REGISTERED NUMBER: 11580124 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

USPS GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Consolidated Statement of Income and Retained Earnings

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

16

DIRECTOR:

G B Costigan

REGISTERED OFFICE:

Gibbons Industrial Park

Dudley Road

Kingswinford

West Midlands

DY6 8XF

REGISTERED NUMBER:

11580124 (England and Wales)

AUDITORS:

Blackthorns

Chartered Accountants

and Registered Auditors

Admiral House

Waterfront East

Brierley Hill

West Midlands

DY5 1XG

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The trading activity continues to be the sale of sheet and plate products to various market sectors.

2024 for the UK steel industry was largely negative, marked by declining demand from major steel sectors in the UK & EU, leading to a recession in apparent steel consumption. High input costs, intense global competition exacerbated these market conditions. UK HR steel prices decreased by 28% through the year, steel prices falling to its lowest point since Q1 2021.

Despite these conditions, the group continued to out perform many of our competitors. UK Market HR prices fell 11% year on year. Overall the group recorded a small loss of £1.235m, however since 2020 profits remain extremely strong. 2025 YTD performance will result in a NP of £1.1m as we enter Q4, the business will exceed budget for the 2025 financial year.

Due to continued growth, USP Steels Limited, a group company, have again been recognised and presented in the UK's top 100 fastest growing businesses, ranked 40th place from 4.2m privately owned businesses and No1 in the RSM Industrials top 200 listings.

RBS continues to provide funding and we continue to enjoy an excellent relationship with them.

PROFITABILITY

Loss before tax amounted to £1,558,983 (2023 £365,051).

The director considers that the result was excellent in view of the market challenges and relocating the business in full.

PRINCIPAL RISKS AND UNCERTAINTIES

The company recognises areas of risk to the business and is committed to manage those key risks.

-

Stock is managed with discipline to control borrowing levels.

-

Overhead expenditure is tightly controlled.

-

Security of supply is managed by continuous close and loyal relationships with key partners.

-

Financial information is shared with credit agencies.

-

The group has recently extended its debt protection policy with Tokio Marine (TMHCC) until 2025.

-

The group has a strong and loyal customer base with continued growth in numbers and market sectors.

-

Directors and senior commercial employees monitor competitor activity and market trends

-

The company undertakes a continuous improvement approach to people and processes

-

The company recognises areas of risk to the business and is committed to managing those key risks

KEY PERFORMANCE INDICATORS

The group measures business performance using key performance indicators with reference to turnover, gross profit and operating profit.

2024

2023

£

£

Turnover

117,241,184

115,766,350

Gross profit

4,790,988

2,806,194

Operating (loss) / profit

(102,867

)

798,240

Sales and margin statistics are also closely monitored.

SECTION 172(1) STATEMENT

This report sets out how the directors have had regard to the matters set out in section 172(1)(a) to (f) when performing their duties under section 172 of the Companies Act 2006. This requires directors to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and, in doing so have regard (amongst other matters) to:

-

the likely consequences of any decision in the long term;

-

the interests of the groups employees;

-

the need to foster the groups business relationships with suppliers, customers and others;

-

the impact of the groups operations on the community and the environment;

-

the desirability of the group maintaining a reputation for high standards of business conduct; and

-

the need to act fairly between members of the group.

The board works closely together in the day to day running of the business and regularly discuss strategic and operational matters. The board is conscious of the impact its business decisions have on stakeholders as well as the wider impact on society.

The likely consequences of any decision in the long term

The board is mindful that certain decisions can have longer term consequences. Evaluation of proposals are based on a balance of meeting shorter term objectives and due consideration to the longer term strategy of the business.

The interests of the groups employees

The board has regard to the interests of its employees in its decision making and engages with employees as appropriate. The board recognises the importance of attracting, retaining and motivating employees and prioritises the health, safety and wellbeing of its workforce.

The need to foster business relationships with suppliers, customers and others

The board has regard to stakeholder relationships in its decision making. Both customers and suppliers are regarded with equal importance, and the board believe that forging strong relationships with both is of benefit to all parties.

The impact of the groups operations on the community and the environment

The board is aware of the potential impact of its activities on the community and the environment. Any decisions regarding operations are made with due consideration to the local community and any possible impact on the environment.

The desirability of the group maintaining a reputation for high standards of business conduct

The board is committed to maintaining the reputation it has built with customers and suppliers alike. All employees are expected to carry out their business dealings with integrity.

The need to act fairly between members of the group

All shareholders are involved in any key decision making.

HEALTH AND SAFETY

The group is committed to achieving the highest practicable standards in health and safety management and strives to ensure environments are safe for employees and visitors.

ENVIRONMENT

The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

ON BEHALF OF THE BOARD:

G B Costigan - Director

30 September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company is that of a holding company renting property to its trading subsidiary.

The principal activity of the group is that of a steel stockholder and service centre.

DIVIDENDS

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

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

G B Costigan held office during the whole of the period from 1 January 2024 to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING

Greenhouse gas emissions and energy consumption

Unit

2024

2023

Fuel - vehicles

tCO2e

0.2

1.07

Gas

tCO2e

0.15

0

Purchased electricity

tCO2e

173.1

35.42

Total emissions

tCO2e

173.45

36.12

Total energy consumption

950.5

186.751

Intensity ratio: tonnes CO2e per production staff

1.1

1.09

Methodologies for energy and emissions calculations

This usage includes energy consumed by machinery, equipment, lighting, heating and other utilities for the Consolidated Group.

90% of the vehicles in the fleet are EVs, which significantly reduces emissions associated with transport.

The GHG emissions from electricity consumption using the UK Governments standard conversion factor for electricity for 2024, which is 0.18238 kg CO2/KWh

USP Steels Ltd has implemented the following actions to improve energy efficiency and reduce carbon emissions:

Installation of Solar Panels: Solar panels on the roof help generate renewable energy, reducing dependency on grid electricity. This helps offset a portion of the company's electricity consumption, leading to lower emissions.

Fleet Electrification: Almost all of the company vehicles are electric, with EV charging points also available for visitors to charge their cars.

Energy-Efficient Lighting: LED lighting throughout the facility

Energy Management System: Implementation of an energy management system to monitor control energy usage in real-time.

Employee Training: Conducted regular training sessions for staff to promote energy-saving practices and behaviours.

DISCLOSURE IN THE STRATEGIC REPORT

The director has opted to disclose the results of the group, its likely future developments and its financial risk management objectives and policies within the strategic report as he considers these items to be of sufficient strategic importance to the financial statements.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is 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 he 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.

AUDITORS

The auditors, Blackthorns, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G B Costigan - Director

30 September 2025

Opinion

We have audited the financial statements of USPS Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, 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 31 December 2024 and of the group's loss 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page six, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Based on our understanding of the company and industry we did not identify any risks of non compliance with laws and regulations that would impact on the company's ability to trade or have a material impact on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk was regarding completeness of income.

Audit procedures performed included:

-

discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

-

reviewing correspondence for any issues of non-compliance;

-

identifying and testing journal entries both at the year end and during the year, in particular any journal entries posted with unusual account combinations or posted by senior management; and

-

challenging assumptions and judgements made by management in their significant accounting estimates and judgements.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Victoria Brassington BA FCA (Senior Statutory Auditor)

for and on behalf of Blackthorns

Chartered Accountants

and Registered Auditors

Admiral House

Waterfront East

Brierley Hill

West Midlands

DY5 1XG

30 September 2025

TURNOVER

3

117,241,184

115,766,350

Cost of sales

112,450,196

112,960,156

GROSS PROFIT

4,790,988

2,806,194

Administrative expenses

5,223,855

2,007,954

(432,867

)

798,240

Other operating income

330,000

-

OPERATING (LOSS)/PROFIT

5

(102,867

)

798,240

Interest payable and similar expenses

6

1,456,116

1,163,291

LOSS BEFORE TAXATION

(1,558,983

)

(365,051

)

Tax on loss

7

(349,895

)

(71,603

)

LOSS FOR THE FINANCIAL YEAR

(1,209,088

)

(293,448

)

Retained earnings at beginning of year

16,379,729

16,673,177

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

15,170,641

16,379,729

Loss attributable to:

Owners of the parent

(886,421

)

(293,448

)

Non-controlling interests

(322,667

)

-

(1,209,088

)

(293,448

)

FIXED ASSETS

Intangible assets

9

4,539,039

7,441

Tangible assets

10

14,883,875

11,282,782

Investments

11

-

-

19,422,914

11,290,223

CURRENT ASSETS

Stocks

12

20,768,999

34,136,088

Debtors

13

23,646,549

26,227,106

Cash at bank and in hand

172,403

65,606

44,587,951

60,428,800

CREDITORS

Amounts falling due within one year

14

46,969,509

54,569,268

NET CURRENT (LIABILITIES)/ASSETS

(2,381,558

)

5,859,532

TOTAL ASSETS LESS CURRENT LIABILITIES

17,041,356

17,149,755

CREDITORS

Amounts falling due after more than one year

15

(1,225,589

)

-

PROVISIONS FOR LIABILITIES

19

(645,000

)

(770,000

)

NET ASSETS

15,170,767

16,379,755

CAPITAL AND RESERVES

Called up share capital

20

26

26

Retained earnings

21

15,493,308

16,379,729

SHAREHOLDERS' FUNDS

15,493,334

16,379,755

NON-CONTROLLING INTERESTS

22

(322,567

)

-

TOTAL EQUITY

15,170,767

16,379,755

The financial statements were approved by the director and authorised for issue on 30 September 2025 and were signed by:

G B Costigan - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

10,017,805

10,131,272

Investments

11

250,125

250,025

10,267,930

10,381,297

CURRENT ASSETS

Debtors

13

5,114,861

477,417

Cash at bank and in hand

25,438

13,992

5,140,299

491,409

CREDITORS

Amounts falling due within one year

14

1,598,343

1,219,898

NET CURRENT ASSETS/(LIABILITIES)

3,541,956

(728,489

)

TOTAL ASSETS LESS CURRENT LIABILITIES

13,809,886

9,652,808

CREDITORS

Amounts falling due after more than one year

15

(8,000,000

)

(4,000,000

)

PROVISIONS FOR LIABILITIES

19

(515,000

)

(550,000

)

NET ASSETS

5,294,886

5,102,808

CAPITAL AND RESERVES

Called up share capital

20

26

26

Retained earnings

21

5,294,860

5,102,782

SHAREHOLDERS' FUNDS

5,294,886

5,102,808

Company's profit for the financial year

192,078

107,184

The financial statements were approved by the director and authorised for issue on 30 September 2025 and were signed by:

G B Costigan - Director

Cash flows from operating activities

Cash generated from operations

1

12,444,768

1,018,392

Interest paid

(1,456,116

)

(1,163,291

)

Tax paid

36,368

306,603

Net cash from operating activities

11,025,020

161,704

Cash flows from investing activities

Purchase of tangible fixed assets

(632,035

)

(895,513

)

Sale of tangible fixed assets

309,200

-

Purchase of subsidiaries (net of cash)

(6,445,249

)

-

Net cash from investing activities

(6,768,084

)

(895,513

)

Cash flows from financing activities

Loan repayments in year

(610,024

)

(28,894

)

Capital repayments in year

(2,783

)

(22,349

)

Amount introduced by directors

475,000

(475,000

)

Net cash from financing activities

(137,807

)

(526,243

)

Increase/(decrease) in cash and cash equivalents

4,119,129

(1,260,052

)

Cash and cash equivalents at beginning of year

2

(20,662,351

)

(19,402,299

)

Cash and cash equivalents at end of year

2

(16,543,222

)

(20,662,351

)

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

31.12.24

31.12.23

£

£

Loss before taxation

(1,558,983

)

(365,051

)

Depreciation charges

1,066,649

470,080

Profit on disposal of fixed assets

(12,922

)

-

Finance costs

1,456,116

1,163,291

950,860

1,268,320

Decrease/(increase) in stocks

13,367,089

(6,437,121

)

Decrease in trade and other debtors

1,955,557

1,003,866

(Decrease)/increase in trade and other creditors

(3,828,738

)

5,183,327

Cash generated from operations

12,444,768

1,018,392

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

172,403

65,606

Bank overdrafts

(16,715,625

)

(20,727,957

)

(16,543,222

)

(20,662,351

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

65,606

1,384,440

Bank overdrafts

(20,727,957

)

(20,786,739

)

(20,662,351

)

(19,402,299

)

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

65,606

106,797

172,403

Bank overdrafts

(20,727,957

)

4,012,332

(16,715,625

)

(20,662,351

)

4,119,129

(16,543,222

)

Debt

Finance leases

-

(28,880

)

(28,880

)

Debts falling due within 1 year

(583,453

)

(350,958

)

(934,411

)

Debts falling due after 1 year

-

(1,225,589

)

(1,225,589

)

(583,453

)

(1,605,427

)

(2,188,880

)

Total

(21,245,804

)

2,513,702

(18,732,102

)

4.	ACQUISITION OF BUSINESS

£'000000

Net assets acquired:

Trade debtors

3,844

Stock

1,319

Trade and other debtors

,5822

Cash at bank

185

Trade and other creditors

-8,432

Non controlling interests

-323

2,415

Goodwill

4,859

7,274

Satisfied by:

Cash

5,114

Loan notes

2,160

7,274

1.	STATUTORY INFORMATION

USPS Group Limited is a private company, limited by shares, registered in England and Wales, registered number 11580124. Its registered office is Gibbons Industrial Park, Dudley Road, Kingswinford, West Midlands, DY6 8XF.

The financial statements are presented in Sterling, which is the functional currency of the company.

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.

Significant judgements and estimates

The group and company make estimates and assumptions concerning the future. The director is also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including explanations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements the director has made the following judgements:

Recoverability of trade debtors

Trade and other debtors are recognised to the extent that they are judged recoverable. The director's review is performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

The director makes allowances for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable.The director specifically analyses historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such differences will impact the carrying value of debtors and the charge in the statement of income and retained earnings.

Leasing

The company determines whether leases entered into by the company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.

Provisions

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

Taxation

There are many transactions and calculations for which the ultimate tax determination is uncertain. The company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due.

The director's estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.

Turnover

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

Tangible fixed assets

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

Plant and machinery

-

25% on cost, 20% on cost and 10% on cost

Fixtures and fittings

-

15% on reducing balance and 5% straight line

Motor vehicles

-

25% on reducing balance and 20% on cost

Computer equipment

-

25% on cost, 20% on cost and 10% on cost

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

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.