REGISTERED NUMBER: 05498728 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 JULY 2023 TO 31 DECEMBER 2024

FOR

POLYTECK BUILDING SERVICES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

Y G Polycarpou

C Polycarpou

SECRETARY:

Mrs L Polycarpou

REGISTERED OFFICE:

143 Leman Street

London

E1 8EY

REGISTERED NUMBER:

05498728 (England and Wales)

AUDITORS:

AGK Partnership Ltd

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

The directors present their strategic report for the period 1 July 2023 to 31 December 2024.

REVIEW OF BUSINESS

The company operates primarily in facilities management, property development, and general building contracting. Throughout the 2023-2024 period, we secured several high-profile maintenance contracts, which contributed significantly to our growth. We successfully met many of our key performance indicators, reflecting our operational efficiency and service quality.

For the 18-month reporting period, turnover reached £42,020,025, up from £36,180,922 in the previous 18-month period. Profit before tax stood at £2,402,577, compared to £1,714,604 in the previous 18-month period. As of the balance sheet date, the company's financial position remains robust, with shareholders' funds totalling £3,065,499 (2023: £6,148,436), despite a one-off dividend in specie of £4,492,414 declared during the group reorganisation.

Looking ahead, our strategic priorities include retaining existing contracts while pursuing growth opportunities to ensure long-term sustainability. We are committed to working closely with our clients to deliver customized service plans across the properties we manage. Our ambition to innovate and elevate service standards across both public and private sectors has already driven substantial growth.

We are also investing in digital transformation, with a particular focus on upgrading our software systems and operational platforms. This includes integrating AI-powered tools to enhance the effectiveness of our engineering teams and maintain a competitive edge. Significant recruitment and IT investments have laid a strong foundation for sustained growth over the next three years.

In line with evolving environmental, social, and governance (ESG) standards, we are actively partnering with clients to support net-zero carbon initiatives. To meet rising demand and maintain our service quality, we continue to invest in skilled personnel and a modernized fleet. These initiatives reflect our long-term commitment to innovation, excellence, and responsible growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The building and maintenance services sector is highly competitive. Our strategy is focused on consistent performance improvement through proactive risk management across all operations. Our direct delivery model, employing a skilled and diverse workforce across multiple trades, allows us to reduce dependency on subcontractors and generate stable employment. This model not only ensures consistent quality and reliability for clients but also reinforces a secure operating environment.

Competition Risk

The company serves a broad client base across both private and public sectors. In the private sector, we work with established managing agents, developers, and property consultants-many of whom are long-standing clients. Our operations span both commercial and high-end residential projects.

In the public sector, we partner with reputable local authorities and operate under framework agreements awarded through competitive tendering processes. The renewal of these contracts is subject to stringent financial and performance benchmarks.

Currently, 70% of our business is derived from the private sector, with the remaining 30% from the public sector. This balance allows us to maintain a resilient and diversified revenue stream.

Credit Risk

Credit risk refers to the possibility that one party to a financial instrument may cause a financial loss to another by failing to fulfill their contractual obligations. The company's policies are designed to minimize such losses by granting deferred payment terms only to customers with a proven track record of timely payments and who meet established creditworthiness criteria.

The company maintains a low concentration of credit risk, with exposure distributed across a broad base of customers operating in various industry sectors.

Other commercial risks are effectively managed through robust internal control systems and regular monitoring of monthly management accounts.

Interest Rate Risk

The recent rise in interest rates has posed challenges, particularly during a period of business expansion. Nevertheless, the company has continued to grow, as evidenced by an increase in turnover from £36.2 million in 2023 to £42.02 million in 2024.

Liquidity Risk

Liquidity risk arises when there is a mismatch between the maturity profiles of assets and liabilities. While such a mismatch can potentially enhance profitability, it also increases the risk of financial loss. The company mitigates this risk through prudent cash flow management, including maintaining sufficient cash reserves and other highly liquid assets, as well as ensuring access to adequate committed credit facilities.

KEY PERFORMANCE INDICATORS

2024 (18 months)

2023 (18 months)

£

£

Turnover

42,020,025

36,180,922

Gross Profit

9,529,854

8,126,665

Gross Margin

22.68%

22.46%

Profit before Tax

2,402,577

1,714,604

Net Assets

3,053,720

6,148,436

Quick Asset Ratio

0.96

1.68

ON BEHALF OF THE BOARD:

Y G Polycarpou - Director

16 September 2025

The directors present their report with the financial statements of the company for the period 1 July 2023 to 31 December 2024.

PRINCIPAL ACTIVITY

The principal activities of the company continued to be that of facilities management, property development and

general building contractor.

DIVIDENDS

An interim dividend of £43.6 per share was paid on 6 April 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £436,000

During the financial period, the company distributed its construction and development business, together with related assets and liabilities, by way of a dividend in specie of £4,492,414 to its parent undertaking, Strata Property Holdings Ltd, as part of a group reorganisation. The distribution was effected through a transfer of the business to Fosters Building Services Limited in consideration for the issue of shares in Fosters Building Services Limited to the parent undertaking. As part of the same reorganisation, Fosters Building Services Limited was subsequently demerged and ceased to be a member of the group.

DIRECTORS

Y G Polycarpou has held office during the whole of the period from 1 July 2023 to the date of this report.

Other changes in directors holding office are as follows:

C Polycarpou - appointed 27 November 2024

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;

-	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, AGK Partnership Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Y G Polycarpou - Director

16 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the period 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge and experience of the industry;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the 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, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedure described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with law and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Alekos Christofi (Senior Statutory Auditor)

for and on behalf of AGK Partnership Ltd

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

16 September 2025

TURNOVER

3

42,020,025

36,180,922

Cost of sales

32,490,171

28,054,257

GROSS PROFIT

9,529,854

8,126,665

Administrative expenses

7,359,607

6,483,303

2,170,247

1,643,362

Other operating income

604,450

355,275

OPERATING PROFIT

5

2,774,697

1,998,637

Interest receivable and similar income

11,215

254

2,785,912

1,998,891

Interest payable and similar expenses

7

383,335

284,287

PROFIT BEFORE TAXATION

2,402,577

1,714,604

Tax on profit

8

568,879

424,174

PROFIT FOR THE FINANCIAL PERIOD

1,833,698

1,290,430

PROFIT FOR THE PERIOD

1,833,698

1,290,430

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,833,698

1,290,430

FIXED ASSETS

Intangible assets

10

211,518

310,323

Tangible assets

11

1,224,600

1,049,106

Investment property

12

400,000

400,000

1,836,118

1,759,429

CURRENT ASSETS

Stocks

13

2,504,225

976,459

Debtors

14

9,776,967

10,678,338

Cash at bank and in hand

15

6,914

202,119

12,288,106

11,856,916

CREDITORS

Amounts falling due within one year

16

10,209,211

6,462,242

NET CURRENT ASSETS

2,078,895

5,394,674

TOTAL ASSETS LESS CURRENT LIABILITIES

3,915,013

7,154,103

CREDITORS

Amounts falling due after more than one year

17

(702,206

)

(840,522

)

PROVISIONS FOR LIABILITIES

20

(159,087

)

(165,145

)

NET ASSETS

3,053,720

6,148,436

CAPITAL AND RESERVES

Called up share capital

21

112

112

Retained earnings

22

3,053,608

6,148,324

SHAREHOLDERS' FUNDS

3,053,720

6,148,436

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

Y G Polycarpou - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2022

112

4,857,894

4,858,006

Changes in equity

Total comprehensive income

-

1,290,430

1,290,430

Balance at 30 June 2023

112

6,148,324

6,148,436

Changes in equity

Dividends

-

(4,928,414

)

(4,928,414

)

Total comprehensive income

-

1,833,698

1,833,698

Balance at 31 December 2024

112

3,053,608

3,053,720

Cash flows from operating activities

Cash generated from operations

1

2,383,328

768,131

Interest paid

(383,335

)

(284,287

)

Tax paid

(357,866

)

(225,554

)

Net cash from operating activities

1,642,127

258,290

Cash flows from investing activities

Purchase of tangible fixed assets

(773,496

)

(520,445

)

Sale of tangible fixed assets

79,887

86,234

Interest received

11,215

254

Net cash from investing activities

(682,394

)

(433,957

)

Cash flows from financing activities

New loans in year

269,250

-

Loan repayments in year

(554,417

)

-

Hire Purchase

226,225

-

Capital repayments in year

226,225

(26,229

)

Amount withdrawn by directors

(34,787

)

-

Equity dividends paid

(436,000

)

-

Net cash from financing activities

(303,504

)

(26,229

)

Increase/(decrease) in cash and cash equivalents

656,229

(201,896

)

Cash and cash equivalents at beginning of period

2

(1,253,356

)

(1,051,460

)

Cash and cash equivalents at end of period

2

(597,127

)

(1,253,356

)

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

Period

Period

1.7.23

1.1.22

to

to

31.12.24

30.6.23

£

£

Profit before taxation

2,402,577

1,714,604

Depreciation charges

651,656

492,058

Profit on disposal of fixed assets

(34,735

)

(32,985

)

Increase in amt owed by connected co's

(102,045

)

(2,611,548

)

Increase in amt owed to connected co's

3,095,062

260,898

Dividend in specie

(4,492,414

)

-

Other Income

(586,075

)

(336,900

)

Finance costs

383,335

284,287

Finance income

(11,215

)

(254

)

1,306,146

(229,840

)

Increase in stocks

(1,527,766

)

(726,146

)

Decrease in trade and other debtors

1,003,415

4,522,586

Increase/(decrease) in trade and other creditors

1,601,533

(2,798,469

)

Cash generated from operations

2,383,328

768,131

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:

Period ended 31 December 2024

31.12.24

1.7.23

£

£

Cash and cash equivalents

6,914

202,119

Bank overdrafts

(604,041

)

(1,455,475

)

(597,127

)

(1,253,356

)

Period ended 30 June 2023

30.6.23

1.1.22

£

£

Cash and cash equivalents

202,119

1,734

Bank overdrafts

(1,455,475

)

(1,053,194

)

(1,253,356

)

(1,051,460

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.23

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

202,119

(195,205

)

6,914

Bank overdrafts

(1,455,475

)

851,434

(604,041

)

(1,253,356

)

656,229

(597,127

)

Debt

Finance leases

(501,646

)

(226,225

)

(727,871

)

Debts falling due within 1 year

(177,233

)

(27,329

)

(204,562

)

Debts falling due after 1 year

(554,417

)

312,496

(241,921

)

(1,233,296

)

58,942

(1,174,354

)

Total

(2,486,652

)

715,171

(1,771,481

)

1.	STATUTORY INFORMATION

Polyteck Building Services 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.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period or in the period of the revision and future periods where the revision affects both current and future periods.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

The directors consider the foreseeable future to be a period of not less than twelve months from the date of publication of these annual financial statements. In forming this view, the directors have considered the company’s balance sheet position as at the year end, its working capital forecasts and projections, including the potential impact of changes in trading performance and the current state of its operating market. Based on this assessment, the directors are satisfied that the company’s financial position is improving and will support the company’s continued operational existence for the foreseeable future.

In addition, the directors, together with the shareholders, have confirmed their commitment to provide continuing financial support as and when required to enable the company to meet its obligations and continue trading. Consequently, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Turnover

Revenue is recognised upon rendering of construction services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those services. To recognise revenues, the company applies following five step approach:

(1) identify the contract with a customer,

(2) identify the performance obligations in the contract,

(3) determine the transaction price,

(4) allocate the transaction price to the performance obligations in the contract, and

(5) recognise revenues when a performance obligation is satisfied

Turnover represents the total invoice value, excluding value added tax, of sales made during the year. Turnover is reduced for customer returns and other similar allowances.

Turnover is recognised at the point the company has transferred to the buyer the significant risks and rewards, the amount of the turnover can be measured reliably and it is probable the economic benefits associated with the transactions will flow to the company.

Turnover related income from maintenance contracts is recognised evenly over the period of the contract.

When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Contract revenue comprises the initial amount of revenue agreed in the contract and variations in the contract work and claims that can be measured reliably. A variation or a claim is recognised as contract revenue when it is probable that the customer will approve the variation or negotiations have reached an advanced stage such that it is probable that the customer will accept the claim.

The stage of completion is measured by reference to the ratio of contract costs incurred to date to the estimated total costs for the contract. Costs incurred during the financial year in connection with future activity on a contract are excluded from the costs incurred to date when determining the stage of completion of a contract. Such costs are shown as construction contract work-in-progress on the balance sheet unless it is not probable that such contract costs are recoverable from the customers, in which case, such costs are recognised as an expense immediately.

At the balance sheet date, the cumulative costs incurred plus recognised profit (less recognised loss) on each contract is compared against the progress billings. Where the cumulative costs incurred plus the recognised profits (less recognised losses) exceed progress billings, the balance is presented as due from customers on construction contracts within "Amount recoverable on contract". Where progress billings exceed the cumulative costs incurred plus recognised profits (less recognised losses), the balance is presented as due to customers on construction contracts within "Payments on account".

Progress billings not yet paid by customers and retentions by customers are included within "Amount recoverable on contract".

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.

Development costs are being amortised evenly over their estimated useful life of 10 years.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended.

The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Leasehold improvements - 10% on cost

Fixtures, fittings and equipment - 25% on reducing balance.

Motor vehicles - 25% on reducing balance.

Investment property

Investment property is initially measured at cost. After initial recognition, investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

The company holds the long leasehold property as an investment and the director considers that the fair value of the property at the balance sheet date is not materially different from its carrying value as at 31 December 2024.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

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

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Other financial liabilities