REGISTERED NUMBER: 14924740 (England and Wales)

Wind Bidco Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of 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:

J Cattermole

J Godber

M N Parkes

I Langley

J Marshall

A West

REGISTERED OFFICE:

Westcott House

Hesslewood Office Park

Ferriby Road

Hessle

East Yorkshire

HU13 0LH

REGISTERED NUMBER:

14924740 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

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

PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS

The company is a holding company, incorporated in June 2023 in order to acquire 100% of the share capital of Boston Energy Limited. The Group to continues to strengthen its position as Boston Energy, a leading provider of technical services to the wind energy industry.

The directors are pleased with the performance of Boston Energy Limited, with strengthened capability of the business which has enabled successful delivery of key commercial opportunities. This has helped deliver a significant increase in operating profitability over 2024.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group has a risk management structure to identify, manage and mitigate significant risks.

Operational risks

The Group has seen a high level of growth in recent years including significant growth in headcount. This increases the risk of recruitment of the right quality of individual. The Group is investing in increased training of its technicians to deliver against contracts, with accredited training capability in-house. A high level of focus on health and safety is encouraged and monitored across the business. The Group is also investing to broaden and deepen its management capability.

Cyber risk

The Group recognises the growing threat of cyber related fraud and attack and has put in place measures to protect its systems and information from attack. These continue to be reviewed and upgraded as the threat evolves.

Liquidity risk

The Group has established working capital facilities to support the anticipated level of growth and seasonal nature of its business. Management manage customer payment times closely and forecasts cashflow on a regular basis.

Market risk

The Group operates in a market which is seeing significant growth across a relatively small number of major customers, including OEMs and wind farm operators. The Group has expanded its customer base to reduce reliance on any single customer.

SECTION 172(1) STATEMENT

The directors have a duty, under section 172 (1) of the Companies Act 2006, to promote the success of the Company for the benefit of its members as a whole. This includes having due regard to the broad range of stakeholders of the Company, such as its workforce, customers, suppliers, shareholders, and its impact on the wider community and environment.

The Company’s Board comprises the Chair person, Chief Executive Officer, Chief Financial Officer and non-executive directors, who together are responsible for setting the strategy and managing the Group in line with established corporate governance principles. The Board regularly reviews the Group’s strategic objectives, goals and priorities to ensure the long-term consequences of decisions are well understood.

The Company engages with its shareholders on a regular basis through formal Board meetings, Board audit and remuneration committees, and through regular presentation of business and financial information.

It is a strategic priority for the Group to continue to enhance its reputation and delivery support for key customers, and its employees. Customer feedback is sought regularly at different management levels through project delivery, and employees are encouraged to engage with senior management through regular all-hands forums. The environmental impact of the Group’s operations is being considered through the implementation of a formal ESG strategy.

The Board is committed to maintaining a high standard of business conduct and to act equitably between its members. This commitment is supported by the governance structure and policies that are in place, and continue to be strengthened in response to changes in the business and market environment

KEY PERFORMANCE INDICATORS

The directors consider Turnover and EBITDA to be the most relevant KPIs for the group. These consolidated financial statements show the performance of the underlying business since acquisition, however to provide a more meaningful analysis, included in the table below are the full year results of the acquired business for FY24 and FY23 comparatives:

FY24 Full year

FY23 Full year

Movement

Turnover

£50.0m

£39.2m

+28.3%

EBITDA

£7.5m

£5.3m

+47.2%

The directors are pleased with the performance of these KPIs across the period under review.

FUTURE OUTLOOK

The directors consider that the Group is well placed, through a combination of its capability, and competitive and financial position, to increase its support to the wind industry which continues to grow as it supports security of energy supply and the transition of the global economy towards net zero.

ON BEHALF OF THE BOARD:

J Godber - Director

15 July 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.

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.

DIRECTORS

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

J Cattermole

J Godber

M N Parkes

I Langley

J Marshall

Other changes in directors holding office are as follows:

A W Sumner - resigned 29 February 2024

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

D Smith ceased to be a director after 31 December 2024 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The Group is exposed to foreign exchange rate risk as a result of its overseas operations. The Group aims to minimise the effect of the foreign exchange rate risk by having the direct expenses on contracts in the same currency as the income is generated. In addition the Group carefully monitors exchange rates to ensure that movements of funds between currencies are at the most favourable rates available at the time.

CREDIT RISK

The Group has implemented policies whereby it constantly monitors the creditworthiness of its customers. Credit control meetings are held regularly and there has been no material change in debtors' days.

ENGAGEMENT WITH EMPLOYEES

The directors make use of senior management throughout the group to ensure that all employees are kept upto date with key and relevant information. Each group location consults its employees as necessary when making material decisions which may affect them. Employees are encouraged to have an interest in the performance of the company and a general awareness of the group's performance.

EMPLOYEE INVOLVEMENT

The directors believes that all employees should be kept informed about the development and performance of the business. This has been achieved through internal media methods and regular meetings which are held between local management and employees to allow a free flow of information and ideas.

DISABLED EMPLOYEES

The group gives full consideration to applications for employment from disabled persons where the

requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The directors continuously consider key stakeholder relationships and develops them through ongoing support from all employees. The group considers relationships with customers and suppliers on a group-wide and local level and maintains strong relationships with all parties.

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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Godber - Director

15 July 2025

Opinion

We have audited the financial statements of Wind Bidco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of 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 five, 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:

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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.

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are those relating to the accounting framework, being the United Kingdom Accounting Standards including FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006, and the relevant direct and indirect tax compliance regulations in the United Kingdom. In addition, the company and its subsidiaries have to comply with laws and regulations including health and safety, employees, data protection and anti-bribery and corruption.

- We understood how Wind Bidco Limited is complying with those frameworks by making inquiries with management and those charged with governance to understand how the company maintains and communicates its policies and procedures in these areas and corroborated this by examining supporting documentation such as minutes of board and other senior management meetings, legal correspondence and communicates with relevant authorities.

- We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by evaluating the risks of management bias and override of controls. We performed analytical procedures to identify any unusual or unexpected relationships or transactions; tested specific journal entries by risk criteria; assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions.

- In response to the risk of irregularities and non-compliance with laws and regulations, our procedures included, but were not limited to, agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance and other senior management meetings; enquiring of management as to actual and potential litigation and claims; and reviewing correspondence with legal advisors.

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.

Matthew Fox, FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

16 July 2025

TURNOVER

3

49,984,104

24,337,786

Cost of sales

37,033,999

18,902,974

GROSS PROFIT

12,950,105

5,434,812

Administrative expenses

10,961,805

4,399,204

1,988,300

1,035,608

Other operating income

-

979

OPERATING PROFIT

5

1,988,300

1,036,587

Exceptional administrative

expenses

6

297,552

363,729

1,690,748

672,858

Interest receivable and similar income

12,710

4,195

1,703,458

677,053

Interest payable and similar expenses

7

6,119,657

2,825,381

LOSS BEFORE TAXATION

(4,416,199

)

(2,148,328

)

Tax on loss

8

1,048,363

854,229

LOSS FOR THE FINANCIAL YEAR

(5,464,562

)

(3,002,557

)

OTHER COMPREHENSIVE INCOME

Foreign exchange reserve

(83

)

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(83

)

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(5,464,645

)

(3,002,557

)

Loss attributable to:

Owners of the parent

(5,464,562

)

(3,002,557

)

Total comprehensive income attributable to:

Owners of the parent

(5,464,645

)

(3,002,557

)

FIXED ASSETS

Intangible assets

10

39,771,251

44,451,251

Tangible assets

11

689,164

512,669

Investments

12

-

-

40,460,415

44,963,920

CURRENT ASSETS

Stocks

13

-

7,923

Debtors

14

14,254,496

14,240,894

Cash at bank

7,487,508

3,490,196

21,742,004

17,739,013

CREDITORS

Amounts falling due within one year

15

13,936,962

7,758,519

NET CURRENT ASSETS

7,805,042

9,980,494

TOTAL ASSETS LESS CURRENT LIABILITIES

48,265,457

54,944,414

CREDITORS

Amounts falling due after more than one year

16

(56,215,348

)

(57,452,848

)

PROVISIONS FOR LIABILITIES

19

-

(6,187

)

NET LIABILITIES

(7,949,891

)

(2,514,621

)

CAPITAL AND RESERVES

Called up share capital

20

10,669

10,378

Share premium

21

506,642

477,558

Foreign Exchange Reserve

21

(83

)

-

Retained earnings

21

(8,467,119

)

(3,002,557

)

SHAREHOLDERS' FUNDS

(7,949,891

)

(2,514,621

)

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

J Godber - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

51,820,972

51,820,972

51,820,972

51,820,972

CURRENT ASSETS

Debtors

14

4,036,247

5,366,587

Cash at bank

41,255

181,053

4,077,502

5,547,640

CREDITORS

Amounts falling due within one year

15

7,726,363

2,377,402

NET CURRENT (LIABILITIES)/ASSETS

(3,648,861

)

3,170,238

TOTAL ASSETS LESS CURRENT LIABILITIES

48,172,111

54,991,210

CREDITORS

Amounts falling due after more than one year

16

56,215,348

57,452,848

NET LIABILITIES

(8,043,237

)

(2,461,638

)

CAPITAL AND RESERVES

Called up share capital

20

10,669

10,378

Share premium

506,642

477,558

Retained earnings

(8,560,548

)

(2,949,574

)

SHAREHOLDERS' FUNDS

(8,043,237

)

(2,461,638

)

Company's loss for the financial year

(5,610,974

)

(2,949,574

)

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

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

J Godber - Director

Called up

Foreign

share

Retained

Share

Exchange

Total

capital

earnings

premium

Reserve

equity

£

£

£

£

£

Changes in equity

Issue of share capital

10,378

-

477,558

-

487,936

Total comprehensive income

-

(3,002,557

)

-

-

(3,002,557

)

Balance at 31 December 2023

10,378

(3,002,557

)

477,558

-

(2,514,621

)

Changes in equity

Issue of share capital

417

-

41,719

-

42,136

Forfeiture of shares

(126

)

-

(12,635

)

-

(12,761

)

Total comprehensive income

-

(5,464,562

)

-

(83

)

(5,464,645

)

Balance at 31 December 2024

10,669

(8,467,119

)

506,642

(83

)

(7,949,891

)

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Changes in equity

Issue of share capital

10,378

-

477,558

487,936

Total comprehensive income

-

(2,949,574

)

-

(2,949,574

)

Balance at 31 December 2023

10,378

(2,949,574

)

477,558

(2,461,638

)

Changes in equity

Issue of share capital

417

-

41,719

42,136

Forfeiture of shares

(126

)

-

(12,635

)

(12,761

)

Total comprehensive income

-

(5,610,974

)

-

(5,610,974

)

Balance at 31 December 2024

10,669

(8,560,548

)

506,642

(8,043,237

)

Cash flows from operating activities

Cash generated from operations

1

7,461,577

5,514,603

Interest paid

(1,012,439

)

(483,716

)

Tax paid

(1,510,208

)

(630,831

)

Net cash from operating activities

4,938,930

4,400,056

Cash flows from investing activities

Purchase of tangible fixed assets

(503,546

)

(152,113

)

Purchase of fixed asset investments

-

(48,974,001

)

Sale of tangible fixed assets

36,539

(7,921

)

Interest received

12,710

4,195

Net cash from investing activities

(454,297

)

(49,129,840

)

Cash flows from financing activities

New loans in year

-

47,732,044

Loan repayments in year

(516,696

)

-

Share issue

291

10,378

Share premium

29,084

477,558

Net cash from financing activities

(487,321

)

48,219,980

Increase in cash and cash equivalents

3,997,312

3,490,196

Cash and cash equivalents at beginning of year

2

3,490,196

-

Cash and cash equivalents at end of year

2

7,487,508

3,490,196

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

Period

8.6.23

Year ended

to

31.12.24

31.12.23

£

£

Loss before taxation

(4,416,199

)

(2,148,328

)

Loss on disposal of fixed assets

14,170

24,099

Amortisation and depreciation

4,955,578

2,474,757

Movement in exchange rates

681

-

Finance costs

6,119,657

2,825,381

Finance income

(12,710

)

(4,195

)

6,661,177

3,171,714

Decrease in stocks

7,923

23,769

Decrease/(increase) in trade and other debtors

46,549

(816,061

)

Increase in trade and other creditors

745,928

3,135,181

Cash generated from operations

7,461,577

5,514,603

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

7,487,508

3,490,196

Period ended 31 December 2023

31.12.23

8.6.23

£

£

Cash and cash equivalents

3,490,196

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

3,490,196

3,997,312

7,487,508

3,490,196

3,997,312

7,487,508

Debt

Debts falling due within 1 year

(279,196

)

(720,804

)

(1,000,000

)

Debts falling due after 1 year

(47,452,848

)

1,237,500

(46,215,348

)

(47,732,044

)

516,696

(47,215,348

)

Total

(44,241,848

)

4,514,008

(39,727,840

)

1.	STATUTORY INFORMATION

Wind Bidco 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Basis of consolidation

The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31st December 2024. The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated statement of comprehensive income from the date of acquisition or up to the date of disposal.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements involves, in certain areas, the use of accounting estimates and management judgements. The key areas involving estimates and judgements are as follows:

- Recoverability of debtors

Turnover

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

Turnover represents amounts receivable for services net of VAT and trade discounts.

Dependant on the contract with the customer, turnover is either recognised on the basis of hours worked on customer contracts by the employees of the company, or it is recognised on the basis of fixed price agreed in the contract plus any additional billing as allowed by the contract.

Goodwill

Goodwill is recognised on business combinations and represents the excess of total consideration over the net fair value of assets and liabilities acquired. Goodwill is then amortised over its useful economic life of ten years. The Directors consider if indicators of impairment are present at each balance sheet date. If indicators are present, an impairment assessment is performed and, if the carrying value is higher than the recoverable amount, being the greater of the fair value less costs to sell or value in use, an impairment charge is recognised.

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.