REGISTERED NUMBER: 12715023 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

HUDSON CABLE MANAGEMENT GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTOR:

Mr S Hudson-Smith

REGISTERED OFFICE:

Milton Court

East Portway

Andover

Hampshire

SP10 3LU

REGISTERED NUMBER:

12715023 (England and Wales)

SENIOR STATUTORY AUDITOR:

Christopher Joyce FCCA

AUDITORS:

Hysons Audit Services Ltd, Statutory Auditor

14 London Street

Andover

Hampshire

SP10 2PA

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Principal activity

The principal activity of the group is to provide comprehensive cable management propositions across the M&E sector. Business model Hudson Cable Management Group Ltd consists of the parent company along with three trading subsidiaries; Armorduct Systems Ltd, R.M.S. Limited, and Milton Cable Management Systems Ltd.

Business model

The business seeks to maximise the successful growth of the Group and its subsidiaries through providing strategic direction, financial management, operational oversight, and sales and marketing support to its subsidiaries, ensuring that the entire group operates cohesively and efficiently toward achieving common goals. To facilitate this, the business employs senior management and financial staff together with sales and marketing personnel as shared resources dedicated to supporting the needs of the operating divisions. Hudson is a non-trading entity wholly funded by management charges levied on the Group subsidiaries for the services provided. These shared services include costs for the C-level executives.

Business review

2024 saw a continued evolution of, and investment in the revised divisional operating model under the Hudson Cable Management Group, involving Armorduct, RMS and Milton. The underlying principles of the divisional operating model encompass Armorduct positioned as the cable containment BRAND for the Group, RMS being the Group fabrication facility, and Milton consulting on specialist materials and products required for harsh and hazardous environment installations. These underlying principles have also meant an evolution in the go-to-market strategy for each division: Armorduct focused on, and established additional relationships within the electrical wholesale industry, enhancing their primary transaction route with customers, whilst RMS continued the development of their major cable management customers into Hudson Group customers. This promoted the brand-building strategy for Armorduct cable containment in the market, and allowed RMS to invest in additional resources to support the Group fabrication services. RMS installed an industrial laser cutting machine in March 2024 as part of broadening overall capabilities and delivering metal components to a number of ongoing and future contracts. These activities meant that Armorduct saw a positive benefit in terms of customer revenues, but there was a corresponding impact to the RMS business for 2024.

RMS is the headquarters for the Group’s Data Centre Division, which was set up in late 2023 to harness the experience and reputation of RMS within this fast-growing sector of the market. Throughout 2024, we saw a large growth in tendering, quotations and technical specification activity for UK and European data centre projects, on behalf of the Group. During Q4, we began to see success across a number of projects, as well as the promise of significant project awards in 2025.

Hudson Group took the opportunity to invest in some key new sales and technical personnel during 2024, with responsibilities to represent Armorduct, RMS and Milton across the industry. This delivered particular skills and expertise to support the Data Centre Division and also drive the development of our Cable Ladder system. Cable Ladder is a major requirement within most cable containment installations, especially where high power and/or high volumes of cables are required. Data Centres are a great example of this, typically now demanding computing power in excess of 100MW per site, with hundreds of kilometers of power / fibre optic cables. The design, prototyping, testing and pre-production stages of cable ladder manufacturing continued throughout the year, and by Q4, we had installed a full range of production equipment for our ladder system at RMS. By late Q4, this was up and running, and supplying projects with Armorduct-branded cable ladder.

In summary, 2024 was a year of consolidating the new divisional operating model, driving brand recognition and reputation for Armorduct cable containment, and supporting the transition of RMS as the core specialist fabrication business for the Group.

PRINCIPAL RISKS AND UNCERTAINTIES

The cable containment industry is a highly competitive market within the construction industry, with many products being regarded as commodity items. One of the Group's USPs has always been the ability to combine standard commodity products with bespoke components designed for specific projects. This combination requires a highly flexible manufacturing process, as producing "specials" is in direct conflict with the high-volume manufacturing of standard products. Balancing this conflict is difficult, and with the uncertainties caused by major customer project delays, decisions are complex and mean compromises have to be made. This has contributed to the change in operating models within the Group subsidiaries, which bear 100% of risk for Hudson Cable Management Ltd. This new business model offers a clearer alignment to our USPs.

Credit risk

Across the group, we have a robust credit checking system and do not accept any new customers where we are unhappy with their credit rating. Irrecoverable debts cannot always be avoided due to our desire to collaborate with our smaller customers to develop mutually beneficial relationships. We wish to continue to do so but we must carefully balance this with our need to protect the Group assets. In these cases, we offer reduced credit limits and shorter payment terms.

Liquidity risk

Across the Group, we are confident that we have ample resources available to us to support our everyday requirements. One of the benefits of being part of a group mean that we can re-distribute resources where they are most needed.

FUTURE PROSPECTS

2025 will see the new operating model begin to deliver enhanced results across our Group divisions. There will continue to be adjustments to our intercompany relationships and trading processes, as well as training and development programmes for our employees. It will also continue to involve updating and educating customers and the wider industry on our new strategy.

We feel confident that Armorduct will experience significant growth, whilst RMS will adjust to the new fabrication model, focusing on cable ladder system production and fittings/bracketry to support Group projects. We also anticipate a “halo” effect from Cable Ladder, as it opens up opportunities to provide the complete package of cable containment from the Group, bundling-in cable tray, basket and trunking for Armorduct.

It is anticipated that some of the customer project delays already experienced will persist, but the new opportunities we have been developing look very promising and we are confident that these will represent excellent longer-term prospects for our subsidiaries and in turn, the Group. In particular, Hinkley Point C is due to move into key construction fit-out phases, and the sustained growth of the Data Centre market sector provides ample opportunities for business development. This will provide a fruitful foundation for continued investment in our manufacturing capabilities as well as wholesaler and subcontractor relationship development for the foreseeable future.

ON BEHALF OF THE BOARD:

Mr S Hudson-Smith - Director

16 September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

An interim dividend of £19.429 per share was paid on 30 April 2024. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 17,486 .

DIRECTOR

Mr S Hudson-Smith held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Hysons Audit Services Ltd, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S Hudson-Smith - Director

16 September 2025

Opinion

We have audited the financial statements of Hudson Cable Management Group 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 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 December 2024 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the group through discussions with directors and other management and from our commercial knowledge and experience of the publishing sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006 and Financial Reporting Standard 102;

-

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

-

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

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

-

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

-

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

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

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

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

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

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

-

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

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

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

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

Use of our report

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

Christopher Joyce FCCA (Senior Statutory Auditor)

for and on behalf of Hysons Audit Services Ltd, Statutory Auditor

14 London Street

Andover

Hampshire

SP10 2PA

16 September 2025

TURNOVER

4

11,256,159

11,671,874

Cost of sales

(6,867,689

)

(7,019,187

)

GROSS PROFIT

4,388,470

4,652,687

Distribution costs

(77,106

)

(243,845

)

Administrative expenses

(4,478,897

)

(4,462,363

)

OPERATING LOSS

6

(167,533

)

(53,521

)

Interest receivable and similar income

10,927

18,227

(156,606

)

(35,294

)

Interest payable and similar expenses

7

(54,146

)

(53,261

)

LOSS BEFORE TAXATION

(210,752

)

(88,555

)

Tax on loss

8

46,275

101,329

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(164,477

)

12,774

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(164,477

)

12,774

(Loss)/profit attributable to:

Owners of the parent

(58,131

)

95,239

Non-controlling interests

(106,346

)

(82,465

)

(164,477

)

12,774

Total comprehensive income attributable to:

Owners of the parent

(58,131

)

95,239

Non-controlling interests

(106,346

)

(82,465

)

(164,477

)

12,774

FIXED ASSETS

Intangible assets

11

(2,391,201

)

(2,690,102

)

Tangible assets

12

2,701,412

2,048,775

Investments

13

-

-

310,211

(641,327

)

CURRENT ASSETS

Stocks

14

1,283,346

1,407,889

Debtors

15

3,246,333

2,633,670

Cash at bank and in hand

819,736

1,821,859

5,349,415

5,863,418

CREDITORS

Amounts falling due within one year

16

2,682,433

2,492,620

NET CURRENT ASSETS

2,666,982

3,370,798

TOTAL ASSETS LESS CURRENT LIABILITIES

2,977,193

2,729,471

CREDITORS

Amounts falling due after more than one year

17

(879,781

)

(486,737

)

PROVISIONS FOR LIABILITIES

21

(253,987

)

(217,346

)

NET ASSETS

1,843,425

2,025,388

CAPITAL AND RESERVES

Called up share capital

22

900

900

Retained earnings

23

643,054

718,671

SHAREHOLDERS' FUNDS

643,954

719,571

NON-CONTROLLING INTERESTS

1,199,471

1,305,817

TOTAL EQUITY

1,843,425

2,025,388

The financial statements were approved by the director and authorised for issue on 16 September 2025 and were signed by:

Mr S Hudson-Smith - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

4,187

25,293

Investments

13

1,673

1,673

5,860

26,966

CURRENT ASSETS

Debtors

15

114,128

158,988

Cash at bank

21,006

11,759

135,134

170,747

CREDITORS

Amounts falling due within one year

16

138,368

183,845

NET CURRENT LIABILITIES

(3,234

)

(13,098

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,626

13,868

CAPITAL AND RESERVES

Called up share capital

22

900

900

Retained earnings

23

1,726

12,968

SHAREHOLDERS' FUNDS

2,626

13,868

Company's profit for the financial year

6,244

8,832

The financial statements were approved by the director and authorised for issue on 16 September 2025 and were signed by:

Mr S Hudson-Smith - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2023

100

654,432

654,532

1,388,282

2,042,814

Changes in equity

Issue of share capital

800

-

800

-

800

Dividends

-

(31,000

)

(31,000

)

-

(31,000

)

Total comprehensive income

-

95,239

95,239

(82,465

)

12,774

Balance at 31 December 2023

900

718,671

719,571

1,305,817

2,025,388

Changes in equity

Dividends

-

(17,486

)

(17,486

)

-

(17,486

)

Total comprehensive income

-

(58,131

)

(58,131

)

(106,346

)

(164,477

)

Balance at 31 December 2024

900

643,054

643,954

1,199,471

1,843,425

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

35,136

35,236

Changes in equity

Issue of share capital

800

-

800

Dividends

-

(31,000

)

(31,000

)

Total comprehensive income

-

8,832

8,832

Balance at 31 December 2023

900

12,968

13,868

Changes in equity

Dividends

-

(17,486

)

(17,486

)

Total comprehensive income

-

6,244

6,244

Balance at 31 December 2024

900

1,726

2,626

Cash flows from operating activities

Cash generated from operations

1

(324,495

)

506,079

Interest paid

(48,381

)

(47,773

)

Interest element of hire purchase payments paid

(5,765

)

(5,488

)

Tax paid

(22,043

)

(98,800

)

Net cash from operating activities

(400,684

)

354,018

Cash flows from investing activities

Purchase of tangible fixed assets

(1,165,644

)

(558,454

)

Sale of tangible fixed assets

30,853

202,538

Interest received

10,927

18,227

Net cash from investing activities

(1,123,864

)

(337,689

)

Cash flows from financing activities

Capital repayments in year

539,911

(220,622

)

Share issue

-

800

Equity dividends paid

(17,486

)

(31,000

)

Net cash from financing activities

522,425

(250,822

)

Decrease in cash and cash equivalents

(1,002,123

)

(234,493

)

Cash and cash equivalents at beginning of year

2

1,821,859

2,056,352

Cash and cash equivalents at end of year

2

819,736

1,821,859

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

2024

2023

£

£

Loss before taxation

(210,752

)

(88,555

)

Depreciation charges

187,047

189,993

Profit on disposal of fixed assets

(3,794

)

(21,208

)

Finance costs

54,146

53,261

Finance income

(10,927

)

(18,227

)

15,720

115,264

Decrease in stocks

124,543

75,553

(Increase)/decrease in trade and other debtors

(576,881

)

746,517

Increase/(decrease) in trade and other creditors

112,123

(431,255

)

Cash generated from operations

(324,495

)

506,079

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 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

819,736

1,821,859

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,821,859

2,056,352

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

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,821,859

(1,002,123

)

819,736

1,821,859

(1,002,123

)

819,736

Debt

Finance leases

(603,438

)

(557,991

)

(1,161,429

)

Debts falling due within 1 year

(25,568

)

-

(25,568

)

Debts falling due after 1 year

(82,263

)

18,080

(64,183

)

(711,269

)

(539,911

)

(1,251,180

)

Total

1,110,590

(1,542,034

)

(431,444

)

1.	STATUTORY INFORMATION

Hudson Cable Management Group 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. This basis may not be appropriate as, at the balance sheet date, the company had net current liabilities of £3,234. The company's future existence is dependent upon the continued support of the group undertakings. This support is reflected in the consolidated balance sheet, which shows both significant net current assets and net assets.

Basis of consolidation

The Group financial statements consolidate the financial statements of the Company and it subsidiary undertakings drawn up to 31 December each year. The results of the subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All inter-group transactions, balances, income and expenses are eliminated on consolidation.

Significant judgements and estimates

In the application of the Company's accounting policies the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates, underlying assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable and relevant under the circumstances.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of ten years.

Where the fair value of the group's interest in the assets, liabilities and contingent liabilities acquired exceeds the cost of the business combination, negative goodwill arises. The group, after consideration of the assets, liabilities and contingent liabilities acquired and the cost of the combination, recognises negative goodwill on the balance sheet and releases this to profit and loss, up to the fair value of non-monetary assets acquired, over the periods in which the non-monetary assets are expected to benefit.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Improvements to property

-

20% on cost and 10% on cost

Plant and machinery

-

25% on cost, 25% on reducing balance, 15% on reducing balance and 10% on cost

Motor vehicles

-

25% on cost

Office and computer equipment

-

33% on cost and 25% on cost

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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 balance sheet date.