REGISTERED NUMBER: 06776322 (England and Wales)

Group Strategic Report,

Report of the Directors and

Audited

Consolidated Financial Statements

For The Year Ended 31st December 2024

for

D. Wilson Property Holding Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

D Wilson

Ms K Hadley

H J Wilson

SECRETARY:

Ms K Hadley

REGISTERED OFFICE:

Unit 24 Parkrose Industrial Estate

Middlemore Road

Smethwick

B66 2DZ

REGISTERED NUMBER:

06776322 (England and Wales)

SENIOR STATUTORY AUDITOR:

Jacqueline Anne Mannion

AUDITORS:

Wildin (Auditors) Limited

Kings Buildings

Lydney

Gloucestershire

GL15 5HE

The company has continued to develop it's property portfolio, on the basis that the developments will be sold and not retained as long term investments assets.The company did not sell any of it's property portfolio during the year as the developments were either unfinished or the prices obtainable were below what the directors feel that they are worth.The company continues with it's developments and the directors are confident that as the developments get finished that they will be able to be sold at a profit.With very little sales the company has shown a trading loss as the finance costs are included in the accounts as an overhead cost and not added to development costs.

The establishment of the new Architectural Metalworks factory is proving very good. Turnover rose this year by 17.7% from £6,577,364 (2023) to £7,742,718 (2024). The group has overall a pre tax profit this year of £208,736. The group is continuing with the development for sale of its property portfolio and further sales are expected in 2025.

The group has no defined performance indicators other than turnover, trading profits and cash. Cash flow has been identified as the principal risk affecting the business, however there are sufficient credit facilities available.

PRINCIPAL RISKS AND UNCERTAINTIES

The development part of the group's activities is affected by the increase in interest rates generally, although the anticipated profits on the projects have a built in buffer to cope with interest rate variations.

There is still uncertainty regarding the general economy and in particular the construction sector. However the group are now developing sites where they feel that profitable sales can be achieved.

ON BEHALF OF THE BOARD:

D Wilson - Director

30th April 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of Property development and construction industry trading.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2024 will be £ 323,600 .

DIRECTORS

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

D Wilson

Ms K Hadley

H J Wilson

FINANCIAL INSTRUMENTS

The company uses various financial instruments which include bank, financial institution and stocking loans, cash and various items, such as consignment stock, trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the company's operations. Their existence exposes the company to a number of financial risks.

The main risk arising from the company's financial instruments are interest rates risk, liquidity risk and credit risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.

Interest Rate Risk

The company finances its operations through a mixture of bank and other external borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The balance sheet includes trade debtors and creditors which do not attract interest and are therefore subject to fair value interest rate risk.

The company policy throughout the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum and minimum levels for the level of fixed interest rate borrowings.

Liquidity risk

The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest in cash assets safely and profitably.

The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum and minimum liquidity ratios.

CREDIT RISK

The company's principle financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparts have high credit ratings. The principle credit risk therefore arises from its trade debtors.

In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the finance director on a regular basis in conjunction with debt ageing and collection history.

PERSONNEL & EQUAL OPPORTUNITIES

The company is committed to engaging with employees and holds communication meetings with staff to inform them of company developments and company performance several times a year.

The company is committed to the principal of equal recruitment, training, development and treatment of all employees irrespective of race, ethnic origin, nationality, gender, sexual orientation, religious convictions, disability or age. All the company's policies, practices and procedures relating to recruitment, training, development and promotion are administered equally and in accordance with all applicable laws. Any engagement on progression within the company shall be determined solely by objective standards and personal merit.

Employment of disabled persons

The company gives full and fair consideration to applications for employment by the company made by disabled persons, having regard to their particular aptitudes and abilities. The company would arrange and continue the employment of, and arrange appropriate training for, employees who have become disabled during the year.

Employee involvement

The company holds communication meetings with staff every half year to give them an update on business performance, future plans and changes that have occurred in the year. Members of staff are encouraged to give feedback and suggestions in their quarterly reviews which are then discussed and actioned if deemed appropriate by management.

BASIS OF PREPARATION

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principle accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS102 and prepares accounts under UK GAAP.

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). 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

The auditors, Wildin (Auditors) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Wilson - Director

30th April 2025

Opinion

We have audited the financial statements of D. Wilson Property Holding Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, 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 31st December 2024 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud , the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risk of material misstatement in respect of irregularities , including fraud, the audit engagement team:

-obtain an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company complying with the legal and regulatory framework;

-inquired of management, those charged with governance, about their own identification and assessment of the risk of irregularities, including an known actual, suspected or alleged instances of fraud;

-inquired of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations by way of data submission report, and whether they are aware of any instances of non-compliance.

-reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations in direct relation to the company.

- performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

-discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we considered the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statements disclosures, inspecting correspondence with local tax authorities and evaluating advice received from external tax advisors.

The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. We tested a sample of revenue transactions recognised either side of the reporting date to determine whether revenue was recorded in the correct period.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

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.

Jacqueline Anne Mannion (Senior Statutory Auditor)

for and on behalf of Wildin (Auditors) Limited

Kings Buildings

Lydney

Gloucestershire

GL15 5HE

30th April 2025

TURNOVER

7,742,718

6,577,364

Cost of sales

5,084,632

4,521,757

GROSS PROFIT

2,658,086

2,055,607

Administrative expenses

2,189,166

2,054,429

468,920

1,178

Other operating income

745,741

638,113

OPERATING PROFIT

4

1,214,661

639,291

Interest receivable and similar income

7,183

4,554

1,221,844

643,845

Interest payable and similar expenses

5

1,013,108

662,959

PROFIT/(LOSS) BEFORE TAXATION

208,736

(19,114

)

Tax on profit/(loss)

6

193,162

51,331

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

15,574

(70,445

)

Profit/(loss) attributable to:

Owners of the parent

15,574

(70,445

)

PROFIT/(LOSS) FOR THE YEAR

15,574

(70,445

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

15,574

(70,445

)

Total comprehensive income attributable to:

Owners of the parent

15,574

(70,445

)

FIXED ASSETS

Tangible assets

9

2,520,538

3,364,262

Investments

10

-

-

2,520,538

3,364,262

CURRENT ASSETS

Stocks

11

18,333,087

14,780,347

Debtors

12

5,249,328

6,100,178

Cash at bank and in hand

50,517

47,606

23,632,932

20,928,131

CREDITORS

Amounts falling due within one year

13

12,669,083

11,727,255

NET CURRENT ASSETS

10,963,849

9,200,876

TOTAL ASSETS LESS CURRENT LIABILITIES

13,484,387

12,565,138

CREDITORS

Amounts falling due after more than one year

14

(9,085,866

)

(7,933,667

)

PROVISIONS FOR LIABILITIES

18

(380,253

)

(305,177

)

NET ASSETS

4,018,268

4,326,294

CAPITAL AND RESERVES

Called up share capital

19

2

2

Retained earnings

20

4,018,266

4,326,292

SHAREHOLDERS' FUNDS

4,018,268

4,326,294

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 30th April 2025 and were signed on its behalf by:

D Wilson - Director

FIXED ASSETS

Tangible assets

9

102,597

1,286,160

Investments

10

2,244,451

2,244,451

2,347,048

3,530,611

CURRENT ASSETS

Stocks

11

18,196,510

14,592,152

Debtors

12

2,783,827

3,876,727

Cash at bank and in hand

6,589

2,097

20,986,926

18,470,976

CREDITORS

Amounts falling due within one year

13

13,064,101

11,868,077

NET CURRENT ASSETS

7,922,825

6,602,899

TOTAL ASSETS LESS CURRENT LIABILITIES

10,269,873

10,133,510

CREDITORS

Amounts falling due after more than one year

14

8,655,090

7,766,345

NET ASSETS

1,614,783

2,367,165

CAPITAL AND RESERVES

Called up share capital

19

2

2

Retained earnings

20

1,614,781

2,367,163

SHAREHOLDERS' FUNDS

1,614,783

2,367,165

Company's loss for the financial year

(477,382

)

(585,517

)

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 8th April 2025 and were signed on its behalf by:

D Wilson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

2

4,396,737

4,396,739

Changes in equity

Total comprehensive income

-

(70,445

)

(70,445

)

Balance at 31st December 2023

2

4,326,292

4,326,294

Changes in equity

Dividends

-

(323,600

)

(323,600

)

Total comprehensive income

-

15,574

15,574

Balance at 31st December 2024

2

4,018,266

4,018,268

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

2

2,952,680

2,952,682

Changes in equity

Total comprehensive income

-

(585,517

)

(585,517

)

Balance at 31st December 2023

2

2,367,163

2,367,165

Changes in equity

Dividends

-

(275,000

)

(275,000

)

Total comprehensive income

-

(477,382

)

(477,382

)

Balance at 31st December 2024

2

1,614,781

1,614,783

Cash flows from operating activities

Cash generated from operations

1

(560,032

)

(1,995,574

)

Interest paid

(987,510

)

(643,840

)

Interest element of hire purchase and finance lease rental payments paid

(25,598

)

(19,119

)

Tax paid

-

(27,313

)

Taxation refund

101,619

-

Net cash from operating activities

(1,471,521

)

(2,685,846

)

Cash flows from investing activities

Purchase of tangible fixed assets

(710,507

)

(543,274

)

Sale of tangible fixed assets

146,866

282,613

Reclassification of Assets

1,266,202

-

Interest received

7,183

4,554

Net cash from investing activities

709,744

(256,107

)

Cash flows from financing activities

New loans in year

1,232,831

3,283,822

Capital repayments in year

(312,070

)

(179,822

)

Amount introduced by directors

380,867

-

Amount withdrawn by directors

(213,340

)

(185,276

)

Equity dividends paid

(323,600

)

-

Net cash from financing activities

764,688

2,918,724

Increase/(decrease) in cash and cash equivalents

2,911

(23,229

)

Cash and cash equivalents at beginning of year

2

47,606

70,835

Cash and cash equivalents at end of year

2

50,517

47,606

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

31.12.24

31.12.23

£

£

Profit/(loss) before taxation

208,736

(19,114

)

Depreciation charges

221,010

327,354

Loss/(profit) on disposal of fixed assets

11,442

(100,325

)

Finance costs

1,013,108

662,959

Finance income

(7,183

)

(4,554

)

1,447,113

866,320

Increase in stocks

(3,552,740

)

(5,384,321

)

Decrease in trade and other debtors

573,470

1,582,169

Increase in trade and other creditors

972,125

940,258

Cash generated from operations

(560,032

)

(1,995,574

)

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

50,517

47,606

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

47,606

70,835

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

47,606

2,911

50,517

47,606

2,911

50,517

Debt

Hire purchase and finance leases

(420,140

)

(246,517

)

(666,657

)

Debts falling due within 1 year

(55,027

)

26,099

(28,928

)

Debts falling due after 1 year

(7,734,740

)

(901,484

)

(8,636,224

)

(8,209,907

)

(1,121,902

)

(9,331,809

)

Total

(8,162,301

)

(1,118,991

)

(9,281,292

)

1.	STATUTORY INFORMATION

D. Wilson Property Holding Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	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.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and settlement discounts.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes, the following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all the following conditions are satisfied:

-the Company has transferred the significant risks and rewards of ownership to the buyer;

-the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the end site;

-the amount of revenue can be measured reliably;

-it is probable that the Company will receive the consideration due under the transaction;

-the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably, and;

- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of it tangible 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 in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Work in Progress is valued on the basis of direct costs less impairment if applicable, where losses are envisaged land and buildings are included at cost of acquisition including legal cost and stamp duty, plus the cost of any improvements, except in cases where the value is considered to have fallen below direct costs, in which case it is included at the lower figure.

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

Financial instruments

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate.

Impairment of financial assets

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

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

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

Derecogniton of financial assets

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