REGISTERED NUMBER: NI648488 (Northern Ireland)

BLS HOLDINGS LTD

Group Strategic Report, Directors' Report and

Audited Consolidated Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Consolidated Income Statement

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Brendan Loughran

Dermot Loughran

Eunan Loughran

Enda Loughran

Eilis Donnelly

REGISTERED OFFICE:

134 Termon Road

Carrickmore

Omagh

Co. Tyrone

BT79 9JU

REGISTERED NUMBER:

NI648488 (Northern Ireland)

INDEPENDENT AUDITORS:

CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

BANKERS:

Bank of Ireland

25 Campie Street

Omagh

Tyrone

BT79 0AE

SOLICITORS:

Logan & Corry

24 Dublin Road

Omagh

Co. Tyrone

BT78 1HE

The directors present their Strategic report of the Company and the Group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Despite a difficult economic and trading environment, BLS Holdings Group Ltd has delivered a strong trading performance for the year ended 31 December 2024 and the Group remains in sound financial position at the year end.

The directors consider that the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and operating profit.

Gross profit margin has decreased to 17.63% from 20.87% (2023). Operating profit has decreased in the year to £732,619 from £923,032 (2023).

KEY PERFORMANCE INDICATORS

The group's key performance indicators are noted as follows:

Revenue

2024: £17,980,939

2023: £16,002,764

Gross profit

2024: £3,169,617

2023: £3,339,122

Operating profit

2024: £732,619

2023: £923,032

PRINCIPAL RISKS AND UNCERTAINTIES

The Group's operations expose them to a variety of financial risks that include price risk, foreign exchange, credit risk, liquidity risk and interest rate risk. The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and the related finance costs. Given the size of the group, directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the Group's finance department.

Price Risk

The Group are exposed to commodity price risk as a result of its operations. However, given the size of the Group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Group's operations change in size or nature.

Foreign Exchange Risk

While the greater part of the Group's revenue and expenses are denominated in sterling, the Group are exposed to some foreign exchange risk in the normal course of business.

Credit Risk

The Group operate policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed by the board.

Liquidity Risk

The Group actively maintain a mixture of long-term and short-term debt finance that is designed to ensure that the Group have sufficient funds for operations and planned expansions.

Interest Rate Risk

The Group have both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at a variable rate. Interest bearing liabilities relate to bank loans and obligations under hire purchase and finance lease agreements, which bear interest at market rates.

STRATEGY

The Group's success is dependent on the ongoing management of business risk and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the Group's operations. The Group continues to tender for work competitively and has also established private sector development works.

FUTURE DEVELOPMENTS

The Group is committed to the long term creation of shareholder value by increasing the group market share in the UK construction and manufacturing market. With this in mind, in the coming year, the Group aims to maintain revenue, operating profits and the number of customers it reaches. The Group will continue to develop relations with suppliers, customers, generate new business where possible and increase retention levels while remaining highly competitive.

EMPLOYMENT POLICY

The Group is dependent on the skills and commitment of its employees in order to achieve its objectives. Group staff at every level are encouraged to make their fullest possible contribution to the Company success. The Group's selection, training, development and promotion policies ensure equal opportunities for all employees, regardless of gender, martial status, race, age or disability. All decisions are based on merit.

ON BEHALF OF THE BOARD:

Dermot Loughran - Director

23 July 2025

The directors present their report with the audited financial statements of the Group and the Company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the Group in the year under review was that of building and civil engineering contractors. The principal activity of the company is that of a holding company.

DIVIDENDS

Interim dividends of £50,000 were paid during the year (2023: £5,000).

The directors do not recommend payment of a final dividend (2023: £Nil).

RESEARCH AND DEVELOPMENT

The Group is currently undertaking research and development projects covering new products and

process improvement.

DIRECTORS

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

Brendan Loughran

Dermot Loughran

Eunan Loughran

Enda Loughran

Eilis Donnelly

POLITICAL DONATIONS AND EXPENDITURE

The Group did not make any political donations during the year (2023: £Nil).

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose

details of the business review, principal risks and uncertainties and future developments in the group's

Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Group's auditors are aware of that information.

AUDITORS

The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Dermot Loughran - Director

23 July 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2024 and of the Group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Directors' Report 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 Directors' Report.

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 Directors' Responsibilities Statement 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 an Auditors' Report 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

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 an Auditors' Report 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.

Mr. Desmond Kelly (F.C.A) (Senior Statutory Auditor)

for and on behalf of CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

23 July 2025

TURNOVER

4

17,980,939

16,002,764

Cost of sales

(14,811,322

)

(12,663,642

)

GROSS PROFIT

3,169,617

3,339,122

Administrative expenses

(2,452,568

)

(2,480,826

)

717,049

858,296

Other operating income

15,570

64,736

OPERATING PROFIT

6

732,619

923,032

Finance costs

7

(150,763

)

(143,348

)

PROFIT BEFORE TAXATION

581,856

779,684

Tax on profit

8

(8,299

)

(208,607

)

PROFIT FOR THE FINANCIAL YEAR

573,557

571,077

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

573,557

571,077

Profit attributable to:

Owners of the parent

573,557

571,077

Total comprehensive income attributable to:

Owners of the parent

573,557

571,077

NON-CURRENT ASSETS

Intangible assets

11

-

-

Tangible assets

12

2,259,676

1,287,510

Investments

13

-

-

2,259,676

1,287,510

CURRENT ASSETS

Stocks

14

2,222,982

2,045,363

Receivables: amounts falling due within one year

15

3,649,356

3,890,244

Cash at bank and in hand

1,154,626

691,718

7,026,964

6,627,325

PAYABLES

Amounts falling due within one year

16

(3,417,608

)

(3,039,801

)

NET CURRENT ASSETS

3,609,356

3,587,524

TOTAL ASSETS LESS CURRENT LIABILITIES

5,869,032

4,875,034

PAYABLES

Amounts falling due after more than one year

17

(1,229,383

)

(711,202

)

PROVISIONS FOR LIABILITIES

21

(230,423

)

(278,163

)

NET ASSETS

4,409,226

3,885,669

CAPITAL AND RESERVES

Called up share capital

22

300

300

Retained earnings

23

4,408,926

3,885,369

SHAREHOLDERS' FUNDS

4,409,226

3,885,669

The financial statements were approved by the Board of Directors and authorised for issue on 23 July 2025 and were signed on its behalf by:

Dermot Loughran - Director

Eunan Loughran - Director

NON-CURRENT ASSETS

Intangible assets

11

-

-

Tangible assets

12

1,125,021

-

Investments

13

300

300

1,125,321

300

CURRENT ASSETS

Receivables: amounts falling due within one year

15

-

342,579

Cash at bank

200,000

549,633

200,000

892,212

PAYABLES

Amounts falling due within one year

16

(934,560

)

(452,649

)

NET CURRENT (LIABILITIES)/ASSETS

(734,560

)

439,563

TOTAL ASSETS LESS CURRENT LIABILITIES

390,761

439,863

CAPITAL AND RESERVES

Called up share capital

22

300

300

Retained earnings

390,461

439,563

SHAREHOLDERS' FUNDS

390,761

439,863

Company's profit for the financial year

898

409,976

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 Board of Directors and authorised for issue on 23 July 2025 and were signed on its behalf by:

Dermot Loughran - Director

Eunan Loughran - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

300

3,319,292

3,319,592

Changes in equity

Dividends

-

(5,000

)

(5,000

)

Total comprehensive income

-

571,077

571,077

Balance at 31 December 2023

300

3,885,369

3,885,669

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

573,557

573,557

Balance at 31 December 2024

300

4,408,926

4,409,226

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

300

34,587

34,887

Changes in equity

Dividends

-

(5,000

)

(5,000

)

Total comprehensive income

-

409,976

409,976

Balance at 31 December 2023

300

439,563

439,863

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

898

898

Balance at 31 December 2024

300

390,461

390,761

Cash flows from operating activities

Cash generated from operations

1

1,557,122

1,157,814

Interest paid

(117,712

)

(115,866

)

Interest element of hire purchase payments paid

(33,051

)

(27,482

)

Tax paid

(45,805

)

(2,596

)

Net cash from operating activities

1,360,554

1,011,870

Cash flows from investing activities

Purchase of tangible fixed assets

(1,216,439

)

(129,727

)

Sale of tangible fixed assets

48,113

18,677

Net cash from investing activities

(1,168,326

)

(111,050

)

Cash flows from financing activities

New loans in year

860,000

-

Loan repayments in year

(283,525

)

(613,301

)

HP Capital repayments in year

(220,304

)

(206,564

)

Amount introduced by directors

306,061

-

Amount withdrawn by directors

-

(227,427

)

Equity dividends paid

(50,000

)

(5,000

)

Net cash from financing activities

612,232

(1,052,292

)

Increase/(decrease) in cash and cash equivalents

804,460

(151,472

)

Cash and cash equivalents at beginning of year

2

350,166

501,638

Cash and cash equivalents at end of year

2

1,154,626

350,166

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

2024

2023

£

£

Profit before taxation

581,856

779,684

Depreciation charges

292,317

338,422

Loss/(profit) on disposal of fixed assets

14,751

(6,208

)

Movement in other provisions

-

26,508

Finance costs

150,763

143,348

1,039,687

1,281,754

Increase in stocks

(177,619

)

(332,209

)

Decrease/(increase) in trade and other debtors

127,759

(119,380

)

Increase in trade and other creditors

567,295

327,649

Cash generated from operations

1,557,122

1,157,814

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

1,154,626

691,718

Bank overdrafts

-

(341,552

)

1,154,626

350,166

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

691,718

878,710

Bank overdrafts

(341,552

)

(377,072

)

350,166

501,638

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

691,718

462,908

1,154,626

Bank overdrafts

(341,552

)

341,552

-

350,166

804,460

1,154,626

Debt

Finance leases

(547,082

)

109,396

(437,686

)

Debts falling due within 1 year

(197,199

)

42,993

(154,206

)

Debts falling due after 1 year

(367,099

)

(619,468

)

(986,567

)

(1,111,380

)

(467,079

)

(1,578,459

)

Total

(761,214

)

337,381

(423,833

)

1.	STATUTORY INFORMATION

BLS Holdings Ltd is a private company, limited by shares, registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is GBP 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 on a going concern basis under the historical cost convention. The accounting policies outlined below have been applied consistently throughout the year as presented:

Basis of consolidation

The consolidated financial statements include the financial statements of the holding company and all its subsidiary Companies made up to 31 December 2024.

Intercompany transactions, balances, income and expenses on transactions between Group

companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements in accordance with generally accepted accounting

principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below:

Work in Progress:

Work in Progress is valued on the basis of direct costs plus attributable overheads based on normal activity. Provisions are made for any foreseeable losses where appropriate. Management review the status of contracts on a regular basis in order to identify those contracts deemed to be loss making. No element of profit is included in the valuation of Work in Progress.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods:

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

- the significant risks and rewards of ownership have been transferred to the buyer;

- the Group retains no continuing involvement or control over the goods;

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the Group;

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

Rendering of services and contracting

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

- the amount of revenue can be measured reliably;

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

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

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

Goodwill

Purchased goodwill rising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the idenitifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its useful economic life of 20 years, which is estimated to be the period during which the benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows;

Plant and machinery

12.5% straight line

Fixtures & Fittings

25% straight line

Motor Vehicles

12.5% straight line

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Inventories

Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.