REGISTERED NUMBER: 05946935 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Horbury Bridge (Holdings) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Statement of Financial Position

12

Company Statement of Financial Position

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Consolidated Statement of Cash Flows

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

J R Medley

R Medley

SECRETARY:

R Medley

REGISTERED OFFICE:

Machenair House

Wakefield Road

Ossett

Wakefield

West Yorkshire

WF5 9LB

REGISTERED NUMBER:

05946935 (England and Wales)

AUDITORS:

Stirk Lambert & Co

Chartered Accountants

Statutory Auditors

Russell Chambers

61a North Street

Keighley

West Yorkshire

BD21 3DS

The directors present their strategic report on the group for the year ended 31 December 2024. During the year the principal activity of the group continued to be that of manufacture and supply of building services systems.

BUSINESS REVIEW AND KEY PERFORMANCE INDICATORS

In common with other businesses in the construction sector, the uncertainty in the national economy continued to create challenging trading conditions. The directors, however, consider that the group’s strong reserves, robust order book, and continued focus on customer relationships provide a solid foundation to take advantage of future opportunities for growth.

The results for the year and the financial position of the group are set out in the financial statements. The directors are satisfied with the performance in the year ended 31 December 2024 and remain confident that the group will continue to trade profitably in 2025.

We are pleased to report another year of progress, with turnover increasing to £14,775,481 (2023 £10,609,328), representing growth of 39.2%. All sales continued to be generated from the domestic market.

Gross profit increased to £4,360,927 (2023 £4,107,109). The gross margin percentage was 29.5% (2023 38.7%), reflecting a more competitive trading environment and increased input costs.

Profit before taxation for the year was £1,132,695 (2023 £1,057,935), with profit after taxation amounting to £818,838 (2023 £810,157). The directors regard this as a satisfactory outcome given the economic backdrop.

The group continues to recognise the importance of reinvestment in infrastructure and plant and machinery. During the year, fixed asset additions amounted to £212,055, primarily relating to the replacement of older fleet vehicles.

Working capital remained well managed. Stocks decreased to £85,403 (2023 £133,288), while trade debtors reduced to £2,996,360 (2023 £3,307,486). Cash at bank and in hand increased significantly to £7,583,881 (2023 £6,157,682), reflecting strong cash generation and prudent financial management.

The group’s continued focus on credit control procedures ensured that exposure to bad debts remained minimal. By maintaining a disciplined approach to working capital, the group has been able to minimise borrowing and reduce finance charges.

The directors remain committed to sustainable growth, with plans to further strengthen operational capacity and maintain investment in assets that support the group’s long-term strategy.

OBJECTIVES

Horbury Bridge Holdings Limited are planning significant growth in the next few years and enhancing our financial strength together with creating employment opportunities remains our primary objectives.

STRATEGY

As a group we endeavour to grow our business under a simple principle of offering our customers an outstanding service. The directors anticipate a growth in 2025 of the group and are implementing the necessary plan to grow our sales.

Overheads are under continuous scrutiny and this will continue to allow the group to reach its goal of being more profitable as the sales line grows.

PRINCIPLE RISKS

The group operates on a prudent basis. The group does not utilise hedge transactions or similar. The group maintains a good working relationship with its bank and the directors do not envisage any problems with meeting the present bank facilities of the business.

The group's policy is to insure significant trade debt in order to reduce financial risk.

OTHER KEY PERFORMANCE INDICATORS

We have continued to work closely with the health and safety executive and environmental bodies to ensure obligations are met and surpassed.

ON BEHALF OF THE BOARD:

J R Medley - Director

23 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture and supply of building services systems.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £ 251,210 .

DIRECTORS

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

The beneficial interests of the directors holding office at 31 December 2024 in the shares of the company, according to the register of directors' interests, were as follows:

31.12.24

1.1.24

Ordinary shares of £1 each

J R Medley

69

98

R Medley

69

98

These directors did not hold any non-beneficial interests in the shares of the company.

DISCLOSURE IN THE STRATEGIC REPORT

Information relating to the review of the business, the principal risks and uncertainties facing the business, and the future development of the business are disclosed via the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Stirk Lambert & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J R Medley - Director

23 September 2025

Opinion

We have audited the financial statements of Horbury Bridge (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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 recognise 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 sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;

- 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

- considered 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;

- 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;

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

- reviewing correspondence with HMRC and relevant regulators

There are inherent limitations in our audit procedures 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 laws 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.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 recognise 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 sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;

- 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

- considered 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;

- 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;

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

- reviewing correspondence with HMRC and relevant regulators

There are inherent limitations in our audit procedures 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 laws 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.

Richard Hudson FCA (Senior Statutory Auditor)

for and on behalf of Stirk Lambert & Co

Chartered Accountants

Statutory Auditors

Russell Chambers

61a North Street

Keighley

West Yorkshire

BD21 3DS

23 September 2025

TURNOVER

14,775,481

10,609,328

Cost of sales

10,414,554

6,502,219

GROSS PROFIT

4,360,927

4,107,109

Administrative expenses

3,566,018

3,306,520

794,909

800,589

Other operating income

158,601

67,692

OPERATING PROFIT

5

953,510

868,281

Interest receivable and similar income

179,132

63,558

1,132,642

931,839

Gain/loss on revaluation of investment property

-

126,032

1,132,642

1,057,871

Interest payable and similar expenses

6

(53

)

(64

)

PROFIT BEFORE TAXATION

1,132,695

1,057,935

Tax on profit

7

313,857

247,778

PROFIT FOR THE FINANCIAL YEAR

818,838

810,157

Profit attributable to:

Owners of the parent

818,838

810,157

PROFIT FOR THE YEAR

818,838

810,157

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

818,838

810,157

Total comprehensive income attributable to:

Owners of the parent

818,838

810,157

FIXED ASSETS

Intangible assets

10

(43,335

)

(52,002

)

Tangible assets

11

1,277,741

1,279,787

Investments

12

-

-

Investment property

13

423,500

423,500

1,657,906

1,651,285

CURRENT ASSETS

Stocks

14

85,403

133,288

Debtors

15

2,996,360

3,307,486

Cash at bank and in hand

7,583,881

6,157,682

10,665,644

9,598,456

CREDITORS

Amounts falling due within one year

16

2,634,783

2,139,949

NET CURRENT ASSETS

8,030,861

7,458,507

TOTAL ASSETS LESS CURRENT LIABILITIES

9,688,767

9,109,792

PROVISIONS FOR LIABILITIES

18

69,401

58,054

NET ASSETS

9,619,366

9,051,738

CAPITAL AND RESERVES

Called up share capital

19

196

196

Retained earnings

20

9,619,103

9,051,475

SHAREHOLDERS' FUNDS

9,619,299

9,051,671

NON-CONTROLLING INTERESTS

21

67

67

TOTAL EQUITY

9,619,366

9,051,738

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

J R Medley - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

70,542

70,542

Investment property

13

-

-

70,542

70,542

CURRENT ASSETS

Debtors

15

3,335,065

319,065

Cash at bank and in hand

467

16,890

3,335,532

335,955

CREDITORS

Amounts falling due within one year

16

277,435

277,434

NET CURRENT ASSETS

3,058,097

58,521

TOTAL ASSETS LESS CURRENT LIABILITIES

3,128,639

129,063

CAPITAL AND RESERVES

Called up share capital

19

196

196

Retained earnings

20

3,128,443

128,867

SHAREHOLDERS' FUNDS

3,128,639

129,063

Company's profit/(loss) for the financial year

3,250,786

(210

)

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2025 and were signed on its behalf by:

J R Medley - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2023

196

8,241,318

8,241,514

67

8,241,581

Changes in equity

Total comprehensive income

-

810,157

810,157

-

810,157

Balance at 31 December 2023

196

9,051,475

9,051,671

67

9,051,738

Changes in equity

Dividends

-

(251,210

)

(251,210

)

-

(251,210

)

Total comprehensive income

-

818,838

818,838

-

818,838

Balance at 31 December 2024

196

9,619,103

9,619,299

67

9,619,366

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

196

129,077

129,273

Changes in equity

Total comprehensive loss

-

(210

)

(210

)

Balance at 31 December 2023

196

128,867

129,063

Changes in equity

Dividends

-

(251,210

)

(251,210

)

Total comprehensive income

-

3,250,786

3,250,786

Balance at 31 December 2024

196

3,128,443

3,128,639

Cash flows from operating activities

Cash generated from operations

1

1,891,870

1,379,471

Interest paid

51

64

Tax paid

(227,158

)

(245,746

)

Net cash from operating activities

1,664,763

1,133,789

Cash flows from investing activities

Purchase of tangible fixed assets

(219,874

)

(212,055

)

Sale of tangible fixed assets

58,929

31,833

Interest received

179,132

63,560

Net cash from investing activities

18,187

(116,662

)

Cash flows from financing activities

Amount introduced by directors

214,165

95,475

Amount withdrawn by directors

(219,706

)

(329,536

)

Equity dividends paid

(251,210

)

-

Net cash from financing activities

(256,751

)

(234,061

)

Increase in cash and cash equivalents

1,426,199

783,066

Cash and cash equivalents at beginning of year

2

6,157,682

5,374,616

Cash and cash equivalents at end of year

2

7,583,881

6,157,682

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

31.12.24

31.12.23

£

£

Profit before taxation

1,132,695

1,057,935

Depreciation charges

173,475

137,623

Profit on disposal of fixed assets

(19,149

)

(7,096

)

Gain on revaluation of fixed assets

-

(126,032

)

Finance costs

(53

)

(64

)

Finance income

(179,132

)

(63,558

)

1,107,836

998,808

Decrease in stocks

47,885

8,982

Decrease in trade and other debtors

311,126

570,546

Increase/(decrease) in trade and other creditors

425,023

(198,865

)

Cash generated from operations

1,891,870

1,379,471

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

7,583,881

6,157,682

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

6,157,682

5,374,616

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

6,157,682

1,426,199

7,583,881

6,157,682

1,426,199

7,583,881

Total

6,157,682

1,426,199

7,583,881

1.	STATUTORY INFORMATION

Horbury Bridge (Holdings) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102, and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

The financial statements are presented in Sterling (£).

The group financial statements consolidate the financial statements of Horbury Bridge (Holdings) Limited and all its subsidiary undertakings drawn up to 31 December each year.

The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own Profit and Loss Account in these financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied,

services rendered and rental income, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have

transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Revenue from the rendering of services is measured by reference to the stage of completion of the service

transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the

outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Rental income from properties is recognised in income on a straightline basis over the term of the lease.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

All fixed assets are initially recorded at cost.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Freehold property - 2% on cost

Leasehold property improvements - 2% to 20% on cost

Plant & machinery - 10% to 25% on cost and 15% reducing balance

Fixtures & fittings - 20% to 33% on cost and 15% reducing balance

Motor vehicles - 25% on cost and 25% on reducing balance

Investment property

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.

Stocks

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

Work in progress is valued at the lower of cost and net realisable value.

Long - term contract balances are stated at cost, plus attributable profit, less net foreseeable losses, less any applicable payments on account are included within debtors. Attributable profit is recognised as the difference between recorded turnover and related costs.Where payments on account are greater than recorded costs of work carried out to date, the excess is classified within other creditors.

Financial instruments

Financial assets

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 and any subsequent reversal is recognised in the profit and loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled. or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables and bank loans, 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 receipts discounted at a market rate of interest for a similar debt instrument.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.