REGISTERED NUMBER: 01974684 (England and Wales)

Recol Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30th April 2025

Page

Company information

1

Strategic report

2

to

3

Report of the directors

4

to

5

Report of the independent auditors

6

to

9

Statement of comprehensive income

10

Statement of financial position

11

Statement of changes in equity

12

Statement of cash flows

13

Notes to the financial statements

14

to

26

Directors:

R E C Guntrip

B Guntrip

N Lovatt

Registered office:

Lodge Way

Lodge Farm Industrial Estate

Duston

Northampton

NN5 7US

Registered number:

01974684 (England and Wales)

Auditors:

Hawsons Chartered Accountants

Statutory Auditors

Jubilee House

32 Duncan Close

Moulton Park

Northampton

NN3 6WL

The directors present their strategic report for the year ended 30th April 2025.

Review of business

The results of the company show a profit on ordinary activities before tax of £298,672 (2024: 615,309). The shareholders' funds of the company total £3,606,353 (2024: £3,461,604).

Turnover has decreased by 12.79% from £11,200,384 to £9,768,126. Gross profit is £3,567,258 compared with £4,074,310 in 2024, the gross profit margin has increased from 36.38% to 36.52% this year.

We have continued with our planned investment into capital equipment and net assets have increased from £3,461,604 to £3,606,353.

The decrease in revenue between 2024 and 2025 primarily reflects a decline in sales across several industry sectors.

Gross profit margins remained stable in 2025 compared to 2024, supported by ongoing initiatives to enhance automation and overall operational efficiency

Throughout 2024 we noticed that many of our larger blue-chip clients had looked at stock reduction programs as they were more confident with JIT supply following the global issues after the pandemic, this resulted in lower machine / item sales.

Future outlook for the company

We remain focused on optimizing efficiencies across the business through strategic planning and further integration of our automated processes. Staff retention remains a cornerstone of our success, and we will continue to invest in our people through dedicated training and incentive programmes.

We continue to see an increasing number of products being on shored by both new and existing clients, further supported by the development of new products within their portfolios

Looking forward, we are confident that our continued progress will drive stronger profitability. With a solid platform in place, we are prepared not only to meet future challenges but to turn them into opportunities for further growth and success

Principal risks and uncertainties

The board has a proactive approach to risk management with the aim of protecting its employees and customers and safeguarding the interests of company and its shareholders. The company has specific policies to ensure that risk is properly evaluated and managed at appropriate levels in business.

Liquidity risk

The company does not face any significant liquidity exposure. Cash is monitored and managed daily to ensure adequate resources are always available to meet operational needs.

Financial key performance indicators

The company made profit before taxation of £298,672 (2024: £615,309).

The company has net current assets of £1,445,850 (2024: £1,396,012) and net assets of £3,606,353 (2024: £3,461,604).

The directors have taken advantage of the exemption for medium sized companies not to disclose non financial key performance indicators under S.417 (7) of the Companies Act 2006.

On behalf of the board:

N Lovatt - Director

30th October 2025

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

Principal activity

The principal activity of the company in the year under review was that of metal fabrication and engineering.

Dividends

Interim dividends of £74,000 (2024 - £215,000) have been paid in the year.

Directors

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

R E C Guntrip

B Guntrip

N Lovatt

Post balance sheet events

The directors have not identified any significant post balance sheet events.

Matters disclosed in the strategic report

The directors have omitted certain items, including an indication of likely future developments, from the Directors' Report because it is shown in the Strategic Report instead under S.414C (11) of the Companies Act 2006.

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;

-	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.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

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, Hawsons Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

N Lovatt - Director

30th October 2025

Opinion

We have audited the financial statements of Recol Limited (the 'company') for the year ended 30th April 2025 which comprise the Statement of comprehensive income, Statement of financial position, Statement of changes in equity, Statement of cash flows 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 30th April 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 other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

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 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006, Health and Safety regulations, the ISO 9001 and ISO 14001 accreditations and Employment Law. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company's result for the period, and management bias in key accounting estimates. In addition to this, we have also identified the following principal risk areas:

- Revenue recognition - there are two components to this risk, being revenue completeness and revenue cut-off;

- Valuation of work in progress - this is based on an accounting estimate that is deemed to be at risk of management bias;

- Inventories - due to the high value of inventories in the financial statements, the risk of material misstatement via existence and valuation is considered high.

Audit procedures performed by the engagement team included:

- Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;

- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular their estimate of the value of work in progress;

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations;

- Testing and verifying the existence of a sample of high value stock lines;

- Checking a sample of high value product lines to ensure that they have been recorded at the lower of cost compared to the net realisable value. We have also considered the commercial justification for the omission of an inventory provision;

- Performing a sales cut-off test on a sample of sales invoiced around the year-end date. We also reviewed after date sales credit notes to ensure that these were being matched in the correct accounting period.

There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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. 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.

Will Amos (Senior Statutory Auditor)

for and on behalf of Hawsons Chartered Accountants

Statutory Auditors

Jubilee House

32 Duncan Close

Moulton Park

Northampton

NN3 6WL

12th November 2025

Turnover

9,768,126

11,200,384

Cost of sales

6,200,868

7,126,074

Gross profit

3,567,258

4,074,310

Administrative expenses

3,290,292

3,582,918

276,966

491,392

Other operating income

3

121,041

180,312

Operating profit

5

398,007

671,704

Interest receivable and similar income

-

132

398,007

671,836

Interest payable and similar expenses

6

99,335

56,527

Profit before taxation

298,672

615,309

Tax on profit

7

79,923

69,276

Profit for the financial year

218,749

546,033

Other comprehensive income

-

-

Total comprehensive income for the year

218,749

546,033

Fixed assets

Tangible assets

9

4,401,438

4,406,445

Current assets

Stocks

10

155,910

202,098

Debtors

11

3,494,324

2,939,057

Cash at bank

12

376,835

547,744

4,027,069

3,688,899

Creditors

Amounts falling due within one year

13

2,581,219

2,292,887

Net current assets

1,445,850

1,396,012

Total assets less current liabilities

5,847,288

5,802,457

Creditors

Amounts falling due after more than one year

14

(1,274,473

)

(1,393,191

)

Provisions for liabilities

17

(966,462

)

(947,662

)

Net assets

3,606,353

3,461,604

Capital and reserves

Called up share capital

18

1,333

1,333

Share premium

9,962

9,962

Retained earnings

3,595,058

3,450,309

Shareholders' funds

3,606,353

3,461,604

The financial statements were approved by the Board of Directors and authorised for issue on 30th October 2025 and were signed on its behalf by:

N Lovatt - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st May 2023

1,333

3,119,276

9,962

3,130,571

Changes in equity

Dividends

-

(215,000

)

-

(215,000

)

Total comprehensive income

-

546,033

-

546,033

Balance at 30th April 2024

1,333

3,450,309

9,962

3,461,604

Changes in equity

Dividends

-

(74,000

)

-

(74,000

)

Total comprehensive income

-

218,749

-

218,749

Balance at 30th April 2025

1,333

3,595,058

9,962

3,606,353

Cash flows from operating activities

Cash generated from operations

21

884,983

158,271

Taxation refund

-

62,642

Net cash from operating activities

884,983

220,913

Cash flows from investing activities

Purchase of tangible fixed assets

(107,991

)

(81,611

)

Sale of tangible fixed assets

8,450

-

Interest received

-

132

Net cash from investing activities

(99,541

)

(81,479

)

Cash flows from financing activities

Hire purchase repayments

(886,003

)

(389,419

)

Hire purchase interest

(91,919

)

(55,516

)

Additional borrowing

102,987

-

Interest paid

(7,416

)

(1,011

)

Equity dividends paid

(74,000

)

(215,000

)

Net cash from financing activities

(956,351

)

(660,946

)

Decrease in cash and cash equivalents

(170,909

)

(521,512

)

Cash and cash equivalents at beginning of year

22

547,744

1,069,256

Cash and cash equivalents at end of year

22

376,835

547,744

1.	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 except for certain items that have been recorded at fair value.

Going Concern

The financial statements have been prepared on a going concern basis. The directors have considered relevant information including the annual budget forecast, future cash flows and the impact of subsequent events in making that assessment. The Directors have performed robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios and current economic presurres. This analysis also considers the effectiveness of available measures to assist in mitigating any impacts.

Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual reports and accounts.

Revenue recognition

The company recognises revenue to the extent that it obtains the right to consideration in exchange for its performance under contract. The right to consideration arises when some, but not necessarily all, of the contractual obligations have been fulfilled.

Work in progress

Where the substance of a contract is that the contractual obligations are performed gradually over time, revenue is recognised as contract activity progresses to reflect the partial performance of the company's contractual obligations.

The amount of revenue included reflects the accrual of the right to consideration as contract activity progresses by reference to the value of the work performed.

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 leasehold property

-

5% on reducing balance

Plant and machinery

-

33% on cost, 20% on reducing balance and 15% on reducing balance

Motor vehicles

-

25% on reducing balance

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

Government grants

A grant is recognised in income when the grant proceeds are received (or receivable) provided that the terms of the grant do not impose future performance-related conditions.

Stocks

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

Cost is calculated using the first-in, first-out method and includes purchase, transport and handling costs in bringing stocks to their present location.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, 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 payables or receivables, are measured, initially and subsequently, at the undiscounted amount of 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 a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at 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 are assessed at the end of each reporting period for objective evidence of impairment. If 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.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet 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.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

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

Leasing and hire purchase contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligations outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account on a straight line basis.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account for the year in which they are payable to the scheme. Differences between the contributions payable and the contributions actually paid in the year are shown as either accruals or prepayments at the year end.

Interest income

Interest income is recognised in the Income Statement using the effective method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

2.	Critical accounting judgements and key sources of estimation uncertainty

In application of the company's accounting policies, 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 and 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.

Work in progress

In determining the value of work in progress, management form an estimate of the associated contract's stage of completion.

Fixed assets

In determining the depreciation rate, management's best estimate of the expected useful economic life of each asset class has been used in determining the rate applied.

3.	Other operating income

2025

2024

£

£

Rents received

112,290

172,290

Sundry receipts

8,751

8,022

121,041

180,312

4.	Employees and directors

2025

2024

£

£

Wages and salaries

3,389,417

3,450,886

Social security costs

388,425

388,002

Other pension costs

121,583

122,186

3,899,425

3,961,074

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

2025

2024

Management and administration

20

20

Production

94

99

114

119

2025

2024

£

£

Directors' remuneration

222,265

248,421

Directors' pension contributions to money purchase schemes

35,320

34,653

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

Money purchase schemes

1

2

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

125,144

140,772

Pension contributions to money purchase schemes

33,699

30,644

Only company directors are considered to be key management personnel. Employers National Insurance for key management personnel amounted to £28,464 (2024 - £31,341).

5.	Operating profit

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

2025

2024

£

£

Depreciation - owned assets

178,808

182,117

Depreciation - assets on hire purchase contracts

394,902

255,081

Profit on disposal of fixed assets

(5,227

)

-

Auditors' remuneration

10,945

10,000

Operating leases

546,804

529,513

6.

Interest payable and similar expenses

2025

2024

£

£

Bank interest payable

7,416

1,011

Hire purchase interest

91,919

55,516

99,335

56,527

7.

Taxation

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

62,542

1,419

Adjustments to tax charge in respect of previous periods

(1,419

)

(81,711

)

Total current tax

61,123

(80,292

)

Deferred tax

18,800

149,568

Tax on profit

79,923

69,276

UK corporation tax has been charged at 25% (2024 - 25%).

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

£

£

Profit before tax

298,672

615,309

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

74,668

153,827

Effects of:

Expenses not deductible for tax purposes

14,462

8,458

Adjustments to tax charge in respect of previous periods

(1,419

)

(81,711

)

Effect of capital allowances and depreciation

(17,044

)

(145,264

)

Effect of tax losses

(9,544

)

(15,602

)

Deferred tax charge

18,800

149,568

rate change part way through

Total tax charge

79,923

69,276

8.

Dividends

2025

2024

£

£

Ordinary A shares of 1 each

Interim

27,000

190,000

Ordinary B shares of 1 each

Interim

47,000

25,000

74,000

215,000