REGISTERED NUMBER: 00038559 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 March 2025

for

Caldwells Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J B Caldwell

N E Caldwell

SECRETARY:

N E Caldwell

REGISTERED OFFICE:

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

REGISTERED NUMBER:

00038559 (England and Wales)

SENIOR STATUTORY AUDITOR:

Hayley Jardine ACA

AUDITORS:

Voisey & Co LLP

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

The parent company, Caldwells Limited has continued its management of the site at Warrington with John Chorley & Company Limited operating from the site.

The volatility of the commodity prices along with the economic climate has led to a 15.26% drop in Group turnover for the year.

The Board have reviewed the stock holdings and have restructured to ensure continuity of supply and minimal lead times on delivery.

The directors have reviewed the products and services offered by the Group which will further enhance future earnings with increased potential capacity throughout the site. This is proving productive in the 2026 year with the emphasis on value added rather than volume.

This is further demonstrated by the the continual investment in the Group's processing capabilities of drilling, shot blasting and painting, with further capital expenditure planned to maintain and improve the Group's market position and to maintain the highest of technical and operational standards.

The directors are confident that these services will continue to present further opportunities in the coming years.

The directors continue to monitor the markets and respond to any changes in these conditions and take appropriate action to protect the group.

Key Performance Indicators

The directors monitor progress with reference to the following key performance indicators:

2025

2024

Definition and method of calculation

Gross Profit as a % of turnover

11.29%

12.76%

Profit before administration and exceptional costs.

Operating (Loss) /Profit as a % of turnover

(2.71%)

(0.37%)

Earnings before interest receivable and interest payable.

Stock Turnover

4.02

4.24

Cost of sales (excluding wages)/stock

Liquidity ratio

1.92

2.27

Current assets/current liabilities

PRINCIPAL RISKS AND UNCERTAINTIES

The following are the principal risks identified by the directors and the measures taken to address them.

People

The retention and recruitment of staff is a key challenge for the business. Defined recruitment and retention policies exist centrally and are managed to ensure the company is competitive and attracts the best candidates.

Health & Safety

The company has further enhanced the attention it gives to health and safety investing heavily to ensure performance remains excellent in this critical area.

Performance

The company is continually reviewing procedures and systems to ensure the work performed is of the highest quality. This is underlined by the company's ISO accreditation in relevant areas.

Financial

The company's principal financial liabilities are trade creditors and trade accruals. The company's principal financial assets are bank balances, stock and trade debtors.

The financial liabilities and assets are controlled by the directors to ensure sufficient funds are available for the company to meet its business needs. The financial liabilities and assets are stated at fair value and after allowance for doubtful receivables.

Supply Chain

The Group performance is reliant on the supply of steel. This is managed by maintaining strong supplier relationships both within the UK and Europe with a small number of suppliers to enable continuity and stability within our supply chain.

ON BEHALF OF THE BOARD:

N E Caldwell - Director

8 September 2025

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

PRINCIPAL ACTIVITY

The principal activities of the group companies for the year under review were that of:

Caldwells Limited

: provider of group facilities

John Chorley & Co Limited

: steel stockholders the manufacture of other fabricated metal products.

DIVIDENDS

The total distribution of dividends for the year ended 31st March 2025 will be £361,676 (2024: £356,627).

FUTURE DEVELOPMENTS

The directors anticipate the business environment will remain challenging and they believe that the group is in a good financial position and that the risks that have been identified are being well managed. The directors will continue carefully assessing the state of the market and development of the products on offer to customers. The directors anticipate that the current slow-down in global markets will lead to lower sales in the year 2025/26 but they will continue to invest in product development and enhancements to achieve greater efficiencies in its operations. Overall the directors still expect satisfactory results in these uncertain times.

DIRECTORS

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

J B Caldwell

N E Caldwell

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Voisey & Co LLP, will be proposed for appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N E Caldwell - Director

8 September 2025

Opinion

We have audited the financial statements of Caldwells Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 2025 and of the group's loss 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:

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

1 - We enquired of management and those charged with governance about actual and potential litigation and claims, including review of relevant nominal ledger accounts.

2 - We obtained an understanding of laws, regulations and guidance that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, health and safety legislation and employment legislation.

3 - We enquired of management and those charged with governance to identify any instances of non-compliance with laws and regulations. We also reviewed meeting minutes for evidence of non-compliance with relevant laws and regulations.

4 - We reviewed the Company's financial statement disclosures and agreed to supporting documentation to assess compliance with the applicable laws and regulations discussed above.

5 - We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any incidences of fraud that had taken place during the accounting period.

6 - The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.

7 - In addressing the risk of fraud due to management override of controls, we performed testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

8 - We also challenge management assumptions with regard to accounting estimates.

Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery 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.

Hayley Jardine ACA (Senior Statutory Auditor)

for and on behalf of Voisey & Co LLP

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

17 September 2025

TURNOVER

3

14,347,773

16,932,425

Cost of sales

(12,728,135

)

(14,772,056

)

GROSS PROFIT

1,619,638

2,160,369

Administrative expenses

(2,007,809

)

(2,222,232

)

OPERATING LOSS

5

(388,171

)

(61,863

)

Interest receivable and similar income

59

-

(388,112

)

(61,863

)

Interest payable and similar expenses

6

(36,027

)

(21,922

)

LOSS BEFORE TAXATION

(424,139

)

(83,785

)

Tax on loss

7

11,919

(36,313

)

LOSS FOR THE FINANCIAL YEAR

(412,220

)

(120,098

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(412,220

)

(120,098

)

Loss attributable to:

Owners of the parent

(412,220

)

(120,098

)

Total comprehensive income attributable to:

Owners of the parent

(412,220

)

(120,098

)

FIXED ASSETS

Tangible assets

10

1,823,000

1,717,714

Investments

11

-

-

1,823,000

1,717,714

CURRENT ASSETS

Stocks

12

3,163,252

3,485,908

Debtors

13

3,079,860

3,387,184

Cash at bank and in hand

1,044,776

892,543

7,287,888

7,765,635

CREDITORS

Amounts falling due within one year

14

3,804,737

3,441,386

NET CURRENT ASSETS

3,483,151

4,324,249

TOTAL ASSETS LESS CURRENT LIABILITIES

5,306,151

6,041,963

CREDITORS

Amounts falling due after more than one year

15

(489,237

)

(496,877

)

PROVISIONS FOR LIABILITIES

19

(278,382

)

(232,658

)

NET ASSETS

4,538,532

5,312,428

CAPITAL AND RESERVES

Called up share capital

20

24,270

24,270

Capital redemption reserve

21

49,313

49,313

Retained earnings

21

4,464,949

5,238,845

SHAREHOLDERS' FUNDS

4,538,532

5,312,428

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2025 and were signed on its behalf by:

N E Caldwell - Director

J B Caldwell - Director

FIXED ASSETS

Tangible assets

10

526,714

572,696

Investments

11

8,000

8,000

534,714

580,696

CURRENT ASSETS

Debtors

13

1,354,844

2,431,161

Cash at bank

390,590

129,987

1,745,434

2,561,148

CREDITORS

Amounts falling due within one year

14

141,033

350,181

NET CURRENT ASSETS

1,604,401

2,210,967

TOTAL ASSETS LESS CURRENT LIABILITIES

2,139,115

2,791,663

CREDITORS

Amounts falling due after more than one year

15

276,837

91,877

NET ASSETS

1,862,278

2,699,786

CAPITAL AND RESERVES

Called up share capital

20

24,270

24,270

Capital redemption reserve

21

49,313

49,313

Retained earnings

21

1,788,695

2,626,203

SHAREHOLDERS' FUNDS

1,862,278

2,699,786

Company's (loss)/profit for the financial year

(475,832

)

302,567

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2025 and were signed on its behalf by:

N E Caldwell - Director

J B Caldwell - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

24,270

5,715,570

49,313

5,789,153

Changes in equity

Dividends

-

(356,627

)

-

(356,627

)

Total comprehensive income

-

(120,098

)

-

(120,098

)

Balance at 31 March 2024

24,270

5,238,845

49,313

5,312,428

Changes in equity

Dividends

-

(361,676

)

-

(361,676

)

Total comprehensive income

-

(412,220

)

-

(412,220

)

Balance at 31 March 2025

24,270

4,464,949

49,313

4,538,532

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

24,270

2,680,263

49,313

2,753,846

Changes in equity

Dividends

-

(356,627

)

-

(356,627

)

Total comprehensive income

-

302,567

-

302,567

Balance at 31 March 2024

24,270

2,626,203

49,313

2,699,786

Changes in equity

Dividends

-

(361,676

)

-

(361,676

)

Total comprehensive income

-

(475,832

)

-

(475,832

)

Balance at 31 March 2025

24,270

1,788,695

49,313

1,862,278

Cash flows from operating activities

Cash generated from operations

1

1,246,861

1,269,042

Interest paid

(6,885

)

(13,404

)

Interest element of hire purchase payments paid

(29,112

)

(8,487

)

Finance costs paid

(30

)

(31

)

Tax paid

(85,712

)

(237,127

)

Net cash from operating activities

1,125,122

1,009,993

Cash flows from investing activities

Purchase of tangible fixed assets

(399,472

)

(4,027

)

Interest received

59

-

Net cash from investing activities

(399,413

)

(4,027

)

Cash flows from financing activities

HP agreements

(211,800

)

(274,149

)

Equity dividends paid

(361,676

)

(356,627

)

Net cash from financing activities

(573,476

)

(630,776

)

Increase in cash and cash equivalents

152,233

375,190

Cash and cash equivalents at beginning of year

2

892,543

517,353

Cash and cash equivalents at end of year

2

1,044,776

892,543

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

31.3.25

31.3.24

£

£

Loss before taxation

(424,139

)

(83,785

)

Depreciation charges

294,186

285,554

Finance costs

36,027

21,922

Finance income

(59

)

-

(93,985

)

223,691

Decrease in stocks

322,656

729,753

Decrease in trade and other debtors

370,432

1,630,717

Increase/(decrease) in trade and other creditors

647,758

(1,315,119

)

Cash generated from operations

1,246,861

1,269,042

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

1,044,776

892,543

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

892,543

517,353

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

892,543

152,233

1,044,776

892,543

152,233

1,044,776

Debt

Finance leases

(559,200

)

211,800

(347,400

)

Debts falling due after 1 year

(837

)

-

(837

)

(560,037

)

211,800

(348,237

)

Total

332,506

364,033

696,539

1.	STATUTORY INFORMATION

Caldwells 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.

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.

The financial statements are prepared in sterling, which is the functional currency. Monetary amounts in these financial statements are rounded to the nearest £.

Basis of consolidation

The group financial statements consolidate the financial statements of the holding company and all its subsidiaries drawn up to 31st March each year.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continues to consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities. All intra-group transactions, balance, income and expenses are eliminated on consolidation.

Business combinations are accounted for using the purchase method.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and key sources of estimation uncertainty

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 key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below.

The following judgements and estimates are considered to have the most significant effect on amounts recognised in the financial statements:

Stock obsolescence provision -. Management perform regular reviews to ensure that the provision is appropriate and make adjustments as necessary by proving for obsolete stock at scrap value.

Turnover

Revenue from the sale of goods shall be recognised when all the following conditions have been satisfied:

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

- the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity;

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

Revenue from the sale of goods is generally recognised when they are handed over to the transport firms which, under the terms of current contracts, mark the time when the above risks and rewards are transferred.

Revenue is not recognised if its recoverability is considered to be uncertain.

Revenue is stated net of discounts, allowances, rebates, returns and value added taxes, and does not include the proceeds from the disposal of raw materials and scrap.

Revenue also includes minor cost connected with the sales process, such as certification ,recoveries of cost of transport, packaging, insurances etc

All of the group's turnover is generated from sales within the UK and is attributable to the one principle activity of the group.

Tangible fixed assets

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss.

Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets,

other than freehold land, over their expected useful lives at the following rates:

Freehold property - 5% Straight line

Plant and machinery - 10% to 25% Straight line

Motor Vehicles - 25% Straight line

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have been adjusted.

Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Fixed asset investments which are listed on recognised stock exchanges are stated at year end market value. Fixed asset investments which are unlisted are stated at cost less provisions for reductions in value.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stocks and work in progress

Stocks are stated at the lower of cost and net realisable value. Cost is determined by the average cost method and is based on purchase price or production cost, including an appropriate proportion of overhead expenses. Net realisable value is based on estimated selling price less all further costs to completion and all relevant marketing and distribution costs. Provisions are recognised for stocks expected to sell at an amount lower than its cost or net realisable value.