REGISTERED NUMBER: 12343836 (England and Wales)

Captiva Venture Partners Limited

Group Strategic Report,

Director's Report and

Consolidated Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Director's Report

3

Independent Auditors' Report

5

Consolidated Income Statement and Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

Director:

H Cuadrado

Registered office:

3rd Floor

86 - 90 Paul Street

London

EC2A 4NE

Registered number:

12343836 (England and Wales)

Auditors:

Cooper Parry Group Limited

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

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

Principle activities

The principal activity of the group is to be a manufacturer of precision aviation and engineered products. The principal activity of the Company is to be a holding company for the group.

Review of business

The group's position in the marketplace remains strong in terms of customer interest and support, with the business having been selected by several key customers as a future strategic supplier. The aviation industry has recovered from the challenges of the Covid 19 worldwide impact of air travel and the main airframe manufacturers having extraordinarily strong orderbooks with significant backlogs in deliveries. The group has invested in five axis machining centers in recent years, which has significantly increased capacity and quality of products available for delivery. The industrial component sector of the business has continued to show good resilience and has opportunity for growth.

Key performance indicators

The group measures itself in a number of diverse ways using key performance indicators (KPI's). These include:

- Turnover

- Operating profit / (loss)

- Stock Holding

The group results show an increase in turnover of 26% to £12,094,035 (2023: £9,616,497) mainly because of the increased volume of Boeing B787 aircraft built.

The operating profit for the year is £2,133,345 (2023: £1,026,906) because of the increased turnover.

The group closed the year with stocks of £1,706,069 (2023: £1,472,389) due to the stock held to achieve increased turnover.

Principal risks and uncertainties facing the group

The principal risks to the business are revenue losses and margin erosion through customer price challenges and contractual discount structure and end dates. With the ongoing pursuit of continuous improvement and investment in the latest manufacturing machinery and methods being used to offset margin erosion, combined with the ongoing negotiations with major customers around contract renewal and additional new business, we are confident these risks are being tackled.

During the period of Covid 19 many airlines retired old models of aircraft earlier than the normal cycle would have dictated and this led to less demand for parts for engine overhaul frequency and build rate profile changes on legacy and new platforms. During this year, the demand for new platforms has increased considerably and the result is that we have seen an increase in revenue growth and a change in focus in terms of business development for the future.

The business also still faces the ongoing challenges of stock obsolescence, the risks of defaults on debts from customers, and the risks associated with a small number of customers representing a sizable proportion of the group's turnover. Obsolete stocks are marked down, and where they cannot be disposed of, they are scrapped. Our exposure to bad debts has been historically low due to tight credit control procedures that we maintain. The short-term risk to a small number of key customers representing a sizable proportion of turnover is managed by business contracts whilst in the longer term the customer base is planned to be expanded.

Future outlook

The outlook for the group is to continue to increase turnover with a diversification of its customer base combined with investment in new machinery with will improve capacity and quality of the products it produces.

On behalf of the board:

H Cuadrado - 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 Group in the year under review was that of the manufacturing of engineered components.

Results

The profit for the year, after taxation, amounted to £1,373,171 (2023: £784,416).

Dividends

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

The directors do not recommend the payment of a dividend for the financial year (2023: £Nil).

Future developments

There are no significant changes anticipated to the operations of the Company and the Group and the Company and Group is expected to continue with manufacturing activities for the foreseeable future.

Director

H Cuadrado held office during the whole of the period from 1 January 2024 to the date of this report.

Qualifying third party indemnity provision

The directors benefit from a qualifying indemnity provision in the form permitted by the Section 24 of the Companies Act 2006 in respect of certain third party actions against directors. No claim or notice of claim in respect of these indemnities has been received in the year. The qualifying indemnity provision was in force throughout the financial year and up to the date of approval of the Directors Report.

Going concern

The Group made a profit during the year and at the year end had net current assets of £2,452,770. In assessing the appropriateness of the going concern assumption, the directors have prepared detailed monthly cash flow forecasts for the period to 31 December 2025 and considered those cash flow forecasts alongside the committed funding facilities available to the Group which is principally an invoice discounting facility provided by Lloyds Bank Limited. That facility is undrawn at the time of approval of these financial statements.

The cash flow forecasts have taken into account the unprecedented circumstances brought on by the worldwide events, including a downturn in the global aviation sector and a prudent expectation of the speed of recovery. The base case scenario also reflects the benefits of actions already taken by management to mitigate the trading downsides, including utilising government support measures, renegotiating supplier arrangement (including payment terms) and reassessing the Group's cost base.

Having assessed the Group's liquidity outlook on the basis of revised forecasts, and after considering plausible downside scenarios, the directors have a reasonable expectation that the Group will be able to operate within the facility available to it for at least 12 months from the date of approval of these financial statements and, consequently, have continued to prepare the financial statements on a going concern basis.

Statement of director's responsibilities

The director is responsible for preparing the Group Strategic Report, the Director's Report 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 the Group and of the profit or loss of the Group 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 and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 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 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, Cooper Parry Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

H Cuadrado - Director

30 September 2025

Opinion

We have audited the financial statements of Captiva Venture Partners Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement and 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 31 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 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 Director's Report, but does not include the financial statements and our Auditors' Report 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Director's Report 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 Director's Report. 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 Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report 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:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation.

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. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

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 Auditors' Report.

Other matters

We draw attention to Note 2 of the financial statements, which explains that the comparative information presented for the year ended 31 December 2023 was not audited. Our opinion is not modified in respect of this matter.

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 an Auditors' Report 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.

Chris Evans (Senior Statutory Auditor)

for and on behalf of Cooper Parry Group Limited

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

30 September 2025

Turnover

12,094,035

9,616,497

Cost of sales

(6,355,199

)

(5,185,546

)

Gross profit

5,738,836

4,430,951

Distribution costs

(66

)

(1,446

)

Administrative expenses

(3,675,466

)

(3,526,359

)

2,063,304

903,146

Other operating income

70,041

123,760

Operating profit

2,133,345

1,026,906

Interest payable and similar expenses

6

(114,647

)

(102,262

)

Profit before taxation

7

2,018,698

924,644

Tax on profit

8

(645,527

)

(140,228

)

Profit for the financial year

1,373,171

784,416

Other comprehensive income

Share options expense

47,082

46,211

Income tax relating to other comprehensive income

-

-

Other comprehensive income for the year, net of income tax

47,082

46,211

Total comprehensive income for the year

1,420,253

830,627

Profit attributable to:

Owners of the parent

1,373,171

784,416

Total comprehensive income attributable to:

Owners of the parent

1,420,253

830,627

Fixed assets

Intangible assets

11

1,246,887

1,401,141

Tangible assets

12

2,778,064

2,245,445

Investments

13

-

-

4,024,951

3,646,586

Current assets

Stocks

14

1,706,069

1,472,389

Debtors

15

2,387,465

2,333,137

Cash at bank and in hand

1,104,170

248,458

5,197,704

4,053,984

Creditors

Amounts falling due within one year

16

2,744,934

3,299,645

Net current assets

2,452,770

754,339

Total assets less current liabilities

6,477,721

4,400,925

Creditors

Amounts falling due after more than one year

17

(900,152

)

(554,151

)

Provisions for liabilities

22

(340,542

)

(30,000

)

Net assets

5,237,027

3,816,774

Capital and reserves

Called up share capital

23

100

100

Share option reserve

24

93,293

46,211

Retained earnings

24

5,143,634

3,770,463

Shareholders' funds

5,237,027

3,816,774

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

H Cuadrado - Director

Fixed assets

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

93,294

46,212

93,294

46,212

Current assets

Cash in hand

100

100

Creditors

Amounts falling due within one year

16

43,378

41,344

Net current liabilities

(43,278

)

(41,244

)

Total assets less current liabilities

50,016

4,968

Capital and reserves

Called up share capital

23

100

100

Share option reserve

24

93,293

46,211

Retained earnings

24

(43,377

)

(41,343

)

Shareholders' funds

50,016

4,968

Company's loss for the financial year

(2,034

)

(1,813

)

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

H Cuadrado - Director

Called up

Share

share

Retained

option

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100

2,986,047

-

2,986,147

Changes in equity

Total comprehensive income

-

784,416

46,211

830,627

Balance at 31 December 2023

100

3,770,463

46,211

3,816,774

Changes in equity

Total comprehensive income

-

1,373,171

47,082

1,420,253

Balance at 31 December 2024

100

5,143,634

93,293

5,237,027

Called up

Share

share

Retained

option

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100

(39,530

)

-

(39,430

)

Changes in equity

Total comprehensive income

-

(1,813

)

46,211

44,398

Balance at 31 December 2023

100

(41,343

)

46,211

4,968

Changes in equity

Total comprehensive income

-

(2,034

)

47,082

45,048

Balance at 31 December 2024

100

(43,377

)

93,293

50,016

Cash flows from operating activities

Cash generated from operations

1

1,428,522

3,118,921

Interest paid

(78,718

)

(58,089

)

Interest element of hire purchase payments paid

(35,929

)

(44,173

)

Tax paid

(76,391

)

-

Net cash from operating activities

1,237,484

3,016,659

Cash flows from investing activities

Purchase of intangible fixed assets

-

(1,542,541

)

Purchase of tangible fixed assets

(832,117

)

(1,502,089

)

Sale of tangible fixed assets

5,348

-

Net cash from investing activities

(826,769

)

(3,044,630

)

Cash flows from financing activities

New loans in year

567,687

(320,897

)

Hire purchase (payments)/repayments

(187,436

)

359,984

Amount introduced by directors

2,034

1,813

Government grants

62,712

110,000

Net cash from financing activities

444,997

150,900

Increase in cash and cash equivalents

855,712

122,929

Cash and cash equivalents at beginning of year

2

248,458

125,529

Cash and cash equivalents at end of year

2

1,104,170

248,458

1.	Reconciliation of profit before taxation to cash generated from operations

2024

2023

as restated

£

£

Profit before taxation

2,018,698

924,644

Depreciation charges

451,805

399,903

Profit on disposal of fixed assets

(3,401

)

-

Share options expense

47,082

46,211

Government grants

(62,712

)

(110,000

)

Finance costs

114,647

102,262

2,566,119

1,363,020

Increase in stocks

(233,680

)

(439,695

)

(Increase)/decrease in trade and other debtors

(54,230

)

131,162

(Decrease)/increase in trade and other creditors

(849,687

)

2,064,434

Cash generated from operations

1,428,522

3,118,921

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

1,104,170

248,458

Year ended 31 December 2023

31/12/23

1/1/23

as restated

£

£

Cash and cash equivalents

248,458

125,529

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

248,458

855,712

1,104,170

248,458

855,712

1,104,170

Debt

Finance leases

(741,581

)

187,436

(554,145

)

Debts falling due within 1 year

-

(23,490

)

(23,490

)

Debts falling due after 1 year

-

(544,197

)

(544,197

)

(741,581

)

(380,251

)

(1,121,832

)

Total

(493,123

)

475,461

(17,662

)

1.	Statutory information

Captiva Venture Partners 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.

Prior year financial statements

The financial statements for the year ended 31 December 2023 have not been audited.

Functional and presentational currency

The presentation of the financial statements is the Pound Sterling (£). Amounts in these financial statements are rounded to the nearest £.

Foreign currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement within 'other operating income'.

Basis of consolidation

The consolidated Income Statement and Balance Sheet include the financial statements of the Parent Company and its subsidiary undertakings made up to 31 December 2024. Intra-group sales and profits are eliminated fully on consolidation.

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.

Turnover

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

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

Sale of goods

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

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

- the Company retains neither continuing managerial involvement to the degree usually associated with the 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.

Goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years. The directors are of the opinion that this is the period over which the goodwill will give rise to future economic benefits.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated 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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell or its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is provided on the following basis:

Short-term leasehold property

-

Straight line over the length of the lease

Plant and machinery

-

2.5% - 20% on a straight line basis

Fixtures and fittings

-

10% on a straight line basis

Motor vehicles

-

20% on a straight line basis

Computer equipment

-

20% on a straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Government grants

Government grants are accounted for under the accruals model as permitted by FRS102. Grants of a revenue nature are recognised in the income statement in the same period as the related

expenditure.

The Company has taken advantage of one of the local government grants and, consistent with the point above, income has been classified as other income in the income statement.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flow discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Tax is recognised in the Income Statement, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.