REGISTERED NUMBER: 08180760 (England and Wales)

Gillman Electrical Group limited

Group Strategic Report,

Report of the Directors and

Audited

Consolidated Financial Statements

For The Year Ended 31st December 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated 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:

R J Gillman

Miss A J Gillman

SECRETARY:

Miss A J Gillman

REGISTERED OFFICE:

Mercia Road

St Oswalds Road

Gloucester

Gloucestershire

GL1 2SG

REGISTERED NUMBER:

08180760 (England and Wales)

AUDITORS:

Wildin (Auditors) Limited

Kings Buildings

Lydney

Gloucestershire

GL15 5HE

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

The results for the year and the financial position of the Company are as shown in the annexed financial statements.

REVIEW OF BUSINESS

Sales this year increased by 6.8%, with the commercial side of the business showing good growth and profitability. The retail sector generally in the electrical goods side proved very competitive and profit margins had to be reduced in order to keep a good level of sales.Web sales continued to improve as people turned to online shopping and the increased advertising .

The overall net profit before tax for the period was £694K (2023- £686K. At the end of the year the company had net assets of £15.6M (2023 -£15.1M). The directors have forecast that there are sufficient resources in the company to continue with its current strategy and that the company is set to continue its growth within the sector over the next 12 months as new product innovations take off.

PRINCIPAL RISKS AND UNCERTAINTIES

The group supplies both budget and premium goods, as well as providing a comprehensive service and repair facility. The directors are aware that although the group provides a superior service, it is trading in a price sensitive sector of the economy. The group continues to closely monitor its cost level to ensure that adequate returns are maintained.

Competition is a significant risk to the company. While footfall has increased due to the increase in retail sales for the period. There is a increasing number of global competitors online however with the web sales improving the directors feel the company is in a strong position within the market. The directors focus is to provide consistently good quality products to retain existing customers, as well as attract new one through positive customer reviews. During the year, the company changed some suppliers and implemented new control processes to ensure the quality of products - these changed have had a positive impact and the number of orders from repeat customers has increased as well as new customers through the Gillco range.

KEY PERFORMANCE INDICATORS

During the year, the company reviewed all business through their KPIs. The directors use the following KPIs;

2024

2023

Gross Profit

39.04%

37.48%

This was as expected due to the small increase in sales prices, but also to cover increase in purchase prices from suppliers. Ratio of sales to prior years was the same.

Net profit before tax

4.78%

5.05%

This was slightly higher than expected as the general overheads were cut to reduce carbon footprint and allow for resourcefulness in usage of items.

Liquidity Ratio

739.58%

680.19%

This increased as the spending was made on assets.

Trading Ratio

23.26%

8.56%

The Directors appreciate the operation of business and the environment in which it trades. This is key to understanding the likely consequences of any long term decisions. There is a clear strategy which ensures the Group continues to sell and deliver quality products in a timely manner, satisfying customer and shareholder needs, amongst other stakeholders. Continually improving efficiencies , operating methods and focusing on sustainability are integral and fundamental parts of the business strategy. This strategy is key to ensuring the Group and the Directors are delivering on their duty of care for the benefit of future generations.

In setting the strategic direction of the Group, Directors also take into account the principal risks facing the business.

The Group have invested a lot in new marketing strategies and the launch of new ranges to ensure they remain ahead of the game in the a competitive market, offering good quality products and service to the local community, while maintaining their reputation as a reliable family business.

ON BEHALF OF THE BOARD:

Miss A J Gillman - Director

29th September 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 Electrical retailers and wholesaler distributors, and service and repair of appliances.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2024.

RESEARCH AND DEVELOPMENT

The group does carry out some Research & Development work.

FUTURE DEVELOPMENTS

The group is committed to a programme of continually enhancing its product range and developing its customer base.

DIRECTORS

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

R J Gillman

Miss A J Gillman

FINANCIAL INSTRUMENTS

The group's principle financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's operations.

Due to the nature of the financial instruments used by the group, there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, overdraft facilities are in place, and security has been given, to ensure that there is little liquidity risk. The group makes use of the money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

DIRECTORS' RESPONSIBILITIES STATEMENT

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:

Miss A J Gillman - Director

29th September 2025

Opinion

We have audited the financial statements of Gillman Electrical 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 Directors' Responsibilities Statement 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

29th September 2025

TURNOVER

14,502,012

13,587,914

Cost of sales

8,839,764

8,495,715

GROSS PROFIT

5,662,248

5,092,199

Administrative expenses

5,404,171

4,862,582

258,077

229,617

Other operating income

447,668

462,456

OPERATING PROFIT

4

705,745

692,073

Interest payable and similar expenses

5

11,840

5,207

PROFIT BEFORE TAXATION

693,905

686,866

Tax on profit

6

165,255

192,872

PROFIT FOR THE FINANCIAL YEAR

528,650

493,994

Profit attributable to:

Owners of the parent

528,650

493,994

PROFIT FOR THE YEAR

528,650

493,994

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

528,650

493,994

Total comprehensive income attributable to:

Owners of the parent

528,650

493,994

FIXED ASSETS

Tangible assets

9

3,880,904

3,635,624

Investments

10

86,649

86,649

Investment property

11

1,260,890

1,260,890

5,228,443

4,983,163

CURRENT ASSETS

Stocks

12

2,312,598

1,976,158

Debtors

13

6,832,753

5,825,526

Cash at bank

3,414,465

4,414,397

12,559,816

12,216,081

CREDITORS

Amounts falling due within one year

14

1,736,415

1,795,972

NET CURRENT ASSETS

10,823,401

10,420,109

TOTAL ASSETS LESS CURRENT LIABILITIES

16,051,844

15,403,272

CREDITORS

Amounts falling due after more than one year

15

(231,280

)

(183,528

)

PROVISIONS FOR LIABILITIES

17

(225,035

)

(136,351

)

NET ASSETS

15,595,529

15,083,393

CAPITAL AND RESERVES

Called up share capital

18

200

200

Retained earnings

19

15,595,329

15,083,193

SHAREHOLDERS' FUNDS

15,595,529

15,083,393

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

Miss A J Gillman - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

200,100

200,100

Investment property

11

3,648,269

3,648,269

3,848,369

3,848,369

CURRENT ASSETS

Debtors

13

9,486,580

8,497,994

Cash at bank

1,705,331

2,691,616

11,191,911

11,189,610

CREDITORS

Amounts falling due within one year

14

1,252,007

1,040,994

NET CURRENT ASSETS

9,939,904

10,148,616

TOTAL ASSETS LESS CURRENT LIABILITIES

13,788,273

13,996,985

CAPITAL AND RESERVES

Called up share capital

18

200

200

Retained earnings

13,788,073

13,996,785

SHAREHOLDERS' FUNDS

13,788,273

13,996,985

Company's loss for the financial year

(208,712

)

(205,594

)

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

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 4th August 2025 and were signed on its behalf by:

A Gillman - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

200

14,735,199

14,735,399

Changes in equity

Dividends

-

(146,000

)

(146,000

)

Total comprehensive income

-

493,994

493,994

Balance at 31st December 2023

200

15,083,193

15,083,393

Changes in equity

Total comprehensive income

-

528,650

528,650

Balance at 31st December 2024

200

15,611,843

15,612,043

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

200

14,348,379

14,348,579

Changes in equity

Dividends

-

(146,000

)

(146,000

)

Total comprehensive income

-

(205,594

)

(205,594

)

Balance at 31st December 2023

200

13,996,785

13,996,985

Changes in equity

Total comprehensive income

-

(208,712

)

(208,712

)

Balance at 31st December 2024

200

13,788,073

13,788,273

Cash flows from operating activities

Cash generated from operations

1

(47,001

)

1,304,586

Interest element of hire purchase payments paid

(11,840

)

(5,207

)

Tax paid

(183,550

)

(311,274

)

Net cash from operating activities

(242,391

)

988,105

Cash flows from investing activities

Purchase of tangible fixed assets

(769,292

)

(399,072

)

Purchase of fixed asset investments

-

(86,649

)

Sale of tangible fixed assets

(4,281

)

26,490

Net cash from investing activities

(773,573

)

(459,231

)

Cash flows from financing activities

Capital repayments in year

47,752

70,727

Amount introduced by directors

114,280

-

Amount withdrawn by directors

(146,000

)

43,000

Equity dividends paid

-

(146,000

)

Net cash from financing activities

16,032

(32,273

)

(Decrease)/increase in cash and cash equivalents

(999,932

)

496,601

Cash and cash equivalents at beginning of year

2

4,414,397

3,917,796

Cash and cash equivalents at end of year

2

3,414,465

4,414,397

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

31.12.24

31.12.23

£

£

Profit before taxation

693,905

686,866

Depreciation charges

469,912

401,587

Loss/(profit) on disposal of fixed assets

23,275

(15,678

)

Finance costs

11,840

5,207

1,198,932

1,077,982

(Increase)/decrease in stocks

(336,440

)

237,932

Increase in trade and other debtors

(1,007,227

)

(321,219

)

Increase in trade and other creditors

97,734

309,891

Cash generated from operations

(47,001

)

1,304,586

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

3,414,465

4,414,397

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,414,397

3,917,796

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

4,414,397

(999,932

)

3,414,465

4,414,397

(999,932

)

3,414,465

Debt

Finance leases

(183,528

)

(47,752

)

(231,280

)

(183,528

)

(47,752

)

(231,280

)

Total

4,230,869

(1,047,684

)

3,183,185

1.	STATUTORY INFORMATION

Gillman Electrical 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 as modified by the revaluation of certain assets.

Basis of consolidation

All subsidiaries are held 100% by the parent Gillman Electrical Group and as such have been included fully within the consolidation excluding all inter company trade, charges, dividends and balances.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

Preparation of the financial statements requires the Directors to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgement had a significant effect on the amounts recognised in the

financial statements:

Depreciation of tangible fixed assets

Tangible fixed assets are depreciated over their useful lives considering residual values were appropriate. The actual lives of the assets may vary depending on many factors. The Directors exercise judgement when completing an annual assessment of the validity of asset residual values.

Warranty Provisions

The Company completes warranty work upon completed installations. At the financial year end, an estimate of the future liability is calculated using historic performance and Directors judgement.

Impairment of financial assets

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the Directors consider factors including the current credit rating of the debtor, ageing profile of the debtors and historical experience.

Revenue

Revenue is recognised to the extent that it is possible 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 good is recognised when all of the following conditions are satisfied:

* the Company has transferred the significant risk 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 goods sold;

* the amount of revenue can be measured reliably;

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

* 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 the 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 cost to complete the contract can be measured reliably.

Tangible fixed assets

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

Assets on Lease

-

33% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are measured using the cost model. These assets are stated at historical cost less depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-lie method as follows:

Rental Equipment

33% on cost

Fixtures & Fittings

33% on cost

Motor vehicles

25% on cost

Computer equipment

33% on cost

Assets held under finance leases are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership, in which case the depreciation period is the useful life.

The residual values, useful lives and depreciation methods of tangible fixed assets are reviewed annually and revised if necessary. The effect of any revisions is accounted for prospectively. There were no material revisions in the periods covered by these financial statements.

Gains and losses on disposals are determined by comparing the proceed with the carrying amount and are recognised in profit and loss.

No depreciation is provided on freehold buildings used within the business in the directors opinion, the real ( inflation adjustment) estimated residual value is not less than the carrying value in the accounts. On a subsidiary depreciation of 2% on cost has been provided.

Investments in subsidiaries and associates

Investments in subsidiary and associate undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

Stocks are stated at the lower of cost and net realisable value, being the estimated selling prices less costs to complete and sell. Cost is based on the cost of last purchase price less any adjustments for obsolete stock. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amounts is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.