REGISTERED NUMBER: 01271192 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 June 2025

for

Thomas Bell & Sons Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

16

DIRECTORS:

Mr A M Major

Mr M P H Dawson

Miss K L Major

SECRETARY:

Mrs P Major

REGISTERED OFFICE:

Bigby Road

Brigg

North Lincolnshire

DN20 8RA

REGISTERED NUMBER:

01271192 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

BANKERS:

HSBC Bank Plc

84 High Street

Scunthorpe

North Lincolnshire

DN15 6HQ

SOLICITORS:

Wilkin Chapman Rollits

The Maltings

11-15 Brayford Wharf East

Lincoln

LN5 7AY

REVIEW OF BUSINESS

The directors consider that the profit on ordinary activities before taxation is particularly pleasing especially considering the continuing challenging market trading conditions.

The company reached an agreement during the year with ABP for further nationwide expansion, with investment at the Port of Ipswich. The directors believe this strategic decision represents a further milestone and emphasises the commitment to increase a wider range of fertilisers and service to UK farmers. Following on from the purchase of Mole Valley Farmers Fertiliser Storage and Blending facility located in the Port of Newport during 2023-2024, the company has had significant investment and expansion over the past 18 months.

The company monitors key performance indicators, the main indicators used by the company have been referenced as part of this business review. Turnover for the year was £132,150,806 which represents an increase from the previous year of 5.34%.

The gross profit margin achieved for the year was 5.6% compared to 5.2% in the previous year. Gross profit has increased from £6,513,199 in 2024 to £7,337,420 in 2025 and the stock turnover period is 53 days demonstrating that the purchasing function continues to be tightly managed.

The company is holding cash balances at the year end and the directors believe that the current asset ratio of 2.49:1 (2024: 2.47:1) is satisfactory in the company's circumstances. The directors remain confident that the company is in a good position to consolidate its position and maintain its market share.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a global commodity market where price corrections may occur to which the company has no control. The company uses forward foreign currency contracts to reduce exposure to the variability of foreign exchange by fixing the rate of any material payments in a foreign currency. The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through stringent credit control procedures. The nature of the company's financial instruments means that it is not subject to liquidity risk.

ENVIRONMENT

Whilst the company does not have a formal Environmental Policy, the management team do focus on the impact of operations. The company's energy efficiency measures include, but are not limited to, LED lighting; occupancy sensor lighting in toilets; switching off lights overnight; transport driver training to improve fuel economy; route optimisation for haulage; and an increase to the electric vehicle fleet.

SECR REPORTING

The company is required to report under the Streamlined Energy and Carbon Reporting (SECR) framework under the Companies Act 2006 (Strategic and Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. The SECR reporting year is the same as the Group financial year 1 July 2024 to 30 June 2025.

In accordance with the guidance, the company is required to report the UK energy usage and associated Greenhouse Gas (CHG) emissions that relate to:

- Activities for which the company is responsible involving the combustion of gas, or consumption of fuel for the purpose of transport; and the purchase of electricity by the company for its own use, including the purpose of transport.

2024/25 Consumption (kWh)

2024/25 Emissions (tCO2e)

Electricity used

295,472

61.16

Gas used

35,835

7.27

Transport fuels

6,284,410

1,564.82

Total

6,615,717

1,633.25

Intensity Metric

2024/25

tCO2e per £m turnover

12.36

SECTION 172(1) STATEMENT

The directors of Thomas Bell & Sons Limited, in accordance with their duties under Section 172(1) of the Companies Act 2006, have acted in a manner they consider, in good faith, to promote the success of the company for the benefit of its members as a whole. In doing so, the directors have had regard to the following key factors:

- Long-Term Decision Making: The board has taken into account the long-term sustainability of the business, investing in future growth opportunities while maintaining financial stability to deliver lasting value to our shareholders.

- Employees: The company remains committed to providing a positive and safe working environment, valuing the contributions of our employees, and ensuring their ongoing professional development.

- Customers and Suppliers: We continue to foster strong relationships with our customers and suppliers, focusing on high standards of service and quality throughout our supply chain.

- Community and Environment: The company remains committed to supporting the communities in which we operate and minimizing our environmental footprint through responsible and sustainable business practices.

- Shareholders: We maintain clear and open communication with our shareholders, ensuring their interests are aligned with the long-term objectives of the company.

By considering these factors, the directors believe they have upheld their duty to promote the success of Thomas Bell & Sons Limited.

ON BEHALF OF THE BOARD:

Mr A M Major - Director

11 November 2025

The directors present their report with the financial statements of the company for the year ended 30 June 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of fertiliser importers and manufacturers. The company is one of the largest privately owned independent fertiliser importers in the UK and also operates a blending plant at Immingham and a country store from its registered address.

DIVIDENDS

Interim dividend were paid as follows:

30 June 2025 - £700,000

The total distribution of dividends for the year ended 30 June 2025 will be £700,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2024 to the date of this report.

Mr A M Major

Mr M P H Dawson

Miss K L Major

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

ON BEHALF OF THE BOARD:

Mr A M Major - Director

11 November 2025

Opinion

We have audited the financial statements of Thomas Bell & Sons Limited (the 'company') for the year ended 30 June 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 30 June 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 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 course of 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 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.

Through discussion with management and those charged with governance we gained an understanding of the legal and regulatory framework applicable to the entity and the industry in which it operates and considered the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. During the engagement team briefing we communicated the identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, FRS102 (UK GAAP), the Companies Act 2006, tax legislations and industry specific legislation, such as the Fertilisers Regulations 1991. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We evaluated management's incentives and opportunities for fraudulent manipulations of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates.

Audit procedures undertaken in response to the potential risk relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of:

- enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;

- enquiries with the same concerning any actual or potential litigation claims;

- reviewed risk of management override;

- review of journal entries posted with unusual account combinations or posted by senior management;

- reviewing accounting estimates for bias;

- performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud;

- agreeing financial statement disclosures to underlying supporting documentation.

The likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Mark Stothard BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

8th Floor, Becket House

36 Old Jewry

London

EC2R 8DD

11 November 2025

TURNOVER

132,126,806

125,460,949

Cost of sales

123,486,104

116,982,331

GROSS PROFIT

8,640,702

8,478,618

Administrative expenses

6,452,664

4,452,745

2,188,038

4,025,873

Other operating income

(1,503

)

23,599

OPERATING PROFIT

4

2,186,535

4,049,472

Interest receivable and similar income

265,641

313,383

2,452,176

4,362,855

Interest payable and similar expenses

5

215,477

137,717

PROFIT BEFORE TAXATION

2,236,699

4,225,138

Tax on profit

6

685,583

1,120,400

PROFIT FOR THE FINANCIAL YEAR

1,551,116

3,104,738

PROFIT FOR THE YEAR

1,551,116

3,104,738

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,551,116

3,104,738

FIXED ASSETS

Intangible assets

8

1,388,307

1,740,451

Tangible assets

9

4,030,237

3,489,746

Investments

10

115

115

Investment property

11

500,099

485,000

5,918,758

5,715,312

CURRENT ASSETS

Stocks

12

18,854,849

15,363,037

Debtors

13

18,933,260

17,245,380

Cash at bank and in hand

11,757,461

16,009,509

49,545,570

48,617,926

CREDITORS

Amounts falling due within one year

14

19,950,363

19,716,422

NET CURRENT ASSETS

29,595,207

28,901,504

TOTAL ASSETS LESS CURRENT LIABILITIES

35,513,965

34,616,816

CREDITORS

Amounts falling due after more than one year

15

(338,424

)

(405,844

)

PROVISIONS FOR LIABILITIES

19

(661,566

)

(548,113

)

NET ASSETS

34,513,975

33,662,859

CAPITAL AND RESERVES

Called up share capital

20

8,642

8,642

Retained earnings

21

34,505,333

33,654,217

SHAREHOLDERS' FUNDS

34,513,975

33,662,859

The financial statements were approved by the Board of Directors and authorised for issue on 11 November 2025 and were signed on its behalf by:

Mr A M Major - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2023

8,642

31,149,479

31,158,121

Changes in equity

Dividends

-

(600,000

)

(600,000

)

Total comprehensive income

-

3,104,738

3,104,738

Balance at 30 June 2024

8,642

33,654,217

33,662,859

Changes in equity

Dividends

-

(700,000

)

(700,000

)

Total comprehensive income

-

1,551,116

1,551,116

Balance at 30 June 2025

8,642

34,505,333

34,513,975

Cash flows from operating activities

Cash generated from operations

1

3,795,006

5,630,061

Interest paid

(174,724

)

(118,219

)

Interest element of hire purchase payments paid

(40,753

)

(19,498

)

Tax paid

(894,504

)

(420

)

Net cash from operating activities

2,685,025

5,491,924

Cash flows from investing activities

Purchase of intangible fixed assets

-

(1,750,000

)

Purchase of tangible fixed assets

(1,796,215

)

(1,216,025

)

Purchase of investment property

(15,099

)

-

Sale of tangible fixed assets

207,587

70,126

Interest received

265,641

313,383

Net cash from investing activities

(1,338,086

)

(2,582,516

)

Cash flows from financing activities

Capital repayments in year

(346,025

)

(191,973

)

Amount introduced by directors

31

-

Amount withdrawn by directors

(322

)

(523

)

Equity dividends paid

(700,000

)

(600,000

)

Net cash from financing activities

(1,046,316

)

(792,496

)

Increase in cash and cash equivalents

300,623

2,116,912

Cash and cash equivalents at beginning of year

2

11,456,838

9,339,926

Cash and cash equivalents at end of year

2

11,757,461

11,456,838

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

30.6.25

30.6.24

£

£

Profit before taxation

2,236,699

4,225,138

Depreciation charges

1,903,281

999,881

Profit on disposal of fixed assets

(184,792

)

(70,120

)

Finance costs

215,477

137,717

Finance income

(265,641

)

(313,383

)

3,905,024

4,979,233

(Increase)/decrease in stocks

(3,491,812

)

14,874

(Increase)/decrease in trade and other debtors

(1,687,879

)

215,071

Increase in trade and other creditors

5,069,673

420,883

Cash generated from operations

3,795,006

5,630,061

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 June 2025

30.6.25

1.7.24

£

£

Cash and cash equivalents

11,757,461

16,009,509

Bank overdrafts

-

(4,552,671

)

11,757,461

11,456,838

Year ended 30 June 2024

30.6.24

1.7.23

£

£

Cash and cash equivalents

16,009,509

9,339,926

Bank overdrafts

(4,552,671

)

-

11,456,838

9,339,926

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.7.24

Cash flow

changes

At 30.6.25

£

£

£

£

Net cash

Cash at bank

and in hand

16,009,509

(4,252,048

)

11,757,461

Bank overdrafts

(4,552,671

)

4,552,671

-

11,456,838

300,623

11,757,461

Debt

Finance leases

(697,104

)

346,025

(318,209

)

(669,288

)

(697,104

)

346,025

(318,209

)

(669,288

)

Total

10,759,734

646,648

(318,209

)

11,088,173

1.	STATUTORY INFORMATION

Thomas Bell & Sons 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.

Significant judgements and estimates

In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historic experience and various other factors that are believed to be reasonable under the circumstances the results of which form the basis of making the judgements about carrying values of assets and liabilities. Actual results may differ from these estimates.

The more significant judgements, estimates and assumptions are:

- Useful lives of property, plant and equipment

At each reporting date, the company reviews the estimated useful lives of property, plant and equipment. There were no material adjustments to the useful lives of assets as a result of this review.

- Trade debtors

At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount is reduced to its recoverable amount. The impairment loss is recognised immediately in the income statement.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

For sales of goods from the country store, turnover is recognised at the point of sale, as is the case for internet and telephone sales.

For other sales, including fertiliser and grain, turnover is recognised when the goods are collected by or delivered to the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Other intangibles are being amortised evenly over their estimated useful life of twenty five years.

Tangible fixed assets

Tangible fixed assets under the cost model 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 management.

The company adds to the carrying amount of an item of fixed assets the costs of replacing part of such an item when that cost is incurred, if the replacement item is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the income statement during the year in which they are incurred.

Depreciation is provided to write off the cost, less their estimated residual values, of all tangible fixed assets, except for freehold land, evenly over their expected useful lives. It is calculated at the following rates:

Freehold property

- 2% on cost

Plant and machinery

- at rates varying between 15% and 50% pa

Fixtures and fittings

- at rates varying between 15% and 50% pa

Motor vehicles

- at rates varying between 15% and 50% pa

Office equipment

- at rates varying between 15% and 50% pa

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the income statement.

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 stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. The valuation of fertiliser stocks is based on the original cost plus other direct costs incurred on a first in first out basis.

At each reporting date, finished goods and goods for resale are assessed for impairment. If goods for resale are impaired, the carrying amounts are reduced to selling price less costs to complete and sell. The impairment loss is recognised immediately to the income statement.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised at the end of each reporting period for objective evidence of impairment. If the objective evidence of impairment is found, an impairment loss is recognised in the income statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

The company's functional and presentational currency is GBP.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in the income statement within 'other operating income'.

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.

Impairment of fixed assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Going concern

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

3.	EMPLOYEES AND DIRECTORS

30.6.25

30.6.24

£

£

Wages and salaries

3,242,943

2,748,926

Social security costs

356,302

233,783

Other pension costs

104,924

43,457

3,704,169

3,026,166