REGISTERED NUMBER: SC783384 (Scotland)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

GREEN CAT HOLDCO LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other 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

DIRECTOR:

Dr G Catto

REGISTERED OFFICE:

Stobo House

Midlothian Innovation Centre

Roslin

Midlothian

EH25 9RE

REGISTERED NUMBER:

SC783384 (Scotland)

AUDITORS:

Leiper & Summers

Statutory Auditors

4 Charlotte Street

Fraserburgh

Aberdeenshire

AB43 9JE

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

REVIEW OF BUSINESS

The principal activity of the company is to act as a holding company for the Group's trading subsidiaries all of which have earned a reputation for providing a professional and innovative approach to development support within the renewable energy and energy transition sector. This is evidenced by their strong and extensive track record of successfully delivering energy projects from site selection through to commissioning and operation.

During the year, the Group continued to focus on:

- the implementation of longer-term strategies to achieve organic growth whilst facing economic challenges, both general and specific to the renewable energy sector.

- the continual development and growth of its multidisciplinary team of consultants and engineers to provide services tailored to the specific needs of a wide range of developers and service providers in the renewable energy sector.

- expanding its renewable energy portfolio through selective acquisitions and development projects.

- supporting subsidiaries in achieving operational efficiencies and optimising asset performance.

- managing exposure to volatile energy markets while ensuring stable cash generation.

- strengthening relationships with financial institutions, regulators, and local communities.

Group turnover, operating profit, and net assets are set out in the consolidated financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The operation of the business and implementation of its strategy are subject to several risks which are accepted and managed by the director and the senior management team. The group employs an integrated management system with regular reviews of policies, procedures and internal controls to ensure compliance with all relevant legislation and regulations.

The director considers the following to be the main risks and uncertainties facing the Group:

Political risks: The UK and Scottish Governments remain committed to achieving NetZero and the associated energy transition. Their support to the market mechanisms required to achieve these goals, however, is not shared by some of the opposition. The global pivot away from Climate Change mitigation may also place economic pressures on the UK Government to dilute their ambitions and fiscal support for the sector.

Market risks: Competition in the market from larger competitors and to some extent international players pivoting away from the US. The general economic background of limited funding and pressures to minimise costs to consumers.

Operational risks: Weather dependency and plant reliability affecting generation, availability of grid connections, labour and supply chain challenges.

Financial risks: Interest rate and inflationary pressures on capital costs. However, inflation improves returns from generating assets significantly mitigating that risk to the group.

Regulatory risks: Evolving government energy policy, planning regulations, and environmental standards.

Liquidity risk: The Group and its subsidiaries manage working capital in order to meet their obligations to suppliers and financial institutions. The senior management team review monthly management accounts against budget, particularly focusing on monitoring sales, gross margins and EBITDA as key performance indicators to assist the forecasting of ongoing funding requirements.

Credit risk: The key credit risk relates to trade debtors. All clients are subject to credit verification procedures and balances are monitored on a regular basis with appropriate involvement of the director for new or unknown customers,

The Group manages these risks by regular monitoring of market and customer intelligence to identify opportunities and threats. It diversifies its services and portfolio across technologies and geographies, whilst maintaining strong compliance and governance processes.

SECTION 172(1) STATEMENT

In discharging his duties under section 172 of the Companies Act 2006, the director has had regard to:

- The long-term sustainability and growth of the Group's renewable energy portfolio.

- The interests of employees across subsidiaries, including promoting a safe and inclusive workplace.

- The need to foster constructive relationships with regulators, suppliers, landowners, and local communities hosting projects.

- The impact of operations on the environment, with a strong emphasis on reducing carbon emissions and biodiversity protection.

- The importance of maintaining a reputation for integrity, sustainability, and high standards of governance.

- The need to act fairly between members of the company.

The Board engages regularly with subsidiary management teams, local stakeholders, and advisors to ensure that strategic decisions support both shareholder value and the wider energy transition.

FUTURE DEVELOPMENTS

The Group intends to:

- Strengthen its service offering by building on the current talent pool with ongoing strategic recruitment and training to be better able to service the markets of the future

- Progress its pipeline of renewable energy projects, with an emphasis on hydrogen, wind, solar, storage or hybrid projects.

- Pursue strategic partnerships to enhance financing capacity and accelerate growth.

- Continue contributing to the transition to NetZero and the UK's renewable energy targets.

ON BEHALF OF THE BOARD:

Dr G Catto - Director

19 September 2025

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

INCORPORATION

The group was incorporated on 21 September 2023 .

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR

Dr G Catto held office during the whole of the period from 1 January 2024 to the date of this report.

The director, being eligible, offers himself for election at the forthcoming first Annual General Meeting.

DONATIONS

The company made charitable donations during the year of £2,600.

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, Leiper & Summers, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Dr G Catto - Director

19 September 2025

Opinion

We have audited the financial statements of Green Cat Holdco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other 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 four, 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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates,

focusing on those laws and regulations that have a direct effect on the determination of material amounts and

disclosures in the financial statements.

The laws and regulations we considered in this context were the Companies Act 2006 and UK Taxation

legislation.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to

be:

- Management override of controls to manipulate the company's key performance indicators to meet targets;

- Timing and completeness of revenue recognition;

- Management judgement applied in calculating provisions; and

- Compliance with relevant laws and regulations which directly impact the financial statements and those that

the company needs to comply with for the purpose of trading.

Our audit procedures to respond to these risks included:

- Testing of journal entries and other adjustments for appropriateness;

- Evaluating the business rationale of significant transactions outside the normal course of business;

- Reviewing judgements made by management in their calculation of accounting estimates for potential

management bias;

- Enquiries of management about litigation and claims and inspection of relevant correspondence; and

- Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any

non-compliance with laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including

those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk

increases the more compliance with a law or regulation is removed from the events and transactions reflected in

the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is

also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional

concealment, forgery, collusion, omission or misrepresentation.

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.

Susan Hepburn (Senior Statutory Auditor)

for and on behalf of Leiper & Summers

Statutory Auditors

4 Charlotte Street

Fraserburgh

Aberdeenshire

AB43 9JE

19 September 2025

TURNOVER

13,130,773

Cost of sales

8,319,664

GROSS PROFIT

4,811,109

Administrative expenses

4,037,757

773,352

Other operating income

75,095

OPERATING PROFIT

4

848,447

Income from interest in associated undertakings

(136,341

)

Income from fixed asset investments

153,339

Interest receivable and similar income

18,303

35,301

883,748

Amounts written off investments

5

346,600

537,148

Interest payable and similar expenses

6

464,724

PROFIT BEFORE TAXATION

72,424

Tax on profit

7

157,864

LOSS FOR THE FINANCIAL YEAR

(85,440

)

Loss attributable to:

Owners of the parent

(148,463

)

Non-controlling interests

63,023

(85,440

)

LOSS FOR THE YEAR

(85,440

)

OTHER COMPREHENSIVE INCOME

Translation reserve movement in year

14,817

Merger reserve movement in year

10,394,519

Retained profit movement in year

174,711

Income tax relating to components of other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

10,584,047

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

10,498,607

Total comprehensive income attributable to:

Owners of the parent

9,489,341

Non-controlling interests

1,009,266

10,498,607

FIXED ASSETS

Intangible assets

9

2,439,848

Tangible assets

10

7,851,356

Investments

11

Interest in associate

1,384,009

Other investments

354,574

12,029,787

CURRENT ASSETS

Debtors

12

7,238,972

Cash at bank and in hand

1,310,577

8,549,549

CREDITORS

Amounts falling due within one year

13

3,163,922

NET CURRENT ASSETS

5,385,627

TOTAL ASSETS LESS CURRENT LIABILITIES

17,415,414

CREDITORS

Amounts falling due after more than one year

14

(5,236,620

)

PROVISIONS FOR LIABILITIES

18

(627,173

)

NET ASSETS

11,551,621

CAPITAL AND RESERVES

Called up share capital

19

106,771

Other reserves

20

10,394,519

Other reserves

20

14,817

Retained earnings

20

26,248

SHAREHOLDERS' FUNDS

10,542,355

NON-CONTROLLING INTERESTS

1,009,266

TOTAL EQUITY

11,551,621

The financial statements were approved by the director and authorised for issue on 19 September 2025 and were signed by:

Dr G Catto - Director

FIXED ASSETS

Intangible assets

9

-

Tangible assets

10

-

Investments

11

10,677,000

10,677,000

CURRENT ASSETS

Debtors

12

1

CREDITORS

Amounts falling due within one year

13

8,000

NET CURRENT LIABILITIES

(7,999

)

TOTAL ASSETS LESS CURRENT LIABILITIES

10,669,001

CAPITAL AND RESERVES

Called up share capital

19

106,771

Other reserves

20

10,569,230

Retained earnings

20

(7,000

)

SHAREHOLDERS' FUNDS

10,669,001

Company's loss for the financial year

(7,000

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 19 September 2025 and were signed by:

Dr G Catto - Director

Called up

share

Retained

Other

capital

earnings

reserves

£

£

£

Changes in equity

Issue of share capital

106,771

-

-

Total comprehensive income

-

26,248

10,394,519

Balance at 31 December 2024

106,771

26,248

10,394,519

Other

Non-controlling

Total

reserves

Total

interests

equity

£

£

£

£

Changes in equity

Issue of share capital

-

106,771

-

106,771

Total comprehensive income

14,817

10,435,584

1,009,266

11,444,850

Balance at 31 December 2024

14,817

10,542,355

1,009,266

11,551,621

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Changes in equity

Issue of share capital

106,771

-

-

106,771

Total comprehensive income

-

(7,000

)

10,569,230

10,562,230

Balance at 31 December 2024

106,771

(7,000

)

10,569,230

10,669,001

Cash flows from operating activities

Cash generated from operations

1

1,138,177

Interest paid

(429,058

)

Interest element of hire purchase payments paid

(35,666

)

Tax paid

(2,966

)

Net cash from operating activities

670,487

Cash flows from investing activities

Purchase of intangible fixed assets

(98,000

)

Purchase of tangible fixed assets

(223,056

)

Cash acquired with subsidiaries

815,743

Interest received

18,303

Dividends received

27,567

Net cash from investing activities

540,557

Cash flows from financing activities

New loans in year

350,000

Loan repayments in year

(231,322

)

Capital repayments in year

(73,509

)

Amount withdrawn by directors

(52,407

)

Share issue

106,771

Net cash from financing activities

99,533

Increase in cash and cash equivalents

1,310,577

Cash and cash equivalents at beginning of year

2

-

Cash and cash equivalents at end of year

2

1,310,577

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

£

Profit before taxation

72,424

Depreciation charges

804,214

Impairment of investments

346,600

Finance costs

464,724

Finance income

(35,301

)

1,652,661

Increase in trade and other debtors

(2,688,210

)

Increase in trade and other creditors

2,173,726

Cash generated from operations

1,138,177

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

1,310,577

-

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

-

1,310,577

1,310,577

-

1,310,577

1,310,577

Debt

Finance leases

-

(250,670

)

(129,223

)

(379,893

)

Debts falling due

within 1 year

-

(293,218

)

-

(293,218

)

Debts falling due

after 1 year

-

(4,987,761

)

-

(4,987,761

)

-

(5,531,649

)

(129,223

)

(5,660,872

)

Total

-

(4,221,072

)

(129,223

)

(4,350,295

)

1.	STATUTORY INFORMATION

Green Cat Holdco 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 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 as modified by the revaluation of certain assets.

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

The company is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosures requirements for parent company information presented within the consolidated financial statements:

- Section 4 ' Statement of Financial Position' - Reconciliation of the opening and closing number of shares;

- Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 'Basic Financial instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loans defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.

- Not to disclose transactions and balances with other members of the group.

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liabilities is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases.

Going Concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Useful lives and deprecation of fixed assets

Depreciation rates are based on the estimated useful lives of assets, which is judgement exercised by management taking into account actual experience.

Goodwill

The company establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

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 2024, is being amortised evenly over its estimated useful life of ten years.

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.

Computer software is being amortised evenly over its estimated useful life of ten years.

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

Plant and machinery

-

5% on cost, 4% on cost and at varying rates on cost

Motor vehicles

-

20% on cost

Computer equipment

-

20% on cost

Investments in subsidiaries and associates

Investments in subsidiary and associate undertakings are recognised at cost.

Taxation

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held in call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

4,256,876

Social security costs

439,769

Other pension costs

190,987

4,887,632

The average number of employees during the year was as follows:

Director

1

Staff

122

123