REGISTERED NUMBER: 09783713 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31st December 2024

for

William Gilder Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

15

DIRECTORS:

W Gilder

M Evans

M J Rouse

M Fowles

REGISTERED OFFICE:

Teddington Hands

Evesham Road

Tewkesbury

Gloucestershire

GL20 8NE

REGISTERED NUMBER:

09783713 (England and Wales)

SENIOR STATUTORY AUDITOR:

Robert Iestyn Richards FCA CTA FCCA

AUDITORS:

Richards Sandy Audit Services Limited

(Statutory Auditor)

Thorneloe House

25 Barbourne Road

Worcester

WR1 1RU

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The group's principal activities during the year have remained unchanged.

We consider that our key finance performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and operating profit.

Turnover for the year was £26,295,655 compared to £26,663,394 in the previous year.

The gross profit for the year amounted to £4,156,437 compared to £5,107,661 in the previous year. This represents a gross margin of 15.8% as compared with 19.2% for the previous year.

There was an operating profit for the year of £2,573,160 compared to £3,548,499 in the previous year.

The directors and management continue to focus their efforts on regular detailed reporting of the business segments to identify under performed areas with a view to improving efficiency, and highlighting commercial issues which require resolution.

The aim continues to be to develop and profitably grow the business by targeted organic growth.

PRINCIPAL RISKS AND UNCERTAINTIES

As a leader in the market, the group works hard to maintain its position at the forefront.

The Directors have identified certain significant risks to the business and these are identified below together with measures which have been taken to mitigate them.

The group has provided security over the loans and bank overdraft by way of fixed and floating charges over the group and also its related parties by way of a cross party guarantee. The directors regularly monitor the net cash position across the group and takes action as required.

Interest Rates. The unprecedented low level of interest rates continues and the directors do not expect an increase that will materially influence the group's profitability in the near future.

Customers. The group is working with customers who do not pose a significant risk of non-payment, although their finances are monitored. Business is secured from different business units, so that the closure of one would not be expected to pose significant problems to the group.

Business interruption. Contingency plans have been prepared to enable us to react swiftly to rectify any interruption caused by failure of computer systems or utilities.

The directors have reviewed the group's insurance policies which are fully up to date.

The group takes comprehensive measures to ensure the health and safety of employees and the environment in which they work are safe. The directors consider that the group is fully compliant with all relevant legislation.

ON BEHALF OF THE BOARD:

W Gilder - Director

30th 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 ACTIVITIES

The principal activities of the group in the year under review were those of agricultural machinery sales, tug and tanker hire, transport and disposal of waste.

DIVIDENDS

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

DIRECTORS

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

W Gilder

M Evans

M J Rouse

M Fowles

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The group has made qualifying third party indemnity provisions for the benefit of its directors during the period. These provisions remain in force at the reporting date.

DISCLOSURE IN THE STRATEGIC REPORT

Information regarding credit risk and research and development can be found in the Strategic Report.

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

ON BEHALF OF THE BOARD:

W Gilder - Director

30th September 2025

Opinion

We have audited the financial statements of William Gilder Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Statement of 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 three, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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 risks of material misstatement in respect of irregularities, including fraud, we have:

-

obtained 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 is complying with the legal and regulatory framework; and

-

inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Companies Act 2006 (and related legislation), laws and regulations relating to the employment and payment of staff including, but not limited to, the Employment Rights Act 1996, the National Minimum Wage Act 1998 and the Pensions Act 2008, and laws and regulations relating to tax compliance, specifically corporation tax and VAT.

We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included reviewing the financial statement disclosures. This includes sample testing of monthly payroll records for the calculation of gross wages, payroll taxes and pension costs. We have also reviewed corporation tax and VAT calculation for the year for indications of material errors, including testing of the VAT treatment on a sample of sales and purchases.

We identified the areas of the financial statements most susceptible to fraud to be the classification of vehicles and machinery between tangible fixed assets and stock. We have reviewed a sample of assets included within stock for indications that they have been used for business activities within the year.

Because of 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. 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.

Robert Iestyn Richards FCA CTA FCCA (Senior Statutory Auditor)

for and on behalf of Richards Sandy Audit Services Limited

(Statutory Auditor)

Thorneloe House

25 Barbourne Road

Worcester

WR1 1RU

30th September 2025

TURNOVER

4

26,295,655

26,663,394

Cost of sales

22,139,218

21,555,733

GROSS PROFIT

4,156,437

5,107,661

Administrative expenses

1,793,959

1,693,955

2,362,478

3,413,706

Other operating income

210,682

134,793

OPERATING PROFIT

7

2,573,160

3,548,499

Income from other participating interests

(149,225

)

(82,892

)

Interest receivable and similar income

8

30,192

11,228

(119,033

)

(71,664

)

2,454,127

3,476,835

Gain/loss on revaluation of assets

456,224

(586,901

)

2,910,351

2,889,934

Interest payable and similar expenses

9

1,017,516

886,235

PROFIT BEFORE TAXATION

1,892,835

2,003,699

Tax on profit

10

309,412

738,018

PROFIT FOR THE FINANCIAL YEAR

1,583,423

1,265,681

OTHER COMPREHENSIVE INCOME

Revaluation of tangible fixed assets

855,616

(474,949

)

Income tax relating to other comprehensive income

(209,905

)

(137,703

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

645,711

(612,652

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,229,134

653,029

Profit attributable to:

Owners of the parent

1,583,423

1,265,681

Total comprehensive income attributable to:

Owners of the parent

2,229,134

653,029

FIXED ASSETS

Intangible assets

13

(452,981

)

(905,961

)

Tangible assets

14

28,538,424

26,409,642

Investments

15

Interest in joint venture

Share of gross assets

1,314,856

1,479,037

Share of gross liabilities

(1,210,840

)

(1,225,796

)

Investment property

16

4,922,000

4,675,000

33,111,459

30,431,922

CURRENT ASSETS

Stocks

17

1,675,162

1,618,641

Debtors

18

7,364,523

7,881,533

Cash at bank and in hand

3,040,745

1,747,857

12,080,430

11,248,031

CREDITORS

Amounts falling due within one year

19

7,906,017

11,145,649

NET CURRENT ASSETS

4,174,413

102,382

TOTAL ASSETS LESS CURRENT LIABILITIES

37,285,872

30,534,304

CREDITORS

Amounts falling due after more than one year

20

(11,466,250

)

(7,387,046

)

PROVISIONS FOR LIABILITIES

24

(2,735,238

)

(2,292,008

)

NET ASSETS

23,084,384

20,855,250

CAPITAL AND RESERVES

Called up share capital

25

1

1

Revaluation reserve

26

3,668,698

3,022,987

Non-distributable reserve

26

348,543

289,247

Retained earnings

26

19,067,142

17,543,015

SHAREHOLDERS' FUNDS

23,084,384

20,855,250

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

W Gilder - Director

FIXED ASSETS

Intangible assets

13

-

-

Tangible assets

14

-

-

Investments

15

402

402

Investment property

16

-

-

402

402

CURRENT ASSETS

Debtors

18

250

250

CREDITORS

Amounts falling due within one year

19

2,670

2,670

NET CURRENT LIABILITIES

(2,420

)

(2,420

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,018

)

(2,018

)

CAPITAL AND RESERVES

Called up share capital

25

1

1

Retained earnings

26

(2,019

)

(2,019

)

SHAREHOLDERS' FUNDS

(2,018

)

(2,018

)

Company's profit for the financial year

-

-

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

W Gilder - Director

Called up

share

Retained

Revaluation

Non-distributable

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1st January 2023

1

16,223,194

3,635,639

343,387

20,202,221

Changes in equity

Total comprehensive income

-

1,319,821

(612,652

)

(54,140

)

653,029

Balance at 31st December 2023

1

17,543,015

3,022,987

289,247

20,855,250

Changes in equity

Total comprehensive income

-

1,524,127

645,711

59,296

2,229,134

Balance at 31st December 2024

1

19,067,142

3,668,698

348,543

23,084,384

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

1

(2,019

)

(2,018

)

Changes in equity

Balance at 31st December 2023

1

(2,019

)

(2,018

)

Changes in equity

Balance at 31st December 2024

1

(2,019

)

(2,018

)

Cash flows from operating activities

Cash generated from operations

1

4,003,230

5,243,647

Interest paid

(755,564

)

(680,911

)

Interest element of hire purchase payments paid

(261,952

)

(205,324

)

Tax paid

341,379

(34,937

)

Net cash from operating activities

3,327,093

4,322,475

Cash flows from investing activities

Purchase of tangible fixed assets

(1,952,897

)

(1,318,996

)

Purchase of investment property

-

(77,270

)

Sale of tangible fixed assets

488,130

621,838

Interest received

30,192

11,228

Net cash from investing activities

(1,434,575

)

(763,200

)

Cash flows from financing activities

New bank loans

5,472,250

-

Bank loans repayments

(4,222,359

)

(152,739

)

Capital repayments in year

(1,849,521

)

(1,811,423

)

Net cash from financing activities

(599,630

)

(1,964,162

)

Increase in cash and cash equivalents

1,292,888

1,595,113

Cash and cash equivalents at beginning of year

2

1,747,857

152,744

Cash and cash equivalents at end of year

2

3,040,745

1,747,857

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

2024

2023

£

£

Profit before taxation

1,892,835

2,003,699

Depreciation charges

2,024,701

1,922,694

Profit on disposal of fixed assets

(322,916

)

(326,085

)

(Gain)/loss on revaluation of fixed assets

(456,224

)

586,901

Finance costs

1,017,516

886,235

Finance income

119,033

71,664

4,274,945

5,145,108

Increase in stocks

(54,108

)

(494,459

)

Decrease/(increase) in trade and other debtors

143,161

(94,994

)

(Decrease)/increase in trade and other creditors

(360,768

)

687,992

Cash generated from operations

4,003,230

5,243,647

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

3,040,745

1,747,857

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,747,857

152,744

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

1,747,857

1,292,888

3,040,745

1,747,857

1,292,888

3,040,745

Debt

Finance leases

(5,067,425

)

1,849,521

(1,756,353

)

(4,974,257

)

Debts falling due

within 1 year

(6,174,359

)

4,222,359

(1,371,665

)

(3,323,665

)

Debts falling due

after 1 year

(4,039,670

)

(5,472,250

)

1,371,665

(8,140,255

)

(15,281,454

)

599,630

(1,756,353

)

(16,438,177

)

Total

(13,533,597

)

1,892,518

(1,756,353

)

(13,397,432

)

4.	MAJOR NON-CASH TRANSACTIONS

During the year the group acquired tangible fixed assets under new hire purchase loan agreements totalling £1,756,353 (2023 - £2,438,737).

1.	STATUTORY INFORMATION

William Gilder 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

The consolidated financial statements incorporate those of William Gilder Group Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefit). All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provide evidence of an impairment of the asset transferred.

None of the group companies are considered to have accounting policies that are not in line with those of the group.

JOINT VENTURES

In the consolidated financial statements, investments in joint ventures are measured using the equity method, whereby the investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the joint venture.

In the individual company financial statements, investments in joint ventures are measured at cost.

RELATED PARTY EXEMPTION

The group 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.

GOING CONCERN

In preparing these financial statements, the directors have considered whether the going concern basis of preparation remains appropriate. To make this assessment the directors have considered the current financial position of the group and anticipated future cashflows for a period of at least 12 months from the signing of these financial statements.

The group is reliant on short term borrowings from the bank, which are secured by way of group-wide cross-party legal charges over the trade and assets of the group.

CHANGES IN ACCOUNTING POLICIES

The accounting policy for the measurement of leasehold property has changed from being measured at fair value and not depreciation to being measured at cost and depreciated at 10% on reducing balance. Because this change has been done in response to a significant change to the company's future plans for the property, this has been accounted for as a change in accounting estimate (rather than as a change in accounting policy). Revaluation losses for the year through the Statement of Changes in Equity includes £306,270 that relates to this change in accounting policy, as well as additional depreciation on leasehold property totalling £19,373 being charged in the current financial year.

TURNOVER

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

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has passed to the buyer (usually on dispatch of the goods) and the amount of turnover can be measured reliably.

NEGATIVE GOODWILL

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of ten years.

TANGIBLE FIXED ASSETS

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

Freehold property

-

not provided

Short leasehold

-

10% on reducing balance

Plant and machinery

-

50% on reducing balance, 25% on reducing balance, 20% on reducing balance, 15% on reducing balance and 10% on cost

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Freehold property is not depreciated. The residual value at the end of the useful economic life is not expected to be materially different from the revalued cost.

Freehold property included within assets under construction are not depreciated during the period of construction, on the basis that it is impractical to reliably revalue such assets until the construction has been completed.

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.

FINANCIAL INSTRUMENTS

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

Financial assets are offset, with the net amounts presented in the accounts where 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 receivables 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic Financial Liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

RESEARCH AND DEVELOPMENT

Expenditure on research and development is written off in the year in which it is incurred.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

HIRE PURCHASE AND LEASING COMMITMENTS

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payment. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest payments. The interest is charged to the income statement so as to produce a constant rate of interest over the lease term.

Rents receivable and payable under operating leases are credited or charged to the income statement on a straight line basis over the term of the individual leases to which they relate.

PENSION COSTS

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The group makes estimates and assumptions concerning the future. The resulting estimates will, by definition, seldom equal the actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Depreciation

The annual depreciation charge for intangible and tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimates, based on the technological advancement, future investment, economic utilisation and the physical condition of the assets.

Rates of depreciation are considered on a line by line basis and disclosed within the accounting policy for depreciation.

The year end value of tangible fixed assets can be found in note 14.