REGISTERED NUMBER: 13191917 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 September 2024

for

Trimline Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

N D Farrell

R M Welham

J Farrell

H L Welham

SECRETARY:

N D Farrell

REGISTERED OFFICE:

Unit 2

Fulcrum 6

Solent Way

Whiteley

PO15 7QQ

REGISTERED NUMBER:

13191917 (England and Wales)

SENIOR STATUTORY AUDITOR:

John Perry

AUDITORS:

Sumer Auditco Limited

Fitzroy House

Crown Street

Ipswich

Suffolk

IP1 3LG

The directors present their strategic report of the company and the group for the year ended 30 September 2024.

REVIEW OF BUSINESS

Trimline has demonstrated a solid performance with a slight decrease in group turnover, which stood at £12.51 million for the year compared to £12.57 million in 2023.

However, despite this small decline, gross profit has increased significantly by 18.01%, from £3.41 million in 2023 to £4.02 million in 2024, highlighting an improved operational efficiency and better cost management. This increase in profitability is a result of our continuous investment in infrastructure and strategic initiatives aimed at optimizing operational performance.

The group's fixed assets have grown, with tangible assets rising to £786,626 (up from £728,794 in 2023). The strategic investment in new machinery and equipment has further strengthened Trimline's capacity to meet the growing demand for cruise ship refurbishments.

2024 has been a year of consolidation for Trimline. Rather than focusing solely on rapid expansion, the group has dedicated itself to building a strong foundation for the very significant growth in cruise refurbishment projects we see in the pipeline for 2025 and beyond. This year has been about reinforcing our team and expanding our expertise to ensure that we are fully prepared to handle significantly increased business in the next 3-5 years.

We have focused on attracting new talent, increasing staff capabilities, and strengthening our internal processes, ensuring that we are ready to scale effectively as the cruise industry continues to recover and expand. This strategic consolidation has positioned us well to capitalize on future opportunities and take on larger, more complex projects in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

The key risks facing the group include:

1. Economic Volatility: Ongoing challenges in the global economy could potentially impact client budgets and investment in cruise refurbishments, affecting revenue generation.

2. Operational Risks: With the increase in large-scale projects, there is a risk of delays or cost overruns. Trimline is focused on mitigating these risks through continued investment in resources and project management practices.

3. Regulatory Changes: As the industry adapts to new environmental regulations and standards, there is a risk that compliance costs may increase. Trimline continues to monitor the regulatory landscape closely.

4. Supply Chain Disruptions: The company remains vigilant regarding supply chain stability, particularly with critical materials for ship refurbishments. Ongoing global supply chain uncertainties remain a risk.

OUTLOOK FOR THE FUTURE

Trimline remains optimistic about the future, with the cruise industry expected to continue its recovery in the coming years. The group is focused on enhancing its operational capacity to handle larger projects and increasing demand for sustainable solutions.

Future strategies include:

* Client Engagement: Strengthening relationships with existing clients through improved communication and deeper engagement in long-term projects.

* Technology Integration: Investing further in technology to streamline operations and enhance efficiencies across all departments.

* Sustainability Focus: Aligning with industry sustainability goals by increasing our commitment to environmentally friendly solutions and incorporating these into refurbishment projects.

* Talent Development: Continuing to invest in staff training and development, ensuring Trimline attracts and retains the best talent in the industry.

KEY PERFORMANCE INDICATORS (KPIS)

* Revenue Stability: Despite a slight decrease in turnover, the group maintained a robust performance across its operations, demonstrating resilience in a competitive and recovering market.

* Profitability: The operating profit has increased substantially to £620,795, up from £346,199 last year, driven by effective cost control measures and the scaling of operations.

* Cash Flow and Assets: Trimline's liquidity remains strong with £2.77 million in cash as of year-end, an increase from £1.52 million in 2023. This increase in cash is a positive indicator of the group's operational effectiveness and ability to manage its working capital.

* Client Confidence and Market Position: The cruise industry's gradual recovery has enabled Trimline to retain its position as a preferred partner for high-quality refurbishments. Clients continue to show confidence in long-term planning, further solidifying the group's position in the industry.

In summary, Trimline has had a strong year of progress, with continued improvements in profitability, cash flow, and asset strength. The group has effectively positioned itself for future growth, consolidating its resources and expertise to capitalize on the opportunities expected in the next 3-5 years.

ON BEHALF OF THE BOARD:

N D Farrell - Director

17 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024.

PRINCIPAL ACTIVITY

Interior outfitting and repairs to the interiors of marine vessels including supply and installation of associates furniture and manufactured soft furnishing.

DIVIDENDS

The total distribution of dividends for the year ended 30 September 2024 was £100,000 (2023: £44,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

N D Farrell

R M Welham

J Farrell

H L Welham

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

Having met the audit thresholds, the Directors engaged with Tile & Co to undertake the financial statement audit. Tile and Co became part of the Sumer Group in March 2025 and its audit portfolio was transitioned into Sumer Auditco Limited. Sumer Auditco Limited will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N D Farrell - Director

17 September 2025

Opinion

We have audited the financial statements of Trimline Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the Consolidated Income Statement, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- We 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;

- 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, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- 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 they 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;

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

We assessed the significant risks of fraud to relate to:

- Management bias and override of controls allowing the posting of accounting entries or the manipulation of estimates and judgements to manipulate the financial statements; and

- Manipulation of the cut-off of revenue at the year end.

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.

To address the risk of manipulation of revenue cut-off, we:

- Reviewed the revenue recognition policy for suitability in line with the relevant financial reporting standards; and

- Corroborated the percentage of completion of a sample of revenue entries to supporting documentation to gain assurance over the timing of revenue recognition.

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;

- Reviewing correspondence with HMRC and the company's legal advisors.

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.

Other matters

The Group was not required to have a statutory audit for the period ended 30 September 2023 as it was entitled to exemption by the provision of the Companies Act 2006 relating to the audit of financial statements by virtue of Section 477 and no member or members requested an audit pursuant to Section 476 of the Act.

Accordingly, the corresponding figures for the period ended 30 September 2023 are unaudited.

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.

John Perry (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Fitzroy House

Crown Street

Ipswich

Suffolk

IP1 3LG

24 September 2025

TURNOVER

12,517,532

12,574,220

Cost of sales

8,493,051

9,163,942

GROSS PROFIT

4,024,481

3,410,278

Administrative expenses

3,448,436

3,125,714

576,045

284,564

Other operating income

44,750

61,635

OPERATING PROFIT

4

620,795

346,199

Interest receivable and similar income

31,836

9,629

652,631

355,828

Interest payable and similar expenses

5

28,142

38,716

PROFIT BEFORE TAXATION

624,489

317,112

Tax on profit

6

185,279

62,225

PROFIT FOR THE FINANCIAL YEAR

439,210

254,887

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

439,210

254,887

Profit attributable to:

Owners of the parent

439,210

254,887

Total comprehensive income attributable to:

Owners of the parent

439,210

254,887

FIXED ASSETS

Intangible assets

9

2,482,868

2,816,549

Tangible assets

10

786,626

728,794

Investments

11

-

-

3,269,494

3,545,343

CURRENT ASSETS

Stocks

12

1,594,777

569,496

Debtors

13

3,581,614

2,275,465

Cash at bank and in hand

2,768,825

1,516,623

7,945,216

4,361,584

CREDITORS

Amounts falling due within one year

14

6,735,942

2,916,526

NET CURRENT ASSETS

1,209,274

1,445,058

TOTAL ASSETS LESS CURRENT LIABILITIES

4,478,768

4,990,401

CREDITORS

Amounts falling due after more than one year

15

(3,432,832

)

(4,289,070

)

PROVISIONS FOR LIABILITIES

19

(88,218

)

(82,823

)

NET ASSETS

957,718

618,508

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

Retained earnings

947,718

608,508

SHAREHOLDERS' FUNDS

957,718

618,508

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2025 and were signed on its behalf by:

N D Farrell - Director

R M Welham - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

8,233,918

8,233,918

8,233,918

8,233,918

CREDITORS

Amounts falling due within one year

14

4,907,329

4,169,830

NET CURRENT LIABILITIES

(4,907,329

)

(4,169,830

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,326,589

4,064,088

CREDITORS

Amounts falling due after more than one year

15

3,316,589

4,054,088

NET ASSETS

10,000

10,000

CAPITAL AND RESERVES

Called up share capital

20

10,000

10,000

SHAREHOLDERS' FUNDS

10,000

10,000

Company's profit for the financial year

100,000

44,000

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

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2025 and were signed on its behalf by:

N D Farrell - Director

R M Welham - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

10,000

397,621

407,621

Changes in equity

Dividends

-

(44,000

)

(44,000

)

Total comprehensive income

-

254,887

254,887

Balance at 30 September 2023

10,000

608,508

618,508

Changes in equity

Dividends

-

(100,000

)

(100,000

)

Total comprehensive income

-

439,210

439,210

Balance at 30 September 2024

10,000

947,718

957,718

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

10,000

-

10,000

Changes in equity

Dividends

-

(44,000

)

(44,000

)

Total comprehensive income

-

44,000

44,000

Balance at 30 September 2023

10,000

-

10,000

Changes in equity

Dividends

-

(100,000

)

(100,000

)

Total comprehensive income

-

100,000

100,000

Balance at 30 September 2024

10,000

-

10,000

Cash flows from operating activities

Cash generated from operations

1

2,129,164

1,132,127

Interest paid

(28,142

)

(38,716

)

Tax paid

-

(66,155

)

Net cash from operating activities

2,101,022

1,027,256

Cash flows from investing activities

Purchase of intangible fixed assets

(79,515

)

(78,470

)

Purchase of tangible fixed assets

(203,959

)

(710,963

)

Sale of tangible fixed assets

4,057

-

Government grants

-

49,881

Interest received

31,836

9,629

Net cash from investing activities

(247,581

)

(729,923

)

Cash flows from financing activities

Loan repayments in year

(112,099

)

(106,101

)

Loan note repayments in year

(428,676

)

(512,502

)

Amount introduced by directors

39,536

-

Equity dividends paid

(100,000

)

(44,000

)

Net cash from financing activities

(601,239

)

(662,603

)

Increase/(decrease) in cash and cash equivalents

1,252,202

(365,270

)

Cash and cash equivalents at beginning of year

2

1,516,623

1,881,893

Cash and cash equivalents at end of year

2

2,768,825

1,516,623

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

30.9.24

30.9.23

Unaudited

£

£

Profit before taxation

624,489

317,112

Depreciation charges

145,380

122,428

Profit on disposal of fixed assets

(3,310

)

-

Amortisation charges

413,195

386,022

Government grants

-

(49,881

)

Finance costs

28,142

38,716

Finance income

(31,836

)

(9,629

)

1,176,060

804,768

Increase in stocks

(1,025,282

)

(255,729

)

Increase in trade and other debtors

(1,306,149

)

(451,252

)

Increase in trade and other creditors

3,284,535

1,034,340

Cash generated from operations

2,129,164

1,132,127

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 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

2,768,825

1,516,623

Year ended 30 September 2023

30.9.23

1.10.22

Unaudited

£

£

Cash and cash equivalents

1,516,623

1,898,387

Bank overdrafts

-

(16,494

)

1,516,623

1,881,893

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.10.23

Cash flow

changes

At 30.9.24

£

£

£

£

Net cash

Cash at bank

and in hand

1,516,623

1,252,202

2,768,825

1,516,623

1,252,202

2,768,825

Debt

Debts falling due

within 1 year

(303,277

)

540,777

(856,238

)

(618,738

)

Debts falling due

after 1 year

(4,289,070

)

-

856,238

(3,432,832

)

(4,592,347

)

540,777

-

(4,051,570

)

Total

(3,075,724

)

1,792,979

-

(1,282,745

)

1.	STATUTORY INFORMATION

Trimline 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair value as at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Significant judgements and estimates

Capitalisation of development costs

Judgement is applied in assessing the proportion of an individuals salary that is allocated to activity which meets the criteria of capitalisable development costs as set out in FRS102 18.8H.

Useful economic life of fixed assets

Judgement is applied in assessing the useful economic life of assets and any residual value.

Insurance claim

Judgement is applied in estimating the value of insurance income to be received in relation to the property fire and also the likelihood of the claim being successful.

Turnover

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

The company recognises revenue from construction contracts in accordance with Section 23 of FRS 102, using the percentage of completion method. This method requires management to estimate the stage of completion of each contract at the reporting date, which directly affects the amount of revenue and profit recognised.

The stage of completion is determined by reference to the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. This assessment involves significant judgement, particularly in estimating:

Total expected costs to complete each contract;

The physical progress of work performed;

The impact of any variations, claims, or delays;

The recoverability of contract assets.

These estimates are reviewed regularly and updated as new information becomes available. Changes in these estimates may have a material impact on the amount of revenue and profit recognised in future periods.

Management has established internal controls and review procedures to monitor project performance and cost forecasts. However, due to the inherent uncertainties in estimating long-term contract outcomes, actual results may differ from those estimates.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, 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.

Computer software is being amortised evenly over its estimated useful life of three years.

Intangible assets are recognised from the development of software only if certain specific criteria are met to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs initially measured at cost and are subsequently amortised to ‘administrative expenses’ on a straight-line basis over their expected useful economic lives, which is 3 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

Straight line over the term of the lease

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

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.

Financial instruments

Basic financial instruments are recognised at amortised cost.