.C.C.A. (Senior Statutory Auditor)

for and on behalf of Morley & Co (UK) Ltd

Statutory Auditor, Chartered Certified Accountants

2 Cricklade Court

Old Town

Swindon

Wiltshire

SN1 3EY

21 September 2026

TURNOVER

4

6,432,151

6,465,564

Cost of sales

4,606,143

4,355,646

GROSS PROFIT

1,826,008

2,109,918

Administrative expenses

2,510,277

2,192,620

(684,269

)

(82,702

)

Other operating income

23,343

11,867

OPERATING LOSS

6

(660,926

)

(70,835

)

Income from fixed asset investments

6,286

8,863

Interest receivable and similar income

130,993

324,943

137,279

333,806

(523,647

)

262,971

Gain/loss on revaluation of assets

117,939

(75,664

)

(405,708

)

187,307

Interest payable and similar expenses

7

8,690

-

(LOSS)/PROFIT BEFORE TAXATION

(414,398

)

187,307

Tax on (loss)/profit

8

(86,382

)

42,495

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(328,016

)

144,812

FIXED ASSETS

Tangible assets

9

7,892,388

8,119,266

Investments

10

751,364

653,518

Investment property

11

1,125,000

1,100,000

9,768,752

9,872,784

CURRENT ASSETS

Stocks

12

355,620

301,163

Debtors

13

1,939,611

1,957,085

Cash at bank and in hand

5,367,409

5,729,028

7,662,640

7,987,276

CREDITORS

Amounts falling due within one year

14

645,492

740,612

NET CURRENT ASSETS

7,017,148

7,246,664

TOTAL ASSETS LESS CURRENT LIABILITIES

16,785,900

17,119,448

PROVISIONS FOR LIABILITIES

15

262,038

267,570

NET ASSETS

16,523,862

16,851,878

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Fair value reserve

17

180,863

162,113

Retained earnings

17

16,341,999

16,688,765

SHAREHOLDERS' FUNDS

16,523,862

16,851,878

The financial statements were approved by the Board of Directors the Board of Directors and authorised for issue on 21 September 2026 and were signed on its behalf by:

R Hannon - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

1,000

16,468,953

237,113

16,707,066

Changes in equity

Total comprehensive income

-

219,812

(75,000

)

144,812

Balance at 31 December 2024

1,000

16,688,765

162,113

16,851,878

Changes in equity

Total comprehensive income

-

(346,766

)

18,750

(328,016

)

Balance at 31 December 2025

1,000

16,341,999

180,863

16,523,862

Cash flows from operating activities

Cash generated from operations

1

(159,440

)

(319,801

)

Interest paid

(1,049

)

-

Interest element of hire purchase or finance lease rental payments paid

(7,641

)

-

Tax paid

(62,644

)

(60,231

)

Net cash from operating activities

(230,774

)

(380,032

)

Cash flows from investing activities

Purchase of tangible fixed assets

(18,673

)

(252,925

)

Purchase of fixed asset investments

(165,356

)

(332,614

)

Sale of tangible fixed assets

-

89,500

Sale of fixed asset investments

160,449

318,215

Interest received

130,993

324,943

Dividends received

6,286

8,863

Net cash from investing activities

113,699

155,982

Cash flows from financing activities

Amount introduced by directors

235,447

221,874

Amount withdrawn by directors

(479,991

)

(382,000

)

Net cash from financing activities

(244,544

)

(160,126

)

Decrease in cash and cash equivalents

(361,619

)

(384,176

)

Cash and cash equivalents at beginning of year

2

5,729,028

6,113,204

Cash and cash equivalents at end of year

2

5,367,409

5,729,028

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(414,398

)

187,307

Depreciation charges

245,551

266,289

Profit on disposal of fixed assets

-

(22,018

)

(Gain)/loss on revaluation of fixed assets

(117,939

)

75,664

Finance costs

8,690

-

Finance income

(137,279

)

(333,806

)

(415,375

)

173,436

(Increase)/decrease in stocks

(54,457

)

42,853

Decrease/(increase) in trade and other debtors

338,327

(115,898

)

Decrease in trade and other creditors

(27,935

)

(420,192

)

Cash generated from operations

(159,440

)

(319,801

)

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

5,367,409

5,729,028

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

5,729,028

6,113,204

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank and in hand

5,729,028

(361,619

)

5,367,409

5,729,028

(361,619

)

5,367,409

Total

5,729,028

(361,619

)

5,367,409

1.	COMPANY INFORMATION

R. Hannon Ltd is a limited liability company incorporated in England. The Registered Office is Herridge Farmhouse, Collingbourne Ducis, Marlborough, Wiltshire, SN8 3EG.The nature of the company's operations and principal activity is that of race horse training and dealing.

2.	STATUTORY INFORMATION

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

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

3.	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.

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 as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revaluation of investment properties

The Company carries its investment property at fair value, with changes in fair value being recognised in profit or loss. The Company engaged independent valuation specialists to determine fair value at the balance sheet date. The valuer used a valuation technique based on comparable market data and similar properties. The determined fair value of the investment property is most sensitive to current UK housing market pricing.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Sale of goods

Turnover from the sale of bloodstock is recognised when the significant risks and rewards of ownership of the animal has transferred to the buyer. This is usually at the point that the customer has been registered as owner.

Rendering of services

Turnover from the rendering of services is recognised by reference to the training and ancillary costs of maintaining each horse under the company's care. The valuation of the services performed and included within turnover are measured by reference to the training and other standard fees charged per horse and the associated ancillary costs actually incurred.

Tangible fixed assets

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

Freehold property

-

1% - 2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Investment property

Certain of the company's properties are held for long-term investment. Investment properties are accounted for as follows:

Investment properties are initially recognised at cost which includes purchase cost and any directly attributable expenditure. Investment properties whose fair value can be measured reliably are measured at fair value. The surplus or deficit on revaluation is recognised in the profit and loss account accumulated in the profit and loss reserve unless a deficit below original cost, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the profit and loss account for the year.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each line of stock to its present location and condition, as follows:

Bloodstock

Bloodstock represents animals purchased by the company for re-sale and are are stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less any further costs expected to be incurred to disposal.

Deadstock

Consumables used in the operating of the company's trade are stated at the lower of cost, on a first-in first-out basis, and net realisable value. As dead stock is for internal consumption and not re-sale, net realisable value is determined to be original cost unless the deadstock is considered to be unusable.

Financial instruments

Basic financial instruments, including trade and other receivables, trade and other payables, cash and bank balances, bank loans and loans to/from the company are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

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

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the group, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the asset’s useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term. Lease incentives are recognised over the lease term on a straight line basis.

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.

Investments

Equity investments are recognised initially at fair value which is normally the transaction price (but excludes any transaction costs,where the investment is subsequently measured at fair value through profit and loss). Subsequently, they are measured at fair value through profit or loss except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably which are recognised at cost less impairment until a reliable measure of fair value becomes available. If a reliable measure of fair value is no longer available, the equity instrument’s fair value on the last date the instrument was reliably measurable is treated as the cost of the instrument.

4.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

The company trades solely within the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,248,726

2,415,077

Social security costs

265,954

247,565

Other pension costs

37,211

41,190

2,551,891

2,703,832

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

2025

2024

Office

4

5

Yard

64

69

68

74

The company operates a stakeholder defined contribution pension scheme for the benefit of the employees and directors. The assets of the scheme are administered by an independent pensions provider. During the year the company made pension contributions of £37,211 (2024 - £41,190).

2025

2024

£

£

Directors' Remuneration

386,394

373,203

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

Money purchase schemes

2

3

Remuneration above includes the following amount paid to the highest paid director:

2025

2024

£

£

Directors' Remuneration

372,932

251,119