REGISTERED NUMBER: 13540840 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD 1 AUGUST 2023 TO 31 DECEMBER 2024

FOR

SPEEDY PRODUCTS GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

I H Seddon

D J Seddon

REGISTERED OFFICE:

Speedy House

Cheltenham Street

Manchester

Greater Manchester

M6 6WY

REGISTERED NUMBER:

13540840 (England and Wales)

AUDITORS:

Christian Douglass Accountants Limited

Chartered Accountants

Statutory Auditor

2 Jordan Street

Knott Mill

Manchester

M15 4PY

The directors present their strategic report of the company and the group for the period 1 August 2023 to 31 December 2024.

REVIEW OF BUSINESS

The Speedy Products group of companies ("Speedy") is a leading manufacturer of window furnishings, having been in the trade for over 40 years. Speedy reaches customers on a global scale from both its wholesale operation in the UK and directly from its manufacturing facility in China.

Paloma Decoration Products (Suzhou) Company Limited ("Paloma"), as the group's Chinese base manufacturing facility, enables continued growth in the international markets. The group's global customer base reaches as far as Canada, Australia, Japan and Europe. The group's ethos of one company in two places allows facilitation of a high-quality global platform as well as providing world class customer service.

The group has a core belief in continued development in new products and technologies, whilst ensuring that it continues to reduce its impact on the environment. This has been key to achieving and establishing the reputation that the group holds. The investment in green logistics, LED lighting, motion sensor lighting and much more has kept the group ahead of its competition. These investments have reduced the costs of the group's everyday procedures.

Our new cloud-based IT infrastructure has given the group the new push forward for improved analysis of the business, flexible working locations as well as improving the opportunity to expand to new business areas with ease. It is backed up by world class GDPR practices from the software provider.

The group has maintained all its accreditations; ISO9001 2015, BSCI, SEDEX and REACH and this demonstrates the group's continued efforts to improve on quality, whilst maintaining its ethical responsibilities as a global supplier.

The flexibility with which the group operates is unique to the market. This has allowed the group to be utilized in different ways by different customers' needs. The customer needs might be 3PL, Cross Docking and so on. With the use of our facilities, we can and do, help our customer base reduce their environmental impact, costs and maintain their supply chain. Economic uncertainties have remained in 2024 and impacted on trade generally. In this Year we have seen the impact of the rise in taxes and retail decline. We have also reshuffled our customer base and as a result our turnover has lowered by 30% year on year, whilst maintaining a higher gross margin and a better spread of customers and risk

Even with this challenging year we have maintained a healthy cash balance of over £300,000. This is partly due to the careful management of the stock holding and working capital. The stock holding continues to reduce due to the loss of Homebase.

PRINCIPAL RISKS AND UNCERTAINTIES

The world market has come under increasing strain for raw materials and the higher supply chain costs. Although we have the normal risks that we had from last year with regards to customers' credit exposure we have maintained a tight grip on this, our policies are robust.

By the nature of importing from overseas, the group's main liquidity risk is attributable to its stock holding. The group has various bank facilities which help to mitigate this and maintain a healthy working capital.

Currency fluctuations can have an adverse effect on profitability however this is mitigated by hedging against currency fluctuation using natural hedges and negotiating fixed prices with suppliers.

ON BEHALF OF THE BOARD:

D J Seddon - Director

26 September 2025

The directors present their report with the financial statements of the company and the group for the period 1 August 2023 to 31 December 2024.

DIVIDENDS

Dividends of £125,276 (2023: £84,014) were paid during the period. The directors do not recommend the payment of a final dividend.

RESEARCH AND DEVELOPMENT

The Speedy group have always moved forward by innovation and this year is no exception. We have spent a considerable amount of time developing and working on new products and projects to ensure that we are at the leading edge of the market.

This development and the speed in which we can implement these innovative ideas has helped maintain the growth of our business and opened doors into new sectors of the market

FUTURE DEVELOPMENTS

Due to the changing landscape of the UK retail market Speedy has moved more to towards the contract market with product development and opportunities for growth We foresee a growth within this sector in the UK. We also see an opportunity in the value-added sector of the Uk market and the business has positioned itself to operate in this sector.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report.

I H Seddon

D J Seddon

BRANCHES

At no time during the year did the company operate any branches outside of the United Kingdom. The subsidiary company operates in China.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company and group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of financial instruments and financial risk management.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Christian Douglass Accountants Limited, were appointed during the period and are deemed to be reappointed in accordance with section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

D J Seddon - Director

26 September 2025

Opinion

We have audited the financial statements of Speedy Products Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period 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 period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

The audit, conducted in accordance with the ISAs (UK), required the exercise of professional judgment and the application of professional skepticism throughout. The audit was planned so as to identify and assess the risks of material misstatement of the financial statements, howsoever arising, and we subsequently designed and performed audit procedures responsive to those risks. We obtained an understanding of the group and company's systems of internal control, which management have established as described above, and undertook walkthrough testing to confirm their operation, solely to assist with designing audit procedures that are appropriate in the circumstances. We evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates used by management. We audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business, if any. Further, we reviewed and concluded on the appropriateness of management's use of the going concern basis of accounting.

As a general commercial business, the group and company do not operate in a heavily regulated environment, however we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, through discussion with the directors and other management (as required by auditing standards), and from inspection of the group and company's regulatory and legal correspondence and we discussed with the directors and other management, the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert for any indications of non-compliance throughout the audit.

Auditors' responsibilities for the audit of the financial statements

- continued

The group and company are subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation, taxation legislation and pension legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with the auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of fraud based irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Other matters which we are required to address

The comparative financial statements were unaudited.

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.

Mrs Deborah Burton F.C.A. (Senior Statutory Auditor)

for and on behalf of Christian Douglass Accountants Limited

Chartered Accountants

Statutory Auditor

2 Jordan Street

Knott Mill

Manchester

M15 4PY

30 September 2025

TURNOVER

3

12,185,999

12,381,992

Cost of sales

7,712,487

8,297,515

GROSS PROFIT

4,473,512

4,084,477

Distribution costs

962,085

705,808

Administrative expenses

4,329,069

2,781,259

5,291,154

3,487,067

(817,642

)

597,410

Other operating income

4

5,273

3,431

OPERATING (LOSS)/PROFIT

6

(812,369

)

600,841

Interest receivable and similar income

7

1,840

349

(810,529

)

601,190

Interest payable and similar expenses

8

122,381

62,230

(LOSS)/PROFIT BEFORE TAXATION

(932,910

)

538,960

Tax on (loss)/profit

9

(99,141

)

91,781

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(833,769

)

447,179

(Loss)/profit attributable to:

Owners of the parent

(833,769

)

447,179

(LOSS)/PROFIT FOR THE PERIOD

(833,769

)

447,179

OTHER COMPREHENSIVE INCOME

Effect of foreign exchange

407

26,710

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

407

26,710

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(833,362

)

473,889

Total comprehensive income attributable to:

Owners of the parent

(833,362

)

473,889

FIXED ASSETS

Intangible assets

12

-

2,559

Tangible assets

13

2,885,539

2,808,951

Investments

14

-

-

2,885,539

2,811,510

CURRENT ASSETS

Stocks

15

3,005,979

3,696,556

Debtors

16

1,119,511

1,850,958

Cash at bank and in hand

342,994

651,153

4,468,484

6,198,667

CREDITORS

Amounts falling due within one year

17

1,534,293

2,026,422

NET CURRENT ASSETS

2,934,191

4,172,245

TOTAL ASSETS LESS CURRENT LIABILITIES

5,819,730

6,983,755

CREDITORS

Amounts falling due after more than one year

18

(273,076

)

(457,284

)

PROVISIONS FOR LIABILITIES

22

(259,364

)

(280,548

)

NET ASSETS

5,287,290

6,245,923

CAPITAL AND RESERVES

Called up share capital

23

56,405

56,401

Revaluation reserve

24

1,191,225

1,206,581

Capital redemption reserve

24

3,600

3,600

Other reserves

24

314,952

310,150

Merger reserve

24

1

-

Retained earnings

24

3,721,107

4,669,191

SHAREHOLDERS' FUNDS

5,287,290

6,245,923

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

D J Seddon - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

2,722,288

-

Investments

14

56,400

1

2,778,688

1

CURRENT ASSETS

Debtors

16

1

1

CREDITORS

Amounts falling due within one year

17

2,769,996

1

NET CURRENT LIABILITIES

(2,769,995

)

-

TOTAL ASSETS LESS CURRENT LIABILITIES

8,693

1

PROVISIONS FOR LIABILITIES

22

170,547

-

NET (LIABILITIES)/ASSETS

(161,854

)

1

CAPITAL AND RESERVES

Called up share capital

23

56,405

1

Retained earnings

24

(218,259

)

-

SHAREHOLDERS' FUNDS

(161,854

)

1

Company's loss for the financial year

(143,384

)

-

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

D J Seddon - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 August 2022

1

4,227,022

1,221,494

Changes in equity

Issue of share capital

56,400

-

-

Dividends

-

(84,014

)

-

Total comprehensive income

-

526,183

(14,913

)

Balance at 31 July 2023

56,401

4,669,191

1,206,581

Changes in equity

Issue of share capital

4

-

-

Dividends

-

(125,276

)

-

Total comprehensive income

-

(822,808

)

(15,356

)

Balance at 31 December 2024

56,405

3,721,107

1,191,225

Capital

redemption

Other

Merger

Total

reserve

reserves

reserve

equity

£

£

£

£

Balance at 1 August 2022

3,600

347,531

-

5,799,648

Changes in equity

Issue of share capital

-

-

-

56,400

Dividends

-

-

-

(84,014

)

Total comprehensive income

-

(37,381

)

-

473,889

Balance at 31 July 2023

3,600

310,150

-

6,245,923

Changes in equity

Issue of share capital

-

-

-

4

Dividends

-

-

-

(125,276

)

Total comprehensive income

-

4,802

1

(833,361

)

Balance at 31 December 2024

3,600

314,952

1

5,287,290

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2022

1

-

1

Changes in equity

Balance at 31 July 2023

1

-

1

Changes in equity

Issue of share capital

56,404

-

56,404

Dividends

-

(74,875

)

(74,875

)

Total comprehensive income

-

(143,384

)

(143,384

)

Balance at 31 December 2024

56,405

(218,259

)

(161,854

)

Cash flows from operating activities

Cash generated from operations

1

791,163

1,121,180

Interest paid

(122,093

)

(61,717

)

Interest element of hire purchase payments paid

(288

)

(513

)

Tax paid

(105,438

)

(143,025

)

Net cash from operating activities

563,344

915,925

Cash flows from investing activities

Purchase of tangible fixed assets

(462,311

)

(142,341

)

Sale of tangible fixed assets

37,346

51,017

Interest received

1,840

349

Net cash from investing activities

(423,125

)

(90,975

)

Cash flows from financing activities

New loans in year

120,000

-

Loan repayments in year

(153,736

)

(157,585

)

Capital repayments in year

(3,761

)

(2,226

)

Amount introduced by directors

5,928

-

Amount withdrawn by directors

-

(5,928

)

Share issue

5

-

Invoice discounting movement

(291,538

)

(182,947

)

Equity dividends paid

(125,276

)

(84,014

)

Net cash from financing activities

(448,378

)

(432,700

)

(Decrease)/increase in cash and cash equivalents

(308,159

)

392,250

Cash and cash equivalents at beginning of period

2

651,153

258,903

Cash and cash equivalents at end of period

2

342,994

651,153

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

Period

1.8.23

to

Year Ended

31.12.24

31.7.23

£

£

(Loss)/profit before taxation

(932,910

)

538,960

Depreciation charges

347,329

219,087

Loss/(profit) on disposal of fixed assets

3,187

(1,221

)

Effect of foreign exchange

827

36,387

Finance costs

122,381

62,230

Finance income

(1,840

)

(349

)

(461,026

)

855,094

Decrease in stocks

690,577

569,258

Decrease in trade and other debtors

751,310

441,742

Decrease in trade and other creditors

(189,698

)

(744,914

)

Cash generated from operations

791,163

1,121,180

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:

Period ended 31 December 2024

31.12.24

1.8.23

£

£

Cash and cash equivalents

342,994

651,153

Year ended 31 July 2023

31.7.23

1.8.22

£

£

Cash and cash equivalents

651,153

258,903

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.8.23

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

651,153

(308,159

)

342,994

651,153

(308,159

)

342,994

Debt

Finance leases

(3,761

)

3,761

-

Debts falling due within 1 year

(427,801

)

(142,892

)

(570,693

)

Debts falling due after 1 year

(442,554

)

176,628

(265,926

)

(874,116

)

37,497

(836,619

)

Total

(222,963

)

(270,662

)

(493,625

)

1.	STATUTORY INFORMATION

Speedy Products Group Limited is a private company, limited by shares, registered in England and Wales. Its registered number is 13540840 and its registered address is Speedy House, Cheltenham Street, Manchester, Greater Manchester, M6 6WY.

The principal activity of the company is property holding and of the group is that of a manufacturer and supplier of window furnishings.

The financial statements are presented in Sterling, which is also 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 as modified by the revaluation of certain assets.

Basis of consolidation

The consolidated income statement and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 December 2024. The results of subsidiaries sold or acquired are included in the financial statements in the period of acquisition or disposal and in comparative periods under the merger accounting basis of consolidation. The merger accounting provisions have been applied to these financial statements and as such the comparatives are presented so as to reflect the inclusion of the whole group throughout each period as if the group has always existed.

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.

Significant judgements and estimates

In applying the group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

In preparing these financial statements the directors have made judgements:

- in determining whether there are any indicators of impairment of the group's tangible fixed assets or fixed asset investments. Factors taken into account in reaching such a decision include the economic viability and expected future financial performance of the assets.

In addition, estimates have been made in respect of:

- the recoverability of debtors and stocks. The group establishes a provision for debtors that are estimated to be irrecoverable and for stocks which are not expected to realise at least cost. When assessing recoverability the directors consider factors such as the ageing of items, past experience of recovery and current information regarding the asset; and

- the determination of residual values and useful economic lives of tangible fixed assets. The group depreciates tangible fixed assets over their expected useful lives. The estimation of the useful lives of assets is based upon historic performance as well as expectations about future use. Assumptions are necessary regarding possible technological changes and maintenance programmes which can affect the actual lives of the assets.