REGISTERED NUMBER: 06520896 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

S&C Electric EMEA Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

A Sjoelin

S T Leander

SECRETARY:

S T Leander

REGISTERED OFFICE:

S&C Electric EMEA Ltd

Brunel Park, Brunel Way

Baglan Energy Park

Neath

SA11 2FP

REGISTERED NUMBER:

06520896 (England and Wales)

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Turnover in 2024 increased by £7.4m from £16.3m. The company continues to operate as a sales and distribution operation within Europe, Middle East & Africa together with S&C Electric Asia Pacific as it subsidiary.The group selling activities are channelled through distributors and direct sales to customers within the regions.

Gross Margins for the 12 months ending 2024 are in line with an expected cost of sales driven by the intercompany transfer pricing policy.

There have been no business restructures in the year or previous income year which have resulted in the change of ownership, cessation, or acquisition, nor had there been any significant change in the asset position of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors have identified the following principal risks and uncertainties affecting the company:

Market risk

The company is affected by the relative availability and market price of the various commodity inputs which are core ingredients for its product. Inflationary pressures have eased in many cost categories, however S&C continues experiencing inflationary pressures in a few key areas. These areas include electronics, which are affected by supply and demand imbalances, and compensation costs.

To address the financial impact of these cost pressures, S&C implemented price increases on select products.

Legislative and regulatory risk

National Grid (UK's largest network provider) published updated scenarios to support the decarbonization of the energy system. The 2023 Future Energy Scenarios report provided an annual update on different pathways for Britain's energy system to 2050. Among the key messages from the report included the importance of addressing uncertainty for both investors and consumers and the critical role of information and incentives in driving consumer behavior and the requirement for "whole system thinking" to optimize the cost of delivering the required infrastructure. National Grid's published scenarios serve as examples for a balanced approach which is applicable across many markets and regions. Similar regulatory changes and decarbonization initiatives in the Asia Pacific region, where S&C Electric Asia Pacific operates, are being closely monitored (and possible legislative changes to import and export duties to the US).

Actions of competitors

A key objective of the company has been to raise industry awareness and market the benefits of S&C's products and solutions, and therefore welcomed the competitor activity of suppliers who provide like-minded but different solutions for this industry. S&C's quality design and manufacturing resources have been fundamental to the organization's philosophy throughout its 110-year plus history. Reliability and durability are engineered into every product to ensure quality manufacturing and delivery to the customer. Customers are now moving towards more sustainable solutions such as non-greenhouse gas alternatives in equipment.

KEY PERFORMANCE INDICATORS

The company monitors its performance using a number of measures including:

Measure

2024

2023

Turnover (£)

23.7m

16.3m

Stock (£)

4.4m

3.2m

Cash (Decrease) / Increase

4.1m

0.3m

Operating (Loss) / Profit (£)

(1.8m

)

(4.1m

)

The Directors consider these indicators capture performance improvements in company turnover and market share via distribution channels following the appointment of strategic distribution partners in target countries. Operating profits and economies of scale of costs are projected to be realised in the coming years.

ON BEHALF OF THE BOARD:

S T Leander - Director

11 February 2025

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

DIVIDENDS

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

RESEARCH AND DEVELOPMENT

Support existing products and improve quality and efficiency to maximise market share of S&C products. Customers are now moving towards non-green house gas which may require further engineering work for customer deployment.

FUTURE DEVELOPMENTS

We intend to continue to grow in the areas we are currently operating in with the current portfolio.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements. There are no subsequent events since end of the year ended 31 December 2024.

DIRECTORS

A Sjoelin has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

M J S Edmonds - resigned 17 October 2024

J M T Lander - resigned 17 August 2024

S T Leander - appointed 20 August 2024

FINANCIAL INSTRUMENTS

The financial risk management objectives and policies of the Group, including exposure to currency risk, credit risk, interest rate risk and liability risk are set out in note 18 to the financial statements

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 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.

The directors are responsible for preparing the Group 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 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.

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

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

AUDITORS

The Auditors, Sumer Auditco Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S T Leander - Director

11 February 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the 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 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 Statement of Directors' Responsibilities 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 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:

Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment law and company legislation and we considered the extent to which non-compliance might have a material effect on the financial statements of the group. 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 and Corporation Tax Act 2010. 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 risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

-

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

-

Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;

-

Reviewing the group's legal costs to check for non-compliance with laws and regulations and fraud;

-

Review of tax compliance;

-

Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses;

-

Testing transactions entered into outside of the normal course of the group's business; and

-

Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers.

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 misrepresentations, 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.

Martin Longmore (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditor

Chartered Accountants

Lennox House

3 Pierrepont Street

Bath

Somerset

BA1 1LB

12 February 2025

TURNOVER

5

23,679,725

16,292,517

Cost of sales

19,797,183

15,075,600

GROSS PROFIT

3,882,542

1,216,917

Administrative expenses

5,527,277

5,324,259

OPERATING LOSS

7

(1,644,735

)

(4,107,342

)

Interest receivable and similar income

17,903

4,875

(1,626,832

)

(4,102,467

)

Interest payable and similar expenses

8

-

17,746

LOSS BEFORE TAXATION

(1,626,832

)

(4,120,213

)

Tax on loss

9

-

(8,810

)

LOSS FOR THE FINANCIAL YEAR

(1,626,832

)

(4,111,403

)

Loss attributable to:

Owners of the parent

(1,626,832

)

(4,111,403

)

LOSS FOR THE YEAR

(1,626,832

)

(4,111,403

)

OTHER COMPREHENSIVE INCOME

Movement in Other Reserve

531,724

346,592

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

531,724

346,592

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,095,108

)

(3,764,811

)

Total comprehensive income attributable to:

Owners of the parent

(1,095,108

)

(3,764,811

)

FIXED ASSETS

Intangible assets

11

5,364

6,407

Tangible assets

12

546,619

645,841

Investments

13

-

-

551,983

652,248

CURRENT ASSETS

Stocks

14

4,373,195

3,180,215

Debtors

15

10,249,283

6,162,648

Cash at bank

10,530,189

6,404,673

25,152,667

15,747,536

CREDITORS

Amounts falling due within one year

16

38,891,219

28,513,655

NET CURRENT LIABILITIES

(13,738,552

)

(12,766,119

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(13,186,569

)

(12,113,871

)

PROVISIONS FOR LIABILITIES

19

326,599

304,189

NET LIABILITIES

(13,513,168

)

(12,418,060

)

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Capital Contribution Reserve

21

20,736,891

20,736,891

Other reserves

21

592,088

60,364

Retained earnings

21

(34,843,147

)

(33,216,315

)

SHAREHOLDERS' FUNDS

(13,513,168

)

(12,418,060

)

The financial statements were approved by the Board of Directors and authorised for issue on 11 February 2025 and were signed on its behalf by:

S T Leander - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

125,201

137,012

Investments

13

-

-

125,201

137,012

CURRENT ASSETS

Stocks

14

1,738,302

1,109,715

Debtors

15

4,637,268

1,695,111

Cash at bank

2,584,698

2,877,562

8,960,268

5,682,388

CREDITORS

Amounts falling due within one year

16

14,157,480

9,892,287

NET CURRENT LIABILITIES

(5,197,212

)

(4,209,899

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(5,072,011

)

(4,072,887

)

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Capital Contribution Reserve

21

20,736,891

20,736,891

Retained earnings

21

(25,809,902

)

(24,810,778

)

SHAREHOLDERS' FUNDS

(5,072,011

)

(4,072,887

)

Company's loss for the financial year

(999,124

)

(1,264,392

)

The financial statements were approved by the Board of Directors and authorised for issue on 11 February 2025 and were signed on its behalf by:

S T Leander - Director

Called up

Capital

share

Retained

Contribution

Other

Total

capital

earnings

Reserve

reserves

equity

£

£

£

£

£

Balance at 1 January 2023

1,000

(29,104,912

)

20,736,891

(286,228

)

(8,653,249

)

Changes in equity

Total comprehensive income

-

(4,111,403

)

-

346,592

(3,764,811

)

Balance at 31 December 2023

1,000

(33,216,315

)

20,736,891

60,364

(12,418,060

)

Changes in equity

Total comprehensive income

-

(1,626,832

)

-

531,724

(1,095,108

)

Balance at 31 December 2024

1,000

(34,843,147

)

20,736,891

592,088

(13,513,168

)

Called up

Capital

share

Retained

Contribution

Total

capital

earnings

Reserve

equity

£

£

£

£

Balance at 1 January 2023

1,000

(23,546,386

)

20,736,891

(2,808,495

)

Changes in equity

Deficit for the year

-

(1,264,392

)

-

(1,264,392

)

Total comprehensive income

-

(1,264,392

)

-

(1,264,392

)

Balance at 31 December 2023

1,000

(24,810,778

)

20,736,891

(4,072,887

)

Changes in equity

Deficit for the year

-

(999,124

)

-

(999,124

)

Total comprehensive income

-

(999,124

)

-

(999,124

)

Balance at 31 December 2024

1,000

(25,809,902

)

20,736,891

(5,072,011

)

Cash flows from operating activities

Cash generated from operations

1

4,182,544

(145,867

)

Interest paid

-

(17,746

)

Tax paid

-

11,650

Net cash from operating activities

4,182,544

(151,963

)

Cash flows from investing activities

Purchase of tangible fixed assets

(74,931

)

(238,959

)

Sale of tangible fixed assets

-

2,870

Interest received

17,903

4,875

Net cash from investing activities

(57,028

)

(231,214

)

Increase/(decrease) in cash and cash equivalents

4,125,516

(383,177

)

Cash and cash equivalents at beginning of year

2

6,404,673

6,787,850

Cash and cash equivalents at end of year

2

10,530,189

6,404,673

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

2024

2023

£

£

Loss before taxation

(1,626,832

)

(4,120,213

)

Depreciation charges

174,168

169,002

Loss on disposal of fixed assets

1,028

-

Movement in Other provisions

22,410

(20,970

)

Movement in Other reserve

531,724

346,592

Finance costs

-

17,746

Finance income

(17,903

)

(4,875

)

(915,405

)

(3,612,718

)

(Increase)/decrease in stocks

(1,192,981

)

1,570,212

Increase in trade and other debtors

(4,086,635

)

(3,347,688

)

Increase in trade and other creditors

10,377,565

5,244,327

Cash generated from operations

4,182,544

(145,867

)

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

10,530,189

6,404,673

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

6,404,673

6,787,850

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

6,404,673

4,125,516

10,530,189

6,404,673

4,125,516

10,530,189

Total

6,404,673

4,125,516

10,530,189

1.	STATUTORY INFORMATION

S&C Electric EMEA Ltd 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 (£), rounded to the nearest Pound.

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

These consolidated and separate financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

The company has taken advantage of the exemption in section 408 of the Companies Act from presenting its individual income statement.

Going concern

The group's financial statements show a loss for the financial year of £1,626,814 (2023 - £4,111,403) and net liabilities of £13,513,150 (2023 - £12,418,060).

After making enquiries, the directors have have determined there are no material uncertainties relating to events or conditions that, individual or collectively, may cast doubt on the group's ability to continue as a going concern. In making this assessment the directors have considered the following areas:

-

The group's results for the current period since the year end

-

The group's forecasts and projections for the forthcoming 12 month period

-

Assessment of liquidity and credit risk, including short-term working capital requirements and longer-term financing arrangements

-

Stability of trading partners and conditions of the market in which the company operates

-

Objectives and strategic direction of the group

-

The legal and regulatory requirements of the group and its operations

-

Confirmations provided from its ultimate parent company that it intends to provide adequate financial support to the group to enable it to continue its normal operations for the foreseeable future.

In conclusion, the directors, having considered all of the above areas, have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and on this basis the group therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings together with the group’s share of the results of associates made up to 31 December.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.

All intra-group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the group’s interest in the entity

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

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

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 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 expense recognised that it is probable will be recovered.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

Tangible fixed assets

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

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

Buildings

- over period of lease

Product demonstration centre

- 14% - 25% straight line

Office fit-out

- 5% straight line

Fixtures and fittings

- 5% - 25% straight line

Motor vehicles

- 15 - 20% straight line

Computer equipment

- 14.3% - 50% straight line

Laboratory equipment

- 14.3% - 25% straight line

Assets Under Construction

- Not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss.

Stocks

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

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 the profit

or loss. Reversals of impairment losses are also recognised in the profit or loss.