REGISTERED NUMBER: 00644062 (England and Wales)

Econ Engineering Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st March 2026

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

J R Lupton

B J Shepherd

G Legg

T Ward

T Lupton

T Cross

SECRETARY:

B J Shepherd

REGISTERED OFFICE:

Boroughbridge Road

Ripon

North Yorkshire

HG4 1UE

REGISTERED NUMBER:

00644062 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

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

REVIEW OF THE BUSINESS

Econ Engineering Ltd has delivered another successful year, driven by increased operational efficiency, investment in technology, and expanded production capacity at Ripon. A patent was secured for a new distributor product, strengthening Econ's product offering, while ongoing investment in research and development continues to support innovation and meet evolving customer requirements.

The Sowerby Service Centre continued to operate at full capacity, supporting both the hire fleet and the strong second-hand vehicle market. Servicing capacity was also increased at the Alloa, Cardiff, and Halesworth depots, enabling further growth of the hire fleet and continued high levels of customer service.

Investment in infrastructure remained a priority during the year, including the successful operation of solar panels at Ripon and Sowerby, site improvement works, and the acquisition of new equipment. A new laser cutting machine is due to be commissioned in the next financial year.

Econ also continued to invest in its IT infrastructure, with the implementation of a new ERP system nearing completion and all service engineers and depots now operating on the Econ's bespoke fleet management system. These investments are expected to support future growth and operational efficiency.

RESEARCH AND DEVELOPMENT

The technical development team at Econ have been working hard developing our next generation of electric vehicles and work is still ongoing to ensure we develop our product range further. Electrification of commercial vehicles are important with the environmental targets set by the government, and we are committed to be able to offer electric winter maintenance vehicles to our customers. Econ continues to research the use of other environmentally friendly vehicle solutions in conjunction with our current electric range.

Continuous development of navigational aids to assist drivers and the routes to be gritted are of upmost importance to our customers and Econ are developing control systems which are driver friendly whilst increasing the performance and accuracy of the gritter bodies.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company faces a number of risks and uncertainties that could affect its performance, including increases in material, labour and energy costs, supply chain disruption, the availability of components and skilled employees, and wider economic and geopolitical factors.

The Directors regularly review the performance of the business, including sales, operations, financial results, health and safety, and market conditions, to identify and manage potential risks.

The Company has established systems and controls to help minimise the impact of these risks. As an ISO 9001:2015 accredited business, we maintain a strong focus on quality, continuous improvement and operational efficiency.

The Company also monitors changes in legislation and industry regulations to ensure compliance, particularly in relation to product liability, health and safety, and environmental matters.

KPI's

The Company monitors a range of key performance indicators ("KPIs") to assess operational performance and support continuous improvement. The principal KPIs include hire fleet utilisation, market share within the winter maintenance sector, warranty costs as a percentage of turnover, production rework levels, and on-time delivery performance.

During the year, the Company achieved its targeted KPI measures, including maintaining hire fleet utilisation in excess of 90%, retaining a leading market position, keeping warranty costs below 2% of turnover, limiting production rework to less than 1% of production hours, and delivering more than 80% of works orders on schedule.

The Company also continues to review manufacturing processes to improve efficiency and productivity. The implementation of the new ERP system is expected to enhance management reporting and provide additional performance measures in future years.

SECTION 172(1) STATEMENT

The Directors have considered the matters set out in s172 part (1) (a) to (f) when performing their duty to promote the success of the company and actively consider the strategy most likely to promote success for its investors for the long term. This strategy has regard to the interests of the company's employees and other stakeholders, including the impact of its activities on our community, the environment and the company's reputation when making key decisions.

We recognise that our employees are an invaluable asset to the company and make every effort to regularly cascade relevant information to them and give an opportunity to them to provide feedback. As a responsible employer, we consider the implications of decisions on our colleagues and strive to provide a safe and rewarding working environment for all employed by the company. We actively encourage participation in Health & Safety training and ensure all colleagues receive training appropriate to their role and responsibilities. This training is available throughout the organisation to enable the company's employees to continue to develop their skill set.

The Directors, and all employees, value our customers, and the provision of high-quality service is at the forefront of our decision making. Our relationship with our suppliers is also highly important to both our strategic goals and our ways of working. We aim to develop long term working relationships with both customers and suppliers by trading with them fairly and transparently, and promoting our mutual success.

STREAMLINED ENERGY AND CARBON REPORT

The company has taken the exemption available in respect of Carbon Reporting disclosures on the grounds that this information is reported within the consolidated financial statements of the parent company, Econ Engineering Group Limited.

ON BEHALF OF THE BOARD:

J R Lupton - Director

22nd October 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and maintenance of commercial vehicle bodies for highway maintenance, principally salt spreaders, snow ploughs and Hot Boxes and the hiring out of salt spreaders and snow ploughs.

DIVIDENDS

Interim dividends of £4,483,369 (2025: £3,032,316) were paid during the year.

DIRECTORS

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

J R Lupton

B J Shepherd

G Legg

T Ward

T Lupton

Other changes in directors holding office are as follows:

T Cross - appointed 7th October 2025

GOING CONCERN

The financial statements have been prepared on the going concern basis. In making their assessment, the Directors have considered the financial position of the company and the forecasts and funding available to it over the going concern assessment period to October 2027. The Directors have concluded that there are no indications of material uncertainties that may cast doubt on the company's ability to continue to trade as a going concern and therefore continue to adopt the going concern basis of preparation.

STREAMLINED ENERGY AND CARBON REPORTING

The company has taken the exemption available in respect of Carbon Reporting disclosures on the grounds that this information is reported within the consolidated financial statements of the parent company, Econ Engineering Group Limited.

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

AUDITORS

The auditors, Smailes Goldie, will be deemed re-appointed under Section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

J R Lupton - Director

22nd October 2026

Opinion

We have audited the financial statements of Econ Engineering Limited (the 'company') for the year ended 31st March 2026 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 March 2026 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 United Kingdom Accounting Standards (FRS102), the Companies Act 2006 and tax legislation. We also considered those laws and regulation that may have an indirect material effect in the financial statements including data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

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 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;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims.

Due to 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. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

Matthew Fox FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

23rd October 2026

TURNOVER

3

59,933,922

58,292,535

Cost of sales

41,517,726

39,534,568

GROSS PROFIT

18,416,196

18,757,967

Distribution costs

1,125,489

1,155,674

Administrative expenses

2,821,075

2,692,696

3,946,564

3,848,370

14,469,632

14,909,597

Other operating income

30,032

26,270

OPERATING PROFIT

6

14,499,664

14,935,867

Interest receivable and similar income

1,187,044

1,419,674

15,686,708

16,355,541

Interest payable and similar expenses

7

1,430,547

1,349,993

PROFIT BEFORE TAXATION

14,256,161

15,005,548

Tax on profit

8

2,705,035

4,063,847

PROFIT FOR THE FINANCIAL YEAR

11,551,126

10,941,701

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

11,551,126

10,941,701

FIXED ASSETS

Tangible assets

10

67,025,620

68,218,716

Investments

11

100

100

Investment property

12

2,761,637

74,010

69,787,357

68,292,826

CURRENT ASSETS

Stocks

13

5,253,797

6,210,192

Debtors: amounts falling due within one year

14

22,948,701

20,640,345

Debtors: amounts falling due after more than one year

14

4,027,960

4,793,966

Cash at bank

35,827,447

28,084,703

68,057,905

59,729,206

CREDITORS

Amounts falling due within one year

15

25,201,848

32,402,284

NET CURRENT ASSETS

42,856,057

27,326,922

TOTAL ASSETS LESS CURRENT LIABILITIES

112,643,414

95,619,748

CREDITORS

Amounts falling due after more than one year

16

(11,181,780

)

(12,313,338

)

PROVISIONS FOR LIABILITIES

18

(13,982,586

)

(2,895,119

)

NET ASSETS

87,479,048

80,411,291

CAPITAL AND RESERVES

Called up share capital

19

19,312

19,312

Capital redemption reserve

20

8,583

8,583

Retained earnings

20

87,451,153

80,383,396

SHAREHOLDERS' FUNDS

87,479,048

80,411,291

The financial statements were approved by the Board of Directors and authorised for issue on 22nd October 2026 and were signed on its behalf by:

J R Lupton - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st April 2024

19,312

72,474,011

8,583

72,501,906

Changes in equity

Dividends

-

(3,032,316

)

-

(3,032,316

)

Total comprehensive income

-

10,941,701

-

10,941,701

Balance at 31st March 2025

19,312

80,383,396

8,583

80,411,291

Changes in equity

Dividends

-

(4,483,369

)

-

(4,483,369

)

Total comprehensive income

-

11,551,126

-

11,551,126

Balance at 31st March 2026

19,312

87,451,153

8,583

87,479,048

1.	STATUTORY INFORMATION

Econ Engineering 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

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The financial statements have been prepared on the going concern basis. In making their assessment, the Directors have considered the financial position of the company and the forecasts and funding available to it over the going concern assessment period to October 2027. The Directors have concluded that there are no indications of material uncertainties that may cast doubt on the company's ability to continue to trade as a going concern and therefore continue to adopt the going concern basis of preparation.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

At the balance sheet date the company's only subsidiary undertaking was Econ (Scotland) Limited. The company remained dormant throughout the current and prior periods and holds no material assets or liabilities. The directors consider the effect of including Econ (Scotland) Limited in the company's financial statements not to be necessary for the purpose of giving a true and fair view of those financial statements. These financial statements therefore present information about the company as an individual undertaking and not about its group.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents net invoiced amounts in respect of sale and hire of goods, excluding value added tax.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

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

Freehold property

- 2% to 25% on cost

Leasehold property

- Over the period of the lease

Plant and machinery

- 10% to 50% on cost

Motor vehicles

- 25% on cost

Impairment

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

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment properties were subject to valuation by the directors who are not professionally qualified valuers. Any changes in fair value recognised in profit and loss. At the year end, the directors are of the opinion that the fair value of the investment property does not differ substantially from the current carrying value.

Stocks

Stock and work in progress is stated at the lower of cost and net realisable value, with due allowance for any obsolete or slow moving items. Cost represents that expenditure which has been incurred in the normal course of business in bringing the product or service to its present location and condition.

In the case of consumable stores, cost means purchase price including transport and handling costs, less trade discounts, calculated on a current replacement cost basis. In the case of work in progress and finished goods, cost consists of direct materials, direct labour and attributable production and other overheads based on normal levels of activity.

Net realisable value means estimated selling price less all further costs to completion and all costs to be incurred in marketing, selling and distribution.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

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 the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account as incurred.

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.

Debtors and creditors receivable / payable within one year

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

Critical accounting judgements and key sources of estimation uncertainty

Key sources of estimation uncertainty

The preparation of financial statements requires the Directors to make judgements, estimates and assumptions that affect the amounts reported in the balance sheet and income statement for the year. However, the nature of estimation means that actual outcomes may differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements:

Depreciation

The depreciation policy has been determined based on the Directors' experience of the useful economic lives and residual values of a typical asset in each category and is review annually.

Warranty Provisions

The company provides warranties on certain products sold. Provision is made for the estimated cost of future warranty claims based on historical claims experience and management's assessment of the level of future claims. The actual level of warranty claims may differ from the estimate, and therefore the provision may require adjustment in future period.

Refurbishment Provision

The company has recognised a provision in respect of refurbishment of hire vehicles. The provision is based on management's estimate of the future costs required to fulfil the obligation, taking into account historical costs, current quotations, expected inflation, the scope of works required and the anticipated timing of expenditure.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2026

2025

£

£

Hire of vehicles

32,166,431

30,180,433

Sale and production of vehicle

27,767,491

28,112,102

59,933,922

58,292,535

An analysis of turnover by geographical market is given below:

2026

2025

£

£

United Kingdom

59,933,922

58,292,535

59,933,922

58,292,535

4.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

9,892,437

9,303,012

Social security costs

1,573,924

1,297,962

Other pension costs

453,194

462,047

11,919,555

11,063,021

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

2026

2025

Office and management

48

47

Manufacturing

200

204

248

251

5.	DIRECTORS' EMOLUMENTS

2026

2025

£

£

Directors' remuneration

623,646

582,509

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2026

2025

£

£

Directors' remuneration

228,253

227,506

6.	OPERATING PROFIT

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

2026

2025

£

£

Depreciation - owned assets

7,825,432

7,431,032

Depreciation - assets on hire purchase contracts

8,426,812

7,411,433

Profit on disposal of fixed assets

(5,973,404

)

(6,400,356

)

Auditors' remuneration

46,500

36,500

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

£

Other interest payable

240,557

28,094

Hire purchase

1,189,990

1,321,899

1,430,547

1,349,993

8.

TAXATION

Analysis of the tax charge

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

2026

2025

£

£

Current tax:

UK corporation tax

669,954

3,425,042

(Over)/under provision in

previous year

(9,052,386

)

-

Total current tax

(8,382,432

)

3,425,042

Deferred tax:

Deferred tax

2,932,449

638,805

(Over)/under provision in

previous year

8,155,018

-

Total deferred tax

11,087,467

638,805

Tax on profit

2,705,035

4,063,847

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2026

2025

£

£

Profit before tax

14,256,161

15,005,548

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

3,564,040

3,751,387

Effects of:

Expenses not deductible for tax purposes

6,182

20,485

Tax on chargeable gains

102,820

-

Adjustments to tax charge in respect of previous periods - current tax

(9,052,386

)

102,756

fixed assets

Proceeds in excess of costs

-

(81,093

)

Fixed asset differences

(5,842

)

229,945

Other tax differences

(134,835

)

86,056

Movements in deferred tax not recognised

70,038

-

SBA allowances

-

(45,689

)

Adjustments to tax charge in respect of previous periods - deferred tax

8,155,018

-

Total tax charge

2,705,035

4,063,847

9.

DIVIDENDS

2026

2025

£

£

Ordinary shares of £1 each

Interim

4,483,369

3,032,316