REGISTERED NUMBER: 11484950 (England and Wales)

DRIFTVIEW HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

8

Consolidated Statement of Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

to

28

DIRECTORS:

Mrs J M Woolway

J A Woolway

REGISTERED OFFICE:

c/o OPICO Limited

Cherry Holt Road

Bourne

Lincolnshire

PE10 9LA

REGISTERED NUMBER:

11484950 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Driftview Holdings had a reasonable year in 2024. As its main investment OPICO had a difficult year with a multitude of changes at the same time as a seeing the full impact of an unprecedented downturn in fortunes in the agricultural machinery market. In this respect property income from Cherry Holt Road and management charge income was stable and expenditure was similar to 2023.

Stocks Ag outperformed the market and benefited from a slight improvement in turnover due its different route to market and some government grant incentives for customers. Property income from Cromwell Road and management charge income was stable and expenditure was similar to 2023.

KEY PERFORMANCE INDICATORS

To gain an understanding of the development, performance and financial strength of the company, the management relies on the following key performance indicators:

2024

2023

Movement in turnover

(8,576,854)

662,978

Gross profit %

28.6%

24.2%

Shareholders' funds

10,167,820

9,448,146

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the group's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them.

The key risks affecting the company are set out below:

VIABILITY OF AGRICULTURE

The major risk that the Driftview investment companies face is from volatility in agricultural output prices and input costs combined with farming productivity, each of which affect the viability of agricultural businesses and their ability to invest in equipment. This can be impacted by local factors, such as weather in key growing and harvesting periods, and international factors on world markets. The group companies attempt to mitigate such risk by having a diverse range of equipment available and also through aftersales activities such as servicing and part sales. Driftview itself mitigates this risk through the commercial property income.

FOREIGN EXCHANGE RISK

The management of the business and the execution of the group's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them.

The key risks affecting the company are set out below:

VIABILITY OF AGRICULTURE

The major risk that the Driftview investment companies face is from volatility in agricultural output prices and input costs combined with farming productivity, each of which affect the viability of agricultural businesses and their ability to invest in equipment. This can be impacted by local factors, such as weather in key growing and harvesting periods, and international factors on world markets. The group companies attempt to mitigate such risk by having a diverse range of equipment available and also through aftersales activities such as servicing and part sales. Driftview itself mitigates this risk through the commercial property income.

FOREIGN EXCHANGE RISK

Driftview's largest investment company OPICO imports machinery from around the world and is exposed to fluctuations in the foreign exchange rate. A blend of forward contracts and various hedging strategies are utilised at OPICO to mitigate these risks.

WAR

The ongoing war between Russia and Ukraine is having knock on effects on commodity and energy prices but the majority of supply chains have now been reorganised so, until there is a fundamental change in the course of the war, OPICO and Stocks are not likely to feel the effect as significantly as in Mid-2022. However, as both countries are large agricultural commodity, energy and steel producers and also significant markets for agricultural machinery the ongoing situation will be watched carefully.

POLITICS & SUBSIDIES

The Political situation in the UK is also important to agriculture, the drive to net Zero, trade deals with other nations and lack of desire for home grown food security are all of concern to the agricultural industry so the direction of travel is being monitored closely by the management.

Government policy is also changing, diminishing BPS subsidy payments are being replaced by different types of funding to encourage farmers to utilise more environmentally friendly farming practices. The Farming and Equipment Technology Fund (FETF) and Sustainable Farming Incentive (SFI) have been introduced and will be expanded over the coming years. The management of Driftview and its investment companies have noted that these subsidies are distorting the market by changing the timings and types of machinery purchased.

WEATHER

The extremes of weather experienced in the UK over the past few years are a concern as weather directly affects crops and causes issues for OPICO and Stocks customers. Their management are now noticing Farmers taking longer term decisions about their businesses to mitigate some of the impact of the difficulties they have had over the past few years. Changes in farming strategy are also being monitored by management.

ON BEHALF OF THE BOARD:

J A Woolway - Director

17 June 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of agricultural machinery distributors.

DIVIDENDS

Dividends totalling £187,566 (2023: £178,100) were paid during the year.

DIRECTORS

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

Mrs J M Woolway

J A Woolway

DIRECTORS' INDEMNITY

A qualifying third party indemnity provision is in place for the directors of the company. This covers liability for the actions of directors and officers of the company and associated costs including legal costs.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J A Woolway - Director

17 June 2025

Opinion

We have audited the financial statements of Driftview Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the parent 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 group or the parent 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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as the valuation and impairment of stock, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the internal health and safety reporting documentation within the year for any evidence of ongoing claims, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

17 June 2025

TURNOVER

3

13,820,039

22,396,893

Cost of sales

9,861,995

16,974,904

GROSS PROFIT

3,958,044

5,421,989

Distribution costs

238,333

304,220

Administrative expenses

3,286,403

3,991,219

3,524,736

4,295,439

433,308

1,126,550

Other operating income

11,591

44,638

OPERATING PROFIT

5

444,899

1,171,188

Profit/loss on sale of investment

6

-

825,000

444,899

1,996,188

Interest receivable and similar income

1,074

221

445,973

1,996,409

Interest payable and similar expenses

7

79,105

138,929

PROFIT BEFORE TAXATION

366,868

1,857,480

Tax on profit

8

(115,372

)

229,323

PROFIT FOR THE FINANCIAL YEAR

482,240

1,628,157

OTHER COMPREHENSIVE INCOME

Revaluation

500,000

-

Income tax relating to other comprehensive income

(75,000

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

425,000

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

907,240

1,628,157

Profit attributable to:

Owners of the parent

482,240

1,628,157

Total comprehensive income attributable to:

Owners of the parent

907,240

1,628,157

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

4,418,182

3,862,582

Investments

13

-

-

4,418,182

3,862,582

CURRENT ASSETS

Stocks

14

5,214,425

5,633,433

Debtors

15

1,256,636

1,899,474

Cash at bank and in hand

1,165,326

667,677

7,636,387

8,200,584

CREDITORS

Amounts falling due within one year

16

1,264,700

1,709,721

NET CURRENT ASSETS

6,371,687

6,490,863

TOTAL ASSETS LESS CURRENT LIABILITIES

10,789,869

10,353,445

CREDITORS

Amounts falling due after more than one year

17

(294,622

)

(632,732

)

PROVISIONS FOR LIABILITIES

22

(327,427

)

(272,567

)

NET ASSETS

10,167,820

9,448,146

CAPITAL AND RESERVES

Called up share capital

23

1,000

1,000

Fair value reserve

24

1,012,693

587,693

Retained earnings

24

9,154,127

8,859,453

SHAREHOLDERS' FUNDS

10,167,820

9,448,146

The financial statements were approved by the Board of Directors and authorised for issue on 17 June 2025 and were signed on its behalf by:

J A Woolway - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

3,600,000

3,100,000

Investments

13

2,439,123

2,439,123

6,039,123

5,539,123

CURRENT ASSETS

Debtors

15

313,164

1,108,530

Cash at bank

748,280

155,277

1,061,444

1,263,807

CREDITORS

Amounts falling due within one year

16

197,023

253,505

NET CURRENT ASSETS

864,421

1,010,302

TOTAL ASSETS LESS CURRENT LIABILITIES

6,903,544

6,549,425

CREDITORS

Amounts falling due after more than one year

17

(294,622

)

(632,732

)

PROVISIONS FOR LIABILITIES

22

(185,656

)

(110,656

)

NET ASSETS

6,423,266

5,806,037

CAPITAL AND RESERVES

Called up share capital

23

1,000

1,000

Fair value reserve

24

1,286,025

861,025

Retained earnings

24

5,136,241

4,944,012

SHAREHOLDERS' FUNDS

6,423,266

5,806,037

Company's profit for the financial year

379,795

1,163,519

The financial statements were approved by the Board of Directors and authorised for issue on 17 June 2025 and were signed on its behalf by:

J A Woolway - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

1,000

7,409,396

587,693

7,998,089

Changes in equity

Dividends

-

(178,100

)

-

(178,100

)

Total comprehensive income

-

1,628,157

-

1,628,157

Balance at 31 December 2023

1,000

8,859,453

587,693

9,448,146

Changes in equity

Dividends

-

(187,566

)

-

(187,566

)

Total comprehensive income

-

482,240

425,000

907,240

Balance at 31 December 2024

1,000

9,154,127

1,012,693

10,167,820

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

1,000

3,958,593

861,025

4,820,618

Changes in equity

Dividends

-

(178,100

)

-

(178,100

)

Total comprehensive income

-

1,163,519

-

1,163,519

Balance at 31 December 2023

1,000

4,944,012

861,025

5,806,037

Changes in equity

Dividends

-

(187,566

)

-

(187,566

)

Total comprehensive income

-

379,795

425,000

804,795

Balance at 31 December 2024

1,000

5,136,241

1,286,025

6,423,266

Cash flows from operating activities

Cash generated from operations

1

1,427,095

1,317,000

Interest paid

(79,105

)

(138,929

)

Tax paid

(144,906

)

(328,773

)

Net cash from operating activities

1,203,084

849,298

Cash flows from investing activities

Purchase of tangible fixed assets

(260,864

)

(318,326

)

Sale of tangible fixed assets

16,490

104,000

Interest received

1,074

221

Net cash from investing activities

(243,300

)

(214,105

)

Cash flows from financing activities

Loan repayments in year

(294,050

)

(102,712

)

Equity dividends paid

(187,566

)

(178,100

)

Net cash from financing activities

(481,616

)

(280,812

)

Increase in cash and cash equivalents

478,168

354,381

Cash and cash equivalents at beginning of year

2

667,677

313,296

Cash and cash equivalents at end of year

2

1,145,845

667,677

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

2024

2023

£

£

Profit before taxation

366,868

1,857,480

Depreciation charges

193,840

197,086

Profit on disposal of fixed assets

(5,066

)

(49,320

)

Finance costs

79,105

138,929

Finance income

(1,074

)

(221

)

633,673

2,143,954

Decrease in stocks

419,008

1,100,150

Decrease in trade and other debtors

642,838

230,578

Decrease in trade and other creditors

(268,424

)

(2,157,682

)

Cash generated from operations

1,427,095

1,317,000

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,165,326

667,677

Bank overdrafts

(19,481

)

-

1,145,845

667,677

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

667,677

313,296

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

667,677

497,649

1,165,326

Bank overdrafts

-

(19,481

)

(19,481

)

667,677

478,168

1,145,845

Debt

Debts falling due within 1 year

(84,047

)

(24,579

)

(108,626

)

Debts falling due after 1 year

(632,732

)

338,110

(294,622

)

(716,779

)

313,531

(403,248

)

Total

(49,102

)

791,699

742,597

1.	STATUTORY INFORMATION

Driftview Holdings 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 General 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 Report 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.

Basis of consolidation

The group financial statements consolidate the financial statements of Driftview Holdings Limited and its subsidiary undertakings drawn up to 31 December 2024.

The consolidated financial statements have been prepared in accordance with the principles of acquisition accounting as set out in FRS 102.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value 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 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.

The key source of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

(i) Fair value measurement of investment property

The fair value of investment property is sensitive to changes caused by both business and economic events. The fair value is re-assessed annually. Management restate the value(s) of investment property when necessary to reflect current estimates, based on market conditions, future investment, economic utilisation and the physical condition of the asset(s).

(ii) Stock provisions

The estimation and assumptions used to assess that stock is valued in line with the applicable accounting framework are based on the relevant aging of each stock item since the date the company took ownership of the individual item(s). Management then assess the level of impairment required on each item using a standardised methodology which is regularly reviewed.

Non-significant accounting policies are as follows:

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 is recognised at the point risk and reward of ownership of a product is passed to the customer, usually this is on despatch for goods sales, on completion for servicing and repair work and for specified periods for service agreements.

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.

Improvements to property

-

15% on cost

Plant and machinery

-

25% on cost, 20% on cost, 15% on cost, 15% on reducing balance and Straight line over 15 years

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

20% on reducing balance

Tangible fixed assets, other than Freehold Property, are stated at cost less accumulated depreciation and accumulated impairment losses. Costs includes costs directly attributable to making the asset capable of operating as intended.

Freehold Property is held under the Revaluation model and is therefore carried at the revalued amount less accumulated depreciation and accumulated impairment losses.

Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average costing method.

At each financial reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement .

Financial instruments

The company has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price,unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.