REGISTERED NUMBER: 10509712 (England and Wales)

ALLUMETTE LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

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:

R L Ashcroft

J Park-Davies

A J K Mackie

W L Brett

A I Field

REGISTERED OFFICE:

Yardley Brook Industrial Park

Lea Ford Road

Birmingham

B33 9TX

REGISTERED NUMBER:

10509712 (England and Wales)

AUDITORS:

Fruition Advisory LLP

29 Wood Street

Stratford-upon-Avon

CV37 6JG

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

Allumette Limited is a UK-based holding company. The company is part of a wider group that shares senior leadership and includes Vertik-al Limited, a powder coater of aluminium for the architectural industry and Ikon Aluminium Systems Limited, a manufacturer of louvres and other ventilation products.

PRINCIPAL RISKS AND UNCERTAINTIES

Operational risks

The principal area of risk relates to the economic outlook within the UK with customers, suppliers and employees all impacted by inflation and high interest rates.

The groups business is both energy and labour intensive, consequentially it is significantly impacted by changes to national minimum wage, employer's taxes and the cost of energy.

The group's business involves contracts subject to tender and so recognises the need for good customer relationships as well as the importance of providing a quality service which is delivered in a timely manner to maintain its reputation within the industries it operates.

Legislative risks

The sector is subject to strict legislation and regulation with standards continually being reviewed. The management systems in place ensure that the company is compliant with all relevant laws and regulations.

Health and safety risks

The group recognises that its employees face potential hazards in their everyday work. The company has a dedicated health and safety team who continually monitor the procedures in place. This resource ensures that the health and safety policies in place are of the highest standard and are strictly adhered to on a daily basis.

DEVELOPMENT AND PERFORMANCE

The board meets monthly to review performance against plan with importance placed on the following key performance indicators:

Turnover

Gross Profit

EBITDA

Review of payroll costs and overtime

Productive days

Health and safety

The turnover for the group was £14.7m down 3.5% on prior year with gross profit margin at 31.7% down from 33.2% in the prior year.

As a result of the Autumn statement and election in the USA consumer confidence was ruined with people suspending home renovations due to uncertainties with jobs and potential increase in costs as a result of threatened tariffs.

Larger construction projects have also been impacted by the Building Safety Act key provisions taking effect in April 2024, these changes to building regulations were brought about by the recommendations of the Grenfell enquiry. A shortage of staff has meant that there is a significant backlog of projects awaiting approval by the building safety regulator.

Both factors contributed to poor sales in final quarter of the financial year. Continuing high utility costs and a 9.8% increase in the national minimum wage impacted the gross profit margin for the period.

Looking forward, staff numbers continue to be reduced through natural attrition, the market is recovering with enquiries and orders at a good level and cost cutting measures have been implemented giving a promising outlook for the next financial year.

ON BEHALF OF THE BOARD:

R L Ashcroft - Director

20 August 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

DIRECTORS

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

R L Ashcroft

J Park-Davies

A J K Mackie

W L Brett

A I Field

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 they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Fruition Advisory LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R L Ashcroft - Director

20 August 2025

Opinion

We have audited the financial statements of Allumette Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, 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 March 2025 and of the group's loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

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

- the nature of the industry and sector, control environment and business performance including the design of the Group policies;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Group documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

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

- the matters discussed among the audit engagement team and involving relevant internal specialists,

including tax specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to the valuation of fixed assets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group's ability to operate or to avoid a material penalty. These included compliance with GDPR regulation.

Audit response to risks identified:

As a result of performing the above, we identified the valuation of fixed assets as a key audit matter related to the potential risk of fraud.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

- 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 indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Michelle Vincent (Senior Statutory Auditor)

for and on behalf of Fruition Advisory LLP

29 Wood Street

Stratford-upon-Avon

CV37 6JG

20 August 2025

TURNOVER

4

14,724,772

15,237,971

Cost of sales

(10,069,368

)

(10,177,184

)

GROSS PROFIT

4,655,404

5,060,787

Distribution costs

(399,144

)

(350,877

)

Administrative expenses

(3,747,621

)

(3,841,572

)

OPERATING PROFIT

6

508,639

868,338

Gain/loss on revaluation of assets

-

117,849

508,639

986,187

Interest payable and similar expenses

8

(387,452

)

(433,795

)

PROFIT BEFORE TAXATION

121,187

552,392

Tax on profit

9

(181,293

)

(254,299

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(60,106

)

298,093

(Loss)/profit attributable to:

Owners of the parent

(60,106

)

298,093

(LOSS)/PROFIT FOR THE YEAR

(60,106

)

298,093

OTHER COMPREHENSIVE INCOME

Revaluation of land and buildings

-

347,934

Surplus on property, plant and equipment

21,089

21,089

Deficit on revaluation of other assets

(21,089

)

(21,089

)

Sale of treasury shares

5,000

-

Income tax relating to components of other comprehensive income

-

(86,983

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

5,000

260,951

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(55,106

)

559,044

Total comprehensive income attributable to:

Owners of the parent

(55,106

)

559,044

FIXED ASSETS

Intangible assets

11

1,020,745

1,548,481

Tangible assets

12

4,994,108

5,208,481

Investments

13

-

-

6,014,853

6,756,962

CURRENT ASSETS

Stocks

14

452,924

460,911

Debtors

15

2,138,923

2,840,096

Cash at bank and in hand

460,045

307,640

3,051,892

3,608,647

CREDITORS

Amounts falling due within one year

16

2,596,136

3,007,904

NET CURRENT ASSETS

455,756

600,743

TOTAL ASSETS LESS CURRENT LIABILITIES

6,470,609

7,357,705

CREDITORS

Amounts falling due after more than one year

17

(3,165,342

)

(3,959,257

)

PROVISIONS FOR LIABILITIES

21

(573,853

)

(611,928

)

NET ASSETS

2,731,414

2,786,520

CAPITAL AND RESERVES

Called up share capital

22

2,837,884

2,837,884

Revaluation reserve

23

495,625

516,714

Retained earnings

23

(602,095

)

(568,078

)

SHAREHOLDERS' FUNDS

2,731,414

2,786,520

The financial statements were approved by the Board of Directors and authorised for issue on 20 August 2025 and were signed on its behalf by:

R L Ashcroft - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

10,142,424

10,142,424

10,142,424

10,142,424

CURRENT ASSETS

Debtors

15

66,844

75,505

Cash at bank

25,930

27,719

92,774

103,224

CREDITORS

Amounts falling due within one year

16

712,181

757,324

NET CURRENT LIABILITIES

(619,407

)

(654,100

)

TOTAL ASSETS LESS CURRENT LIABILITIES

9,523,017

9,488,324

CREDITORS

Amounts falling due after more than one year

17

2,967,188

3,601,938

NET ASSETS

6,555,829

5,886,386

CAPITAL AND RESERVES

Called up share capital

22

2,837,884

2,837,884

Retained earnings

3,717,945

3,048,502

SHAREHOLDERS' FUNDS

6,555,829

5,886,386

Company's profit for the financial year

664,443

586,898

The financial statements were approved by the Board of Directors and authorised for issue on 20 August 2025 and were signed on its behalf by:

R L Ashcroft - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

2,837,884

(887,260

)

276,852

2,227,476

Changes in equity

Total comprehensive income

-

319,182

239,862

559,044

Balance at 31 March 2024

2,837,884

(568,078

)

516,714

2,786,520

Changes in equity

Total comprehensive income

-

(34,017

)

(21,089

)

(55,106

)

Balance at 31 March 2025

2,837,884

(602,095

)

495,625

2,731,414

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

2,837,884

2,461,604

5,299,488

Changes in equity

Total comprehensive income

-

586,898

586,898

Balance at 31 March 2024

2,837,884

3,048,502

5,886,386

Changes in equity

Total comprehensive income

-

669,443

669,443

Balance at 31 March 2025

2,837,884

3,717,945

6,555,829

Cash flows from operating activities

Cash generated from operations

1

1,744,521

1,327,968

Interest paid

(357,667

)

(405,599

)

Interest element of hire purchase payments paid

(29,785

)

(28,196

)

Tax paid

(281,382

)

(192,976

)

Net cash from operating activities

1,075,687

701,197

Cash flows from investing activities

Purchase of tangible fixed assets

(91,887

)

(236,446

)

Net cash from investing activities

(91,887

)

(236,446

)

Cash flows from financing activities

New hire purchase agreements

-

321,010

Capital repayments of hire purchases

(201,645

)

(219,672

)

Repayment of bank borrowing

(634,750

)

(634,748

)

Sale of shares

5,000

-

Net cash from financing activities

(831,395

)

(533,410

)

Increase/(decrease) in cash and cash equivalents

152,405

(68,659

)

Cash and cash equivalents at beginning of year

2

307,640

376,299

Cash and cash equivalents at end of year

2

460,045

307,640

1.	RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit for the financial year

(60,106

)

298,093

Depreciation charges

831,295

832,558

Loss on disposal of fixed assets

2,701

-

Gain on revaluation of fixed assets

-

(117,849

)

Finance costs

387,452

433,795

Taxation

181,293

254,299

1,342,635

1,700,896

Decrease/(increase) in stocks

7,987

(47,611

)

Decrease/(increase) in trade and other debtors

735,771

(143,756

)

Decrease in trade and other creditors

(341,872

)

(181,561

)

Cash generated from operations

1,744,521

1,327,968

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 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

460,045

307,640

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

307,640

376,299

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

307,640

152,405

460,045

307,640

152,405

460,045

Debt

Finance leases

(558,964

)

201,645

(357,319

)

Debts falling due within 1 year

(634,750

)

-

(634,750

)

Debts falling due after 1 year

(3,601,938

)

634,750

(2,967,188

)

(4,795,652

)

836,395

(3,959,257

)

Total

(4,488,012

)

988,800

(3,499,212

)

1.	STATUTORY INFORMATION

Allumette 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.	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 under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

As permitted by Section 408 of the companies Act 2006, the income statement of the parent company is not presented as part of these financial statements.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2025.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Significant judgements and estimates

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

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

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

Useful economic lives of tangible assets

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 where necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Stock provision

The company undertakes projects which require specialist paint, as a result it is necessary to consider the recoverability of the cost of excess stock of these paints. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability.

Impairment of debtors

The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors and historical experience.

Turnover

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

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recgonised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over the useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class Amortisation method and rate

Goodwill on consolidation 10 years straight line