REGISTERED NUMBER: NI029428 (Northern Ireland)

QUARRYTECH LIMITED

Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Consolidated Income Statement

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

K McCabe

J Robbins

REGISTERED OFFICE:

76 Ballynakilly Road

Dungannon

Co. Tyrone

BT71 6HD

REGISTERED NUMBER:

NI029428 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

Allied Irish Bank

18-20 Scotch Street

Dungannon

BT70 1AZ

SOLICITORS:

P A Duffy & Co

7-9 Market Square

Dungannon

Co Tyrone

BT70 1AB

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

PRINCIPAL ACTIVITY

The principal activity of the group is manufacturing of screening media and conveyor parts for the quarrying and recycling sectors. The principal activity of the company is a holding company with an investment property portfolio.

REVIEW OF BUSINESS

The directors aim to present a balanced and comprehensive review of the development and performance of the group during the year, as well as its position at 31 December 2024. The review is consistent with the size and nature of the group and is written in the context of the risks and uncertainties faced.

The group's business has performed satisfactorily during the year and remains in a sound financial position at the year end.

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

Revenue for the year decreased to £14,567,386 (2023 - £18,207,313). The gross profit margin increased during the year. Overall there was a decrease in group profitability. The group's operating profit decreased to £4,107,933 (2023:£5,801,275).

KEY PERFORMANCE INDICATORS

The group's key performance indicators are as follows;

2024

2023

Revenue

£14,567,386

£18,207,313

Gross Profit %

53.1%

51.1%

PRINCIPAL RISKS AND UNCERTAINTIES

As for many businesses of this size the principal risks and uncertainties are considered to relate to competition from other similar type entities, supplier stability, employee retention and the current economic climate. The directors will continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the business and its principal risks and uncertainties.

COMPETITION RISK

Competition risk comes from other manufacturing companies. The directors manage this risk ensuring a quality product offering and service is provided to all customers.

ECONOMIC RISK

Economic risk is inherent in the industry in which the group operates. The directors manage this risk by ensuring relationships with suppliers are maintained with the group having long standing relationships with such entities.

FUTURE DEVELOPMENTS

The group is committed to long term creation of shareholder value by increasing the group's market share. The group aims to increase revenue and operating profits. The group will continue to meet the needs of the customers and develop innovative solutions for their needs while remaining highly

competitive.

EMPLOYMENT POLICY

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

ON BEHALF OF THE BOARD:

K McCabe - Director

12 September 2025

The directors present their report with the audited 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. (2023: £Nil.)

DIRECTORS

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

K McCabe

J Robbins

FINANCIAL RISK MANAGEMENT

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

CREDIT RISK

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

LIQUIDITY RISK

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

FOREIGN EXCHANGE RISK

While the greater part of the company's revenues and expenses are denominated in sterling, the group is exposed to some foreign exchange risk in the normal course of business, principally on payments received in Euro and US Dollar. While the company has not used financial instruments to hedge foreign exchange exposure, this position is kept constantly under review.

PRICE RISK

The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the groups operation change in size or nature. The group has no exposure to equity securities price risk as it holds no listed or other equity investments.

Future developments

The section on future developments, which is detailed in the Strategic report, is included in this report by cross reference.

Results and dividends

The group's profit for the year ended 31 December 2024 is £ 3,016,269 ( 2023: £4,574,954)). No dividends were paid during the year (2023: £Nil) and there is no final dividend proposed (2023: £Nil).

Research and development

The company is currently undertaking research and development projects covering new products and process improvement

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025. CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in its place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

K McCabe - Director

12 September 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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

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

-

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

-

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

-

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

-

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

-

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

The audit response to risks identified included:

-

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

-

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

-

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ryan Falls FCA (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

12 September 2025

TURNOVER

5

14,567,386

18,207,313

Cost of sales

(6,839,262

)

(8,897,025

)

GROSS PROFIT

7,728,124

9,310,288

Distribution costs

(1,190,995

)

(1,114,049

)

Administrative expenses

(2,538,445

)

(2,488,021

)

3,998,684

5,708,218

Other operating income

109,249

93,057

OPERATING PROFIT

7

4,107,933

5,801,275

Finance income

117,861

53,571

4,225,794

5,854,846

Finance costs

8

(49,678

)

(91,599

)

PROFIT BEFORE TAXATION

4,176,116

5,763,247

Tax on profit

9

(1,159,847

)

(1,212,928

)

PROFIT FOR THE FINANCIAL YEAR

3,016,269

4,550,319

OTHER COMPREHENSIVE INCOME

Revaluation reserve movement

-

24,635

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

24,635

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,016,269

4,574,954

Profit attributable to:

Owners of the parent

3,016,269

4,550,319

Total comprehensive income attributable to:

Owners of the parent

3,016,269

4,574,954

NON-CURRENT ASSETS

Intangible fixed assets

11

-

-

Property, plant and equipment

12

9,836,736

10,235,786

Fixed asset investments

13

-

-

Investment property

14

5,507,060

5,449,045

15,343,796

15,684,831

CURRENT ASSETS

Inventories

15

2,212,177

2,304,494

Receivables: amounts falling due within one year

16

12,806,378

12,726,791

Cash at bank and in hand

9,597,626

5,952,542

24,616,181

20,983,827

PAYABLES

Amounts falling due within one year

17

(9,221,918

)

(9,016,519

)

NET CURRENT ASSETS

15,394,263

11,967,308

TOTAL ASSETS LESS CURRENT LIABILITIES

30,738,059

27,652,139

PROVISIONS FOR LIABILITIES

19

(704,888

)

(617,438

)

DEFERRED INCOME

20

(85,631

)

(103,430

)

NET ASSETS

29,947,540

26,931,271

CAPITAL AND RESERVES

Called up share capital

21

200,000

200,000

Other reserves

22

1,064,688

1,064,688

Retained earnings

22

28,682,852

25,666,583

SHAREHOLDERS' FUNDS

29,947,540

26,931,271

The financial statements were approved by the Board of Directors and authorised for issue on 12 September 2025 and were signed on its behalf by:

K McCabe - Director

NON-CURRENT ASSETS

Intangible fixed assets

11

-

-

Property, plant and equipment

12

891,998

1,040,665

Fixed asset investments

13

2

2

Investment property

14

14,066,852

13,959,885

14,958,852

15,000,552

CURRENT ASSETS

Receivables: amounts falling due within one year

16

9,115,309

8,864,013

Cash at bank

6,706,385

2,032,425

15,821,694

10,896,438

PAYABLES

Amounts falling due within one year

17

(12,384,367

)

(10,012,178

)

NET CURRENT ASSETS

3,437,327

884,260

TOTAL ASSETS LESS CURRENT LIABILITIES

18,396,179

15,884,812

PROVISIONS FOR LIABILITIES

19

(576,001

)

(451,288

)

DEFERRED INCOME

20

-

(7,822

)

NET ASSETS

17,820,178

15,425,702

CAPITAL AND RESERVES

Called up share capital

21

200,000

200,000

Other reserves

1,064,688

1,064,688

Retained earnings

16,555,490

14,161,014

SHAREHOLDERS' FUNDS

17,820,178

15,425,702

Company's profit for the financial year

2,394,476

3,302,461

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 12 September 2025 and were signed on its behalf by:

K McCabe - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

200,000

21,116,264

1,040,053

22,356,317

Changes in equity

Total comprehensive income

-

4,550,319

24,635

4,574,954

Balance at 31 December 2023

200,000

25,666,583

1,064,688

26,931,271

Changes in equity

Total comprehensive income

-

3,016,269

-

3,016,269

Balance at 31 December 2024

200,000

28,682,852

1,064,688

29,947,540

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

200,000

10,858,553

1,040,053

12,098,606

Changes in equity

Profit for the year

-

3,302,461

-

3,302,461

Other comprehensive income

-

-

24,635

24,635

Total comprehensive income

-

3,302,461

24,635

3,327,096

Balance at 31 December 2023

200,000

14,161,014

1,064,688

15,425,702

Changes in equity

Profit for the year

-

2,394,476

-

2,394,476

Total comprehensive income

-

2,394,476

-

2,394,476

Balance at 31 December 2024

200,000

16,555,490

1,064,688

17,820,178

Cash flows from operating activities

Cash generated from operations

1

6,052,016

6,365,471

Interest paid

(49,678

)

(91,599

)

Tax paid

(2,324,174

)

(1,469,406

)

Net cash from operating activities

3,678,164

4,804,466

Cash flows from investing activities

Purchase of tangible fixed assets

(177,125

)

(499,689

)

Purchase of investment property

(58,015

)

-

Sale of tangible fixed assets

84,199

55,357

Interest received

117,861

53,571

Net cash from investing activities

(33,080

)

(390,761

)

Cash flows from financing activities

Loan repayments in year

-

(2,130,712

)

Net cash from financing activities

-

(2,130,712

)

Increase in cash and cash equivalents

3,645,084

2,282,993

Cash and cash equivalents at beginning of year

2

5,952,542

3,669,549

Cash and cash equivalents at end of year

2

9,597,626

5,952,542

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

2024

2023

£

£

Profit before taxation

4,176,116

5,763,247

Depreciation charges

495,522

561,049

Profit on disposal of fixed assets

(3,546

)

(14,889

)

Movement in revaluation reserve

-

24,635

Government grants

(17,799

)

(51,091

)

Finance costs

49,678

91,599

Finance income

(117,861

)

(53,571

)

4,582,110

6,320,979

Decrease/(increase) in inventories

30,127

(277,532

)

Decrease/(increase) in trade and other debtors

292,689

(1,712,948

)

Increase in trade and other creditors

1,147,090

2,034,972

Cash generated from operations

6,052,016

6,365,471

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

9,597,626

5,952,542

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

5,952,542

3,669,549

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

5,952,542

3,645,084

9,597,626

5,952,542

3,645,084

9,597,626

Total

5,952,542

3,645,084

9,597,626

1.	STATUTORY INFORMATION

Quarrytech Limited is a private company, limited by shares, registered in Northern Ireland, within the United Kingdom. The company's registered number and registered office address can be found on the General Information page.

The principal activity of the group is the manufacturing of screening media and conveyor parts for the quarrying and recycling sectors. The principal activity of the company is a holding company with investment property portfolio.

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. The financial statements are stated in Pound Sterling (£) which is also the functional currency of the group.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention. Historical cost is generally based on the fair value of consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group financial statements.

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 4.

Group Financial Statements

The group financial statements consolidate the financial statements of its subsidiary undertakings drawn up to 31 December each year. Consistent accounting policies are applied across companies within the group. The results of subsidiary undertakings sold or acquired are included in the consolidated income statement up to or from the date control passes. Intra-group sales, profits and balances are eliminated fully on consolidation. No income statement is presented for Quarrytech Limited as permitted by section 408 of the Companies Act 2006.

Financial Reporting Standard 102 - reduced disclosure exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions.

The company has taken advantage of the following exemptions:

-

from presenting its own Income Statement in the financial statements as permitted under section 408 of the Companies Act 2006:

-

from preparing a Statement of cash flows on the basis that it is a qualifying entity: its cash flows is included in the cash flows in the consolidated financial statements:

-

from the financial instrument disclosures, required under FRS 102 paragraphs 11.41(b) to 11.48(c) and 12.26 to 12.29. as the information is provided in the consolidated statement disclosure; and

-

from disclosing the company's key management personnel compensation as required by FRS 102 paragraph 33.7.

Revenue

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

Sale of goods:

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

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

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

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the group, and;

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

Sale of services:

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

- the amount of revenue can be measured reliably;

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

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

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

Property, plant and equipment

Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold property

2% Straight line

Plant and machinery

10% Straight line

Fixtures, fittings and equipment

15% Reducing balance

Motor vehicles

25% Reducing balance

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

Investment property

Investment properties are included in the Statement of Financial Position at their fair value at each reporting period in accordance with FRS 102 and are not depreciated. Movements in the fair value of investment properties are recognised in the Income Statement. Deferred tax is provided at the rate expected to apply when the property is sold.

Inventories

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

Investment

Investment in subsidiaries are measured at cost less impairment.