REGISTERED NUMBER: 04624864 (England and Wales)

TJC PLANT GROUP LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

Mr R A White

Mr D J White

REGISTERED OFFICE:

15 High Street

Brackley

Northamptonshire

NN13 7DH

REGISTERED NUMBER:

04624864 (England and Wales)

AUDITORS:

Blencowes

Chartered Accountants & Statutory Auditors

15 High Street

Brackley

Northamptonshire

NN13 7DH

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

TJC Plant Group Limited is engaged in the supply, maintenance, and rental of construction and industrial plant machinery across the UK. The company serves clients in infrastructure, civil engineering, and construction, providing self-drive plant equipment.

REVIEW OF BUSINESS

The Directors are satisfied with the results for the year, which are in line with expectations for the Company.

The company has seen a significant increase in turnover and as a result an increase in profits. This performance was driven by a combination of increased infrastructure investment and improved utilisation rates of our rental fleet and additional sales of new machinery.

The margins of the company have dropped slightly, which was a considered approach to de risking the business and increasing the customer base. The directors consider the effort to increase the customer base as been successful giving increased longetivity to the business.

Revenue for the year increased by 64% to £17,769,063 reflecting robust demand from the private sector clients. Gross margin remained strong at 18%, supported by efficient asset turnover and investment in fleet upgrades.

Operating profit also improved reflecting the increased in turnover and operational efficiencies and cost controls.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors monitor the company's principal risks and uncertainties through regular management reviews. Key risks include:

Economic and Market Risk

A downturn in construction activity or changes in government infrastructure spending could affect demand. The company mitigates this by diversifying its client base and maintaining a flexible rental model.

Asset Depreciation and Residual Value Risk

As a plant hire company, the value of owned equipment is exposed to market fluctuations. The business manages this through careful asset management and regular fleet replacement cycles.

Health & Safety and Compliance

Operating heavy equipment carries inherent risks. The company has robust training and compliance procedures to reduce risk and maintain health and safety standards.

Interest Rate and Financing Risk

The company utilizes financing for asset acquisition. Rising interest rates may increase costs. Finance terms are regularly reviewed to optimise debt structure.

Credit risk

Credit risk is tightly controlled as machines are not usually released to the customer until paid for and most are financed by an external funder, net of any deposit paid by the customer. Customer credit risk is addressed through a mixture of credit worthiness checks and a proactive approach to cash collection.

Liquidity risk

The company ensures sufficient liquidity is available to meet foreseeable needs through regular cash flow forecasting and negotiation of appropriate financing arrangements.

GOING CONCERN

After reviewing the strong performance reported in financial statements, the available management information to date and considering current and future developments and principal risks and uncertainties. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence over a period of at least twelve months from the date of approval of these financial statements and have not identified a material uncertainty in this regard. Accordingly, they continue to adopt the going concern basis in preparing these Financial Statements.

ON BEHALF OF THE BOARD:

Mr R A White - Director

23 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 hire of motor vehicle plant, equipment and related services.

DIVIDENDS

Total dividends of £114,992 (2023 £127,235) were declared in the year.

FUTURE DEVELOPMENTS

TJC Plant Group Limited intends to continue its growth by:

- Expanding its head office building to accommodate our growth and to provide an improved working environment.

- Consideration of investing in modern, low-emission fleet vehicles were possible.

DIRECTORS

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

Mr R A White

Mr D J White

DIRECTORS' RESPONSIBILITIES STATEMENT

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;

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

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr R A White - Director

23 September 2025

Opinion

We have audited the financial statements of TJC Plant Group 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.

Emphasis of matter

We draw attention to the notes to the financial statements, which explain that in the previous accounting period to 31 December 2023 the company was exempt from audit. Accordingly, we do not express an opinion on the financial statements for the comparative year ended 31 December 2023.

Our opinion on the financial statements for the year ended 31 December 2024 is not modified in respect of this matter.

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 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 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 ISA's (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.

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

Identifying and assessing potential risks related to irregularities

Identifying and assessing potential risks related to irregularities

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

-

A part of the audit planning process was to look at each area of the financial statements and ascertain the

level of risk for each applicable audit assertion. Where an increased risk was identified, specific audit

work was designed to ensure those risks were at the forefront of the audit work carried out.

-

Making enquiries of management in addition to our own checks of the laws and regulations applying to a

business of this nature.

-

The audit process has documented the systems and internal controls adopted by the company and considered

their adequacy. Our audit work included testing journal entries due to an inherent risk of management override of controls.

-

An audit team planning meeting was held which communicated areas of identified risks and considered

possible opportunities for fraud within the company.

-

The engagement partner assessed the experience and abilities of the engagement team to ensure they

collectively competent to identify irregularities.

-

All risks identified at the planning stage and the related audit work were reviewed and results considered to

confirm that no irregularities had been identified.

-

Our audit has included a review of the disclosures in the financial statements and comparison of those

disclosures with the results of our audit work to identify any disparities.

-

Analytical review of the financial statements has been undertaken at both the planning and completion

stages of the audit to identify risks of irregularities and the results of the audit work carried out on those

areas of risk.

-

The judgements made in making accounting estimates have been assessed as to whether they indicate

potential bias.

-

Enquiries have been made of management regarding known instances of fraud, litigation or claims in

progress.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 that 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.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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.

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.

Ashley Painter ACA FCCA MAAT (Senior Statutory Auditor)

for and on behalf of Blencowes

Chartered Accountants & Statutory Auditors

15 High Street

Brackley

Northamptonshire

NN13 7DH

23 September 2025

TURNOVER

17,769,063

10,829,281

Cost of sales

14,565,311

8,385,044

GROSS PROFIT

3,203,752

2,444,237

Administrative expenses

2,048,730

1,421,012

1,155,022

1,023,225

Other operating income

18,567

7,153

OPERATING PROFIT

5

1,173,589

1,030,378

Interest receivable and similar income

18,431

7,185

1,192,020

1,037,563

Interest payable and similar expenses

6

109,732

91,909

PROFIT BEFORE TAXATION

1,082,288

945,654

Tax on profit

7

433,905

124,451

PROFIT FOR THE FINANCIAL YEAR

648,383

821,203

PROFIT FOR THE YEAR

648,383

821,203

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

648,383

821,203

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

3,680,736

3,572,783

3,680,736

3,572,783

CURRENT ASSETS

Stocks

11

495,529

517,146

Debtors

12

1,477,253

1,062,409

Cash at bank

1,132,356

648,414

3,105,138

2,227,969

CREDITORS

Amounts falling due within one year

13

1,457,973

1,215,237

NET CURRENT ASSETS

1,647,165

1,012,732

TOTAL ASSETS LESS CURRENT LIABILITIES

5,327,901

4,585,515

CREDITORS

Amounts falling due after more than one year

14

(1,105,337

)

(1,309,679

)

PROVISIONS FOR LIABILITIES

16

(781,267

)

(367,930

)

NET ASSETS

3,441,297

2,907,906

CAPITAL AND RESERVES

Called up share capital

17

1,000

1,000

Retained earnings

18

3,440,297

2,906,906

3,441,297

2,907,906

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

Mr R A White - Director

Mr D J White - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,130

2,212,938

2,214,068

Changes in equity

Issue of share capital

(130

)

-

(130

)

Dividends

-

(127,235

)

(127,235

)

Total comprehensive income

-

821,203

821,203

Balance at 31 December 2023

1,000

2,906,906

2,907,906

Changes in equity

Dividends

-

(114,992

)

(114,992

)

Total comprehensive income

-

648,383

648,383

Balance at 31 December 2024

1,000

3,440,297

3,441,297

Cash flows from operating activities

Cash generated from operations

1

2,400,030

1,615,791

Interest paid

-

(662

)

Interest element of hire purchase payments paid

(109,732

)

(91,247

)

Tax paid

(35,447

)

(105,314

)

Warranty provision

133,570

-

Net cash from operating activities

2,388,421

1,418,568

Cash flows from investing activities

Purchase of tangible fixed assets

(1,159,572

)

(753,166

)

Sale of tangible fixed assets

805,144

586,536

Interest received

18,431

7,185

Net cash from investing activities

(335,997

)

(159,445

)

Cash flows from financing activities

New loans made in year

(561,669

)

(50,142

)

Loan repayments in year

-

(99,768

)

Capital repayments in year

(900,435

)

(737,386

)

Amount introduced by directors

18,666

-

Amount withdrawn by directors

(10,052

)

(6,671

)

Share buyback

-

330

Equity dividends paid

(114,992

)

(127,235

)

Net cash from financing activities

(1,568,482

)

(1,020,872

)

Increase in cash and cash equivalents

483,942

238,251

Cash and cash equivalents at beginning of year

2

648,414

410,163

Cash and cash equivalents at end of year

2

1,132,356

648,414

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

2024

2023

£

£

Profit before taxation

1,082,288

945,654

Depreciation charges

1,041,629

919,085

Profit on disposal of fixed assets

(29,154

)

(227,380

)

Finance costs

109,732

91,909

Finance income

(18,431

)

(7,185

)

2,186,064

1,722,083

Decrease in stocks

21,617

133,501

Decrease in trade and other debtors

128,157

205,117

Increase/(decrease) in trade and other creditors

64,192

(444,910

)

Cash generated from operations

2,400,030

1,615,791

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

1,132,356

648,414

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

648,414

410,163

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

648,414

483,942

1,132,356

648,414

483,942

1,132,356

Debt

Finance leases

(2,030,359

)

134,437

(1,895,922

)

(2,030,359

)

134,437

(1,895,922

)

Total

(1,381,945

)

618,379

(763,566

)

1.	STATUTORY INFORMATION

TJC Plant Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the 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.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash flows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

10% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

Reducing balance over 8 years

Motor vehicles

-

25% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at

transaction price including transaction costs and are subsequently carried at amortised cost using the

effective interest method unless the arrangement constitutes a financing transaction, where the transaction

is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss , except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was

recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial liabilities

Basic financial liabilities, including creditors , bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date.Gains and losses arising on translation in the period are included in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 taxation

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

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

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at 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.

Going concern

The Directors model a number of scenarios, including a reasonable worst-case, to ensure that the company maintains adequate headroom against its working capital requirements and financial commitments This

reasonable worst-case scenario has been modelled without mitigating actions and, despite this, the company is forecast to maintain headroom against its working capital requirements and financial covenants within the

assessment period.

After reviewing the financial statements and the cashflow model, considering current and future devolvement and principal risks and uncertainties and making appropriate enquiries, the Directors have a reasonable

expectation that the Company has adequate resources to continue in operational existence over a period of at least twelve months from the date of approval of these financial statements and have not identified a material uncertainty in this regard. Accordingly, they continue to adopt the going concern basis in preparing these Financial Statements.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below.

Critical judgments

Lease commitments

The company determines whether leases entered into by the company either as a lessor or a lessee are operating or lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Depreciation rates

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected

disposal values.

Recoverability of intercompany receivables

Judgements are required in assessing the recoverability and timing of intercompany receivables and determining

whether impairments of those receivables are required. Judgements are based on historical performance as well as forecasts. The Company monitors the recoverability of such receivables and recognises impairments for amounts that may not be recoverable.

Sources of estimation uncertainty

Impairment of fixed assets

into The company determines whether there are indicators of impairment of tangible and intangible assets. Factors taken consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Valuation of stock provision

The company determines whether there are conditions that exist at the balance sheet date that indicates that the net realisable value of individual stock lines are less than the carrying value. Such indicators include post year end sales, auction prices, and market demand.

Debtors provisioning

Debtors, including amounts owed from group undertakings, are subject to impairment reviews to determine whether current or future events and circumstances indicate that the estimated future cash flows derived from the asset have been adversely impacted.