REGISTERED NUMBER: NI676899 (Northern Ireland)

REDCHERRY BIDCO LIMITED

Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 31 December 2024

Page

Company Information

1

Group Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Consolidated Income Statement

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Brendan McDermott

Antain McDermott

Adam McDermott

Aaron McDermott

REGISTERED OFFICE:

87 Goland Road

Ballygawley

Dungannon

Co. Tyrone

BT70 2LA

REGISTERED NUMBER:

NI676899 (Northern Ireland)

INDEPENDENT AUDITORS:

Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

BANKERS:

HSBC

1 Dublin Road

Omagh

Co. Tyrone

BT78 1ES

SOLICITORS:

Simmons Meglaughlin & Orr

20 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

The directors present their strategic report of the Company and the Group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The principal activity of the group is the manufacture of steel cabinets and associated equipment. The principal activity of the company is as a holding company.

The group has delivered a strong trading performance for the year ended 31 December 2024 and the business remains in a sound financial position at the year end.

The directors consider that the key performance indicators are those that communicate the financial performance and strengths of the business as a whole, being revenue, gross profit and operating profit.

The directors have reviewed the performance of the group in the year. They have reported a decrease in revenue to £17,378,628 (2023: £29,540,795). The gross profit margin as increased to 33.8% (2023: 23.7%).The group's operating profit has decreased to £(2,379,335) (2023: £4,930,486) and the group generated profits before tax of £2,408,018 (2023: £4,909,783).

Given the metrics in the key performance indicators of the group in the current year, the directors are

satisfied with the group's financial performance. This is further reflected in the fact that the group has

a strong net asset position of £12,345,493 at the year end (2023: £11,312,592).

KEY PERFORMANCE INDICATORS

The Key Performance Indicators during the year were as follows:

2024

2023

Revenue:

£17,378,628

£29,540,795

Gross Profit Margin:

33.8%

23.7%

Net Operating Profit Margin:

13.5%

13.1%

PRINCIPAL RISKS AND UNCERTAINTIES

The group and company's operations expose them to a variety of financial risks that include price risk, economic and competition risk, credit risk, liquidity risk and interest rate risk. The group and company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group and company by monitoring levels of debt finance and the related finance costs. Given the size of the group and company the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's and company's finance department.

Economic risk

The economic risks facing the group and company includes wages inflation and fall in demand for products. The directors work closely with employees, customers, suppliers and the group and company's financial institutions to carefully manage such risks.

Competition risk

Competition risk is managed through close attention to product quality, customer service and sustainable markets.

Price risk

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

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

Credit risk

The group and company operate 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 reassessed regularly by the board.

Liquidity risk

The group and company actively maintain a mixture of long-term and short-term debt finance that is designed to ensure that the group and company have sufficient available funds for operations and planned expansions.

Interest rate risk

The group and company have both interest-bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at a variable rate. Interest bearing liabilities relate to bank loans and obligations under hire purchase and finance lease agreements, which bear interest at market rates.

STRATEGY

The group's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the group's operations. The directors are continually looking for new opportunities to expand the business which will allow the group to be well positioned during 2025.

FUTURE DEVELOPMENTS

The group continues to evolve and has returned to relative stability. In the coming years the group aims to increase revenue and profitability. The group will continue to develop relationships with customers and suppliers and generate new work where possible while remaining highly competitive.

EMPLOYMENT POLICY

The group policy is to consult and discuss with employees, through unions, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group performance.

HEALTH AND SAFETY

The group and company are committed to achieving the highest practicable standards in health and safety management and strive to make all sites and office safe environments for employees and customers alike.

HUMAN RESOURCES/EMPLOYEES

The most important resource of the group and company are the people employed: their knowledge and experience is crucial to meeting customer requirements. In this current economic climate it is vitally important that the retention of key staff is achieved. The group and company continue to invest in employment training and development and have introduced appropriate incentive and career progression arrangements.

ON BEHALF OF THE BOARD:

Antain McDermott - Director

29 September 2025

The directors present their report with the audited financial statements of the Company and the Group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group is the manufacture of steel cabinets and associated equipment. The principal activity of the company is as a holding company.

DIVIDENDS

The total interim distribution of dividends for the year ended 31 December 2024 were £1,320,000 (2023: £1,240,000). The directors do not recommend payment of a final dividend (2023: £Nil).

RESEARCH AND DEVELOPMENT

The group continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

DIRECTORS

The directors who have held office during the whole of the period from 1 January 2024 to the date of this report are as follows:

Brendan McDermott

Antain McDermott

Adam McDermott

Aaron McDermott

CHARITABLE AND POLITICAL CONTRIBUTIONS

The group made charitable donations of £950 during the year (2023: £12,851). No expenditure was incurred for political purposes in the current or prior year.

DISCLOSURES REQUIRED UNDER SCHEDULE 7

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties and future developments in the company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group Strategic Report, the Directors' Report 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 audit business of CavanaghKelly was acquired by Cooper Parry Audit (Ireland) Limited on 24th July 2025. CavanaghKelly has resigned as auditor and Cooper Parry Audit (Ireland) Limited has been appointed in its place.

The auditors, Cooper Parry Audit (Ireland) Limited, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Antain McDermott - Director

29 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2024 and of the Group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

-	certain disclosures of 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 Directors' Responsibilities Statement set out on page four, 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr. Desmond Kelly (F.C.A) (Senior Statutory Auditor)

for and on behalf of Cooper Parry Audit (Ireland) Limited

Statutory Auditor

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

29 September 2025

TURNOVER

5

17,378,628

29,540,795

Cost of sales

(11,507,415

)

(21,120,897

)

GROSS PROFIT

5,871,213

8,419,898

Distribution costs

(1,021,593

)

(1,191,975

)

Administrative expenses

(2,474,343

)

(2,297,437

)

2,375,277

4,930,486

Other operating income

4,058

-

OPERATING PROFIT

7

2,379,335

4,930,486

Finance income

40,000

18,972

2,419,335

4,949,458

Finance costs

8

(11,317

)

(39,675

)

PROFIT BEFORE TAXATION

2,408,018

4,909,783

Tax on profit

9

589,786

(1,027,373

)

PROFIT FOR THE FINANCIAL YEAR

2,997,804

3,882,410

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,997,804

3,882,410

Profit attributable to:

Owners of the parent

2,997,804

3,882,410

Total comprehensive income attributable to:

Owners of the parent

2,997,804

3,882,410

NON-CURRENT ASSETS

Intangible assets

12

-

40,099

Tangible assets

13

4,619,539

4,212,947

Investments

14

-

-

4,619,539

4,253,046

CURRENT ASSETS

Stocks

15

2,112,247

2,737,924

Receivables: amounts falling due within one year

16

4,950,364

6,857,808

Cash at bank

5,108,354

3,532,971

12,170,965

13,128,703

PAYABLES

Amounts falling due within one year

17

(3,040,162

)

(5,283,546

)

NET CURRENT ASSETS

9,130,803

7,845,157

TOTAL ASSETS LESS CURRENT LIABILITIES

13,750,342

12,098,203

PAYABLES

Amounts falling due after more than one year

18

-

(95,442

)

PROVISIONS FOR LIABILITIES

21

(759,946

)

(690,169

)

NET ASSETS

12,990,396

11,312,592

CAPITAL AND RESERVES

Called up share capital

22

42,005

42,005

Revaluation reserve

567,203

567,203

Merger reserve

(4,557,099

)

(4,557,099

)

Retained earnings

16,938,287

15,260,483

SHAREHOLDERS' FUNDS

12,990,396

11,312,592

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Antain McDermott - Director

NON-CURRENT ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

15,075,000

15,075,000

15,075,000

15,075,000

CURRENT ASSETS

Receivables: amounts falling due within one year

16

208,615

958,615

PAYABLES

Amounts falling due within one year

17

(249,125

)

(999,125

)

NET CURRENT LIABILITIES

(40,510

)

(40,510

)

TOTAL ASSETS LESS CURRENT LIABILITIES

15,034,490

15,034,490

CAPITAL AND RESERVES

Called up share capital

22

42,005

42,005

Merger reserve

10,457,899

10,457,899

Retained earnings

4,534,586

4,534,586

SHAREHOLDERS' FUNDS

15,034,490

15,034,490

Company's profit for the financial year

1,320,000

4,000,000

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Antain McDermott - Director

Called up

share

Retained

Revaluation

Merger

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

42,005

12,618,073

567,203

(4,557,099

)

8,670,182

Changes in equity

Dividends

-

(1,240,000

)

-

-

(1,240,000

)

Total comprehensive income

-

3,882,410

-

-

3,882,410

Balance at 31 December 2023

42,005

15,260,483

567,203

(4,557,099

)

11,312,592

Changes in equity

Dividends

-

(1,320,000

)

-

-

(1,320,000

)

Total comprehensive income

-

2,997,804

-

-

2,997,804

Balance at 31 December 2024

42,005

16,938,287

567,203

(4,557,099

)

12,990,396

Called up

share

Retained

Merger

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

42,005

1,774,586

10,457,899

12,274,490

Changes in equity

Dividends

-

(1,240,000

)

-

(1,240,000

)

Total comprehensive income

-

4,000,000

-

4,000,000

Balance at 31 December 2023

42,005

4,534,586

10,457,899

15,034,490

Changes in equity

Dividends

-

(1,320,000

)

-

(1,320,000

)

Total comprehensive income

-

1,320,000

-

1,320,000

Balance at 31 December 2024

42,005

4,534,586

10,457,899

15,034,490

Cash flows from operating activities

Cash generated from operations

1

4,240,455

2,754,437

Interest paid

(11,317

)

(39,854

)

Tax paid

(307,604

)

(768,972

)

Net cash from operating activities

3,921,534

1,945,611

Cash flows from investing activities

Purchase of tangible fixed assets

(949,280

)

(411,572

)

Interest received

40,000

18,972

Net cash from investing activities

(909,280

)

(392,600

)

Cash flows from financing activities

Loan repayments in year

(115,963

)

(113,000

)

Equity dividends paid

(1,320,000

)

(1,240,000

)

Net cash from financing activities

(1,435,963

)

(1,353,000

)

Increase in cash and cash equivalents

1,576,291

200,011

Cash and cash equivalents at beginning of year

2

3,532,063

3,332,052

Cash and cash equivalents at end of year

2

5,108,354

3,532,063

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

2024

2023

£

£

Profit before taxation

2,408,018

4,909,783

Depreciation charges

582,766

566,662

Government grants

(4,058

)

-

Finance costs

11,317

39,675

Finance income

(40,000

)

(18,972

)

2,958,043

5,497,148

Decrease/(increase) in stocks

625,677

(399,309

)

Decrease in trade and other debtors

2,598,514

246,103

Decrease in trade and other creditors

(1,941,779

)

(2,589,505

)

Cash generated from operations

4,240,455

2,754,437

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

5,108,354

3,532,971

Bank overdrafts

-

(908

)

5,108,354

3,532,063

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

3,532,971

3,332,052

Bank overdrafts

(908

)

-

3,532,063

3,332,052

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

3,532,971

1,575,383

5,108,354

Bank overdrafts

(908

)

908

-

3,532,063

1,576,291

5,108,354

Debt

Debts falling due within 1 year

(124,589

)

19,613

(104,976

)

Debts falling due after 1 year

(95,442

)

95,442

-

(220,031

)

115,055

(104,976

)

Total

3,312,032

1,691,346

5,003,378

1.	STATUTORY INFORMATION

Redcherry Bidco Limited is a private company, limited by shares, registered in Northern Ireland. The company's registered number and registered office address can be found on the General Information page. The principal activity of the group is the manufacture of steel cabinets and associated equipment. The principal activity of the company is as a holding company.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention except for certain properties that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group and company financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions.

The company has taken advantage of the following exemptions:

- from presenting its own Statement of comprehensive income in these financial statements as permitted under section 4085 of the Companies Act 2006;

- from preparing a Statement of cash flows or Profit and loss account on the basis that it is a qualifying entity, its cash flows and profit and loss is included in the cash flows and profit and loss in the consolidated financial statements;

- from the financial instrument disclosures, required under FRS 102 paragraphs 11.41 (b) to 11.148(c) and 12.26 to 12.29, as the information is provided in the consolidated statement disclosure; and

- from disclosing the company's key management personnel compensation as required by FRS 102 paragraph 33.7.

Basis of consolidation

The consolidated income statement, consolidated statement of changes in equity, consolidated balance sheet and consolidated statement of cash flows the financial statements of the company and its subsidiary's undertakings made up to 31 December 2024.

Inter-company transactions, balances and cash flows between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Revenue

Revenue recognition

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

Sale of goods:

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

- the significant risks and rewards of ownership have been transferred to the buyer;

- the group retains no continuing involvement or control over the goods;

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the group; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services and contracting

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the group will receive consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 10 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Property, plant and equipment

Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Land

Nil

Freehold buildings

4%

straight line

Plant and machinery

20%

reducing balance

Fixtures, fittings and equipment

15%

reducing balance

Motor vehicles

25%

reducing balance

Computer equipment

25%

straight line

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.