REGISTERED NUMBER: 03386037 (England and Wales)

Integra Buildings Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st December 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

8

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

G R Parker

P Tansey

C M Turner

M Marriott

J M Butler

S Marshall

REGISTERED OFFICE:

Integra House

Humber Business Park

Hedon Road

Paull

East Yorkshire

HU12 8AA

REGISTERED NUMBER:

03386037 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

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

REVIEW OF BUSINESS

The company is engaged in the design and manufacture of bespoke off-site modular buildings and anti-vandal units. These activities operate from a purpose-built 14-acre site located near Paull in East Yorkshire, serving customers across the country.

The 12-month period ending 31 December 2024 was economically challenging for the business due to the uncertainty regarding the change of government along with the political unrest across the rest of the world. This resulted in the delay in receiving client’s approval to commence on many projects. As a result of this, the business saw a reduction in turnover in the period, however, it continued to operate efficiently and was able to maintain strong operating profits. Operational performance remained positive, and the company continued to produce and deliver projects to a high standard.

Throughout this period, despite the challenges the company experienced, significant investment was made, including extending the existing office facility, refurbishment of an investment property and enhancement of the current workforce skillset in preparation for future growth.

It is expected that the economic conditions for 2025 will follow a similar trend to 2024, with projects starting to gain momentum in Q3-4, with Turnover and Gross profit forecasted at similar levels to 2024.

The directors are confident that the business is well placed to deliver the forecast as it continues to invest in its people and processes throughout 2025. Supply chain management along with the commitment to strive to deliver operational excellence will support this. The increase in the National Minimum Wage and Employers NI will have a significant impact on profits. Management have addressed this, and plans are in place to mitigate the impact by improvements in efficiencies in other areas, including upskilling the current workforce to carry out site installation activities, along with keeping other processes in house. This will result in better control and profitability

Plans for development of the current production facilities are underway, and expansion of the Paull site will provide greater capacity to further support the continued growth plans of the business.

Sustainability remains a high priority for the business as it continues to innovate and provide a stable platform for the future. This has been recognised with the business having been shortlisted for the Kings Award for Enterprise 2025 for Sustainable Development.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider that the key risk for the business is meeting customers' constant, higher expectations. The risk is managed by ensuring the company's quality systems are maintained, key members of staff retained, and a focus on exceeding customer expectations. This is further enhanced by commitment to ISO 9001, ISO 14001 & ISO 45001. The business' ISO accreditation's will be further advanced in 2024 with the addition of ISO 19650 Business Information Modelling (BIM). The directors continue to regularly monitor & review global economic uncertainties.

SECTION 172(1) STATEMENT

In compliance with section 172 of the Companies Act 2006, the directors make the following statement in relation to the year ended 31 December 2024.

Promoting the success of the company

The Board believes that, individually and collectively, they have acted in the way they consider would be most likely to promote the success of the company for the benefit of the members as a whole, having regard to the stakeholders and matters set out in s172(1) (a-f) of the Companies Act 2006, in the decisions taken during the period ended 31 December 2024, when performing their duty to promote the susses of the company.

Stakeholder Engagement

Positive and collaborative relationships with our customers, suppliers and other stakeholders are critical to the ongoing success of the company.

Customers

The company recognises the importance of building good relationships with customers and as such seeks feedback through monitoring relationships and performance through a variety of KPI’s.

Suppliers

The company aims to build and maintain long-term relationships with key suppliers and contractors to ensure that the standards are aligned.

Employees

The directors are committed to ensuring that the necessary procedures are in place to attract and retain the expertise required to achieve the company's strategic objectives. The company actively engages with employees through performance reviews and training to encourage career development.

Local Communities

The directors recognise the importance of supporting and working alongside the local communities and charities through partnerships with schools and colleges, fundraising and sponsorship.

Political Donations

The company made no political donations and did not incur any political expenditure during the current year and prior period.

Post Balance Sheet Events

There have been no post balance sheet events that have taken place since the end of the financial year.

Research and development

Due to the bespoke nature of the business, research and development features highly in the director's list of priorities. It is recognised that this is an essential part of ensuring the business gains competitive advantage and continues to achieve growth. The company will continue to invest in research and development in the future.

Employment of disabled people

Full and fair consideration is given to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where an existing employee becomes disabled, the company aim is the continuation of suitable employment in either the same or an alternative position with the appropriate training provided.

SECR: Emissions and energy consumptions are detailed in the directors report.

KEY PERFORMANCE INDICATORS

2024

2023

Gross profit margin %

23.8

23.7

Operating profit margin %

6.9

12.5

Employee numbers

169

175

ON BEHALF OF THE BOARD:

G R Parker - Director

29th September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was the sale, hire, relocation and refurbishment of new and used timber and steel building systems.

DIVIDENDS

An interim dividend of £183,797 was paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31st December 2024 will be £183,797 (period ended 31st December 2023 £1,407,513).

DIRECTORS

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

G R Parker

P Tansey

C M Turner

M Marriott

J M Butler

S Marshall

Third party indemnity provisions

Qualifying third party indemnity provisions as detailed by Section 234 of the Companies Act 2006 were in place throughout the year.

FINANCIAL INSTRUMENTS

The principle financial instruments comprise bank loans, trade debtors and trade creditors. The purpose of these instruments is to raise funds for the company's operations and provide working capital.

Due to the nature of the financial instruments utilised there is no exposure to price risk. Bank loans have fixed rates of interest with fixed repayments. The company manages the liquidity risk by ensuring sufficient funds are available to meet obligations when falling due.

STREAMLINED ENERGY AND CARBON REPORTING

Integra Building's Ltd consistently undertakes measures to enhance its energy efficiency on an annual basis, aligning with its commitment to continual improvement and perpetual enhancement within the framework of its ISO 14001 Environmental Management System. The energy and carbon report encompasses all financial activities conducted by Integra Buildings Ltd within the UK during the specified compliance period. Specifically, for the fiscal year 2024, this includes operations at the primary site located at Humber Business Park, Hedon Road Paul, as well as associated vehicle activities.

Methodology for Collection of Data

To ensure accuracy, consistency, and comparability, our greenhouse gas (GHG) emissions have been calculated in accordance with the internationally recognised GHG Protocol Corporate Standard. This provides a robust and comprehensive framework for carbon accounting. We have used the most recent UK Government's 2024 GHG Conversion Factors for Company Reporting to calculate our emissions from all relevant sources, including electricity, natural gas, and transport fuel consumption, ensuring our reporting is both compliant and credible.

Data Verification

Integra buildings ltd are certified to ISO 14001 and has annual ISO 14001 audits by SGS ltd, what monitors the effectiveness of energy efficiency and performance improvements.

Main Site Activities

The company's total energy consumption and associated GHG emissions for the reporting period are detailed in the tables below, broken down by the relevant scopes as defined by the GHG Protocol.

2024

2023

Energy Usage

Total kWh consumption

266,267.

425,549

Scope 1

Combined Gas/Fuel

21,410kg Co2e

61,415kg Co2e

Scope 2

Purchased Electricity

60,003 kgCo2e

90,225 kgCo2e

Combined 81.412.38 (kg Co2e)

Intensity metrics

To provide meaningful context for our emissions and track our progress over time, we have chosen an intensity metric based on our employee numbers. As our business operations and output are primarily driven by the skill and activity of our workforce, we believe this metric is more reflective of our operational carbon efficiency than a purely financial metric like turnover, which can fluctuate with material costs and market pricing. This allows us to measure the true carbon impact of our activities.

Intensity Metrics - Emissions per Employee:

81.412.38 (kg CO?e)/169 Av Number = 481.73 KG Co2e/Employee

Energy Efficiency Actions Taken This Year

During this reporting period, we have implemented several significant and transformative initiatives designed to reduce our carbon footprint and enhance our energy management capabilities.

- On-Site Renewable Generation

- Waste Reduction and Design Efficiency

- Investment in Sustainable Transport

The initiatives undertaken this year have contributed to a 50% reduction in our carbon emissions since 2023. Building on this significant success and the enhanced data visibility we now possess.

Future initiatives

Integra Buildings will be exploring a formal commitment to the Science Based Targets initiative (SBTi) during 2026. This will involve developing a long-term, science-aligned decarbonisation pathway for our entire value chain, further cementing our position as a leader in corporate climate action. In addition, we will analyse enhanced Data Monitoring and Management: Future Commitments and Targets.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

G R Parker - Director

29th September 2025

Opinion

We have audited the financial statements of Integra Buildings Limited (the 'company') for the year ended 31st December 2024 which comprise the Statement of 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 31st 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 six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

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 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, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

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

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

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

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

-

reviewing correspondence with HMRC and relevant regulators including the Health and Safety Executive.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances 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.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

William Cowell FCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

29th September 2025

TURNOVER

3

36,098,183

50,411,650

Cost of sales

27,467,263

38,447,408

GROSS PROFIT

8,630,920

11,964,242

Administrative expenses

6,155,268

5,698,035

2,475,652

6,266,207

Other operating income

10,867

21,879

OPERATING PROFIT

5

2,486,519

6,288,086

Interest receivable and similar income

465,388

380,513

2,951,907

6,668,599

Gain/loss on revaluation of assets

(184,686

)

-

2,767,221

6,668,599

Interest payable and similar expenses

6

74,481

101,839

PROFIT BEFORE TAXATION

2,692,740

6,566,760

Tax on profit

7

328,787

1,436,437

PROFIT FOR THE FINANCIAL YEAR

2,363,953

5,130,323

FIXED ASSETS

Tangible assets

9

7,093,765

4,619,917

Investment property

10

360,000

388,471

7,453,765

5,008,388

CURRENT ASSETS

Stocks

11

759,935

1,007,448

Debtors

12

7,165,758

8,060,610

Cash at bank

9,857,917

12,619,381

17,783,610

21,687,439

CREDITORS

Amounts falling due within one year

13

9,848,528

13,205,759

NET CURRENT ASSETS

7,935,082

8,481,680

TOTAL ASSETS LESS CURRENT LIABILITIES

15,388,847

13,490,068

CREDITORS

Amounts falling due after more than one year

14

(693,635

)

(1,043,713

)

PROVISIONS FOR LIABILITIES

18

(386,470

)

(317,769

)

NET ASSETS

14,308,742

12,128,586

CAPITAL AND RESERVES

Called up share capital

19

6,146

6,146

Share premium

20

37,933

37,933

Capital redemption reserve

20

1,030

1,030

Retained earnings

20

14,263,633

12,083,477

SHAREHOLDERS' FUNDS

14,308,742

12,128,586

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

G R Parker - Director

P Tansey - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1st January 2023

6,146

8,360,667

37,933

1,030

8,405,776

Changes in equity

Profit for the year

-

5,130,323

-

-

5,130,323

Total comprehensive income

-

5,130,323

-

-

5,130,323

Dividends

-

(1,407,513

)

-

-

(1,407,513

)

Balance at 31st December 2023

6,146

12,083,477

37,933

1,030

12,128,586

Changes in equity

Profit for the year

-

2,363,953

-

-

2,363,953

Total comprehensive income

-

2,363,953

-

-

2,363,953

Dividends

-

(183,797

)

-

-

(183,797

)

Balance at 31st December 2024

6,146

14,263,633

37,933

1,030

14,308,742

Cash flows from operating activities

Cash generated from operations

1

2,595,680

10,204,343

Interest paid

(11,463

)

(8,245

)

Interest element of hire purchase payments paid

(63,018

)

(93,594

)

Tax paid

(974,439

)

273,185

Net cash from operating activities

1,546,760

10,375,689

Cash flows from investing activities

Purchase of tangible fixed assets

(3,248,257

)

(1,326,578

)

Purchase of investment property

(156,215

)

(21,228

)

Sale of tangible fixed assets

174,223

186,706

Interest received

465,388

380,513

Net cash from investing activities

(2,764,861

)

(780,587

)

Cash flows from financing activities

Loan repayments in year

(34,795

)

(277,624

)

Capital repayments in year

(540,437

)

(194,959

)

Amount introduced by directors

-

523,761

Amount withdrawn by directors

(784,334

)

(1,460

)

Equity dividends paid

(183,797

)

(1,407,513

)

Net cash from financing activities

(1,543,363

)

(1,357,795

)

(Decrease)/increase in cash and cash equivalents

(2,761,464

)

8,237,307

Cash and cash equivalents at beginning of year

2

12,619,381

4,382,074

Cash and cash equivalents at end of year

2

9,857,917

12,619,381

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

2024

2023

£

£

Profit before taxation

2,692,740

6,566,760

Depreciation charges

675,096

555,669

Profit on disposal of fixed assets

(74,909

)

(94,785

)

Loss on revaluation of fixed assets

184,686

-

Finance costs

74,481

101,839

Finance income

(465,388

)

(380,513

)

3,086,706

6,748,970

Decrease/(increase) in stocks

247,513

(111,501

)

Decrease in trade and other debtors

1,119,411

3,676,767

Decrease in trade and other creditors

(1,857,950

)

(109,893

)

Cash generated from operations

2,595,680

10,204,343

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 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

9,857,917

12,619,381

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

12,619,381

4,382,074

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

12,619,381

(2,761,464

)

9,857,917

12,619,381

(2,761,464

)

9,857,917

Debt

Finance leases

(1,399,575

)

540,437

(859,138

)

Debts falling due within 1 year

(34,859

)

(1,374

)

(36,233

)

Debts falling due after 1 year

(281,691

)

36,168

(245,523

)

(1,716,125

)

575,231

(1,140,894

)

Total

10,903,256

(2,186,233

)

8,717,023

1.	STATUTORY INFORMATION

Integra Buildings 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

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of certain assets. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

Turnover

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

In respect of long-term contracts, turnover represents the sales value of work done in the year, including estimates in respect of amounts not invoiced.

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recognising turnover and related costs (as defined in stocks policy) as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Tangible fixed assets

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

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

Freehold property

- 2% on cost

Improvements to property

- 25% on cost

Plant and machinery

- 25% on cost

Fixtures and fittings

- 33% on cost and 25% on cost

Motor vehicles

- 25% on cost

Hire units

- over the period of the lease

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 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.

Contract work in progress is included in debtors stated at net realisable value. Cumulative turnover (i.e. the total turnover recorded in respect of the contract in the profit and loss accounts of all accounting periods since inception of the contract) is compared with total payments on account. If turnover exceeds payments on account an "amount recoverable on contracts" is established and separately disclosed within debtors. If payments on account are greater than turnover to date, the excess is classified within creditors.

Debtors and creditors receivable or payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans from banks and other third parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income statement.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.