REGISTERED NUMBER: SC029048 (Scotland)

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 March 2025

for

Clyde Associated Engineers, Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

Mr D McKerracher

Mrs L Cardiff

Mr A Kelso

Mr S McLeod

SECRETARY:

Mrs L Cardiff

REGISTERED OFFICE:

Block 5

76 Beardmore Way

Clydebank Industrial Estate, Clydebank

Glasgow

G81 4HT

REGISTERED NUMBER:

SC029048 (Scotland)

AUDITORS:

Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

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

REVIEW OF BUSINESS

The directors are satisfied that performance has been in line with expectations and projections.

Results and performance

Demand for the company's products was very strong throughout the financial year and turnover finished at £11.6m, broadly in line with the prior trading period (1% decrease). This produced profit before tax of £202,506 for the year, compared to £411,472 in FY24.

During the financial year the company completed the acquisition of the assets of Foodmek Limited, a company in liquidation - the assets of Foodmek have since been successfully integrated into the operations of the wider company.

Financial key performance indicators

2025

2024

Change

£

£

%

Turnover

11,589,594

11,730,504

-1%

Operating profit

274,078

458,933

-39%

Profit before tax

202,506

411,472

-49%

Net assets

1,220,758

1,206,685

+2%

Other key performance indicators

Profit/(loss) as a % of revenue

1.75%

3.51%

Gross profit %

39.81%

34.96%

PRINCIPAL RISKS AND UNCERTAINTIES

The main risk currently identified is the impact of rising inflation affecting costs, including supplies and labour, the availability of experienced staff and margins achievable as a result of these factors. We will continue to monitor the costs and margins closely and will introduce new systems to streamline operations and improve reporting and controls.

UK economic uncertainty continues to suppress demand in some sectors. Despite this and a competitive

marketplace, the directors are confident that our diverse product range and a customer base who place a high value on quality and service mitigates risks to future profitability.

DEVELOPMENT AND PERFORMANCE

Forecasts for FY26 have been prepared on various different scenarios in relation to the different levels of turnover achievable including stress testing to assess the impact on the company's liquidity and ability to continue as a going concern. Based on the forecasting performed the directors are confident that the actions and strategies in place will allow the business to grow strongly in the future.

The company has significant headroom and the support of its bankers to meet its financial covenants. This will allow the company to mitigate business threats as they arise.

ON BEHALF OF THE BOARD:

Mrs L Cardiff - Secretary

29 August 2025

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

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of consulting engineers, engineering agents, stockists of engineering equipment and components and servicing of metering and pumping equipment and spare parts.

DIVIDENDS

A final dividend of £230,000 in respect of the year ended 31 March 2024 was paid during the year. At the date of signing this report, no dividends have been recommended by the directors for the year ended 31 March 2025.

FUTURE DEVELOPMENTS

The directors have elected to provide an indication of likely future developments in the business within the strategic

report.

EVENTS SINCE THE END OF THE PERIOD

There were no significant events after the balance sheet date.

DIRECTORS

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

Mr D McKerracher

Mrs L Cardiff

Mr A Kelso

Mr S McLeod

FINANCIAL INSTRUMENTS

Treasury operations and financial instruments

The company's operations expose it to a variety of financial risks that include the effects of changes in debt market

prices, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that

seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

Given the size of the company, the directors have not delegated the responsibility of managing financial risk

management to a sub-committee of the board. The policies set by the board of directors are implemented by the

company's finance department.

Liquidity risk

The company actively maintains a mixture of long-term and short-term finance that is designed to ensure the company has sufficient funds available for operations and planned expansions.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on

floating rate deposits, bank overdrafts and loans. The company has systems and procedures in place in order to monitor interest rate fluctuations and exposure to maintain adequate liquidity to ensure all liabilities are met when they fall due.

Price Risk

The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the cost of managing exposure to commodity price risk exceeds any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity investments. Major material price inflation has been and continues to be experienced but the company has a mechanism in place that goes a long way to mitigate the impact of these increases.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board and is in most cases credit insured.

Business risk

Business risk is contained because the company's business is well diversified across different sectors and customers. Unforeseen events could arise that might affect the individual market sectors in the company operates, but the overall assessment is that such events are unlikely in the short and medium term.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Gillespie & Anderson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs L Cardiff - Secretary

29 August 2025

Opinion

We have audited the financial statements of Clyde Associated Engineers, Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of 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 matter - Comparative Financial Statements unaudited

In the previous accounting period the directors of the company took advantage of audit exemption under s.477 of the Companies Act 2006. Therefore the prior period financial statements were not subject to audit.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach and assessment were 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.

Enquire of management and review supporting documentation concerning the company's policies and procedures relating to:

- identify, evaluate and comply with laws and regulations and their awareness of any instances of non-compliance;

- detect and respond to the risks of irregularities, fraud and their knowledge of any actual, suspected or alleged fraud;

- internal controls established to mitigate risks related to, unusual items, fraud or non-compliance with laws and regulations.

Obtain an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006 and Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", together with health and safety regulations, environmental regulations, money laundering regulations, employment legislation and data protection legislation.

Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

Review Minutes of Meetings of those charged with governance, reports and correspondence with HMRC and legal advisers.

Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents.

Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations.

To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias.

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.

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.

Alastair Stewart BA(Hons) CA (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

29 August 2025

TURNOVER

3

11,589,594

11,730,504

Cost of sales

6,975,391

7,629,632

GROSS PROFIT

4,614,203

4,100,872

Administrative expenses

4,340,125

3,641,939

OPERATING PROFIT

5

274,078

458,933

Interest receivable and similar income

7

942

440

275,020

459,373

Interest payable and similar expenses

8

72,514

47,901

PROFIT BEFORE TAXATION

202,506

411,472

Tax on profit

9

53,933

105,031

PROFIT FOR THE FINANCIAL YEAR

148,573

306,441

OTHER COMPREHENSIVE INCOME

Revaluation reserve

125,000

77,000

Income tax relating to other comprehensive income

(29,500

)

17,999

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

95,500

94,999

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

244,073

401,440

FIXED ASSETS

Intangible assets

11

10,796

2,135

Tangible assets

12

1,027,420

560,493

1,038,216

562,628

CURRENT ASSETS

Stocks

13

1,091,756

925,023

Debtors

14

2,334,877

2,926,665

Cash in hand

820

820

3,427,453

3,852,508

CREDITORS

Amounts falling due within one year

15

2,686,284

2,920,917

NET CURRENT ASSETS

741,169

931,591

TOTAL ASSETS LESS CURRENT LIABILITIES

1,779,385

1,494,219

CREDITORS

Amounts falling due after more than one year

16

(444,610

)

(229,610

)

PROVISIONS FOR LIABILITIES

20

(114,017

)

(57,924

)

NET ASSETS

1,220,758

1,206,685

CAPITAL AND RESERVES

Called up share capital

21

700

700

Share premium

14,160

14,160

Non distributable fair value

reserve

259,758

170,232

Capital redemption reserve

440

440

Retained earnings

945,700

1,021,153

SHAREHOLDERS' FUNDS

1,220,758

1,206,685

The financial statements were approved by the Board of Directors and authorised for issue on 29 August 2025 and were signed on its behalf by:

Mrs L Cardiff - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 April 2023

700

897,515

14,160

Changes in equity

Dividends

-

(180,000

)

-

Total comprehensive income

-

303,638

-

Balance at 31 March 2024

700

1,021,153

14,160

Changes in equity

Dividends

-

(230,000

)

-

Total comprehensive income

-

154,547

-

Balance at 31 March 2025

700

945,700

14,160

Non

distributable

fair

Capital

value

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 April 2023

72,430

440

985,245

Changes in equity

Dividends

-

-

(180,000

)

Total comprehensive income

97,802

-

401,440

Balance at 31 March 2024

170,232

440

1,206,685

Changes in equity

Dividends

-

-

(230,000

)

Total comprehensive income

89,526

-

244,073

Balance at 31 March 2025

259,758

440

1,220,758

Cash flows from operating activities

Cash generated from operations

1

714,052

369,257

Interest paid

(48,845

)

(30,518

)

Interest element of hire purchase payments paid

(16,642

)

(12,840

)

Finance costs paid

(7,027

)

(4,543

)

Tax paid

(109,520

)

(41,671

)

Net cash from operating activities

532,018

279,685

Cash flows from investing activities

Purchase of intangible fixed assets

(10,000

)

-

Purchase of tangible fixed assets

(490,381

)

(78,194

)

Interest received

942

440

Net cash from investing activities

(499,439

)

(77,754

)

Cash flows from financing activities

New loans in year

375,000

-

Loan repayments in year

(134,794

)

(95,986

)

Capital repayments in year

26,214

7,673

Amount introduced by directors

235,599

68,555

Amount withdrawn by directors

(163,224

)

(6,620

)

Equity dividends paid

(230,000

)

(180,000

)

Net cash from financing activities

108,795

(206,378

)

Increase/(decrease) in cash and cash equivalents

141,374

(4,447

)

Cash and cash equivalents at beginning of year

2

(447,709

)

(443,262

)

Cash and cash equivalents at end of year

2

(306,335

)

(447,709

)

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

2025

2024

£

£

Profit before taxation

202,506

411,472

Depreciation charges

149,793

100,668

Finance costs

72,514

47,901

Finance income

(942

)

(440

)

423,871

559,601

Increase in stocks

(166,733

)

(227,077

)

Decrease/(increase) in trade and other debtors

591,788

(247,125

)

(Decrease)/increase in trade and other creditors

(134,874

)

283,858

Cash generated from operations

714,052

369,257

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

820

820

Bank overdrafts

(307,155

)

(448,529

)

(306,335

)

(447,709

)

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

820

820

Bank overdrafts

(448,529

)

(444,082

)

(447,709

)

(443,262

)

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

820

-

820

Bank overdrafts

(448,529

)

141,374

(307,155

)

(447,709

)

141,374

(306,335

)

Debt

Finance leases

(166,854

)

(26,214

)

(193,068

)

Debts falling due within 1 year

(95,556

)

(35,001

)

(130,557

)

Debts falling due after 1 year

(117,979

)

(205,205

)

(323,184

)

(380,389

)

(266,420

)

(646,809

)

Total

(828,098

)

(125,046

)

(953,144

)

1.	STATUTORY INFORMATION

Clyde Associated Engineers, Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are prepared in Pound Sterling (£), which is considered to be the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

These financial statements present information about the Company as an individual undertaking.

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.

In the current year, the company transitioned from FRS 102 Section 1A to full FRS 102 due to no longer meeting the criteria for a small company. This resulted in enhanced disclosures and presentation changes. There were no changes to the recognition or measurement of balances.

Going concern

The financial statements are prepared on the going concern basis of accounting as, in the opinion of the directors, there are no matters of material uncertainty which cast doubt on the company's ability to continue.

The directors ordinarily review and update cash flow and trading forecasts to ensure the company has sufficient resources to enable it to meet its liabilities as they fall due for a period of at least twelve months from the date of signing of the financial statements. The directors have considered a number of potential scenarios, and are confident that the company has adequate resources to continue trading as a going concem. The directors have based their assessment on current level of cash resources, the availability of credit facilities from its bankers as well as the flexibility of the company and its workforce to adapt to a changing environment.

Significant judgements and estimates

The Directors have made judgements, estimates and assumptions that affect the amounts reported within the financial statements during the year. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. The Directors' estimates, assumptions and judgements that have a significant risk of causing material adjustment to the carrying amount of assets and liabilities within the financial statements are addressed and detail is provided below.

Classification of leases

The company is party to leasing arrangements as a lessee. Accounting for leases is determined by judging

whether the lease is a finance lease or operating lease. Management look at the substance of the transaction and terms and conditions of the leasing arrangements in judging whether all the risks and rewards of ownership are transferred.

Turnover recognition

Turnover on long term contracts for services is recognised according to the stage of completion reached

on the contract by measuring a proportion of costs incurred for work performed to total estimated costs.

Estimating the costs to completion and therefore the total contract costs is a key judgement in respect of

turnover recognition on these contracts.

Long-term contracts

Judgement is also required in accounting for long-term contracts particularly as regards profit recognition

and the assessment of future losses on contracts.

Turnover

Turnover represents net sales of goods and services, excluding value added tax and discounts offered. Income is recognised when the company becomes entitled to the income, it can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the entity. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated

with ownership nor effective control over the goods sold;

- the amount of turnover can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of turnover can be measured reliably:

- it is probable that the company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

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.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

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

Freehold property

-

2% straight line on cost or valuation

Improvements to property

-

10% on cost and 5% on cost

Plant and machinery

-

20% on cost

Office equipment

-

20% on cost

Motor vehicles

-

25% on cost

Land and buildings are stated at the revalued amounts less any depreciation or impairment losses subsequently accumulated (revaluation model). Previously they were carried under the cost model. Revaluations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from fair value at the reporting date. Increases in valuation are recognised in other comprehensive income and accumulated in equity under the revaluation reserve, unless the increase reverses a revaluation decrease previously recognised in profit or loss. In that case, the increase is recognised in profit or loss. Decreases in valuation are recognised in profit or loss to the extent that they exceed any previously recognised revaluation surplus in respect of the same asset.

Other tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

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