REGISTERED NUMBER: 09613925 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SIDEY SOLUTIONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

9

Income Statement

13

Other Comprehensive Income

14

Balance Sheet

15

Statement of Changes in Equity

16

Cash Flow Statement

17

Notes to the Cash Flow Statement

18

Notes to the Financial Statements

19

DIRECTORS:

C P Arbuthnott

S L Hardy

R Hendry

A J Litster

J K Opitz

A D Ramsay

P Welin

G A Coull

REGISTERED OFFICE:

71-75 Shelton Street

Covent Garden

London

WC2H 9JQ

REGISTERED NUMBER:

09613925 (England and Wales)

AUDITORS:

MMG Archbold Limited

Chartered Accountants

Statutory Auditor

4 Albert Place

Perth

PH2 8JE

SOLICITORS:

Anderson Beaton Lamond

Bordeaux House

31 Kinnoull Street

PERTH

PH1 5EN

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

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

Results and performance

Demand for the company's products and services remained very strong during 2024 and turnover finished at £53m, some 4.3% ahead of 2023 (£51m) after being pro-rated for the longer trading period. This produced profit before tax of £9.3m, which was a 3.1% increase on 2023, after being pro-rated for the longer period.

Key performance indicators

The company formally reviews its mid-term strategy annually, and thereafter formulates and regularly measures performance against a very detailed annual business plan/budget which is revised twice during the year. Major KPIs measured against business plan include:

Year ended31 December 2024

18 months ended31 December 2023

Revenue

£53,020,516

£76,221,647

Profit/(loss) before tax

£9,325,769

£13,560,304

Profit/(loss) as a % of revenue

17.59%

17.79%

Gross profit %

36.27%

34.92%

Net assets

£16,822,686

£11,557,088

The company also reviews the following to monitor the performance of the factory:

· Net profit by business sector and job/customer

· Revenue and net profit by frame

· Overhead spend by department

· Outstanding debtor days by sector

The directors are satisfied that in 2024 the company performed well against these and other KPIs.

PRINCIPAL RISKS AND UNCERTAINTIES

UK economic uncertainty continues to suppress demand in some sectors. Despite this and an extremely competitive marketplace, the directors are confident that our diverse product range and a customer base who place a high value on quality and service mitigates risks to future profitability.

SECTION 172(1) STATEMENT

As required under Section 172(1) of the Companies Act 2006, the Directors confirm that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have had regard to:

- The likely consequences of any decisions in the long-term;

- The interests of employees;

- Relationships with suppliers, customers, and other stakeholders;

- The impact of operations on the community and the environment;

- The company's desire to maintain its reputation for high standards of business conduct;

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

Stakeholder Engagement

During the year, the Board engaged with a wide range of stakeholders including employees, customers, suppliers, regulators, and local communities. Feedback from these groups informed decisions on operational improvements, investment priorities, and sustainability initiatives.

Our employees

Our employees are central to our success. The Board has overseen initiatives to enhance employee engagement, wellbeing, and development. Regular feedback mechanisms, training programs, and health and safety reviews were implemented to ensure a supportive and inclusive working environment.

Our business relationships

Maintaining strong relationships with suppliers, customers, and other stakeholders is essential. The company has engaged in regular dialogue with key partners, adapted procurement and service delivery models to meet evolving needs, and ensured that contractual and ethical standards are upheld.

Our communities

We have invested in our communities through various initiatives, and the company remains committed to contributing positively to the communities in which it operates.

Environmental and Sustainability Disclosure

The Board recognises the importance of environmental stewardship and sustainable business practices and remain committed to reducing the company's carbon footprint and improving energy efficiency across our sites. During the year, we advanced our sustainability agenda through energy efficiency measures and waste reduction initiatives.

Key actions taken during the year include:

- We continue to invest in more energy efficient equipment & vehicles. Equipment at our new manufacturing site includes new compressors, process heaters and LED lighting which have all contributed to improved energy efficiency.

- We continue to use accredited waste management contractors and are proactive in identifying solutions to minimise waste and optimise material usage.

-We have engaged with key suppliers and customers with the aim of identifying future trends regarding sustainability, energy optimisation, thermal performance of buildings and products and environmental issues.

As part of the Inwido group, we operate to the Greenhouse Gas Protocol and Science-Based Targets Initiative and now set our own targets to monitor our continued improvement. The table below summarises our UK annual energy consumption (MWh), greenhouse gas emissions (tCO2e) and our annual emissions per wing #1 :-

2024

Source

MWh

tCO2e

kg CO2e/wing

Gas

1,530

315

2.07

Fuel for transport

3,048

790

5.19

Electricity

728

164

1.08

Total

5,306

1,269

8.34

Please note that no data is available for the reporting year 2023.

#1 A "wing" relates to the configuration of a particular window or door.

Methodologies, Conversion Factors, and Standards

The following methodologies and DEFRA 2023 emission factors are applied in calculating our greenhouse gas (GHG) emissions in the table above:

1. Gas Consumption - Stationary Combustion (Scope 1)

Scope 1 emissions from stationary sources (e.g. boilers, furnaces, turbines) are calculated using a fuel-based approach, multiplying the volume of fuel consumed by standardised emission factors. We do not use supplier-specific emission factors for the consumption of natural gas.

-Defra 2023 emission factor - 0.00203839031006711 tonnes CO2e/m³

2. Fuel Consumption for Transport (Scope 1)

Emissions from fuel-burning vehicles are calculated using a fuel-based method, based on the volume of fuel consumed by type.

-Diesel: Defra 2023 emission factor - 2.51206388456376 tonnes CO2e/m³

-Petrol: Defra 2023 emission factor - 2.09747312751678 tonnes CO2e/m³

3. Electricity Consumption (Scope 2)

Scope 2 emissions from purchased electricity are calculated using a market-based methodology with average emission factors. No biogenic emission factors are applied, as these are not provided by our supplier.

-Electricity Mix: 26% Nuclear, 74% Renewable

This energy profile supports our commitment to reducing indirect emissions and advancing low-carbon energy use.

Our Standards of Business Conduct

The Board has reinforced a culture of integrity and transparency. Policies on ethics, anti-bribery, and compliance were reviewed and updated. Training was provided to staff to ensure alignment with our values and regulatory obligations.

Fairness Between Members

The company has maintained open and equitable communication with all shareholders. Decisions regarding dividends, capital allocation, and governance have been made with fairness and transparency, ensuring that the interests of all members are considered.

SIGNED BY ORDER OF THE DIRECTORS:

A J Litster - Director

15 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply and installation of UPVC (unplasticised polyvinyl chloride) and GPR (glass reinforced plastic) fenestration products to retail, trade, new build and commercial customers across the United Kingdom.

DIVIDENDS

Interim dividends per share were paid as follows:

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 1,500,028 .

FUTURE DEVELOPMENTS

2024 saw another strong performance in both revenue and profitability and this is expected to continue through 2025. A major capital expenditure programme which commenced in Q4 of 2023 to expand production capacity and efficiency was completed in 2024. Similar projects to upgrade production and ancillary facilities are ongoing and should be completed by Q4 2025.

DIRECTORS

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

C P Arbuthnott

S L Hardy

R Hendry

A J Litster

J K Opitz

A D Ramsay

P Welin

Other changes in directors holding office are as follows:

G A Coull was appointed as a director after 31 December 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS

Treasury operations and financial instruments

The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

Given the size of the company, the directors have not delegated the responsibility of managing financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Liquidity risk

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

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company has systems and procedures in place in order to monitor interest rate fluctuations and exposure to maintain adequate liquidity to ensure all liabilities are met when they fall due.

Price Risk

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

Credit risk

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

Business risk

Business risk is contained because the company's business is well diversified across retail, new build, trade and commercial sectors. The company has much greater business diversity than any of its major competitors. However, we are aware that unforeseen events could arise that might affect the individual market sectors in which we operate, but our overall assessment is that such events are unlikely in the short and medium term.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, MMG Archbold Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:

A J Litster - Director

15 September 2025

Opinion

We have audited the financial statements of Sidey Solutions Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

The Company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to general legislation, breaches of health and safety regulations and tax legislation. We considered the extent to which these laws and regulations might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk related to posting journal entries to manipulate revenue and profit. Audit procedures performed by the engagement team included:

- discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations, including fraud;

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

- identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;

- challenging assumptions and judgements made by management with regard to the significant accounting estimates identified;

- performing analytical procedures to identify any unusual or unexpected relationships, investigating the rationale behind significant or unusual transactions and agreeing financial statement disclosures to underlying supporting documentation; and

- identifying and testing journal entries, in particular journal entries posted with unusual account combinations, journal entries posted by unexpected users, backdated journals, and journals with unusual descriptions.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through 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.

Paul Crichton BAcc, CA, CTA (Senior Statutory Auditor)

for and on behalf of MMG Archbold Limited

Chartered Accountants

Statutory Auditor

4 Albert Place

Perth

PH2 8JE

19 September 2025

TURNOVER

3

53,020,516

76,221,647

Cost of sales

33,790,370

49,605,574

GROSS PROFIT

19,230,146

26,616,073

Administrative expenses

10,223,195

13,027,475

OPERATING PROFIT

5

9,006,951

13,588,598

Interest receivable and similar income

319,332

4,286

9,326,283

13,592,884

Interest payable and similar expenses

6

514

32,580

PROFIT BEFORE TAXATION

9,325,769

13,560,304

Tax on profit

7

2,560,143

1,260,555

PROFIT FOR THE FINANCIAL YEAR

6,765,626

12,299,749

PROFIT FOR THE YEAR

6,765,626

12,299,749

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

6,765,626

12,299,749

Note

Prior year adjustment

9

1,627,972

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

8,393,598

FIXED ASSETS

Intangible assets

10

-

19,040

Tangible assets

11

3,565,913

2,617,453

3,565,913

2,636,493

CURRENT ASSETS

Stocks

12

1,502,437

1,630,495

Debtors

13

20,792,153

9,610,774

Cash at bank and in hand

5,250,912

9,088,996

27,545,502

20,330,265

CREDITORS

Amounts falling due within one year

14

12,416,229

11,168,813

NET CURRENT ASSETS

15,129,273

9,161,452

TOTAL ASSETS LESS CURRENT LIABILITIES

18,695,186

11,797,945

CREDITORS

Amounts falling due after more than one year

15

(1,387,500

)

-

PROVISIONS FOR LIABILITIES

18

(485,000

)

(240,857

)

NET ASSETS

16,822,686

11,557,088

CAPITAL AND RESERVES

Called up share capital

19

100,005

100,005

Share premium

20

341,252

341,252

Capital redemption reserve

20

2,000,002

2,000,002

Retained earnings

20

14,381,427

9,115,829

16,822,686

11,557,088

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

A J Litster - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 July 2022

2,100,005

1,066,120

341,252

2

3,507,379

Changes in equity

Increase in share capital

-

(2,000,000

)

-

2,000,000

-

Redemption of shares

(2,000,000

)

-

-

-

(2,000,000

)

Dividends

-

(2,250,040

)

-

-

(2,250,040

)

Total comprehensive income

-

10,671,777

-

-

10,671,777

Balance at 31 December 2023

100,005

7,487,857

341,252

2,000,002

9,929,116

Prior year adjustment

-

1,627,972

-

-

1,627,972

As restated

100,005

9,115,829

341,252

2,000,002

11,557,088

Changes in equity

Dividends

-

(1,500,028

)

-

-

(1,500,028

)

Total comprehensive income

-

6,765,626

-

-

6,765,626

Balance at 31 December 2024

100,005

14,381,427

341,252

2,000,002

16,822,686

Cash flows from operating activities

Cash generated from operations

1

10,117,657

13,496,346

Interest paid

-

(23,324

)

Interest element of hire purchase or finance lease rental payments paid

(514

)

(9,256

)

Tax paid

(1,882,294

)

(2,013,846

)

Net cash from operating activities

8,234,849

11,449,920

Cash flows from investing activities

Purchase of intangible fixed assets

(654

)

(24,146

)

Purchase of tangible fixed assets

(1,388,094

)

(1,252,022

)

Interest received

319,332

4,286

Net cash from investing activities

(1,069,416

)

(1,271,882

)

Cash flows from financing activities

Capital repayments in year

-

(102,561

)

Share issue

-

(2,000,000

)

Changes to intercompany loans

(9,503,489

)

2,110,580

Equity dividends paid

(1,500,028

)

(2,250,040

)

Net cash from financing activities

(11,003,517

)

(2,242,021

)

(Decrease)/increase in cash and cash equivalents

(3,838,084

)

7,936,017

Cash and cash equivalents at beginning of year

2

9,088,996

1,152,979

Cash and cash equivalents at end of year

2

5,250,912

9,088,996

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

Period

1/7/22

Year Ended

to

31/12/24

31/12/23

as restated

£

£

Profit before taxation

9,325,769

13,560,304

Depreciation charges

470,578

454,512

Finance costs

514

32,580

Finance income

(319,332

)

(4,286

)

9,477,529

14,043,110

Decrease in stocks

128,058

374,498

Increase in trade and other debtors

(648,024

)

(262,328

)

Increase/(decrease) in trade and other creditors

1,160,094

(658,934

)

Cash generated from operations

10,117,657

13,496,346

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

5,250,912

9,088,996

Period ended 31 December 2023

31/12/23

1/7/22

as restated

£

£

Cash and cash equivalents

9,088,996

1,152,979

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

9,088,996

(3,838,084

)

5,250,912

9,088,996

(3,838,084

)

5,250,912

Total

9,088,996

(3,838,084

)

5,250,912

1.	STATUTORY INFORMATION

Sidey Solutions 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

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.

Related party exemption

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

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.

Turnover

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

Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs 20% per annum straight line