REGISTERED NUMBER: 06468707 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31st January 2026

for

KBC Logistics Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

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

18

DIRECTORS:

A Radzyminski

M Antoniou

REGISTERED OFFICE:

Hanson Yard

Botany Way

Purfleet

Essex

RM19 1SR

REGISTERED NUMBER:

06468707 (England and Wales)

AUDITORS:

Beak Kemmenoe

Chartered Accountants

& Statutory Auditors

1-3 Manor Road

Chatham

Kent

ME4 6AE

The directors present their strategic report for the year ended 31st January 2026.

REVIEW OF BUSINESS

KBC Logistics Ltd is a transport company where we specialise in reliable and efficient haulage services tailored to meet the diverse needs to our clients. With years of experience in the logistics industry, we pride ourselves on our commitment to excellence and customer satisfaction.

The results for the year to 31st January 2026 were disappointing. One of the largest costs for the company is fuel and a 40% increase in unit price occurred in the year as a result of the global political situation that has caused problems throughout the industry. In addition, there were extra costs associated with integrating an acquisition from the prior year and an investment in additional senior management staff to improve the company's diligence around reporting, controls and processes, safeguarding the long-term future of the business.

Since the year end the company has carried out a comprehensive review of operations, revenue and costs and taken several actions that have resulted in profitable trading in the eight-month period to 30th September 2026 which is expected to continue through to the 2027 year end accounts.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Company's strategy are subject to a number of risks.

Geographic Risk:

There are a number of shipping companies that choose to use different ports for economic and strategic reasons. We protect ourselves from this risk by supplying a presence in all of the major UK Ports.

Failure to attract and retain personnel:

There was a continued driver shortage in the year ended 31 January 2026. Our commitment to quality of service and good logistics planning allowed us to supply regular employment to our workforce and therefore avoid driver challenges.

Cost Control:

There were a number of pressures on trading costs during the year. The company actively managed these costs partly by aggressive fleet renewals and partly by resisting overhead cost pressures. The volatility of fuel costs in particular remains a concern and improved reporting around fuel efficiency by vehicle together with working closely with fuel suppliers is helping to alleviate this risk.

Risks are formerly reviewed by the directors and appropriate processes are put in place to mitigate them.

KEY PERFORMANCE INDICATORS

The KPI's used to monitor the profitability of the business are:

Gross Profit Margin (Gross profit/Turnover) - This has increased slightly to 7.3% (2025: 6.4%).

Revenue per mile/load - Logistics monitoring achieved an acceptable level which exceeded industry norms for the types of haulage supplied.

FUTURE DEVELOPMENTS

Looking ahead, we remain optimistic about the opportunities that lie before us. Our strategic goals for the upcoming year include:

- Continued investment in fleet modernisation and technology to enhance service delivery.

- Expanding our market presence through targeted customer engagement and further strategic acquisitions.

- Strengthening our commitment to sustainability and corporate responsibility.

We remain committed to navigating the ongoing challenges in the industry while positioning ourselves for growth. The future expansion plans, facilitated by additional depot facilities represents a sustained focus on this strategy, and we are confident it will lead to long term value for the business.

ON BEHALF OF THE BOARD:

M Antoniou - Director

29th October 2026

The directors present their report with the financial statements of the company for the year ended 31st January 2026.

DIVIDENDS

An interim dividend of 60.00 per share was paid on 31st January 2026. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31st January 2026 will be £ 6,000 .

DIRECTORS

A Radzyminski has held office during the whole of the period from 1st February 2025 to the date of this report.

Other changes in directors holding office are as follows:

D Ashford - resigned 7th March 2025

M Antoniou - appointed 24th February 2025

DISABLED PERSONS

The following statements of policy are practiced by the company:

Full and fair consideration is given to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities;

Continued employment and training of staff is offered to those who become disabled whilst they are employees of the company;

The company continues to offer general training, career development and promotion of disabled persons employed by them.

EMPLOYEE INVOLVEMENT

The company is aware of it's responsibilities to its employees and the key part that they play in the company's progress. The benefits of low staff turnover in continuity and quality of services to customers cannot be over estimated and all employees are encouraged to undertake further training both in house and via external providers to allow them to achieve their personal and professional aspirations.

The company has regular meetings with its employees at all levels to provide them with information on areas that concern them as employees, and to ensure there is a common awareness throughout the company of the financial and economic factors that affect the performance of the company.

The company consults employees or their representatives regularly so that their views can be taken into account when making decisions that are expected to affect their interests, and makes efforts to encourage involvement in these forums in order that they are aware of and can positively gain from that involvement.

SECTION 172(1) STATEMENT

The directors recognise that the future of the business depends on the trust and confidence of its stakeholders to operate sustainably in the long term. The directors seek to put its customers’ best interests first, invests in its employees, supports the communities in which it operates and strives to generate sustainable profits.

The directors have acted in accordance with their duties codified in law, which include their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the company, having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.

STREAMLINED ENERGY AND CARBON REPORTING

The SECR disclosure presents the carbon emissions of KBC Logistics Ltd for the reporting year to 31st January 2026 across Scope 1 and 2 emissions.

Methodology used in the calculation of disclosures

Emissions have been calculated using the UK Government's 2026 greenhouse gas conversion factors, applied in line with the GHG Protocol Corporate Standard, using an operational-control consolidation boundary. The disclosure covers scope 1 and scope 2 emission.

31 Jan 2026

31 Jan 2025

Energy consumption used to calculate emissions (kWh)

3,084,221

3,157,374

Emissions from combustion of fuel for transport purposes (Scope 1) tCO2e

22,670

26,105

Emissions from purchased electricity (Scope 2) tCO2e

75,067

102,073

Total gross tCO2e based on above

97,737

128,178

Intensity Ratio (tCO2e/turnover)

0.0017

0.0025

We are dedicated to responsible carbon management and will implement additional energy efficiency measures across our organisation wherever they are cost-effective. We acknowledge climate change is one of the most pressing environmental challenges facing the global community, and we recognise our responsibility in contributing to the reduction in greenhouse gas emissions.

We have recently implemented, or are in the process of implementing, the following policies to enhance the energy efficiency of the business.

- All company cars purchased recently have been electric.

- There are charge points at all the yards.

- There is a large drive to maximise trailer capacity and minimise standing trucks as well as empty loads or shunts.

- Continued push to encourage customers to Hydrotreated Vegetable Oil (HVO) reducing the impact of diesel engine greenhouse emissions.

DISCLOSURE IN THE STRATEGIC REPORT

The directors have disclosed their review of the business, the key performance indicators, principal risks and uncertainties along with future developments 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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, Beak Kemmenoe, are deemed to be reappointed.

ON BEHALF OF THE BOARD:

M Antoniou - Director

29th October 2026

Opinion

We have audited the financial statements of KBC Logistics Limited (the 'company') for the year ended 31st January 2026 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 31st January 2026 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 pages five and 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the business sector;

- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

-Tested journal entries to identify unusual transactions;

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- Agreeing financial statement disclosures to underlying supporting documentation; and

- Enquiring of management as to actual and potential litigation and claims;

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.

Ronald Price FCA (Senior Statutory Auditor)

for and on behalf of Beak Kemmenoe

Chartered Accountants

& Statutory Auditors

1-3 Manor Road

Chatham

Kent

ME4 6AE

29th October 2026

TURNOVER

56,636,242

51,477,547

Cost of sales

52,480,305

48,051,945

GROSS PROFIT

4,155,937

3,425,602

Administrative expenses

4,545,070

3,052,844

OPERATING (LOSS)/PROFIT

4

(389,133

)

372,758

Interest receivable and similar income

13,532

-

(375,601

)

372,758

Interest payable and similar expenses

6

440,245

297,293

(LOSS)/PROFIT BEFORE TAXATION

(815,846

)

75,465

Tax on (loss)/profit

7

(201,112

)

39,059

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(614,734

)

36,406

(LOSS)/PROFIT FOR THE YEAR

(614,734

)

36,406

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(614,734

)

36,406

FIXED ASSETS

Tangible assets

9

12,305,487

11,046,284

CURRENT ASSETS

Stocks

10

325,102

186,680

Debtors

11

12,695,944

11,716,658

Cash at bank and in hand

198,061

274,693

13,219,107

12,178,031

CREDITORS

Amounts falling due within one year

12

10,156,145

7,579,518

NET CURRENT ASSETS

3,062,962

4,598,513

TOTAL ASSETS LESS CURRENT LIABILITIES

15,368,449

15,644,797

CREDITORS

Amounts falling due after more than one year

13

(3,320,772

)

(2,775,274

)

PROVISIONS FOR LIABILITIES

17

(830,999

)

(1,032,111

)

NET ASSETS

11,216,678

11,837,412

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

11,216,578

11,837,312

SHAREHOLDERS' FUNDS

11,216,678

11,837,412

The financial statements were approved by the Board of Directors and authorised for issue on 29th October 2026 and were signed on its behalf by:

M Antoniou - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st February 2024

100

11,835,906

11,836,006

Changes in equity

Dividends

-

(35,000

)

(35,000

)

Total comprehensive income

-

36,406

36,406

Balance at 31st January 2025

100

11,837,312

11,837,412

Changes in equity

Dividends

-

(6,000

)

(6,000

)

Total comprehensive income

-

(614,734

)

(614,734

)

Balance at 31st January 2026

100

11,216,578

11,216,678

Cash flows from operating activities

Cash generated from operations

1

1,567,451

2,617,260

Interest paid

(160,906

)

(125,351

)

Interest element of hire purchase payments paid

(279,339

)

(171,942

)

Net cash from operating activities

1,127,206

2,319,967

Cash flows from investing activities

Purchase of tangible fixed assets

(193,100

)

(684,642

)

Sale of tangible fixed assets

367,166

30,651

Interest received

13,532

-

Net cash from investing activities

187,598

(653,991

)

Cash flows from financing activities

Capital repayments in year

(2,559,337

)

(1,431,474

)

Equity dividends paid

(6,000

)

(35,000

)

Net cash from financing activities

(2,565,337

)

(1,466,474

)

(Decrease)/increase in cash and cash equivalents

(1,250,533

)

199,502

Cash and cash equivalents at beginning of year

2

(1,663,013

)

(1,862,515

)

Cash and cash equivalents at end of year

2

(2,913,546

)

(1,663,013

)

1.	RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2026

2025

£

£

(Loss)/profit for the financial year

(614,734

)

36,406

Depreciation charges

2,971,307

2,379,185

Loss on disposal of fixed assets

40,424

2,587

Finance costs

440,245

297,293

Finance income

(13,532

)

-

Taxation

(201,112

)

39,059

2,622,598

2,754,530

Increase in stocks

(138,422

)

(51,404

)

Increase in trade and other debtors

(979,286

)

(481,101

)

Increase in trade and other creditors

62,561

395,235

Cash generated from operations

1,567,451

2,617,260

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 31st January 2026

31.1.26

1.2.25

£

£

Cash and cash equivalents

198,061

274,693

Bank overdrafts

(3,111,607

)

(1,937,706

)

(2,913,546

)

(1,663,013

)

Year ended 31st January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

274,693

143,844

Bank overdrafts

(1,937,706

)

(2,006,359

)

(1,663,013

)

(1,862,515

)

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.2.25

Cash flow

changes

At 31.1.26

£

£

£

£

Net cash

Cash at bank

and in hand

274,693

(76,632

)

198,061

Bank overdrafts

(1,937,706

)

(1,173,901

)

(3,111,607

)

(1,663,013

)

(1,250,533

)

(2,913,546

)

Debt

Finance leases

(4,443,100

)

2,559,337

(4,445,000

)

(6,328,763

)

(4,443,100

)

2,559,337

(4,445,000

)

(6,328,763

)

Total

(6,106,113

)

1,308,804

(4,445,000

)

(9,242,309

)

1.	STATUTORY INFORMATION

KBC Logistics 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.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In preparing the financial statements the directors have made the following judgements:

Determining the useful lives and depreciation policies for the company's various classes of tangible fixed assets. The directors base these estimates on past performance and industry trends to ensure that the depreciation policy used is sufficient so that the carrying value does not exceed its net realisable value.

Turnover

Turnover is the total receivable by the company for goods supplied and services provided, excluding VAT and trade discounts.

The company operates exclusively in the United Kingdom and haulage income represents the vast majority of turnover.

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.

Freehold property

-

not provided

Fixtures and fittings

-

25% straight line

Motor vehicles

-

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

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

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments that comply with all of the conditions of paragraph 11.9 of FRS 102 are classified as 'basic'. For debt instruments that do not meet the conditions of FRS 102.11.9, the company considers whether the debt instrument is consistent with the principle in paragraph 11.9A of FRS 102 in order to determine whether it can be classified as basic. Instruments classified as 'basic' financial instruments are measured subsequently at amortised cost using the effective interest method. Debt instruments that have no stated interest rate (and do not constitute financing transaction) and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting conditions of being 'basic' financial instruments are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

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.

Foreign currencies

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

Hire purchase and leasing commitments

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

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

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.

Operating lease commitments

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against on a straight line basis over the period of the lease.

3.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

16,067,094

13,061,187

Social security costs

1,897,498

1,308,822

Other pension costs

479,686

203,975

18,444,278

14,573,984

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

2026

2025

Management

3

2

Administration

29

12

Productive labour

355

281

387

295