REGISTERED NUMBER: NI017420 (Northern Ireland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

T. W. SCOTT & SONS (FUELS) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

12

Other Comprehensive Income

13

Balance Sheet

14

Statement of Changes in Equity

15

Cash Flow Statement

16

Notes to the Cash Flow Statement

17

Notes to the Financial Statements

19

DIRECTORS:

Mr T E Scott

Mrs S Scott

Mr W R E Scott

SECRETARY:

Mr T E Scott

REGISTERED OFFICE:

51 Curr Road

Beragh

Omagh

Co. Tyrone

BT79 0UW

REGISTERED NUMBER:

NI017420 (Northern Ireland)

AUDITORS:

HMCI Limited

T/A Hamill McIlwaine

Chartered Accountants and Statutory Auditors

28-30 Old Mountfield Road

OMAGH

Co. Tyrone

BT79 7BJ

SOLICITORS:

Murnaghan Fee

Solicitors

Boston Chambers

Queen Elizabeth Road

ENNISKILLEN

Co Fermanagh

BT74 7JA

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

REVIEW OF BUSINESS

The principal activity of the company is the wholesale and retail distribution of domestic, agricultural and commercial fuel oils and lubricants.

The company performed as expected during the year given the prevailing economic conditions. Turnover increased from £158,049,138 to £160,245,123 and the gross margin decreased to 4.12%. The company reported a profit after tax of £642,195 (2023 - £1,119,446).

The fuel market continues to be extremely price competitive. The fluctuation in global market oil prices has a large bearing on the company's turnover. During 2024 the global price for oil remained similar to 2023 prices. The directors consider that the year-end financial position was satisfactory and that the company is well placed to develop its activities in the foreseeable future.

The company's key performance indicators during the year were as follows:

2024

2023

£'000

£'000

Turnover

160,245

158,050

Gross profit

6,609

6,727

Gross profit %

4.12%

4.25%

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objectives and policies

The company's operations expose it to financial risks that include the effects of changes in market prices, credit risk and liquidity risk. The company has in place a risk management programme to monitor its exposure to financial risk.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set out by the board are implemented by the company's finance department.

Price Risk

The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing the exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Credit Risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reviewed regularly by the directors.

Liquidity Risk

The group actively maintains strong cash collection and credit control procedures to ensure that it has sufficient funds for operational purposes.

Foreign Exchange Risk

While the greater part of the company's revenues are denominated in Sterling, the company is exposed to some foreign exchange risk in the normal course of business. While the company has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.

SECTION 172(1) STATEMENT

A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to;

(a) the likely consequences of any decision in the long term,

(b) the interests of the company's employees,

(c) the need to foster the company's business relationships with suppliers, customers and others,

(d) the impact of the company's operations on the community and the environment,

(e) the desirability of the company maintaining a reputation for high standards of business conduct, and

(f) the need to act fairly as between members of the company.

The company is a long standing family owned business and the current directors are committed to ensuring the future of the company for following generations. Their decision making process reflects these aims which is demonstrated in the company's steady growth.

The directors understand that great customer service can only be delivered by attracting, motivating and retaining an engaged team of employees. The employees are kept informed of all matters affecting the business, which are relevant to their roles through regular interaction with the directors.

Business relationships with suppliers and customers are integral to the core values of the business. The directors have regular contact with all key suppliers, ensuring both parties achieve their mutual aims, understand the business environment and foster good working relationships. Customer focused service is a key objective for the company and all staff are trained in customer delivered service.

The directors consider the impact of the company's activities in the local communities and the environment. The directors and staff are encouraged to support local communities, sports clubs and charities in the areas in which they work and live. The company aims to limit its impact on the environment wherever possibly by sourcing sustainable or recycled products.

FUTURE DEVELOPMENT AND PERFORMANCE

The company showed a profit after tax for the year ended 31 December 2024. The directors have confidence that the company will maintain profitability in the year ended 31 December 2025. At 31 December 2024 the company's balance sheet showed net assets of £7,517,159 (2023 - £7,510,149). The directors consider the results for the year and the position of the company at the year end to be satisfactory. The future plans for the company are to continue to grow its market share through organic growth while being vigilant for strategic acquisitions.

GOING CONCERN

Despite the on-going conflict in Ukraine, high inflation and high interest rates in the UK the directors have assessed the company's forecasts and are satisfied with the performance since the year end and for the subsequent year. The directors believe the company's reserves, on-going sales and cash flow projections are all positive and accordingly continue to adopt the going concern basis in preparing the financial statements.

HEALTH AND SAFETY

The company has in place a Health & Safety policy which requires it to comply as a minimum with all legislation and to take all reasonable practicable steps to ensure the safety, health and welfare of all employees, contractors and anyone else affected by the activities carried out by the company. This policy has been updated to incorporate procedures adopted subsequent to the Covid-19 pandemic.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

The company has collated its environmental impact information in accordance with the Companies Act 2006 (Strategic report and Directors' report) Regulations 2013.

The company aims to ensure the environment is left in a better condition for future generations, this strategy underlines the importance of Environmental, Social and Governance (ESG) as well as sustainability in supporting the future growth and development of the business. The company had prepared a baseline Carbon emissions calculation for the year 2023 setting out a range of carbon reduction and workplace sustainability measures to be undertaken in the coming years.

The company's greenhouse gas emissions, reportable under SECR were 1,661.45 tonnes CO2e. These include the emissions associated with electricity and gas oil, and company business travel. The Greenhouse Gas emissions (tCO2e) are categorised across:

2024

2023

Vehicles (diesel)

1,552,120

1,322,299

Office (electric)

28,840

12,299

Staff commuting (miles)

14,750

14,494

Capital goods

65,750

210,812

The carbon intensity ratio (measured as tonnes of CO2e per £million of sales) was 10.36.

This information was collected and reported in line with the methodology set out in the UK Government's Environmental Reporting Guidelines, 2019. Emissions have been calculated using the latest conversion factors provided by the UK Government.

Methodology

As with financial accounting and reporting, generally accepted Greenhouse Gas ("GHG") accounting principles are intended to underpin and guide GHG accounting and reporting to ensure that the reported information represents a faithful, true, and fair account of a company's GHG emissions.

In preparing the SECR the company has followed UK government, DEFRA/DESNZ, Carbon Trust Guidance, Greenhouse Gas Protocol Technical Guidance for Calculating Scope 3 Emissions and Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard on how to measure and report greenhouse gas emissions. The Greenhouse Gas emission factors used are from "2023 Guidelines to DEFRA/DESNZ GHG Conversion Factors for Company Reporting" and, for supply chain per spend the ONS "Atmospheric Emissions GHG Emissions Intensity by Industry 2021" has been used.

ON BEHALF OF THE BOARD:

Mr W R E Scott - Director

30 September 2025

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

DIVIDENDS

An interim dividend of £3,175.93 per share was paid on 6 April 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 635,185 .

DIRECTORS

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

Mr T E Scott

Mrs S Scott

Mr W R E Scott

FUTURE DEVELOPMENT AND GOING CONCERN

Details of future developments and going concern are documented in the Strategic Report and form part of this report by cross-reference.

FINANCIAL INSTRUMENTS AND BUSINESS RELATIONSHIPS

The directors only use basic finance instruments and do not have any hedged items. Business relationships with supplier, customers and others are considered paramount to the company's continued success. The financial risk policies and commentary on business relationships are set out in the Strategic Report and form part of this report by cross-reference.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware of that information.

AUDITORS

The auditors, HMCI Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting in accordance with Sect 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr W R E Scott - Director

30 September 2025

Opinion

We have audited the financial statements of T. W. Scott & Sons (Fuels) Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited 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; 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 six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 laws and regulations related to compliance with Employment Law, Environmental Regulations, Pensions Legislation, Health & Safety Laws and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statement.

In response to these principal risks, our audit procedures included but were not limited to:

- enquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;

- inspection of the company's regulatory and legal correspondence during the year to corroborate inquiries made;

- gaining an understanding of the internal controls established to mitigate risk related to fraud;

- discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;

- identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;

- designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;

- challenging assumptions and judgements made by management in their significant accounting estimates, including useful life of tangible assets; and

- review of the financial statement disclosures to underlying supporting documentation and inquiries of management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

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.

Mr Rodney Hamill FCA (Senior Statutory Auditor)

for and on behalf of HMCI Limited

T/A Hamill McIlwaine

Chartered Accountants and Statutory Auditors

28-30 Old Mountfield Road

OMAGH

Co. Tyrone

BT79 7BJ

30 September 2025

TURNOVER

4

160,245,123

158,049,138

Cost of sales

153,635,204

151,321,960

GROSS PROFIT

6,609,919

6,727,178

Administrative expenses

5,369,150

5,022,777

1,240,769

1,704,401

Other operating income

25,466

-

OPERATING PROFIT

7

1,266,235

1,704,401

Interest payable and similar expenses

8

393,958

226,539

PROFIT BEFORE TAXATION

872,277

1,477,862

Tax on profit

9

230,082

358,416

PROFIT FOR THE FINANCIAL YEAR

642,195

1,119,446

PROFIT FOR THE YEAR

642,195

1,119,446

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

642,195

Prior year adjustment

(525,638

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

593,808

FIXED ASSETS

Intangible assets

11

74,500

104,500

Tangible assets

12

8,421,400

8,237,599

8,495,900

8,342,099

CURRENT ASSETS

Stocks

13

2,164,694

2,247,035

Debtors

14

12,189,585

14,433,362

Cash at bank

21,931

50,411

14,376,210

16,730,808

CREDITORS

Amounts falling due within one year

15

13,075,322

14,946,259

NET CURRENT ASSETS

1,300,888

1,784,549

TOTAL ASSETS LESS CURRENT LIABILITIES

9,796,788

10,126,648

CREDITORS

Amounts falling due after more than one year

16

(857,311

)

(1,270,117

)

PROVISIONS FOR LIABILITIES

21

(1,422,318

)

(1,346,382

)

NET ASSETS

7,517,159

7,510,149

CAPITAL AND RESERVES

Called up share capital

22

200

200

Retained earnings

23

7,516,959

7,509,949

SHAREHOLDERS' FUNDS

7,517,159

7,510,149

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:

Mr W R E Scott - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

200

7,621,141

7,621,341

Prior year adjustment

-

(525,638

)

(525,638

)

As restated

200

7,095,503

7,095,703

Changes in equity

Dividends

-

(705,000

)

(705,000

)

Total comprehensive income

-

1,119,446

1,119,446

Balance at 31 December 2023

200

7,509,949

7,510,149

Changes in equity

Dividends

-

(635,185

)

(635,185

)

Total comprehensive income

-

642,195

642,195

Balance at 31 December 2024

200

7,516,959

7,517,159

Cash flows from operating activities

Cash generated from operations

1

2,449,869

4,650,417

Interest paid

(320,027

)

(166,857

)

Interest element of hire purchase payments paid

(73,931

)

(59,682

)

Tax paid

-

(580,310

)

Net cash from operating activities

2,055,911

3,843,568

Cash flows from investing activities

Purchase of intangible fixed assets

-

(20,000

)

Purchase of tangible fixed assets

(499,394

)

(991,160

)

Sale of tangible fixed assets

85,087

-

Net cash from investing activities

(414,307

)

(1,011,160

)

Cash flows from financing activities

Capital repayments in year

(817,625

)

(790,280

)

Movement in directors' current account

(200,659

)

(4,261

)

Equity dividends paid

(635,185

)

(705,000

)

Net cash from financing activities

(1,653,469

)

(1,499,541

)

(Decrease)/increase in cash and cash equivalents

(11,865

)

1,332,867

Cash and cash equivalents at beginning of year

2

(2,904,385

)

(4,237,252

)

Cash and cash equivalents at end of year

2

(2,916,250

)

(2,904,385

)

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

2024

2023

£

£

Profit before taxation

872,277

1,477,862

Depreciation charges

553,102

639,447

Loss on disposal of fixed assets

32,401

-

Finance costs

393,958

226,539

1,851,738

2,343,848

Decrease in stocks

82,341

378,847

Decrease in trade and other debtors

2,326,652

2,751,527

Decrease in trade and other creditors

(1,810,862

)

(823,805

)

Cash generated from operations

2,449,869

4,650,417

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

21,931

50,411

Bank overdrafts

(2,938,181

)

(2,954,796

)

(2,916,250

)

(2,904,385

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

50,411

77,483

Bank overdrafts

(2,954,796

)

(4,314,735

)

(2,904,385

)

(4,237,252

)

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

50,411

(28,480

)

21,931

Bank overdrafts

(2,954,796

)

16,615

(2,938,181

)

(2,904,385

)

(11,865

)

(2,916,250

)

Debt

Finance leases

(2,020,281

)

817,625

(324,997

)

(1,527,653

)

(2,020,281

)

817,625

(324,997

)

(1,527,653

)

Total

(4,924,666

)

805,760

(324,997

)

(4,443,903

)

1.	COMPANY INFORMATION

T.W. Scott & Sons (Fuels) Limited is a limited company incorporated in Northern Ireland. The registered office is 51 Curr Road, Beragh, Co Tyrone, BT79 0UW. The principal activity of the company is the wholesale and retail distribution of domestic, agricultural and commercial fuel oils and lubricants.

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 financial statements are presented in sterling.

Turnover

Turnover represents the total invoice value of sales made during the year to customers and excludes value added tax and trade discounts. Turnover is recognised when the significant risks and rewards are considered to 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. This is usually on dispatch of goods.

Intangible assets and goodwill

Goodwill, being the amount paid in connection with the acquisition of a business, has been amortised evenly over its estimated useful life of five years. Provision is made for any impairment.

Tangible fixed assets

Depreciation is provided at the following annual rates over the estimated useful life of each asset or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery - 4% - 20% on reducing balance

Fixture and fittings - 20% on cost

Motor cars - 20% on reducing balance

Transport - 10% on reducing balance

Tangible fixed assets are initially recorded at cost and subsequently stated at cost less accumulated depreciation and impairment losses. Costs include costs directly attributable to bringing the asset into operational use.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition including transport and handling costs. The cost of a certain category of stock is calculated using the First In, First Out basis while another category is calculated using the 'weighted average' method. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Net realisable value is the amount at which stocks can be expected to be realised less further costs to completion and sale.

The replacement value of stock does not differ materially from cost.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors and loans from banks.

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

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

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

For financial assets measured at cost less impairment the impairment loss is measured as the difference between the asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.