REGISTERED NUMBER: 01967635 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 28 February 2025

for

Cheshire Demolition & Excavation

Contractors Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr F S Swindells

Mr M F Swindells

Mr A Lowe

REGISTERED OFFICE:

72c Moss Lane

Macclesfield

Cheshire

SK11 7TT

REGISTERED NUMBER:

01967635 (England and Wales)

AUDITORS:

Thompson Wright (Audit) Limited

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

The directors present their strategic report for the year ended 28 February 2025.

REVIEW OF BUSINESS

The company delivered a solid performance during the year despite challenging inflationary pressures, and continued increases in waste-management legislation. Turnover for the year was £10.64m (2024: £11.79m), reflecting a 10% reduction, largely attributable to lower demolition and construction activity. Nevertheless, Gross profit margins remained stable, supported by disciplined pricing and operational efficiencies, and the company remained profitable, reporting a profit before tax of £724,466 (2024: £1,178,573).

Working capital significantly strengthened during the year, with net current assets increasing to £2.84m (2024: net current liabilities £217k). The company also continues to invest in plant and machinery to maintain efficiency and support long-term competitiveness.

During the current year to date, we are pleased to see that our income streams are on course to surpass prior year. In particular, we were delighted to complete some of our larger construction projects, and see these residential properties on the market, and we have now turned our attention to our other ongoing project, which is likely complete during 2026, but we are hopeful to generate a healthy profit and see a satisfying end result.

We have also launched an online shop, to widen our customer reach, and drive material sales further.

Finally, management are pleased to note that the business continues to rank as one of the top 50 demolition companies out of 4,164 operators across the UK, demonstrating strong market presence and operational capability.

Key performance indicators

2025

2024

Profit before tax

724,466

1,178,573

Gross profit margin

43%

41%

Debtor days

26

47

Business strategy, objectives and future developments

The business strategy is to grow by serving the industry with complementary services, provision of recycling management, haulage, demolition and construction.

The company's objective is to maintain steady performance and growth with the lowest level of leverage. It aims to increase shareholder funds and meet its responsibilities to other stakeholders, with priorities given to environmental matters. The company continues to invest in its infrastructure and workforce, with continual training, upskilling, and complying with current Health & Safety legislation. We aim to provide progression opportunities and fulfilling careers for all employees.

PRINCIPAL RISKS AND UNCERTAINTIES

The company uses its working capital instruments which include cash and various elements, such as trade debtors and creditors which arise its operations. The main risks from those financial instruments are market risk, cash flow, interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.

Legislative risk - The industry is controlled by legislation increases year on year that dictate disposal prices at third party sites. The company's strategy is to divert material from landfill, however, alternative off-takers align their rates with increases set by the government. These policies have remained unchanged from previous years.

Market risk encompasses three types of risk, being currency risk, fair value interest rate risk and price risk. The company conducts all transactions in sterling and therefore has no material exposure to currency risk.

Other risks are summarised below:

Price risk in financial instruments may exist where their value varies in accordance with currency, interest rate or other market movements. None of the company's financial instruments are subject to any market movements affecting price risk, therefore exposure to price risk is not consider material.

Commodity risk - The business model relies heavily on being competitive in all environments including volatile markets. Thus, we rely on the recovery of commodity material for resale to boost margins. Uncertainty in the market can affect rebates paid, having consequential effects on our pricing model.

Liquidity risk - The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable obligations and to invest cash securely and profitably.

Interest rate risk - The interest amounts in the company's reports, including directors' loans invested into the company, is determined by reference to base rate and therefore interest rate risk is not considered material to those financial instruments' fair value.

Credit risk - To manage credit risk, the directors set limits for customers based on a combination of payment history, historic accounts, and third-party credit references. Credit limits are reviewed on a regular basis.

ON BEHALF OF THE BOARD:

Mr M F Swindells - Director

28 November 2025

The directors present their report with the financial statements of the company for the year ended 28 February 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of retail, wholesale, processing and reclamation of scrap materials, demolition work, building contractors and the operation of a waste transfer station.

DIVIDENDS

No dividends will be distributed for the year ended 28 February 2025.

FUTURE DEVELOPMENTS

The future developments of the company have been outlined in the strategic report on Page 2.

DIRECTORS

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

Mr F S Swindells

Mr M F Swindells

Mr A Lowe

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties of the company have been outlined in the Strategic Report on page 3.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Thompson Wright (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M F Swindells - Director

28 November 2025

Opinion

We have audited the financial statements of Cheshire Demolition & Excavation Contractors Limited (the 'company') for the year ended 28 February 2025 which comprise the Profit and Loss Account, Other 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 28 February 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 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 as follows:

- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the demolition industry;

- 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, data protection, anti-bribery, employment, environmental, other industry specific accreditations 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 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.

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.

Jeremy Bostock BA(Hons) BFP FCA (Senior Statutory Auditor)

for and on behalf of Thompson Wright (Audit) Limited

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

28 November 2025

TURNOVER

3

10,641,656

11,787,743

Cost of sales

6,069,032

6,954,929

GROSS PROFIT

4,572,624

4,832,814

Administrative expenses

3,635,356

3,665,761

937,268

1,167,053

Other operating income

145,168

145,098

OPERATING PROFIT

5

1,082,436

1,312,151

Interest payable and similar expenses

6

357,970

133,578

PROFIT BEFORE TAXATION

724,466

1,178,573

Tax on profit

7

(173,167

)

202,930

PROFIT FOR THE FINANCIAL YEAR

897,633

975,643

FIXED ASSETS

Tangible assets

8

3,256,452

3,531,733

Investment property

9

261,900

261,900

3,518,352

3,793,633

CURRENT ASSETS

Stocks

10

277,109

346,968

Debtors

11

5,069,473

3,688,707

Cash at bank and in hand

112,961

131,691

5,459,543

4,167,366

CREDITORS

Amounts falling due within one year

12

2,621,725

4,384,281

NET CURRENT ASSETS/(LIABILITIES)

2,837,818

(216,915

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,356,170

3,576,718

CREDITORS

Amounts falling due after more than one year

13

(2,469,017

)

(452,787

)

PROVISIONS FOR LIABILITIES

17

(686,907

)

(821,318

)

NET ASSETS

3,200,246

2,302,613

CAPITAL AND RESERVES

Called up share capital

18

3,000

3,000

Retained earnings

19

3,197,246

2,299,613

SHAREHOLDERS' FUNDS

3,200,246

2,302,613

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

Mr M F Swindells - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

3,000

1,323,970

1,326,970

Changes in equity

Total comprehensive income

-

975,643

975,643

Balance at 29 February 2024

3,000

2,299,613

2,302,613

Changes in equity

Total comprehensive income

-

897,633

897,633

Balance at 28 February 2025

3,000

3,197,246

3,200,246

1.	STATUTORY INFORMATION

Cheshire Demolition & Excavation Contractors 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.

Going concern

The company had net assets of £3,200,246 (2024: £2,302,613) at the year end and has continued to generate profits post year end. The directors believe that the company is well placed to manage the risks at these challenging times and therefore continue to adopt a going concern basis of accounting in preparing these financial statements.

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 33.7.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumption concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement

The realisable value of stock is calculated using long established and tested methodologies that take into account expected obsolescence and market dynamics.

The work in progress and finished goods included stock internally generated and which the directors apply deductions to in oder to assess its value excluding any profit element and allowing for future expected costs. This is applied consistently year on year and based on management's assessment of costs to complete and anticipated profit margins historically achieved.

In categorizing leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee, or the lessee, where the company is a lessor.

Revenue

Revenue represents the net invoiced sales of goods, demolition work, haulage services and skip hire excluding value added tax.

Material sales are recognised when the goods are delivered or collected by the customer, the customer has accepted them and all related receivables are reasonably assured.

Demolition work and haulage services are recognised as those services are provided to the customer, the customer has accepted them, and collection of the related receivables is anticipated. Consideration accrues as contract activity progresses by reference to the value of the work performed. Revenue is not recognised where the right to receive payment is contingent on events outside the control of the company.

Unbilled revenue is included in debtors as 'Amounts recoverable on contracts'.

Skip hire services are recognised upon the collection of the skip, being the completion of the services provided to the customer, the customer has accepted the services, and all related receivables are reasonably assured.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date.

The effects of any revision are recognised in the income statement when the change arises.

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 and work in progress

Inventories and work in progress are stated at the lower of cost and net realisable value. Cash receipts for work in progress contracts are deducted from the value of the work in progress or, to the extent that they exceed this value, are included within creditors.

Cost comprises direct materials on a first in, first out basis and direct labour, plus any attributable overheads based on a normal level of activity. Net realisable value is based on estimated selling price less attributable costs of disposal. Provision is made for all foreseeable losses and in the case of inventories, due allowance is made for obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

(i) Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost being the transaction price less any amounts settled and any impairment losses.

(ii) Impairment of financial assets

A provision for impairment of trade debtors is established when there is objective evidence that the

amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

(iii) Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

(iv) Classification of financial liabilities

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

(v) Basic financial liabilities

Basic financial liabilities, including trade and other creditors, that are classified as debt, are initially

recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

(vi) Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s contractual obligations are discharged, cancelled, or they expire.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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.

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:

2025

2024

£

£

Material sales

2,277,186

2,363,856

Skip hire

1,861,730

1,891,503

Haulage

1,038,525

928,429

Demolition and construction

4,221,895

5,279,542

Waste transfer

1,135,924

1,174,187

Miscellaneous

106,396

150,226

10,641,656

11,787,743

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,219,461

2,019,023

Social security costs

256,023

203,060

Other pension costs

67,798

41,209

2,543,282

2,263,292

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

2025

2024

Operational

63

60

2025

2024

£

£

Directors' remuneration

96,506

85,251

Directors' long term incentive schemes

3,213

1,818

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

Money purchase schemes

3

4

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

41,254

122,591

Depreciation - owned assets

356,702

322,193

Depreciation - assets on hire purchase contracts

213,449

269,238

Loss on disposal of fixed assets

431,520

108,893

Auditors' remuneration

17,250

15,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

106,040

34,117

Cost of Restructuring Debt

90,993

-

Other loan interest

20,277

-

Directors' current account

90,636

87,950

Hire purchase

50,024

11,511

357,970

133,578

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

-

5,192

Prior period tax adjustment

(38,756

)

-

Total current tax

(38,756

)

5,192

Deferred tax

(134,411

)

197,738

Tax on profit

(173,167

)

202,930

Reconciliation of total tax (credit)/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:

2025

2024

£

£

Profit before tax

724,466

1,178,573

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 19%)

181,117

223,929

Effects of:

Expenses not deductible for tax purposes

26,887

-

Income not taxable for tax purposes

(130,497

)

(76,049

)

Capital allowances in excess of depreciation

(234,300

)

(25,862

)

Utilisation of tax losses

-

79,747

Adjustments to tax charge in respect of previous periods

(38,756

)

-

Losses carried forward

22,382

-

Change in tax rate

-

1,165

Total tax (credit)/charge

(173,167

)

202,930

8.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 March 2024

49,994

4,859,404

1,901,305

54,451

6,865,154

Additions

-

1,200,302

1,135,487

7,278

2,343,067

Disposals

-

(2,539,041

)

(862,137

)

(7,153

)

(3,408,331

)

At 28 February 2025

49,994

3,520,665

2,174,655

54,576

5,799,890

DEPRECIATION

At 1 March 2024

3,868

2,323,403

962,238

43,912

3,333,421

Charge for year

1,440

315,744

244,861

8,106

570,151

Eliminated on disposal

-

(1,141,916

)

(211,065

)

(7,153

)

(1,360,134

)

At 28 February 2025

5,308

1,497,231

996,034

44,865

2,543,438

NET BOOK VALUE

At 28 February 2025

44,686

2,023,434

1,178,621

9,711

3,256,452

At 29 February 2024

46,126

2,536,001

939,067

10,539

3,531,733