REGISTERED NUMBER: 04704499 (England and Wales)

AUTOPARTS & DIAGNOSTICS

LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

A Seal

T Seal

P Seal

SECRETARY:

T Seal

REGISTERED OFFICE:

Unit 2

Ashchurch Parkway

Tewkesbury

GL20 8TU

REGISTERED NUMBER:

04704499 (England and Wales)

AUDITORS:

Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The company acts as an independent motor factor, distributing vehicle spares to the automotive repair trade, its customers and other distributors of said parts. The company operates from twelve branches located in Gloucestershire, South Gloucestershire, Oxfordshire, Worcestershire, Warwickshire and the Forest of Dean. Right at the end of the year (Mar-25), a new branch in Evesham was opened. In addition, our Export business operates from Tewkesbury, Gloucestershire.

The company registered an increase in turnover of 8.0% (2024 - decrease of 4.4%), taking turnover to £24.8m. The £1.8m turnover increase was predominantly due to the full year impact from the opening of the Tewkesbury and Droitwich branches in the prior year and an enhanced performance of the Export business. The turnover performance of established branches was broadly in line with prior year or slightly improved, reflecting our efforts to provide friendly and positive customer service - a key value of this family-run business. There is no impact from the Evesham branch given how close to the year end it was opened.

Gross margin was maintained at 40.4% (2024: 40.0%) which reflects the efforts of maintaining gross margin across the entire business and the, largely, maintained split of the business between the UK branches and Export. The company continues to lever the benefits of being part of a large independent buying group. The Directors continue to be satisfied with the resilience of the UK part of the business and enter the coming year with a view to maintain the performance of long-established branches whilst enhancing that of those opened in recent years. It is anticipated that the Export business will continue to operate as currently.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors consider that the principal risks to the company are inflation, labour costs, foreign exchange, competition, technology shifts and availability of suitable properties. Further consideration is given to each of these below.

Inflation has continued to prove 'sticky', and we have experienced price increases across the board from all our suppliers. The company seeks to manage this risk by leveraging its position within an international buying group, switching suppliers when required and bulk buying to take advantage of discounts. Bulk purchases also enable the company to have the broadest range of products available for its customers in a timely fashion.

Labour costs have joined the list of items considered a risk to the business in the current year. As we enter the new financial year, we forecast significant increases in labour costs due to the National Insurance and National Living Wages changes introduced by the government. As a family run business with a focus on customer service, we wish to maintain our employment levels but that will undoubtedly put challenge on our bottom line. The Directors consider that maintaining our full complement of staff will benefit the business in the longer term but will be kept under review. We continue to offer fair packages and a positive, welcoming working environment to attract and retain staff.

With regards to foreign exchange risk, a significant percentage of the company's turnover remains in Euros. The company has adopted a foreign exchange policy that blends the use of basic forward contracts and SPOT deals, working closely with expert companies in the foreign exchange field, to ensure the company is appropriately covered to convert receipts from Euro customers into pounds to satisfy supplier payments in Sterling. Ensuring an element of certainty in our Euro to Sterling exchange rate enables the company to set prices to overseas customers which are competitive and consistent. Should the Euro to Sterling exchange rate weaken significantly, then the company has the flexibility in its policy to enable price lists to be amended to remain competitive overseas.

Competition in the market remains a challenge to the business. Large distributors and equity back groups continue to offer promotional campaigns as they seek to aggressively expand within the counties where we operate. Our standing within a large international buying group ensures we continue to be well positioned to meet these competition challenges as they arise. In addition, our focus on customer service, and in particular prompt and accurate deliveries, has seen the company fend off many of these challenges. The company has invested significantly in a range of customer incentive schemes which enable us to differentiate from our competitors and encourage loyalty and additional spend from our customers. By seeking to expand ourselves has also taken the challenge to our competitors directly and enhanced our standing with suppliers as we stock new branches. We also continue to broaden the stock ranges on offer to our customers via utilising our expansive Tewkesbury warehousing.

In recent years the business has identified the shift in technology throughout the motor industry as a result of the focus on Climate Change as a risk requiring attention. The Directors are closely following these developments and will be seeking to adapt the business to embrace the new technologies by offering different products to supplement our existing range. There has been some slowing in this drive to 'green' technology which reduces the immediacy of the risk. Whatever the timings and nature of the changes, our aim will always be to satisfy our mission statement 'if you've got the car…we've got the parts', regardless of what technology is within the cars.

The availability of suitable properties, either to purchase or lease, in areas identified for expansion or continued operation, continues to be a challenge. To mitigate this risk to our growth trajectory we are continually investigating new properties as they become available, in some cases before a spade has been put in the ground, using our industry networks and work with commercial estate agents when necessary.

A BALANCED AND COMPREHENSIVE ANALYSIS OF DEVELOPMENT AND PERFORMANCE

Financing of fixed asset purchases has been from cash generated by the business. Expenditure largely reflects the fitting out of the new Evesham branch, the move of the Head Office and Accounts department to modernised facilities at our Tewkesbury branch, and the continual investment in the fleet of delivery vehicles, replacing older models and ensuring sufficient vehicles are available at the new branch. The company has also invested in handheld devices for use by our drivers to modernise how we record deliveries, amongst other functional uses.

Overall debt collection continues to not be an issue with debtor days at 44.4 [43.4 in 2024]. However, the incidence of bad debt has risen and, with the focus on debt collection a priority, our Accounts Team has engaged in the more frequent use of debt collection solicitors. We anticipate this being the case in the forthcoming year. Administrative expenses have been well controlled but were higher due to the impact of the minimum wage changes and the flow through of costs associated with bringing the newly established branches up to a full compliment of staff as sales increase.

Cash generation from operating activities of £1.8m was slightly lower than that achieved in 2024 [£2.2m] due largely to the stocking out of the new Evesham Branch at the year end. The company continues to pride itself in paying all suppliers to terms and, wherever possible, take advantage of early settlement discounts.

Stock levels continue to be monitored to ensure optimum levels without tying cash up unnecessarily. Stock items are reviewed to ensure they reflect the demands of our customers therefore minimising obsolescence. The company has utilised space at the Tewkesbury site to hold group stock, thus ensuring that our UK branches can provide the best experience to our customers by always having as many parts available immediately within our business.

The company goes into the next year with a conservative gearing ratio [15.9%] and robust liquidity [Current Ratio 2.5]. It is therefore well placed to meet the challenges, whether anticipated or not, in the coming year.

ANALYSIS USING FINANCIAL KEY PERFORMANCE INDICATORS

Turnover - Increase of 8.0% in the year reflecting the full year performance of new branches and the improved Export business;

Gross Margin - Broadly static at 40.4% from 40.0% reflecting the consistent relative levels of UK business and Export within the company and focus on gross margins via established routes;

Gearing Ratio - The gearing ratio has increased from 12.8% to 15.9% reflecting the increase Directors' loan accounts partially offset to by a reduction in bank loan debt;

Current Ratio - The current ratio has remained strong;

Debtor Days - Debtor days of 44.4 reflect minimal debt issues and a keen focus on the monitoring of customers to ensure payment to agreed terms.

ON BEHALF OF THE BOARD:

T Seal - Director

27 October 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

DIVIDENDS

During the year dividends of £987,000 (2024: £1,338,977) were paid.

DIRECTORS

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

A Seal

T Seal

P Seal

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.

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, Prime, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

T Seal - Director

27 October 2025

Opinion

We have audited the financial statements of Autoparts & Diagnostics Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 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 five, 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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

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

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

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 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;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and other relevant parties.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Vivian Shadbolt BSc FCA (Senior Statutory Auditor)

for and on behalf of Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

11 November 2025

TURNOVER

3

24,763,207

22,919,990

Cost of sales

14,756,153

13,753,146

GROSS PROFIT

10,007,054

9,166,844

Administrative expenses

7,654,790

6,483,466

OPERATING PROFIT

5

2,352,264

2,683,378

Interest receivable and similar income

3,702

-

2,355,966

2,683,378

Interest payable and similar expenses

6

192,301

189,406

PROFIT BEFORE TAXATION

2,163,665

2,493,972

Tax on profit

7

559,030

652,302

PROFIT FOR THE FINANCIAL YEAR

1,604,635

1,841,670

PROFIT FOR THE YEAR

1,604,635

1,841,670

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,604,635

1,841,670

FIXED ASSETS

Tangible assets

9

4,488,484

3,989,332

CURRENT ASSETS

Stocks

10

5,675,646

4,605,458

Debtors

11

4,828,600

4,245,254

Cash at bank and in hand

3,779,500

4,152,908

14,283,746

13,003,620

CREDITORS

Amounts falling due within one year

12

5,637,898

4,551,138

NET CURRENT ASSETS

8,645,848

8,452,482

TOTAL ASSETS LESS CURRENT LIABILITIES

13,134,332

12,441,814

CREDITORS

Amounts falling due after more than one year

13

(327,583

)

(390,179

)

PROVISIONS FOR LIABILITIES

17

(402,384

)

(264,905

)

NET ASSETS

12,404,365

11,786,730

CAPITAL AND RESERVES

Called up share capital

18

1,000

1,000

Share premium

19

382,688

382,688

Retained earnings

19

12,020,677

11,403,042

SHAREHOLDERS' FUNDS

12,404,365

11,786,730

The financial statements were approved by the Board of Directors and authorised for issue on 27 October 2025 and were signed on its behalf by:

T Seal - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2023

1,000

10,900,349

382,688

11,284,037

Changes in equity

Dividends

-

(1,338,977

)

-

(1,338,977

)

Total comprehensive income

-

1,841,670

-

1,841,670

Balance at 31 March 2024

1,000

11,403,042

382,688

11,786,730

Changes in equity

Dividends

-

(987,000

)

-

(987,000

)

Total comprehensive income

-

1,604,635

-

1,604,635

Balance at 31 March 2025

1,000

12,020,677

382,688

12,404,365

Cash flows from operating activities

Cash generated from operations

1

1,781,088

2,213,745

Interest paid

(58,111

)

(71,216

)

Tax paid

(596,588

)

(681,600

)

Net cash from operating activities

1,126,389

1,460,929

Cash flows from investing activities

Purchase of tangible fixed assets

(855,615

)

(589,764

)

Sale of tangible fixed assets

13,487

47,733

Interest received

3,702

-

Net cash from investing activities

(838,426

)

(542,031

)

Cash flows from financing activities

Loan repayments in year

(60,507

)

(615,278

)

Amount withdrawn by directors

(575,864

)

(1,018,918

)

Equity dividends paid

(25,000

)

(69,569

)

Net cash from financing activities

(661,371

)

(1,703,765

)

Decrease in cash and cash equivalents

(373,408

)

(784,867

)

Cash and cash equivalents at beginning of year

2

4,152,908

4,937,775

Cash and cash equivalents at end of year

2

3,779,500

4,152,908

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

2025

2024

£

£

Profit before taxation

2,163,665

2,493,972

Depreciation charges

335,270

331,743

Loss/(profit) on disposal of fixed assets

7,705

(19,588

)

Finance costs

192,301

189,406

Finance income

(3,702

)

-

2,695,239

2,995,533

Increase in stocks

(1,070,188

)

(817,397

)

Increase in trade and other debtors

(583,346

)

(122,660

)

Increase in trade and other creditors

739,383

158,269

Cash generated from operations

1,781,088

2,213,745

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

3,779,500

4,152,908

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

4,152,908

4,937,775

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.4.24

Cash flow

changes

At 31.3.25

£

£

£

£

Net cash

Cash at bank

and in hand

4,152,908

(373,408

)

3,779,500

4,152,908

(373,408

)

3,779,500

Debt

Debts falling due

within 1 year

(1,114,408

)

635,342

(1,157,758

)

(1,636,824

)

Debts falling due

after 1 year

(390,179

)

1,029

61,567

(327,583

)

(1,504,587

)

636,371

(1,096,191

)

(1,964,407

)

Total

2,648,321

262,963

(1,096,191

)

1,815,093

1.	STATUTORY INFORMATION

Autoparts & Diagnostics 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 continues to be profitable and well resourced. The directors have a reasonable expectation that the company will continue in operational existence for at least 12 months from the date of approval of the financial statements. Therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

Rebates Receivable

Rebate arrangements with suppliers are a common feature of trading in the automotive industry and the Company has agreements with individual suppliers related to purchases of goods for resale.

Rebates are accounted for as a deduction from the cost of goods for resale and are recognised in the financial statements based on the amount that has been earned in respect of each individual supplier up to the balance sheet date. Rebates receivable are determined using established methodologies and are only recognised in the profit and loss where there is an agreement in place with an individual supplier, any related performance conditions have been met and the goods have been sold to a third-party customer.

Stock Provision

Stock comprises goods purchased for resale. Provisions are made against slow moving,obsolete and damaged stock for which the net realisable value is estimated to be less than cost. Determining the net realisable value of the wide range of produces held in many locations requires estimation to be applied to determine the likely saleability of products and the potential prices that can be achieved. In arriving at any provisions for net realisable value, the Directors take into account the age, condition, quality of the products in stock and recent sales trends. The actual realisable value of stock may differ from the estimated value on which the provision is based.

Turnover

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

Tangible fixed assets

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

Freehold property

-

2% on cost

Long leasehold

-

Straight line over 50 years

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on cost

No depreciation is charged on freehold land.

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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.

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.

Derivative financial instruments

Derivative financial instruments are initially measured at fair value on the date in which the contract is entered and are subsequently valued at fair value with any movement being included in the income statement.

3.

TURNOVER

Turnover by geographical market has not been disclosed as the directors are of the opinion that to do so would be seriously prejudicial to the company. The whole of the turnover is attributable to the one principal activity of the company.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,525,104

3,883,303

Social security costs

418,288

349,908

Other pension costs

193,375

169,601

5,136,767

4,402,812

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

2025

2024

Employees

157

144

2025

2024

£

£

Directors' remuneration

304,583

288,014

Directors' pension contributions to money purchase schemes

25,688

25,948

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

Money purchase schemes

2

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

146,536

138,219

Pension contributions to money purchase schemes

14,347

13,599

5.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

335,271

331,746

Loss/(profit) on disposal of fixed assets

7,705

(19,588

)

Auditors' remuneration

22,990

20,900

Foreign exchange differences

(43,899

)

(135,847

)

Operating lease expense

230,540

221,979