REGISTERED NUMBER: 02262473 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

FARMSTAR LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTORS:

C R Brown

B M Bannister

R A Lister

REGISTERED OFFICE:

Grove Farm

Church Lane

Marr

DONCASTER

DN5 7AU

REGISTERED NUMBER:

02262473 (England and Wales)

SENIOR STATUTORY AUDITOR:

Peter Mellor BA FCA

AUDITORS:

Glover & Co

Chartered Accountants and Statutory Auditor

13/15 Netherhall Road

DONCASTER

DN1 2PH

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

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the end of the period. Our review is consistent with the size and non - complex nature of our business and is written in the context of the risks and uncertainties we face.

REVIEW OF BUSINESS

The company is a well - established machinery dealership who are dedicated to providing an industry leading level of service to our primary sectors of agriculture, groundcare and local authorities. The company sell, hire, service and supply parts for all of the previously listed sectors. The parts department stocks a wide range of parts and accessories, and the service department provides the services of highly trained technicians.

The head office of the business is located close to the A1 near Doncaster and together with depots at Brigg and Market Weighton serves Yorkshire and Lincolnshire areas.

The board considers that our key financial indicators are those that communicate the financial performance and strength of the company, these being turnover, gross margin, profit before tax and cash generation:-

PRINCIPAL RISKS AND UNCERTAINTIES

INTEREST RATES

The company's operations are exposed to rises in the interest rate as this will have a negative impact on our financial performance. This risk primarily arises from the company's borrowings to fund stock on hand due to the large asset values. The Management team minimise this risk by continually monitoring the stock levels to keep them as low as possible without impacting the level of service provided to customers.

COMPETITOR RISK

The company operates in a competitive market driven by price pressures and competitors attempting to buy market share, to mitigate the risk of this the company concentrates on providing industry leading customer services backed up by its well established franchises.

COMMERCIAL RELATIONSHIPS

The company has strong commercial relationships with a number of key suppliers, damage to or loss of these relationships could have a negative impact on results. Good management of these relationships minimises the risk.

FOREIGN EXCHANGE AND TREASURY POLICY

The company does not have significant turnover from overseas customers, exposure to exchange rate movements is minimised by selling to customers in GBP.

CREDIT RISKS

The Management team accept that the company is exposed to a small amount of credit risks however strong credit control procedures are in place and all steps are taken to minimise the risk.

LIQUIDITY RISK

The company closely monitors working capital and exposure is managed with the bank overdraft, stocking finance and hire purchase facilities.

SECTION 172(1) STATEMENT

The Directors confirm that they have acted in good faith in the way they consider what would be most likely to promote the success of the Company for the benefit of its members as a whole. In so doing they have considered, among other matters, those set out in section 172(1)(a) to (f) of the Companies ACt 2006:

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

- The interests of the Company's employees;

- The need to foster the Company's business relationships with suppliers, customers and others; the impact of the Company's operations on the community and environment, the desirability of the Company to maintain a reputation for high standards of business conduct; and

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

This statement applies equally to Directors individually and when acting collectively as the Board.

In discharging their duties in relation to section 172(1), careful consideration is given to the matters set out above.

The stakeholders we consider in this regard are primarily

- Shareholders

- Employees

- Suppliers and Customers

- The Environment

- The Community

How we engage and foster strong relationships with some of our stakeholders.

Shareholders

The Managing Director regularly engages with the shareholders and feedback significant matters raised.

Employees

Our people are key to everything we do. The long-term success of the Company is dependent on its ability to attract and maintain competent individuals.

We continue to invest to make our environment a better place to work and aim to become an employer of choice.

We keep employees up to date with information, including regulatory and safety procedures with a staff notice board at each depot.

Health & Safety - It is company policy that all possible steps will be taken to ensure high standards of health, safety and welfare conditions of all persons on its premises. We engage a third party to continually assess this and provide us with feedback for improvements where required.

Suppliers and Customers

We continue to foster and develop our engagement with suppliers and customers throughout the business via;

- Collaborations with our suppliers

- Customer events on company premises and also at local and national agricultural shows.

Environmental

The company now has a focus on improving its environmental performance. It seeks to minimise business activities which may have an impact on the environment by disposing of waste for recycling.

We are committed to;

- Informing our employees on environmental issues

- Improving the energy efficiency of our buildings

- Minimisiing our annual waste production and waste to landfill

- Selecting fuel efficient and low CO2 vehicles where possible

- Encouraging energy conservation, recycling and re-use

The Community

We are committed to creating and maintaining long term opportunities in our communities. We seek to engage with the wider communities in which we operate by;

- Social Media

- County shows

- Company website

- Support for local charities and sporting associations

How the Board considers stakeholders in decision making

Strategy

At every senior management meeting they review the progress of each part of the business. Board decisions are taken with reference to the long-term financial success of the company and its stakeholders.

Training

All staff are given the opportunity to be engaged in training to improve their skills for the benefit of themselves and the company.

KEY MANAGEMENT PERSONNEL

The company employs 80 people who are paramount to its success. The key management personnel are the directors together with the senior management team.

KEY PERFORMANCE INDICATORS

2024

2023

£

£

Turnover

35,755

40,760

Gross Margin

3,728

3,635

Profit/(Loss) before tax

(950

)

(705

)

Cash Generation

(256

)

(111

)

Close control of working capital is in place, with bank statements monitoring the level of cash at the bank and checked on a daily basis.

RESULTS AND PERFORMANCE

The company has continued to face major challenges in the year due to high interest rates and circumstances such as the ongoing cost of living crisis which has led to increased operating costs, the company monitors these costs and controls them wherever possible.

STRATEGY

The company will continue to strive to to grow market share for its product franchises. All areas of the business will be continually reviewed to ensure that best working practices are implemented and in operation, this is in order to achieve high levels of customer satisfaction, increase profitability and ensure that the company can continue to reinvest in its long term future. The company will also look for areas of opportunity with regards to expansion and diversification.

HEALTH AND SAFETY

The company recognises the importance of Health and Safety in the workplace and therefore it is taken very seriously. The company continues to use an external health and safety consultant to provide guidance and ensure compliance with current legislation.

ENVIRONMENTAL AND CLIMATE CHANGE

The company has invested in hybrid vehicles and is looking to renew it's energy supply with a renewable energy supplier. The company uses a registered waste removal contractor to recycle its waste products in accordance with current legislation. The company recognises its role in operating sustainably and is doing everything it can to reduce the environmental impact from its day to day operations.

CORE VALUES

Customer Focus - We want everyone to put the needs of the customer at the heart of everything we do. They need to feel valued and supported at every step of their journey. We need to understand their needs fully with every transaction and contact point.

Integrity - To be accountable for every action and decision we make. To have self-awareness and always ask "is this beneficial for both the customer and for Farmstar as a business"

Unity - To stand united as a one team and as one company. To have company problems and opportunities, not departmental or individual ones.

ON BEHALF OF THE BOARD:

C R Brown - Director

26 September 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 50,054 .

DIRECTORS

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

C R Brown

B M Bannister

R A Lister

Other changes in directors holding office are as follows:

A T Waddington ceased to be a director after 31 December 2024 but prior to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING

2024

2023

KWH

Tonnes CO2

KWH

Tonnes CO2

Gas and fuel oil

405,554

101

413,545

103

Transportation

1,934,187

485

2,133,477

535

Electricity

242,723

50

249,452

51

Total

2,582,464

636

2,796,473

689

UK energy covers all activities across all depots of the company.

Associated Greenhouse Gases have been calculated using UK Government CHG conversion factors.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The Auditors, Glover & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C R Brown - Director

26 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above, our procedures to respond to the risks identified included the following: " reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; " performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; " enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and " reading minutes of meetings where available of those charged with governance and reviewing internal audit reports.

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.

Peter Mellor BA FCA (Senior Statutory Auditor)

for and on behalf of Glover & Co

Chartered Accountants and Statutory Auditor

13/15 Netherhall Road

DONCASTER

DN1 2PH

26 September 2025

TURNOVER

3

35,755,807

40,760,075

Cost of sales

32,027,620

37,124,848

GROSS PROFIT

3,728,187

3,635,227

Distribution costs

2,547,680

2,593,074

Administrative expenses

1,381,265

1,171,246

3,928,945

3,764,320

(200,758

)

(129,093

)

Other operating income

2,800

4,775

OPERATING LOSS

5

(197,958

)

(124,318

)

Interest receivable and similar income

8,944

3,092

(189,014

)

(121,226

)

Interest payable and similar expenses

6

761,024

583,894

LOSS BEFORE TAXATION

(950,038

)

(705,120

)

Tax on loss

7

(105,081

)

(481

)

LOSS FOR THE FINANCIAL YEAR

(844,957

)

(704,639

)

LOSS FOR THE YEAR

(844,957

)

(704,639

)

OTHER COMPREHENSIVE INCOME

Property re-valuation in year

103,767

707,739

Income tax relating to other comprehensive income

-

(275,531

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

103,767

432,208

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(741,190

)

(272,431

)

FIXED ASSETS

Tangible assets

10

5,074,894

5,429,801

CURRENT ASSETS

Stocks

11

12,131,071

16,087,219

Debtors

12

1,312,654

2,114,874

Cash at bank and in hand

110,014

106,111

13,553,739

18,308,204

CREDITORS

Amounts falling due within one year

13

12,907,427

17,107,855

NET CURRENT ASSETS

646,312

1,200,349

TOTAL ASSETS LESS CURRENT LIABILITIES

5,721,206

6,630,150

CREDITORS

Amounts falling due after more than one year

14

(2,044,976

)

(2,154,569

)

PROVISIONS FOR LIABILITIES

18

(369,668

)

(377,775

)

NET ASSETS

3,306,562

4,097,806

CAPITAL AND RESERVES

Called up share capital

19

155,672

155,672

Share premium

20

27,734

27,734

Revaluation reserve

20

755,579

651,812

Retained earnings

20

2,367,577

3,262,588

SHAREHOLDERS' FUNDS

3,306,562

4,097,806

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

C R Brown - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

155,672

4,017,281

27,734

219,604

4,420,291

Changes in equity

Dividends

-

(50,054

)

-

-

(50,054

)

Total comprehensive income

-

(704,639

)

-

432,208

(272,431

)

Balance at 31 December 2023

155,672

3,262,588

27,734

651,812

4,097,806

Changes in equity

Dividends

-

(50,054

)

-

-

(50,054

)

Total comprehensive income

-

(844,957

)

-

103,767

(741,190

)

Balance at 31 December 2024

155,672

2,367,577

27,734

755,579

3,306,562

Cash flows from operating activities

Cash generated from operations

1

1,437,208

1,885,809

Interest paid

(630,038

)

(478,936

)

Interest element of hire purchase payments paid

(130,986

)

(104,958

)

Tax paid

47,687

(190,052

)

Net cash from operating activities

723,871

1,111,863

Cash flows from investing activities

Purchase of tangible fixed assets

(1,323,441

)

(1,394,386

)

Sale of tangible fixed assets

1,059,041

536,650

Interest received

8,944

3,092

Net cash from investing activities

(255,456

)

(854,644

)

Cash flows from financing activities

Loan repayments in year

(241,119

)

(227,992

)

HP new contracts and capital repayments

(403,692

)

(90,238

)

Amount withdrawn by directors

(29,706

)

-

Equity dividends paid

(50,054

)

(50,054

)

Net cash from financing activities

(724,571

)

(368,284

)

Decrease in cash and cash equivalents

(256,156

)

(111,065

)

Cash and cash equivalents at beginning of year

2

(563,114

)

(452,049

)

Cash and cash equivalents at end of year

2

(819,270

)

(563,114

)

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

2024

2023

£

£

Loss before taxation

(950,038

)

(705,120

)

Depreciation charges

753,941

1,061,133

Profit on disposal of fixed assets

(30,868

)

(71,203

)

Finance costs

761,024

583,894

Finance income

(8,944

)

(3,092

)

525,115

865,612

Decrease/(increase) in stocks

3,956,148

(2,944,310

)

Decrease/(increase) in trade and other debtors

803,452

(319,693

)

(Decrease)/increase in trade and other creditors

(3,847,507

)

4,284,200

Cash generated from operations

1,437,208

1,885,809

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

110,014

106,111

Bank overdrafts

(929,284

)

(669,225

)

(819,270

)

(563,114

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

106,111

104,129

Bank overdrafts

(669,225

)

(556,178

)

(563,114

)

(452,049

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

106,111

3,903

110,014

Bank overdrafts

(669,225

)

(260,059

)

(929,284

)

(563,114

)

(256,156

)

(819,270

)

Debt

Finance leases

(2,823,684

)

403,692

(2,419,992

)

Debts falling due within 1 year

(241,120

)

(14,600

)

(255,720

)

Debts falling due after 1 year

(667,796

)

255,720

(412,076

)

(3,732,600

)

644,812

(3,087,788

)

Total

(4,295,714

)

388,656

(3,907,058

)

1.	STATUTORY INFORMATION

Farmstar Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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 as modified by the revaluation of certain assets.

The financial statements have been prepared under the historical cost convention as modified by the revaluation of land and buildings, and in accordance with applicable accounting standards.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of value added tax and trade discounts. The policies adopted for the recognition of turnover are as follows:

Farm plant and machinery, spares, tools and accessories.

Turnover from the sale of these items is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on the shipment, completion of the product or the product being ready for delivery, based on the terms with the customer.

Repairs and servicing.

Turnover from the above is recognised when the work is complete, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually when the work is complete.

Warranties

Turnover from warranties can be measured reliably and is recognised on the sale of the warranty. All warranties are provided by third parties with no obligation passing to the company.

Hire of plant.

Turnover from the above can be measured reliably and is recognised by spreading the income received or receivable over the term of the hire agreement.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses were applicable. Cost includes costs directly attributable to making the asset capable of operatng as intended.

Depreciation is provided on all tangible fixed assets, at rates calculate to right of the cost or valuation, less estimated residual value of each asset on a systematic basis over its expected useful life as follows:

Land and building 2% on cost/valuation.

Plant and machinery 25% on reducing balance or 25%/20%/15% on cost.

Hire vehicles 15%/10% on cost/reducing balance.

Land and buildings were valued on an open market basis, as supported by professional independent valuation carried out on a periodic/timely basis.