REGISTERED NUMBER: 13913545 (England and Wales)

DOUBLE SIX LEISURE LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD

1 APRIL 2023 TO 30 SEPTEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

S Harris

H J B Harris

J S Ling

D Ling

REGISTERED OFFICE:

14-15 Grand Parade

Skegness

Lincolnshire

PE25 2UG

REGISTERED NUMBER:

13913545 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

The directors present their strategic report of the company and the group for the period 1 April 2023 to 30 September 2024.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development of out group during the period and its position at the period end. Our review is consistent with the size and non complex nature of our business and is written in the context of the risks and uncertainties we face. The group continue to operate a number of family entertainment centres offering a combination of arcade gaming and beverage services. We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, profits before tax and net assets. The financial statements for the period do reflect two summer seasons which return the highest output for the business therefore not being directly comparable to the prior period. In our opinion, the group will have sufficient resources available to manage its business risks and we expect that the present level of activity will be sustained for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is affected by a number of factors, the principal ones of which are:

- The group is exposed to the risk of negative developments in the wider economy and the sector in which it operates, either directly or through the impact on the group's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, restrictions in the availability of credit, impact on demand from customers, problems in the supplier base, increases in financing costs or in the cost of utilities. Such developments might increase operating costs, lower asset values or result in the businesses being unable to meet in full its strategic objectives.

- The group operates in a competitive market, and failure to compete effectively in terms of price and quality can have an adverse effect on demand and / or margins.

The group mitigates risk in several ways:

- Management and staff at all levels work closely with suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships and good lines of communication.

- The group implements a value focused pricing model and event programming strategy as well as continued investment in gaming content and hardware upgrades.

POSITION AT THE FINANCIAL REPORTING DATE

The directors consider the group to be in a solid financial position at the financial position date, with accumulated distributable reserves of approximately £3,072,465.

Management remains mindful of the competitive environment in which the group operates and the need to maintain close control over the group's working capital and financial position.

BORROWINGS AND RISK MANAGEMENT

The group's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the group operations and capital investment. The group's approach to managing other risks applicable to the financial instruments minimised the risk to a level that the Directors consider acceptable.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

ON BEHALF OF THE BOARD:

J S Ling - Director

30 September 2025

The directors present their report with the financial statements of the company and the group for the period 1 April 2023 to 30 September 2024.

DIVIDENDS

Interim dividends per share on the Ordinary £1 shares were paid as follows:

£48

- 31 March 2024

£24

- 30 September 2024

£72

The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Preference Shares £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the period ended 30 September 2024 will be £ 144,000 .

DIRECTORS

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

S Harris

H J B Harris

J S Ling

D Ling

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, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J S Ling - Director

30 September 2025

Qualified opinion

Basis for qualified opinion

We have been unable to verify the valuation of the investment property of £957,998 at 30 September 2024 to confirm the balance held is materially in line with the fair valuation of the properties. Based on market data and local valuations, our procedures indicate that the investment properties could be materially undervalued at 30 September 2024.

We were not able to observe the counting of the physical stocks at 30 September 2024 as we were not appointed as auditors until after this date. We were also unable to satisfy ourselves by alternative means concerning the stock quantities of £166,503 held at 30 September 2024 by using other audit procedures as the group was unable to provide a stock report as at the 30 September 2024. Consequently, we were unable to determine whether any adjustment to this amount at 30 September 2024 was necessary or whether there was any consequential effect on the cost of sales for the period ended 30 September 2024.

We were not able to observe the counting of cash at 30 September 2024 as we were not appointed as auditors until after this date. We were also unable to satisfy ourselves by alternative means concerning the cash balance of £312,942 at 30 September 2024 by using other audit procedures as the group was unable to provide a cash reconciliation at the 30 September 2024. Consequently, we were unable to determine whether any adjustment to this amount at 30 September 2024 was necessary or whether there was any consequential effect on other areas of the financial statements for the period ended 30 September 2024.

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 qualified opinion. The basis for qualifying our opinion on the financial statements is that there are significant deficiencies in internal controls, meaning that material balances in the financial statements cannot be verified.

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 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 section of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in 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. As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £166,503, cash balance of £312,942 and valuation of investment property of £957,998 held at 30 September 2024. We have concluded that where the other information refers to the stock balance, cash balance, investment property, or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

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

- the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

Arising solely from the limitation on scope of our work relating to stock and cash, referred to above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

- we were unable to determine whether adequate accounting records have been kept.

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:

- returns adequate for our audit have not been received by us; or

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

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

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 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 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:

We have 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, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the group is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgmental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the group is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Group Law and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management. We have performed audit work through enquiries with management regarding any non-compliance and reviewed all available information to assess whether any breaches have been found. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed 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 auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of 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.

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.

Tara Bellamy FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

30 September 2025

TURNOVER

3

9,448,677

4,704,201

Cost of sales

2,050,479

1,047,207

GROSS PROFIT

7,398,198

3,656,994

Administrative expenses

4,728,474

2,302,710

2,669,724

1,354,284

Other operating income

118,494

17,932

OPERATING PROFIT

5

2,788,218

1,372,216

Interest receivable and similar income

49,168

-

2,837,386

1,372,216

Interest payable and similar expenses

6

109,293

42,690

PROFIT BEFORE TAXATION

2,728,093

1,329,526

Tax on profit

7

558,164

218,990

PROFIT FOR THE FINANCIAL PERIOD

2,169,929

1,110,536

Profit attributable to:

Owners of the parent

2,169,929

1,110,536

PROFIT FOR THE PERIOD

2,169,929

1,110,536

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,169,929

1,110,536

Total comprehensive income attributable to:

Owners of the parent

2,169,929

1,110,536

FIXED ASSETS

Intangible assets

10

(1,216,261

)

(1,946,018

)

Tangible assets

11

3,976,147

3,442,215

Investments

12

-

-

Investment property

13

957,998

957,998

3,717,884

2,454,195

CURRENT ASSETS

Stocks

14

166,503

169,364

Debtors

15

790,132

804,902

Cash at bank and in hand

2,354,820

1,045,499

3,311,455

2,019,765

CREDITORS

Amounts falling due within one year

16

3,697,431

1,809,752

NET CURRENT (LIABILITIES)/ASSETS

(385,976

)

210,013

TOTAL ASSETS LESS CURRENT LIABILITIES

3,331,908

2,664,208

CREDITORS

Amounts falling due after more than one year

17

-

(1,370,973

)

PROVISIONS FOR LIABILITIES

21

(257,443

)

(244,699

)

NET ASSETS

3,074,465

1,048,536

CAPITAL AND RESERVES

Called up share capital

22

2,000

2,000

Retained earnings

23

3,072,465

1,046,536

SHAREHOLDERS' FUNDS

3,074,465

1,048,536

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:

J S Ling - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

400,353

-

Investments

12

1,309,500

1,309,500

Investment property

13

-

-

1,709,853

1,309,500

CURRENT ASSETS

Debtors

15

480

-

Cash at bank

18,048

-

18,528

-

CREDITORS

Amounts falling due within one year

16

1,739,930

1,314,530

NET CURRENT LIABILITIES

(1,721,402

)

(1,314,530

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(11,549

)

(5,030

)

CAPITAL AND RESERVES

Called up share capital

22

2,000

2,000

Retained earnings

23

(13,549

)

(7,030

)

SHAREHOLDERS' FUNDS

(11,549

)

(5,030

)

Company's profit for the financial year

137,481

56,970

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:

J S Ling - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

2,000

-

2,000

Dividends

-

(64,000

)

(64,000

)

Total comprehensive income

-

1,110,536

1,110,536

Balance at 31 March 2023

2,000

1,046,536

1,048,536

Changes in equity

Dividends

-

(144,000

)

(144,000

)

Total comprehensive income

-

2,169,929

2,169,929

Balance at 30 September 2024

2,000

3,072,465

3,074,465

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

2,000

-

2,000

Dividends

-

(64,000

)

(64,000

)

Total comprehensive income

-

56,970

56,970

Balance at 31 March 2023

2,000

(7,030

)

(5,030

)

Changes in equity

Dividends

-

(144,000

)

(144,000

)

Total comprehensive income

-

137,481

137,481

Balance at 30 September 2024

2,000

(13,549

)

(11,549

)

Cash flows from operating activities

Cash generated from operations

1

3,063,312

1,196,195

Interest paid

(109,293

)

(42,690

)

Tax paid

(111,239

)

(194,096

)

Net cash from operating activities

2,842,780

959,409

Cash flows from investing activities

Purchase of intangible fixed assets

-

(128,190

)

Purchase of tangible fixed assets

(1,147,358

)

(900,787

)

Sale of tangible fixed assets

33,745

62,252

Cash acquired on group combination

-

1,358,479

Interest received

49,168

-

Net cash from investing activities

(1,064,445

)

391,754

Cash flows from financing activities

Loan repayments in period

(220,116

)

(142,136

)

Capital repayments in period

(7,081

)

(19,964

)

Amount introduced by directors

(29,337

)

881

Amount withdrawn by directors

(212,480

)

(120,445

)

Equity dividends paid

-

(24,000

)

Net cash from financing activities

(469,014

)

(305,664

)

Increase in cash and cash equivalents

1,309,321

1,045,499

Cash and cash equivalents at beginning of period

2

1,045,499

-

Cash and cash equivalents at end of period

2

2,354,820

1,045,499

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

Period

Period

1.4.23

14.2.22

to

to

30.9.24

31.3.23

£

£

Profit before taxation

2,728,093

1,329,526

Depreciation charges

(161,285

)

(143,024

)

Loss/(profit) on disposal of fixed assets

11,209

(12,832

)

Finance costs

109,293

42,690

Finance income

(49,168

)

-

2,638,142

1,216,360

Decrease/(increase) in stocks

2,861

(45,086

)

Increase in trade and other debtors

(308,293

)

(5,783

)

Increase in trade and other creditors

730,602

30,704

Cash generated from operations

3,063,312

1,196,195

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 30 September 2024

30.9.24

1.4.23

£

£

Cash and cash equivalents

2,354,820

1,045,499

Period ended 31 March 2023

31.3.23

14.2.22

£

£

Cash and cash equivalents

1,045,499

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.23

Cash flow

At 30.9.24

£

£

£

Net cash

Cash at bank and in hand

1,045,499

1,309,321

2,354,820

1,045,499

1,309,321

2,354,820

Debt

Finance leases

(7,081

)

7,081

-

Debts falling due within 1 year

(1,233,900

)

(1,150,856

)

(2,384,756

)

Debts falling due after 1 year

(1,370,973

)

1,370,973

-

(2,611,954

)

227,198

(2,384,756

)

Total

(1,566,455

)

1,536,519

(29,936

)

1.	STATUTORY INFORMATION

Double Six Leisure 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Basis of consolidation

The group financial statements consolidate the financial statements of Double Six Leisure Limited and the entity it controls (its subsidiary) drawn up to 30 September each year. Control comprises the power to govern the financial and operating policies of the investee via control of the issued share capital of those companies.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the group obtains control, and continue to be consolidated until the date that such control ceases.

The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies.

Subsidiaries acquired during the period are consolidated under the acquisition method of accounting, whereby underlying assets and liabilities, and the consideration paid, are recorded at their fair values. The deficit of the fair value of consideration paid less than the fair value of net assets acquired is presented as negative consolidation goodwill.

Intercompany balances and transactions, including unrealised profits arising from intragroup transactions, have been eliminated.

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 the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 and are covered within the accounting policies:

(i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note nine for the carrying amount of the property plant and equipment, and accounting policy note for the usual economic lives of each class of assets.

(ii) When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note eleven for the net carrying amount of the stock and associated provision.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects.

Turnover

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

Turnover from the sale of goods and services is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest receivable

Interest income is recognised on a basis of when it is received by the company. Any material balances received post period end have been reviewed and included if applicable.

Rent receivable

Rental income is recognised as the company’s right to receive the income is established.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2023, is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

25% on cost and 25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

Financial instruments

The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.