REGISTERED NUMBER: 15449578 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Period

29 January 2024 to 31 March 2025

for

Vale Group Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

S A C Morton

Ms L C Morton

Mrs D L Morton

C J Shelbourne

REGISTERED OFFICE:

Belton Park

Londonthorpe Road

Grantham

Lincolnshire

NG31 9SJ

REGISTERED NUMBER:

15449578 (England and Wales)

SENIOR STATUTORY AUDITOR:

Matthew Chadwick (BA) Hons FCA

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

The directors present their strategic report of the company and the group for the period 29 January 2024 to 31 March 2025.

REVIEW OF BUSINESS

The Vale Group was formed at the beginning of April 2024 as part of a corporate restructure of existing businesses bringing them under the umbrella of a single parent company, Vale Group Holdings Limited.

The four key operating companies in the Group are as follows:

1.

Vale Garden Houses Limited - primary activity is the design, manufacture and installation of traditional conservatories and orangeries.

2.

Architectural Bronze Limited - primary activity is the design and manufacture of bespoke bronze windows, doors, screens and secondary glazing.

3.

Vale Group Finance Limited - primary activity is acting as a commercial lender.

4.

Vale Group Investment Limited - primary activity is the holding of investments.

The aim of the restructure was to create a group which allowed each of the operating entities within it to focus on their core activities. Vale Garden Houses, Architectural Bronze and Vale Group Finance are trading companies while Vale Group Investment is an investment company. Vale Garden Houses and Architectural Bronze were existing companies while Vale Group Finance and Vale Group Investment were newly formed as part of the restructure. All non-trading assets in Vale Garden Houses and Architectural Bronze were transferred to the other group companies as part of the restructure.

Market Conditions in 2024/25

Inflation in the UK economy, as measured by the Consumer Price Index, continued to fall from the previous year's figure of 3.2% to 2.6% for the 12 months to March 2025, which allowed the Bank of England to cut its base rate from 5.25% to 4.5% by March 2025. Nonetheless, economic growth in the UK in that period remained sluggish at 1.1%.

Lower inflation meant that raw material prices and labour costs were more predictable in the year, which in turn has given us more certainty in our future trading margins for our trading companies. Consumer confidence in the economy improved marginally compared to the previous year but overall it remained weak. We expect confidence in the economy to remain subdued for some time nonetheless, despite these challenges, we remain well placed to deal with the coming year.

Results

Vale Garden Houses Limited

The company secured orders in year worth £9.5m, up from £8.5m in the previous year. This gave the company a significant pipeline of work to occupy the factory, although ongoing delays in Local Authority Planning Departments and difficulties faced by clients in scheduling building work prior to installation caused some disruption to the work schedule. Nonetheless the company still achieved turnover of £9.24m, up from £8.05m in the previous year.

The effects of previous high inflation rates on the cost of raw materials and labour had an impact in the year and although gross profits increased from £5.36m to £5.73, margins were squeezed. Overheads were well controlled and the company achieved overall trading profits of £1.38m, up from £0.87m in the previous year.

The company carries no debt and, despite the restructure, overall liquidity remains strong with cash and liquid deposits at the year-end of £5.21m (2024: £5.78m).

Architectural Bronze Limited

Despite the sluggishness in the UK economy the company secured orders in the year of £5.6m (2024: £5.9m) and increased its turnover from £5.3m in 2024 to £6.2m in 2025, an 11.6% improvement.

Inflation had an impact on trading margins but the company's focus on efficient manufacturing and installation countered this so that overall gross margins were maintained. As a result gross profits increased from £2.68m in 2024 to £2.96m in 2025. Overheads were well controlled and the company achieved overall trading profits of £1.08m, up from £0.91m in the previous year.

The company carries no debt and, despite the restructure and paying for the purchase of its own manufacturing facility in the year, overall liquidity remains strong with cash and liquid deposits at the year-end of £2.54m (2024: £4.24m).

The company has undertaken a considerable amount of research and development into new products in the year, in particular on the design of a new thermal door and a fire rated door, both of which it believes will meet a growing need in the marketplace. The new thermal door will meet Building Regulation requirements on thermal efficiency and the fire rated door will respond to the growing number of enquires the company has for such a product. The company is aiming for both products to be available to clients in early 2026.

Vale Group Finance Limited

Using assets acquired as part of the restructure, the company had £13.8m on its lending book at the year end. It will continue to increase its lending book as resources allow.

The company's sole source of earnings is the interest charged on its loans but with minimal overheads, most of this translates into profit for the company which it can use to make further loans.

Vale Group Investment Limited

The company has a diversified portfolio of investments including commercial and residential property, equities and bonds and liquid deposits in UK Government Treasury bills. The portfolio generates a regular income but is also structured with long term growth in mind.

Investment in our businesses

The Group has a policy of investing in state-of-the-art technology, machinery and equipment and remain focused on improving systems, manufacturing processes and streamlining production, to create greater efficiencies in its manufacturing businesses.

PRINCIPAL RISKS AND UNCERTAINTIES

Group companies have mitigated risks of supply chain disruption by making sure stock levels are sufficiently high and that more than one supplier is in place for each key material.

Group companies continually monitor the market and, where appropriate, undertake forward buying to take advantage of favourable market conditions and minimise the risk posed by adverse swings in the exchange rate.

The group has invested heavily in IT security infrastructure to ensure that resilient systems are in place in the face of any IT failures or cyber attacks, including a full disaster recovery plan and off site back up processes.

ON BEHALF OF THE BOARD:

S A C Morton - Director

29 October 2025

The directors present their report with the financial statements of the company and the group for the period 29 January 2024 to 31 March 2025.

INCORPORATION

The group was incorporated on 29 January 2024 and commenced trading on 1 April 2024.

PRINCIPAL ACTIVITIES

The principal activities of the group in the period under review are set out in the Strategic Report. The principal activity of Vale Group Holdings Limited was that of a holding company.

DIVIDENDS

During the period interim dividends of £657,151 were paid by the company.

DIRECTORS

The directors who have held office during the period from 29 January 2024 to the date of this report are as follows:

S A C Morton - appointed 29 January 2024

Ms L C Morton - appointed 29 January 2024

Mrs D L Morton - appointed 29 January 2024

C J Shelbourne - appointed 29 January 2024

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

CHARITABLE DONATIONS

During the year, the Group made charitable donations of £3,273.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Paragraph 1A of Schedule 7 to the large and medium sized Companies and Groups (Accounts & Reports) Regulations 2008, certain matters which are required to be disclosed in the Director's Report have been omitted as they are included in the Strategic Report. These matters include a fair review of the business and a description of the principal risks and uncertainties facing the group.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Wright Vigar Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S A C Morton - Director

29 October 2025

Opinion

We have audited the financial statements of Vale Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the period then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

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

-

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-

Substantive procedures performed in accordance with the ISAs (UK).

-

Challenging assumptions and judgments made by management in its significant accounting estimates.

-

Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.

-

Assessing the extent of compliance with the relevant laws and regulations.

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

Use of our report

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

Matthew Chadwick (BA) Hons FCA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

29 October 2025

TURNOVER

3

15,933,737

Cost of sales

6,827,539

GROSS PROFIT

9,106,198

Distribution costs

1,055,175

Administrative expenses

5,354,327

6,409,502

2,696,696

Other operating income

272,297

Gain/loss on revaluation of assets

(25,578

)

OPERATING PROFIT

5

2,943,415

Income from fixed asset investments

99

Interest receivable and similar income

559,230

559,329

PROFIT BEFORE TAXATION

3,502,744

Tax on profit

6

909,438

PROFIT FOR THE FINANCIAL PERIOD

2,593,306

Profit attributable to:

Owners of the parent

2,593,306

PROFIT FOR THE PERIOD

2,593,306

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,593,306

Total comprehensive income attributable to:

Owners of the parent

2,593,306

FIXED ASSETS

Intangible assets

9

57,332

Tangible assets

10

4,784,679

Investments

11

1,346,780

Investment property

12

8,126,851

14,315,642

CURRENT ASSETS

Stocks

13

2,751,582

Debtors

14

4,279,569

Cash at bank and in hand

10,503,938

17,535,089

CREDITORS

Amounts falling due within one year

15

5,767,710

NET CURRENT ASSETS

11,767,379

TOTAL ASSETS LESS CURRENT LIABILITIES

26,083,021

PROVISIONS FOR LIABILITIES

16

632,964

NET ASSETS

25,450,057

CAPITAL AND RESERVES

Called up share capital

17

2,056

Consolidation reserve

18

23,511,846

Retained earnings

18

1,936,155

SHAREHOLDERS' FUNDS

25,450,057

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

S A C Morton - Director

FIXED ASSETS

Intangible assets

9

-

Tangible assets

10

-

Investments

11

13,733,419

Investment property

12

-

13,733,419

CURRENT ASSETS

Cash at bank

1,756

NET CURRENT ASSETS

1,756

TOTAL ASSETS LESS CURRENT LIABILITIES

13,735,175

CAPITAL AND RESERVES

Called up share capital

17

2,056

Retained earnings

13,733,119

SHAREHOLDERS' FUNDS

13,735,175

Company's profit for the financial year

14,390,270

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 October 2025 and were signed on its behalf by:

S A C Morton - Director

Called up

share

Retained

Consolidation

Total

capital

earnings

reserve

equity

£

£

£

£

Changes in equity

Issue of share capital

2,056

-

-

2,056

Dividends

-

(657,151

)

-

(657,151

)

Total comprehensive income

-

2,593,306

-

2,593,306

Share for share exchange

-

-

23,511,846

23,511,846

Balance at 31 March 2025

2,056

1,936,155

23,511,846

25,450,057

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

2,056

-

2,056

Dividends

-

(657,151

)

(657,151

)

Total comprehensive income

-

14,390,270

14,390,270

Balance at 31 March 2025

2,056

13,733,119

13,735,175

Cash flows from operating activities

Cash generated from operations

1

2,741,855

Tax paid

(1,164,459

)

Net cash from operating activities

1,577,396

Cash flows from investing activities

Purchase of intangible fixed assets

(46,787

)

Purchase of tangible fixed assets

(295,429

)

Purchase of fixed asset investments

(1,444,846

)

Sale of tangible fixed assets

29,492

Sale of fixed asset investments

99,768

Sale of investment property

34,698

Interest received

559,230

Dividends received

99

Net cash inflow from acquisitions

10,092,022

Net cash from investing activities

9,028,247

Cash flows from financing activities

Amount introduced by directors

875,892

Amount withdrawn by directors

(322,202

)

Share issue

1,756

Equity dividends paid

(657,151

)

Net cash from financing activities

(101,705

)

Increase in cash and cash equivalents

10,503,938

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

10,503,938

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

£

Profit before taxation

3,502,744

Depreciation charges

378,248

Profit on disposal of fixed assets

(23,666

)

Loss on revaluation of fixed assets

25,578

Finance income

(559,329

)

3,323,575

Increase in stocks

(265,100

)

Decrease in trade and other debtors

1,699,261

Decrease in trade and other creditors

(2,015,881

)

Cash generated from operations

2,741,855

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 March 2025

31.3.25

29.1.24

£

£

Cash and cash equivalents

10,503,938

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

Acquisition

of

subsidiary

At 29.1.24

Cash flow

companies

At 31.3.25

£

£

£

£

Net cash

Cash at bank

and in hand

-

411,916

10,092,022

10,503,938

-

411,916

10,092,022

10,503,938

Total

-

411,916

10,092,022

10,503,938

4.	ACQUISITION OF BUSINESSES

During the period, the Group acquired 100% of the share capital of following companies engaged in principal activities listed below through a share for share exchange. The transaction did not involve any cash consideration and is therefore excluded from the cashflow statement.

Company

Acquisition date

Principal activity

Vale Garden Houses Limited

01/04/2024

Manufacture of conservatories

Architectural Bronze Limited

01/04/2024

Manufacture of bronze doors and windows

Vale Finance and Investment Group Limited

01/04/2024

Property letting

Vale Group Finance Limited

01/04/2024

Financial intermediation

Vale Group Investment Limited

01/04/2024

Holding of investments

Vale Trading Group Limited

01/09/2024

Intermediate holding company

Non-cash transactions

The acquisitions were completed by way of share for share exchange. A consolidation reserve of £23,511,846 was created.

The consolidation reserve reflects the excess of the net assets acquired over the nominal value of the shares issued. This reserve has been recognised within equity in the consolidated balance sheet.

£

Shares exchanged (par value)

300

Consolidation reserve

23,511,846

Fair value of equity instruments issued

23,512,146

Assets and liabilities acquired

£

Intangible assets

22,609

Tangible fixed assets

4,607,072

Fixed asset investments

94,876

Investment property

8,098,141

Stocks

2,736,482

Trade and other debtors

5,978,830

Cash and cash equivalents

10,092,022

Trade and other creditors

(7,560,069

)

Provisions for liabilities and charges

(557,817

)

Fair value of net assets acquired

23,512,146

1.	STATUTORY INFORMATION

Vale Group Holdings 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 presentational currency of the financial statements is the Pound sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.

The consolidated financial statements incorporate those of Vale Group Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Turnover

Turnover represents the value of conservatories manufactured and installed, related building work, ancillary products, and properties sold during the year, excluding value added tax. Turnover on conservatories and building work is represented by the value of work done on contracts during the year, where the value includes both direct costs and overheads absorbed into contracts. No profit is taken on contracts until they are complete but if a contract is showing a loss then it is recognised immediately.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of 3-5 years.

Tangible fixed assets

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

Land and buildings

- Land not depreciated. Buildings 1% - 2% on cost

Plant and machinery

- 20% on cost and 6.7% - 20% on cost

Fixtures and fittings

- 6.7% - 50% on cost and 25% - 33% on cost

Motor vehicles

- 20% on cost

Land and buildings are revalued to fair value less any subsequent accumulated depreciation and subsequent impairment losses.

Investment property

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

Stocks and work in progress

Work in progress is valued at the lower of cost and net realisable value and stock is valued at the average cost, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of production overheads. Cost includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Only basic financial instruments as defined in FRS 102 are held. Financial assets and financial liabilities are recognised in the accounts only when the entity becomes party to the contractual provisions of the instrument and their measurement basis is as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at transaction price.

Financial liabilities - trade creditors, accruals and other creditors are basic financial instruments, and are measured at amortised cost. Where a financial liability constitutes a financing transaction it is initially and subsequently measured at the present value of future payments, discounted at a market rate of interest.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 period 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

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

Investments

Investments are shown at the lower of cost or net realisable value and any impairment of value will be recognised in the income statement. The difference between the fair value of the investments and their cost is not considered material.

Amounts recoverable on contracts

The amount by which recorded turnover on long term contracts is in excess of payments on account is classified as amounts recoverable on contracts under debtors.

Payments on account

The balance on payments on account in excess of amounts offset against amounts recoverable on contracts and long term contract balances is classified as payments received on account under creditors, where applicable.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

£

Conservatories and orangeries

9,207,653

Bronze windows and doors

6,192,713

Interiors

31,288

Property letting rents

349,815

Commercial interest received

152,268

15,933,737

An analysis of turnover by geographical market is given below:

£

United Kingdom

15,801,083

Europe

105,708

Rest of World

26,946

15,933,737

4.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

5,534,687

Social security costs

455,448

Other pension costs

257,183

6,247,318

The average number of employees during the period was as follows:

Administration

63

Production

82

Directors

7

152

The average number of employees by undertakings that were proportionately consolidated during the period was NIL.

£

Directors' remuneration

742,470

Directors' pension contributions to money purchase schemes

88,492

Information regarding the highest paid director is as follows:

£

Emoluments etc

107,143

Pension contributions to money purchase schemes

58,300