REGISTERED NUMBER: 02274509 (England and Wales)

A.B.G. LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

E Jacobs

A D Leech

E2P Management BV repr. Gertjan De Creus

REGISTERED OFFICE:

E7 Meltham Mills Road

Meltham

Holmfirth

West Yorkshire

HD9 4DS

REGISTERED NUMBER:

02274509 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

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

REVIEW OF BUSINESS

The principal activities of the company continues to be that of specialist supplier to the building, construction and environmental industries.

FINANCIAL KEY PERFORMANCE INDICATORS

Management use a range of performance measures to monitor and manage the business as set out below:

2024

2023

Turnover

£13,036,569

£12,647,537

Gross Profit

£5,891,911

£5,702,830

Gross Profit %

45.20%

45.09%

Operating Profit

£397,672

£156,829

Net Assets

£3,466,873

£3,575,512

Gross Assets

£6,614,809

£6,404,239

The turnover in 2024 is up on that achieved in 2023 as is the operating profit. Energy costs have eased compared to 2023, although still remain high. There has continued to be a positive effect on margin from the cost of polymers decreasing steadily throughout 2023 and holding at that level through 2024, particularly in prime polymer. Labour availability presents a challenge with skilled labour difficult to recruit. This is having an impact on efficiencies and capacity within the production environment.

The directors believe that the business has performed solidly and remains well positioned in the marketplace for continued improvement.

The fluctuations in raw material and energy price inflation remain uncertain going forward. The availability of labour is expected to be an on-going challenge. All of which affect sales margins and are a risk to the profitability of our business.

FUTURE REVIEW

Since the beginning of 2025, raw material and energy prices have stabilized. We expect energy prices to remain steady for the remainder of 2025. With sourcing of skilled labour continuing to be a challenge.

Going concern

Whilst the Report of the directors and Financial Statements are focused on the financial results from 2024, the company's directors are mindful of the impacts of the macroeconomic conditions on the short to medium term resilience of the company. Due to the uncertainty caused by the macroeconomic landscape, the directors have looked at the resilience of the company to stay in business over the next 12 months. Three key measures have been looked at to determine if that position is reasonable, namely, income, expenditure, and cash flow. Based on a forecast of the likely activity in each of these areas the directors are satisfied that this position remains appropriate.

Cash flow

Based on the forecasted income and expenditure cash flow remains at a level above which is required to meet the debts of the company as they fall due.

The company's activities expose it to a number of financial risks including cash flow risk, credit risk, liquidity risk and price risk.

The use of financial derivatives is governed by the company's policies approved by the board of directors, which provide principles on the use of financial derivatives to manage these risks. The company does not use derivative financial instruments for speculative purposes.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continually review and monitor the key risks facing the company in order to manage the business and deliver the company's strategy. The key risks and uncertainties affecting the company relate to domestic and foreign competitors, energy costs, design liability, raw material prices, exchange rate movements and credit and liquidity risk. The company's principal financial instruments are Sterling cash, other loans and obligations operating leases along with trade debtors and trade creditors under its normal course of business. Risk management is a regular subject of board discussion and whilst the company does not have a material exposure in any of the areas mentioned, the board takes appropriate action when necessary. Global transport issues have focussed attention on lead times resulting in ABG strengthening its supply chain and reassessing its stock holding policies.

Competition risk

The company is the UK market leader in drainage geocomposites but internationally the company is one of many such producers. The company mitigates the risk of competition by ensuring that the products it supplies are offered with technical competence and advice and excellent customer service.

Design risk

ABG provides designs and warranties for the larger projects and mitigates the risk by operating within its area of expertise and maintaining appropriate PI insurance.

Raw material risk

The company's operations and management teams monitor raw material prices closely in order to purchase at the best prices, buy forward when possible and plan ahead to enable the sales team to pass increases to customers when needed. Key materials are dual sourced and held in sufficient stock.

Foreign currency risk

The company trades predominantly in £ Sterling for the majority of purchases and sales but has a small percentage that is exposed to the risk of changes in foreign exchange rates. Other than Sterling, the company makes purchases and sells product in Euros and whilst every attempt is made to balance off purchases with sales, the company periodically buys and sells Euros to mitigate risk.

Credit risk

The company's credit risk relates to trade debtors. The company has credit insurance in place which covers the majority of the outstanding debtor balance. Uninsured debtors are managed by continually monitoring the aggregate amount and duration of exposure, depending on customer experience and payment performance.

Liquidity risk

The company operates as part of the Bontexgeo group that provides liquidity assurance in addition to the Company's own cash reserves.

MARKET STRATEGIES AND OPPORTUNITIES

ABG specialises in providing solutions to infrastructure and large commercial building projects based on geosynthetic products that are either manufactured or sourced by ABG. A high level of technical expertise is utilised to add value to project designs . With over 30 years of experience, this is a proven strategy and ABG has a strong presence and a good reputation, both of which help to engender future business. The technical expertise enables added value and gives customers the confidence to use geosynthetics instead of traditional construction materials in a diverse range of markets. Geosynthetics save time, carbon and cost. The changing climate and increasing population drive the need for developing infrastructure around the world with minimal carbon emissions. ABG focuses on the UK, EU, Africa, Middle East and Asia.

ACTIVITY IN 2025

In 2025, the emphasis will continue to be further cost controls in combination with increases in efficiency, but also a lot of focus will be on seizing every good commercial opportunity.

Raw material and energy prices form a substantial part of our cost prices. Its evolution is therefore closely monitored. This price is influenced by market and political conditions and is beyond our control. In addition, there is a strong inflation of our costs across all categories. The extent to which we can pass on the cost increases strongly influences our profit margin.

ABG can count on the group management services of Geotexco NV, resulting in synergies.

EVENTS SUBSEQUENT TO YEAR-END

A joint venture was entered into with Alujain in the Kingdom of Saudi Arabia to create a manufacturing facility in that region that could service the local markets. This will open up significant opportunity for ABG in the future.

ON BEHALF OF THE BOARD:

A D Leech - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of specialist supplier to the building, construction and environmental industries.

DIVIDENDS

Interim dividends of £356.6434 per share on the Ordinary shares were paid during the year. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2024 will be £357,000.

DIRECTORS

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

E Jacobs

A D Leech

E2P Management BV repr. Gertjan De Creus

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, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A D Leech - Director

29 September 2025

Opinion

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

In our opinion the financial statements:

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

In preparing the financial statements, the directors are responsible for assessing the 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:

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and

regulations related to construction, building and corporation tax legislation and we considered the extent to which

non-compliance might have a material effect on the financial statements. As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procures performed by the engagement team include:

- Enquiring of and obtaining written representation from management in relation to known or suspected instances of

non-compliance with laws and regulations and fraud;

- Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and

regulations;

- Evaluation of management's controls designed to prevent and detect irregularities;

- Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

- Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with

applicable laws and regulations;

- Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with

laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through 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.

Andrew Cribb FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

30 September 2025

TURNOVER

4

13,036,569

12,647,537

Cost of sales

7,144,578

6,944,707

GROSS PROFIT

5,891,991

5,702,830

Administrative expenses

5,494,319

5,546,001

OPERATING PROFIT

6

397,672

156,829

Interest receivable and similar income

3,205

-

400,877

156,829

Amounts written off investments

7

-

165,907

400,877

(9,078

)

Interest payable and similar expenses

8

3,264

4,716

PROFIT/(LOSS) BEFORE TAXATION

397,613

(13,794

)

Tax on profit/(loss)

9

149,252

(91,983

)

PROFIT FOR THE FINANCIAL YEAR

248,361

78,189

PROFIT FOR THE YEAR

248,361

78,189

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

248,361

78,189

FIXED ASSETS

Intangible assets

11

64,029

72,378

Tangible assets

12

753,757

575,485

817,786

647,863

CURRENT ASSETS

Stocks

13

2,195,647

1,924,860

Debtors

14

2,586,561

1,682,734

Cash at bank

1,014,815

2,148,782

5,797,023

5,756,376

CREDITORS

Amounts falling due within one year

15

2,974,248

2,823,110

NET CURRENT ASSETS

2,822,775

2,933,266

TOTAL ASSETS LESS CURRENT LIABILITIES

3,640,561

3,581,129

PROVISIONS FOR LIABILITIES

18

173,688

5,617

NET ASSETS

3,466,873

3,575,512

CAPITAL AND RESERVES

Called up share capital

19

1,001

1,001

Retained earnings

20

3,465,872

3,574,511

SHAREHOLDERS' FUNDS

3,466,873

3,575,512

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

A D Leech - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,001

3,496,322

3,497,323

Changes in equity

Total comprehensive income

-

78,189

78,189

Balance at 31 December 2023

1,001

3,574,511

3,575,512

Changes in equity

Dividends

-

(357,000

)

(357,000

)

Total comprehensive income

-

248,361

248,361

Balance at 31 December 2024

1,001

3,465,872

3,466,873

Cash flows from operating activities

Cash generated from operations

1

(735,446

)

2,322,345

Interest paid

(3,264

)

(4,371

)

Interest element of hire purchase or finance lease rental payments paid

-

(345

)

Tax paid

-

32,705

Net cash from operating activities

(738,710

)

2,350,334

Cash flows from investing activities

Purchase of intangible fixed assets

(37,469

)

(51,611

)

Purchase of tangible fixed assets

(274,160

)

(304,206

)

Sale of tangible fixed assets

-

44,283

Interest received

3,205

-

Net cash from investing activities

(308,424

)

(311,534

)

Cash flows from financing activities

New loans in year

270,167

-

Loan repayments in year

-

(47,191

)

Capital repayments in year

-

(1,819

)

Equity dividends paid

(357,000

)

-

Net cash from financing activities

(86,833

)

(49,010

)

(Decrease)/increase in cash and cash equivalents

(1,133,967

)

1,989,790

Cash and cash equivalents at beginning of year

2

2,148,782

158,992

Cash and cash equivalents at end of year

2

1,014,815

2,148,782

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit/(loss) before taxation

397,613

(13,794

)

Depreciation charges

141,707

255,432

Profit on disposal of fixed assets

-

(44,283

)

Finance costs

3,264

4,716

Finance income

(3,205

)

-

539,379

202,071

(Increase)/decrease in stocks

(270,787

)

76,148

(Increase)/decrease in trade and other debtors

(882,976

)

1,076,270

(Decrease)/increase in trade and other creditors

(121,062

)

967,856

Cash generated from operations

(735,446

)

2,322,345

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,014,815

2,148,782

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,148,782

158,992

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,148,782

(1,133,967

)

1,014,815

2,148,782

(1,133,967

)

1,014,815

Total

2,148,782

(1,133,967

)

1,014,815

1.	STATUTORY INFORMATION

A.B.G. 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.

The directors have considered all factors, including the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the company, the directors believe that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements, on the basis of information currently available to them as at the point of approval. Accordingly, these financial statements have been prepared on the going concern basis.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

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

Revenue from contracts for the provision of constructing services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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.

Patents and licences are being amortised evenly over their estimated useful life of five years.

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

Impairment of fixed assets

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

Plant and machinery

-

10% on cost

Fixtures and fittings

-

Straight line over 3 years

Motor vehicles

-

Straight line over 3 years

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less that its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reason for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation reserve.

Stocks

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss or service potential.

At each reporting date, an assessment is for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss. Reversals of impairment losses are also recognised in profit and loss.

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.

Taxation

Taxation for the year 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 year 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 month end date. Transactions in foreign currencies are translated into sterling at the average monthly rate of exchange ruling. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

3.	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 considered to be 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

The company converts raw materials to finished goods. Stock values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting. The Company uses the FIFO method to determine stock valuation.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

4.

TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

10,356,618

9,223,450

Europe

1,807,565

2,628,347

Rest of the world

872,386

795,740

13,036,569

12,647,537

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,613,406

2,309,397

Social security costs

267,380

250,102

Other pension costs

60,060

56,869

2,940,846

2,616,368

The average number of employees during the year was as follows:

2024

2023

Production

24

27

Administration

28

28

Directors

1

1

53

56

2024

2023

£

£

Directors' remuneration

137,000

120,000

Directors' pension contributions to money purchase schemes

1,321

1,871

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

47,505

39,995

Other operating leases

320,482

281,914

Depreciation - owned assets

95,888

192,635

Profit on disposal of fixed assets

-

(44,283

)

Patents and licences amortisation

16,788

18,600

Computer software amortisation

29,030

44,197

Auditors' remuneration

16,075

15,588

Foreign exchange differences

13,633

(311

)

7.

AMOUNTS WRITTEN OFF INVESTMENTS

2024

2023

£

£

Amounts w/o invs

-

165,907

In the prior year a balance owing from fellow group company Geospec Limited was deemed irrecoverable and subsequently written off.