REGISTERED NUMBER: 03418561 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

AIRCO REFRIGERATION AND AIRCONDITIONING

LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

N Fisher

C A Goodwin

N D Oxtoby

J Oxtoby

SECRETARY:

Mrs K Piercy

REGISTERED OFFICE:

Airco House

Goulton Street

Hull

HU3 4DL

REGISTERED NUMBER:

03418561 (England and Wales)

AUDITORS:

Wyatt Morris Golland Ltd

Statutory Auditors

Park House

200 Drake Street

Rochdale

Lancashire

OL16 1PJ

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

The Company has once again demonstrated strong, sustained growth year-on-year. Our core capabilities of consultancy, installation, maintenance, and repair of air conditioning, refrigeration, plumbing, heating, and renewable systems, all remain central to our business model. This year, we further diversified our portfolio by establishing an electrical division and expanding our mechanical and electrical design team, enabling us to deliver a fully integrated service offering across all project stages, from concept to completion.

To support this expansion, we acquired additional premises adjacent to our head office. This strategic investment has provided the space required for new departments to flourish, ensuring our operational capacity keeps pace with demand.

Our management team has consistently exceeded its targets, driving the Company's ambitious growth agenda.

Our footprint across South Yorkshire remains robust, which allowed funding to be allocated to fully refurbish the Sheffield office, transforming it into a flagship "Airco" environment. We continue to secure a growing number of high-value projects, both from established clients and new partnerships.

Opportunities for increased efficiency in process and automation have been identified due to limitations with current cloud-based solutions. Future investment strategies are currently under review.

A new branch in the southern region, launched as part of our long-term growth strategy, experienced early challenges in recruiting and retaining skilled personnel. Having resolved some early teething issues, the branch to able to operate efficiently and deliver the same high standards our clients expect. This expansion not only strengthens our regional presence but also provides access to new market opportunities and the potential to form new client relationships, reinforcing our national growth trajectory.

Government-driven initiatives and evolving building standards continue to influence client needs, particularly with increased demand for renewable energy solutions. These regulatory changes, coupled with corporate and public sector efforts to reduce carbon footprints, align well with our growing expertise in sustainable technologies. To support this demand, we have expanded our field-based workforce and increased our vehicle fleet accordingly.

We continue to secure nationwide agreements with major clients, which, while beneficial for long-term stability and workforce growth, require significant upfront investment and administrative oversight during implementation.

As part of our ongoing commitment to community engagement, we have maintained our partnership with a local charity focused on inclusive education for children of all ages and abilities. Through this collaboration, we have supported innovative learning programs, including physical activity and mental well-being initiatives, across East Yorkshire. This partnership reflects our values and reinforces our dedication to delivering a positive impact beyond our core business operations.

REVIEW OF BUSINESS

In 2024/25, our focus was on increasing awareness of our full-service offering within our existing client base. This initiative continues into 2025/26, supported by the addition of two new technical Business Development Managers to our sales team.

The finance team remains agile and proactive, maintaining strong control over debt management through automated reminders and paperless billing systems. Our approval processes have been refined to support growth in purchasing activity while ensuring robust governance and audit compliance. We maintain close relationships with our funding partners, regularly reviewing alignment with our strategic goals.

We continue our strategic targets for data centres, the NHS, business-critical sectors, and local authority contracts, with a particular emphasis on renewables-an area where we have consistently delivered strong results.

The expansion of our design team has enhanced our ability to deliver bespoke solutions, further broadening our service portfolio. Our client base remains diverse, with no single customer contributing more than 5.6% of overall revenue.

A significant share of our income comes from government contracts, providing reliable cash flow and expedited payments compared to the private sector.

The current larger clients, with significant spend include:

- Asanti Datacentres

- Siemens Energy Ltd.

- Sheffield University

- CBRE

- East Riding of Yorkshire Council

- Virgin Media Group

- Anchor Housing

- West Hertfordshire Hospitals Trust

- Police Authorities

Demand within our sector remains resilient, and our scale and geographic coverage position us to capitalise on future opportunities. Our order book remains strong, providing a secure platform for continued growth.

Investing in our people remains central to our strategy. We continue to offer fully funded NVQ training for office-based staff, alongside specialist leadership development for management. Our operational workforce also receives continuous training to maintain industry-leading standards. This commitment to skills development enhances both service delivery and operational performance, ensuring we remain competitive and adaptable.

Departmental performance is tracked against clear KPIs, with regular review cycles ensuring alignment with strategic objectives:

The weekly sales review meeting includes:

- reviews weekly, monthly, year to date and comparison on previous years

- Nature of enquiries and volume against previous year

- Strategic and tactical guidance from the Directors on significant opportunities

The quarterly Sales Review Covers:

- Sales revenue

- Margins

- Team development

- Growth in existing client base

- New Client growth

The annual Sales plan Reviews and sets targets for:

- Department minimum standards - sales, installs, PPM, TM44 (this list is not exhaustive)

- Margin expectation

- Strategic targets

Operational reviews are undertaken monthly to review

- Strategic client profitability

- Resource demands

The Finance Team monitor and target:

- Monthly invoice value

- Work in Progress

- Outstanding debt by period

- Debtor days

- Credit cards - spend and allocation

- Stock and equipment allocation

The Operational Hubs monitor and target:

- Response

- First time fix

- Warranty

- Work in progress

- A host of client specific KPI's

HR Monitor and report:

- Absence

- Training

- H&S

- Recruitment

- Any Disciplinary actions

PRINCIPAL RISKS AND UNCERTAINTIES

Market demand remains strong and is expected to continue in the medium to long term. However, we remain mindful of external risks, including regulatory changes, evolving power generation strategies, and broader geopolitical influences.

The renewables sector presents significant opportunities, driven by policy and client demand, but challenges in recruiting skilled personnel persist. While staffing pressures have stabilised somewhat this year, we continue to monitor labour market trends closely to ensure competitive pay and conditions.

ON BEHALF OF THE BOARD:

N Fisher - Director

18 August 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of installation and servicing of airconditioning and refrigeration systems.

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary A 1 shares

18.14

- 6 April 2024

Ordinary B 1 shares

787.76

- 6 April 2024

Ordinary C 1 shares

171769

- 6 April 2024

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £ 390,869 .

DIRECTORS

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

N Fisher

C A Goodwin

N D Oxtoby

J Oxtoby

CHARITABLE DONATIONS

The company made charitable donations of £21,087 during the year (2024 : £22,746).

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, Wyatt Morris Golland Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N Fisher - Director

18 August 2025

Opinion

We have audited the financial statements of Airco Refrigeration And Airconditioning 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:

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;

- 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 Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

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

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

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.

Christian Morris BSc ACA (Senior Statutory Auditor)

for and on behalf of Wyatt Morris Golland Ltd

Statutory Auditors

Park House

200 Drake Street

Rochdale

Lancashire

OL16 1PJ

18 August 2025

TURNOVER

3

24,226,237

22,027,523

Cost of sales

17,143,466

16,034,735

GROSS PROFIT

7,082,771

5,992,788

Administrative expenses

5,765,758

5,132,468

1,317,013

860,320

Other operating income

191,304

104,954

OPERATING PROFIT

5

1,508,317

965,274

Interest receivable and similar income

10,801

5,209

1,519,118

970,483

Interest payable and similar expenses

6

344,869

357,812

PROFIT BEFORE TAXATION

1,174,249

612,671

Tax on profit

7

302,453

107,952

PROFIT FOR THE FINANCIAL YEAR

871,796

504,719

PROFIT FOR THE YEAR

871,796

504,719

OTHER COMPREHENSIVE INCOME

Revaluation reserve

-

192,995

Fair value reserve

Revaluation depreciation transfer

-

(158,937

)

Retained earnings reserve transfer

Income tax relating to components of other comprehensive income

-

(48,249

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(14,191

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

871,796

490,528

FIXED ASSETS

Tangible assets

9

4,293,580

2,994,191

Investments

10

30

30

Investment property

11

543,910

543,910

4,837,520

3,538,131

CURRENT ASSETS

Stocks

12

1,863,747

1,892,765

Debtors

13

5,363,313

4,241,120

Cash at bank and in hand

967,843

1,119,661

8,194,903

7,253,546

CREDITORS

Amounts falling due within one year

14

7,010,987

6,209,809

NET CURRENT ASSETS

1,183,916

1,043,737

TOTAL ASSETS LESS CURRENT LIABILITIES

6,021,436

4,581,868

CREDITORS

Amounts falling due after more than one year

15

(2,604,403

)

(1,729,896

)

PROVISIONS FOR LIABILITIES

19

(626,701

)

(542,567

)

NET ASSETS

2,790,332

2,309,405

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

Revaluation reserve

21

666,008

684,769

Fair value reserve

21

32,925

32,925

Retained earnings

21

2,081,399

1,581,711

SHAREHOLDERS' FUNDS

2,790,332

2,309,405

The financial statements were approved by the Board of Directors and authorised for issue on 18 August 2025 and were signed on its behalf by:

N Fisher - Director

Called up

Fair

share

Retained

Revaluation

value

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 April 2023

10,000

1,462,768

558,784

32,925

2,064,477

Changes in equity

Dividends

-

(245,600

)

-

-

(245,600

)

Total comprehensive income

-

364,543

125,985

-

490,528

Balance at 31 March 2024

10,000

1,581,711

684,769

32,925

2,309,405

Changes in equity

Dividends

-

(390,869

)

-

-

(390,869

)

Total comprehensive income

-

890,557

(18,761

)

-

871,796

Balance at 31 March 2025

10,000

2,081,399

666,008

32,925

2,790,332

Cash flows from operating activities

Cash generated from operations

1

1,993,038

2,032,916

Interest paid

(200,285

)

(218,130

)

Interest element of hire purchase payments paid

(144,584

)

(139,682

)

Tax paid

(204,378

)

22,661

Net cash from operating activities

1,443,791

1,697,765

Cash flows from investing activities

Purchase of tangible fixed assets

(1,808,113

)

(257,513

)

Purchase of investment property

-

(139,510

)

Sale of tangible fixed assets

18,148

2,634

Interest received

10,801

5,209

Net cash from investing activities

(1,779,164

)

(389,180

)

Cash flows from financing activities

New loans in year

925,000

124,000

Loan repayments in year

(457,075

)

(369,695

)

Capital repayments in year

246,928

(198,812

)

Amount withdrawn by directors

(140,429

)

45,771

Equity dividends paid

(390,869

)

(245,600

)

Net cash from financing activities

183,555

(644,336

)

(Decrease)/increase in cash and cash equivalents

(151,818

)

664,249

Cash and cash equivalents at beginning of year

2

1,119,661

455,412

Cash and cash equivalents at end of year

2

967,843

1,119,661

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

2025

2024

£

£

Profit before taxation

1,174,249

612,671

Depreciation charges

464,749

464,394

Loss on disposal of fixed assets

25,829

1,807

Finance costs

344,869

357,812

Finance income

(10,801

)

(5,209

)

1,998,895

1,431,475

Decrease/(increase) in stocks

29,018

(115,466

)

(Increase)/decrease in trade and other debtors

(981,764

)

1,100,651

Increase/(decrease) in trade and other creditors

946,889

(383,744

)

Cash generated from operations

1,993,038

2,032,916

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

967,843

1,119,661

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,119,661

455,412

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

1,119,661

(151,818

)

967,843

1,119,661

(151,818

)

967,843

Debt

Finance leases

(1,263,844

)

(246,928

)

(1,510,772

)

Debts falling due within 1 year

(899,231

)

247,551

(651,680

)

Debts falling due after 1 year

(914,647

)

(715,478

)

(1,630,125

)

(3,077,722

)

(714,855

)

(3,792,577

)

Total

(1,958,061

)

(866,673

)

(2,824,734

)

1.	STATUTORY INFORMATION

Airco Refrigeration And Airconditioning 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Preparation of consolidated financial statements

The company havs taken advantage of Companies Act 2006 section 405, exempting the company from being required to prepare group accounts on the basis that no subsidiary undertaking needs to be included in the consolidation. Under Companies Act 2006 section 405, the companies dormant subsidiary undertakings are excluded from being consolidated on the grounds of materiality.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are as follows:

Stock valuation

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell.

The company's stock valuation is based on the experience and knowledge of management, and their in depth knowledge of the cost of their goods. They make suitable provision as necessary to provide for aging and refitted stock.

Depreciation

The depreciation policy has been set according to management's experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £464,747 (2024:£464,395) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on installation of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion costs incurred and costs to complete can be reliably estimated. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be reliably estimated, revenue is recognised only on the extent of the expenses recognised that it is probable will be recovered.

Rental income represents amounts receivable in respect of the rent of properties, net of VAT, and is recognised on an accrued straight line basis over the period of occupation.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business has been fully amortised in the current year.

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.

Plant and machinery

-

12.5% on cost and 25% and 50% straight line

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on reducing balance

Land and buildings held and used in the Company's own activities for production and supply of goods or for administrative purposes are stated in the statement of financial position at their revalued amounts. The revalued amounts equate to the fair value at the date of revaluation, less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amounts do not materially differ from using the fair value at the date of the statement of financial position.

Any revaluation increase or decrease on land and buildings is credited to the property revaluation reserve.

Depreciation on revalued buildings is charged to profit or loss so as to write off their value, less residual value, over their estimated useful life of 50 years, using the straight-line method.

Once a revalued property is sold or retired any attributable revaluation surplus that is remaining in the property revaluation reserve is transferred to retained earnings. An annual transfer is made from the revaluation reserve on account of the excess depreciation charge on revalued fixed assets.

Plant and equipment are stated at cost less accumulated depreciation. Depreciation on plant and equipment is charged to profit or loss so as to write off their value, over their estimated useful lives of between 2 and 8 years using both the straight-line method and the reducing balance method.

Assets held under finance leases are depreciated in the same manner as owned assets.

Investment property

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

Stocks

Stocks and work in progress 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 all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit and loss. Reversals of impairment losses are also recognised in profit and loss.

Financial instruments

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.