REGISTERED NUMBER: 03736738 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

LEYTONSTONE SERVICE STATION LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTOR:

M Gopalakrishnan

SECRETARY:

Mrs S Gopalakrishnan

REGISTERED OFFICE:

509-525 High Road,

London,

England

E11 4PG

REGISTERED NUMBER:

03736738 (England and Wales)

SENIOR STATUTORY AUDITOR:

S Paramaguru (FCCA)

AUDITORS:

Param & Company Ltd

Chartered Certified Accountants,Statutory Auditors

1st Floor

44 - 50 The Broadway

Southall

Middlesex

UB1 1QB

The director presents his strategic report for the year ended 31 October 2025.

REVIEW OF BUSINESS

Company overview

The principal activity of the company during the year was fuel retailing and related service station operations. The company also earned rental income from its property interests. The financial statements have been prepared in accordance with FRS 102 and the Companies Act 2006.

Results and financial performance

Turnover increased by £1,526,764 (6.4%) to £25,298,614 (2024: £23,771,850). Gross profit increased by £261,873 to £1,012,747 (2024: £750,874), with the gross profit margin rising from 3.16% to 4.00%. Despite the improved gross return from trading, administrative expenses increased during the year.

Administrative expenses increased to £759,158 (2024: £469,588), while other operating income amounted to £185,232 (2024: £177,414), principally reflecting rental receipts. Operating profit was £438,821 (2024: £458,700). After finance costs of £204,515 (2024: £125,043), finance income of £21,505 (2024: £23,113) and a gain of £93,920 on revaluation of investment property, profit before taxation was £349,731 (2024: £356,770). Profit after taxation was £260,191 (2024: £279,407).

Key performance indicators

2025 2024

Revenue £25,298,614 £23,771,850

Gross profit £1,012,747 £750,874

Gross profit margin 4.00% 3.16%

Profit before tax £349,731 £356,770

Financial position and cash flows

At 31 October 2025, net assets were £1,998,380 (2024: £1,738,189). Current assets amounted to £2,825,674 (2024: £2,579,818), compared with current liabilities of £1,833,641 (2024: £1,462,115), resulting in net current assets of £992,033 (2024: £1,117,703).

Cash at bank and in hand decreased by £204,404 to £970,441 (2024: £1,174,845). Net cash from operating activities was £833,781 (2024: net outflow of £740,307). Investing activities resulted in a net cash outflow of £54,895 and financing activities in a net cash outflow of £983,290. Total bank borrowings were £2,598,099 (2024: £2,820,412).

Tangible fixed assets amounted to £969,978 (2024: £1,379,924) and investment property amounted to £2,407,992 (2024: £1,936,992). The fair value gain recognised on the investment property during the year was £93,920, and additions to tangible fixed assets amounted to £95,400.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a market exposed to movements in wholesale fuel prices, local competition and changes in customer demand. These factors can affect sales volumes and gross margins. Careful attention to pricing and operating costs remains important to maintaining profitability.

The company is also exposed to liquidity and financing risk arising from its working capital requirements and bank borrowings. Changes in interest rates, supplier terms or the timing of receipts and payments could affect cash flows and debt servicing. The director monitors the company's financial position and available resources.

Service station operations are subject to environmental, health and safety and other regulatory requirements. Failure to comply with applicable requirements could lead to costs, interruption of operations or reputational damage. The director recognises the importance of appropriate operating procedures and compliance arrangements. Strict monitoring in all aspects of the forecourt operations and internal policies and procedures are in place to minimise the risks of environmental contamination.

Amounts owed by associates of £1,444,571 at the year end expose the company to risks relating to the recoverability and timing of settlement of related-party balances. Their recoverability is considered alongside the financial position of the relevant counterparties.

OBJECTIVES AND FUTURE DEVELOPMENT

The company's objective is to maintain sustainable profitability through its fuel retailing activities, by responding to market conditions, managing operating costs and maintaining the quality of service provided to customers. The director will continue to review the trading performance, working capital, financing costs and the utilisation of the company's assets when considering future business decisions.

GOING CONCERN

The Director is confident that the company has adequate resources to continue operational existence for the foreseeable future. In consideration of going concern, the Director continually reviews the company's future cashflow forecasts and profit projections, on both a base case and sensitized basis, considering the principal risks and uncertainties that may arise. These forecasts have been prepared based on market data, experience trading within the sector and anticipated future trading. There is nothing to indicate from these forecasts, that the company would not be able to continue successfully as a Going Concern in the future.

DIRECTOR'S DUTIES AND STAKEHOLDER CONSIDERATIONS

In determining the company's business strategy and making decisions, the director has regard to the long-term consequences for the company, the interests of employees, relationships with customers, suppliers and lenders, and the impact of operations on the local community and environment. The company's ability to maintain suitable service station facilities, comply with legal requirements and manage financial resources remains important to its sustainable performance.

ENVIRONMENTAL AND CLIMATE-RELATED MATTERS

The Director recognises the impact of climate change and the transition towards lower-emission vehicles on the fuel retailing industry. The Company will continue to monitor developments in environmental legislation, changes in consumer demand and the increasing use of electric and hybrid vehicles.

To respond to these changes, the Company intends to review opportunities to introduce electric vehicle charging facilities where commercially viable, improve energy efficiency through LED lighting and energy-efficient equipment, and reduce unnecessary energy consumption across its operations.

The Company will also continue to review its fuel supply arrangements, monitor demand for alternative fuels and consider opportunities to develop its non-fuel retail activities to reduce reliance on traditional fuel sales over the longer term.

Environmental protection remains a priority, particularly in relation to fuel storage, handling and the prevention of spillages. The Director will continue to review appropriate safety and environmental procedures to minimise the risk of contamination and ensure compliance with applicable regulations.

Any future investment in environmental improvements will be assessed against customer demand, operational requirements, available financial resources and the Company's long-term profitability.

MANAGEMENT AND DECISION MAKING

The director is responsible for the company's strategic direction, financial oversight and significant investment and financing decisions. Particular attention is given to the performance of the fuel retailing operations, cash flow, bank borrowings and amounts receivable from associates.

ON BEHALF OF THE BOARD:

M Gopalakrishnan - Director

30 October 2026

The director presents his report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of fuel retailing and related service station operations. The company also earned rental income from its property interests.

DIVIDENDS

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

DIRECTOR

M Gopalakrishnan held office during the whole of the period from 1 November 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Param & Company Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M Gopalakrishnan - Director

30 October 2026

Opinion

We have audited the financial statements of Leytonstone Service Station Limited (the 'company') for the year ended 31 October 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 October 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 Director.

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

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

The extent to which the audit was considered capable of detecting irregularities including fraud

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 service station.

* 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, environmental and health and safety legislation;

* we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; 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 set out in note 2 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; and

*reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware 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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.

S Paramaguru (FCCA) (Senior Statutory Auditor)

for and on behalf of Param & Company Ltd

Chartered Certified Accountants,Statutory Auditors

1st Floor

44 - 50 The Broadway

Southall

Middlesex

UB1 1QB

30 October 2026

TURNOVER

25,298,614

23,771,850

Cost of sales

24,285,867

23,020,976

GROSS PROFIT

1,012,747

750,874

Administrative expenses

759,158

469,588

253,589

281,286

Other operating income

185,232

177,414

OPERATING PROFIT

5

438,821

458,700

Interest receivable and similar income

21,505

23,113

460,326

481,813

Gain/loss on revaluation of investment property

93,920

-

554,246

481,813

Interest payable and similar expenses

6

204,515

125,043

PROFIT BEFORE TAXATION

349,731

356,770

Tax on profit

7

89,540

77,363

PROFIT FOR THE FINANCIAL YEAR

260,191

279,407

PROFIT FOR THE YEAR

260,191

279,407

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

260,191

279,407

FIXED ASSETS

Tangible assets

8

969,978

1,379,924

Investment property

9

2,407,992

1,936,992

3,377,970

3,316,916

CURRENT ASSETS

Stocks

10

351,656

317,194

Debtors

11

1,503,577

1,087,779

Cash at bank and in hand

970,441

1,174,845

2,825,674

2,579,818

CREDITORS

Amounts falling due within one year

12

1,833,641

1,462,115

NET CURRENT ASSETS

992,033

1,117,703

TOTAL ASSETS LESS CURRENT LIABILITIES

4,370,003

4,434,619

CREDITORS

Amounts falling due after more than one year

13

(2,349,063

)

(2,696,430

)

PROVISIONS FOR LIABILITIES

15

(22,560

)

-

NET ASSETS

1,998,380

1,738,189

CAPITAL AND RESERVES

Called up share capital

16

2

2

Retained earnings

17

1,998,378

1,738,187

SHAREHOLDERS' FUNDS

1,998,380

1,738,189

The financial statements were approved by the director and authorised for issue on 30 October 2026 and were signed by:

M Gopalakrishnan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2023

2

1,458,780

1,458,782

Changes in equity

Total comprehensive income

-

279,407

279,407

Balance at 31 October 2024

2

1,738,187

1,738,189

Changes in equity

Total comprehensive income

-

260,191

260,191

Balance at 31 October 2025

2

1,998,378

1,998,380

Cash flows from operating activities

Cash generated from operations

1

1,159,754

(608,369

)

Interest paid

(204,515

)

(125,043

)

Tax paid

(121,458

)

(6,895

)

Net cash from operating activities

833,781

(740,307

)

Cash flows from investing activities

Purchase of tangible fixed assets

(95,400

)

(66,755

)

Purchase of investment property

-

(1,038,593

)

Sale of tangible fixed assets

19,000

-

Interest received

21,505

23,113

Net cash from investing activities

(54,895

)

(1,082,235

)

Cash flows from financing activities

New loans in year

-

1,340,000

Loan repayments in year

(222,313

)

(132,087

)

Amount introduced by directors

287,693

51,214

Amount received from/(paid) to grp/assoc

(1,048,670

)

40,000

Net cash from financing activities

(983,290

)

1,299,127

Decrease in cash and cash equivalents

(204,404

)

(523,415

)

Cash and cash equivalents at beginning of year

2

1,174,845

1,698,260

Cash and cash equivalents at end of year

2

970,441

1,174,845

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

2025

2024

(Unaudited)

£

£

Profit before taxation

349,731

356,770

Depreciation charges

99,613

27,290

Loss on disposal of fixed assets

9,653

-

Gain on revaluation of fixed assets

(93,920

)

-

Finance costs

204,515

125,043

Finance income

(21,505

)

(23,113

)

548,087

485,990

Increase in stocks

(34,462

)

(5,251

)

Decrease/(increase) in trade and other debtors

512,293

(342,340

)

Increase/(decrease) in trade and other creditors

133,836

(746,768

)

Cash generated from operations

1,159,754

(608,369

)

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 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

970,441

1,174,845

Year ended 31 October 2024

31.10.24

1.11.23

(Unaudited)

£

£

Cash and cash equivalents

1,174,845

1,698,260

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

1,174,845

(204,404

)

970,441

1,174,845

(204,404

)

970,441

Debt

Debts falling due within 1 year

(123,982

)

(125,054

)

(249,036

)

Debts falling due after 1 year

(2,696,430

)

347,367

(2,349,063

)

(2,820,412

)

222,313

(2,598,099

)

Total

(1,645,567

)

17,909

(1,627,658

)

1.	STATUTORY INFORMATION

Leytonstone Service Station 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 as modified by the revaluation of certain assets.

Going concern

The Director is confident that the company has adequate resources to continue operational existence for the foreseeable future. In consideration of going concern, the Director continually review the company's future cashflow forecasts and profit projections, on both a base case and sensitized basis, considering the principal risks and uncertainties that may arise. These forecasts have been prepared based on market data, experience trading within the sector and anticipated future trading. There is nothing to indicate from these forecasts, that the company would not be able to continue successfully as a Going Concern in the future.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the management.

Freehold land - Not depreciated

Freehold buildings - 2% on cost

Long leasehold - Over the lease term

Plant and machinery - 20% on reducing balance

Fixtures and fittings - 20% on reducing balance

Motor vehicles - 20% on reducing balance

Freehold land is not depreciated as it is considered to have an indefinite useful economic life. The company

provides depreciation for the full year in the year of acquisition and does not charge depreciation in the year of disposal.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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.

The key sources of estimation uncertainty that have significant effect on the amounts recognised in the financial statements are described below.

1. Estimate the useful lives of tangible assets for depreciation purposes.

2. Determine whether the leases entered into by the company are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease-by-lease basis.

3. Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

4.	EMPLOYEES AND DIRECTORS

2025

2024

(Unaudited)

£

£

Wages and salaries

91,554

44,613

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

2025

2024

(Unaudited)

Directors

1

1

Admin

6

2

7

3

2025

2024

(Unaudited)

£

£

Director's remuneration

19,000

12,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

(Unaudited)

£

£

Depreciation - owned assets

99,613

27,291

Loss on disposal of fixed assets

9,653

-

Auditors' remuneration

18,000

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

(Unaudited)

£

£

Bank loan interest

204,515

125,043

7.

TAXATION

Analysis of the tax charge

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

2025

2024

(Unaudited)

£

£

Current tax:

UK corporation tax

66,980

77,363

Deferred tax

22,560

-

Tax on profit

89,540

77,363

Reconciliation of total tax charge included in profit and loss

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

2025

2024

(Unaudited)

£

£

Profit before tax

349,731

356,770

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

87,433

89,193

Effects of:

Expenses not deductible for tax purposes

2,413

-

Income not taxable for tax purposes

(23,480

)

-

Capital allowances in excess of depreciation

-

(11,830

)

Depreciation in excess of capital allowances

614

-

Deferred tax

22,560

-

Total tax charge

89,540

77,363