REGISTERED NUMBER: 13254754 (England and Wales)

BONTEXGEO UK HOLDING LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

E2p Management Bv

E Jacobs

Mrs I Cornelis

REGISTERED OFFICE:

E7 Meltham Mills Road

Meltham

Holmfirth

West Yorkshire

HD9 4DS

REGISTERED NUMBER:

13254754 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

The directors present their strategic report for Bontexgeo UK Holdings Limited for the year ended 31 December 2024.

REVIEW OF BUSINESS

The principal activities of the Group continues to be that of specialist supplier to the building, construction and environmental industries.

The Group was formed upon 9 March 2021 and consists of Bontexgeo UK Holdings Limited, A.B.G. Limited, Geogreen Solutions Limited and Geospec Limited. These entities are consolidated within these financial statements.

FINANCIAL KEY PERFORMANCE INDICATORS

Management use a range of performance measures to monitor and manage the business as set out below:

2024

2023

Turnover

£13,685,797

£13,201,242

Gross Profit

£6,690,403

£6,646,916

Gross Profit %

48.90%

50.33%

Operating Profit / (Loss)

£106,219

(£88,741)

Net Assets

£6,754,404

£6,792,896

Gross Assets

£9,656,388

£9,677,379

The turnover in 2024 is up on that achieved in 2023 as is the operating profit. Energy costs have eased compared to 2023, although still remain high. There has continued to be a positive effect on margin from the cost of polymers decreasing steadily throughout 2023 and holding at that level through 2024, particularly in prime polymer. Labour availability presents a challenge with skilled labour difficult to recruit. This is having an impact on efficiencies and capacity within the production environment.

The fluctuations in raw material and energy price inflation remain uncertain going forward. Both affect sales margins and are a risk to the profitability of our business.

FUTURE REVIEW

Since the beginning of 2025, raw material and energy prices have stabilised. We expect energy prices to remain steady for the remainder of 2025. With sourcing of skilled labour continuing to be a challenge.

Going concern

Whilst the Report of the directors and Financial Statements are focused on the financial results from 2024, the company's directors are mindful of the impacts of the macroeconomic conditions on the short to medium term resilience of the Group. Due to the uncertainty caused by the macroeconomic landscape, the directors have looked at the resilience of the Group to stay in business over the next 12 months. Three key measures have been looked at to determine if that position is reasonable, namely, income, expenditure, and cash flow. Based on a forecast of the likely activity in each of these areas the directors are satisfied that this position remains appropriate.

Cash flow

Based on the forecasted income and expenditure cash flow remains at a level above which is required to meet the debts of the company as they fall due.

The Group's activities expose it to a number of financial risks including cash flow risk, credit risk, liquidity risk and price risk.

The use of financial derivatives is governed by the company's policies approved by the board of directors, which provide principles on the use of financial derivatives to manage these risks. The Group does not use derivative financial instruments for speculative purposes.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continually review and monitor the key risks facing the company in order to manage the business and deliver the Group's strategy. The key risks and uncertainties affecting the Group relate to domestic and foreign competitors, energy costs, design liability, raw material prices, exchange rate movements and credit and liquidity risk. The Group's principal financial instruments are Sterling cash, other loans and obligations operating leases along with trade debtors and trade creditors under its normal course of business. Risk management is a regular subject of board discussion and whilst the Group does not have a material exposure in any of the areas mentioned, the board takes appropriate action when necessary. Global transport issues have focussed attention on lead times resulting in the Group strengthening its supply chain and reassessing its stock holding policies.

Competition risk

The Group is the UK market leader in drainage geocomposites but internationally the company is one of many such producers. The Group mitigates the risk of competition by ensuring that the products it supplies are offered with technical competence and advice and excellent customer service.

Design risk

The Group provides designs and warranties for the larger projects and mitigates the risk by operating within its area of expertise and maintaining appropriate PI insurance.

Raw material risk

The Group's operations and management teams monitor raw material prices closely in order to purchase at the best prices, buy forward when possible and plan ahead to enable the sales team to pass increases to customers when needed. Key materials are dual sourced and held in sufficient stock.

Foreign currency risk

The Group trades predominantly in £ Sterling for the majority of purchases and sales but has a small percentage that is exposed to the risk of changes in foreign exchange rates. Other than Sterling, the company makes purchases and sells product in Euros and whilst every attempt is made to balance off purchases with sales, the company periodically buys and sells Euros to mitigate risk.

Credit risk

The Group's credit risk relates to trade debtors. The company has credit insurance in place which covers the majority of the outstanding debtor balance. Uninsured debtors are managed by continually monitoring the aggregate amount and duration of exposure, depending on customer experience and payment performance.

Liquidity risk

The UK Group operates as part of the Bontexgeo group that provides liquidity assurance in addition to the Group's own cash reserves.

MARKET STRATEGIES AND OPPORTUNITIES

The Group specialises in providing solutions to infrastructure and large commercial building projects based on geosynthetic products that are either manufactured or sourced by A.B.G. Limited ('ABG'). A high level of technical expertise is utilised to add value to project designs . With over 30 years of experience, this is a proven strategy and ABG has a strong presence and a good reputation, both of which help to engender future business. The technical expertise enables added value and gives customers the confidence to use geosynthetics instead of traditional construction materials in a diverse range of markets. Geosynthetics save time, carbon and cost. The changing climate and increasing population drive the need for developing infrastructure around the world with minimal carbon emissions. ABG focuses on the UK, EU, Africa, Middle East and Asia.

ACTIVITY IN 2025

In 2025, the emphasis will continue to be further cost controls in combination with increases in efficiency, but also a lot of focus will be on seizing every good commercial opportunity.

Raw material and energy prices form a substantial part of our cost prices. Its evolution is therefore closely monitored. This price is influenced by market and political conditions and is beyond our control. In addition, there is a strong inflation of our costs across all categories. The extent to which we can pass on the cost increases strongly influences our profit margin.

The Group can count on the group management services of Geotexco NV, resulting in synergies.

EVENTS SUBSEQUENT TO YEAR-END

A joint venture was entered into with Alujain in the Kingdom of Saudi Arabia to create a manufacturing facility in that region that could service the local markets. This will open up significant opportunity for the Group in the future.

ON BEHALF OF THE BOARD:

Director

30 September 2025

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

DIVIDENDS

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

DIRECTORS

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

E2p Management Bv

E Jacobs

Mrs I Cornelis

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

E Jacobs - Director

30 September 2025

Opinion

We have audited the financial statements of Bontexgeo UK Holding Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 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 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and

regulations related to construction, building and corporation tax legislation and we considered the extent to which

non-compliance might have a material effect on the financial statements. As part of this assessment we considered both quantitative and qualitative factors. 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 FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

-

Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;

-

Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

-

Evaluation of management's controls designed to prevent and detect irregularities;

-

Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

-

Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

-

Review of correspondence with regulators in so far as they are related to the financial statements;

-

Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

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 by, for example, forgery or intentional misrepresentation, or through 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.

Andrew Cribb FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

30 September 2025

TURNOVER

3

13,685,797

13,201,242

Cost of sales

6,995,394

6,554,326

GROSS PROFIT

6,690,403

6,646,916

Administrative expenses

6,584,184

6,735,657

OPERATING PROFIT/(LOSS)

5

106,219

(88,741

)

Interest receivable and similar income

3,205

-

109,424

(88,741

)

Interest payable and similar expenses

7

3,264

4,716

PROFIT/(LOSS) BEFORE TAXATION

106,160

(93,457

)

Tax on profit/(loss)

8

144,652

(92,994

)

LOSS FOR THE FINANCIAL YEAR

(38,492

)

(463

)

Loss attributable to:

Owners of the parent

(38,492

)

(463

)

LOSS FOR THE YEAR

(38,492

)

(463

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(38,492

)

(463

)

Total comprehensive income attributable to:

Owners of the parent

(38,492

)

(463

)

FIXED ASSETS

Intangible assets

10

2,830,621

2,966,787

Tangible assets

11

769,862

584,278

Investments

12

-

-

3,600,483

3,551,065

CURRENT ASSETS

Stocks

13

2,195,951

1,967,504

Debtors

14

2,789,654

1,930,520

Cash at bank

1,070,300

2,228,290

6,055,905

6,126,314

CREDITORS

Amounts falling due within one year

15

2,757,422

2,884,483

NET CURRENT ASSETS

3,298,483

3,241,831

TOTAL ASSETS LESS CURRENT LIABILITIES

6,898,966

6,792,896

PROVISIONS FOR LIABILITIES

16

144,562

-

NET ASSETS

6,754,404

6,792,896

CAPITAL AND RESERVES

Called up share capital

17

7,525,000

7,525,000

Retained earnings

18

(770,596

)

(732,104

)

SHAREHOLDERS' FUNDS

6,754,404

6,792,896

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

E Jacobs - Director

E2p Management Bv - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

8,008,178

7,707,957

8,008,178

7,707,957

CURRENT ASSETS

Debtors

14

149

-

Cash at bank

8,773

7,133

8,922

7,133

CREDITORS

Amounts falling due within one year

15

5,990

4,330

NET CURRENT ASSETS

2,932

2,803

TOTAL ASSETS LESS CURRENT LIABILITIES

8,011,110

7,710,760

CAPITAL AND RESERVES

Called up share capital

17

7,525,000

7,525,000

Retained earnings

18

486,110

185,760

SHAREHOLDERS' FUNDS

8,011,110

7,710,760

Company's profit/(loss) for the financial year

300,350

(6,810

)

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

E Jacobs - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

7,000,000

(731,641

)

6,268,359

Changes in equity

Increase in share capital

525,000

-

525,000

Total comprehensive income

-

(463

)

(463

)

Balance at 31 December 2023

7,525,000

(732,104

)

6,792,896

Changes in equity

Total comprehensive income

-

(38,492

)

(38,492

)

Balance at 31 December 2024

7,525,000

(770,596

)

6,754,404

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

7,000,000

192,570

7,192,570

Changes in equity

Increase in share capital

525,000

-

525,000

Total comprehensive income

-

(6,810

)

(6,810

)

Balance at 31 December 2023

7,525,000

185,760

7,710,760

Changes in equity

Total comprehensive income

-

300,350

300,350

Balance at 31 December 2024

7,525,000

486,110

8,011,110

Cash flows from operating activities

Cash generated from operations

1

(451,421

)

2,373,678

Interest paid

(3,264

)

(4,371

)

Interest element of hire purchase or finance lease rental payments paid

-

(345

)

Tax paid

4,600

47,145

Net cash from operating activities

(450,085

)

2,416,107

Cash flows from investing activities

Purchase of intangible fixed assets

(337,690

)

(51,611

)

Purchase of tangible fixed assets

(287,286

)

(305,571

)

Sale of tangible fixed assets

-

44,283

Interest received

3,205

-

Net cash from investing activities

(621,771

)

(312,899

)

Cash flows from financing activities

Loan repayments in year

(86,134

)

(67,026

)

Capital repayments in year

-

(1,819

)

Share issue

-

525,000

Contingent consideration movement

-

(560,000

)

Net cash from financing activities

(86,134

)

(103,845

)

(Decrease)/increase in cash and cash equivalents

(1,157,990

)

1,999,363

Cash and cash equivalents at beginning of year

2

2,228,290

228,927

Cash and cash equivalents at end of year

2

1,070,300

2,228,290

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

2024

2023

£

£

Profit/(loss) before taxation

106,160

(93,457

)

Depreciation charges

575,558

658,241

Profit on disposal of fixed assets

-

(44,283

)

Finance costs

3,264

4,716

Finance income

(3,205

)

-

681,777

525,217

(Increase)/decrease in stocks

(228,447

)

68,952

(Increase)/decrease in trade and other debtors

(784,460

)

803,853

(Decrease)/increase in trade and other creditors

(120,291

)

975,656

Cash generated from operations

(451,421

)

2,373,678

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

1,070,300

2,228,290

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,228,290

228,927

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,228,290

(1,157,990

)

1,070,300

2,228,290

(1,157,990

)

1,070,300

Total

2,228,290

(1,157,990

)

1,070,300

1.	STATUTORY INFORMATION

Bontexgeo UK Holding 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.

The presentational and functional currency of these financial statements is sterling. Values are rounded to the nearest pound.

The directors have considered all factors, including the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the group, the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at lease one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Bontexgeo UK Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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 provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group financial statements from the date that control commences until the date that control ceases.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

The company converts raw materials to finished goods. Stock values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting. The Company uses the FIFO method to determine stock valuation.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

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 from contracts for the provision of constructing services is recognised by reference to the stage of completion where the stage of completion, costs incurred and costs to complete can be estimated reliable. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It 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 of 10 years.