REGISTERED NUMBER: 14183375 (England and Wales)

E G LEWIS GROUP INDUSTRIAL SERVICES LTD

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 JANUARY 2025

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

T F Lewis

Mrs S W Lewis

Mrs C Scoberg

G Summerhayes

R Perry

REGISTERED OFFICE:

Tank Farm Road

Llandarcy

Neath

SA10 6EN

REGISTERED NUMBER:

14183375 (England and Wales)

AUDITORS:

Bevan Buckland LLP (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

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

The EG Lewis Group Industrial Services Limited aspire to be the leading multi-disciplined contractor in South Wales, delivering a premium service and effective solutions to our customers.

We value our people, customers, partners and the communities in which we operate. Our core values and behaviours underpin everything we do;

Safety

We are in a hazardous business and everything we do relies upon the safety of our workforce and the communities around us. Safe working is good business and takes priority above all.

Leadership

Our leaders have created a vision and will passionately own and drive it to completion. Our people share our vision and work in line with our actions, beliefs, values, and goals.

Responsibility

We care about the safe management of the environment. We are committed to supporting the communities which we operate. Our people operate in an ethical manner at all times.

Excellence

We strive for excellence through systematic and disciplined management of our operations and commit to quality outcomes, having a thirst to learn, and to improve.

Discipline

We follow and uphold the rules and standards we set for our company. If something is not right, we correct it.

Collaboration

We work to a defined and common business purpose as we accomplish more together, trusting our teams and partners to deliver on our obligations and put the team ahead of personal success.

REVIEW OF BUSINESS

During the financial year, E G Lewis Group Industrial Services Ltd achieved revenue of £19.3 million, which was in line with the projected group forecasts as a key customer continued with the restructuring of its operations. A gross profit margin of 8.3% was achieved and the direct costs and administrative expenses were successfully managed.

As a result of the acquisition in 2022, administrative expenses this year include a charge for the amortisation of goodwill of £991,196, without this charge the group would have reported an operating profit of £1 million. While the group's consolidated reserves, the individual trading subsidiary companies reserves remain in a strong Net Asset position.

Looking ahead, the Group remains focused on expanding its service portfolio and exploring existing markets where we see significant growth potential. By continuing to invest in people, innovation, and technology, we are well-positioned to meet evolving client demands and deliver sustainable growth. We anticipate that ongoing global infrastructure needs, will provide favourable market conditions for our services over the next few years. The groups projected financial performance looks strong, and the directors are confident that the Group will achieve positive consolidated reserves in foreseeable future.

ON BEHALF OF THE BOARD:

T F Lewis - Director

30 October 2025

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

DIVIDENDS

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

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

T F Lewis

Mrs S W Lewis

Mrs C Scoberg

G Summerhayes

R Perry

POLITICAL DONATIONS AND EXPENDITURE

Donations during the year totalled £NIL (2024: £2,650). None of these were political.

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, Bevan Buckland LLP (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T F Lewis - Director

30 October 2025

Opinion

We have audited the financial statements of E G Lewis Group Industrial Services Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 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 January 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

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:

-

enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to:

-

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

-

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 related to fraud or non-compliance with laws and regulations;

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas;

-

Assumptions used for valuing work in progress at the year end, and;

-

Potential for deferring income already earned at the year end.

-

obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; 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 and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Alison Vickers (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

30 October 2025

TURNOVER

4

19,385,397

29,782,477

Cost of sales

17,775,746

26,385,436

GROSS PROFIT

1,609,651

3,397,041

Administrative expenses

2,140,968

3,983,687

(531,317

)

(586,646

)

Other operating income

571,650

79,850

OPERATING PROFIT/(LOSS)

6

40,333

(506,796

)

Interest receivable and similar income

17,232

17,442

57,565

(489,354

)

Interest payable and similar expenses

7

(165,917

)

165,917

PROFIT/(LOSS) BEFORE TAXATION

223,482

(655,271

)

Tax on profit/(loss)

8

711,896

451,301

LOSS FOR THE FINANCIAL YEAR

(488,414

)

(1,106,572

)

Loss attributable to:

Owners of the parent

(488,414

)

(1,106,572

)

LOSS FOR THE YEAR

(488,414

)

(1,106,572

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(488,414

)

(1,106,572

)

Total comprehensive income attributable to:

Owners of the parent

(488,414

)

(1,106,572

)

FIXED ASSETS

Intangible assets

10

7,593,971

8,625,167

Tangible assets

11

63,224

143,213

Investments

12

-

-

7,657,195

8,768,380

CURRENT ASSETS

Stocks

13

515,791

546,379

Debtors

14

4,544,362

11,748,154

Cash at bank and in hand

2,485,528

1,724,121

7,545,681

14,018,654

CREDITORS

Amounts falling due within one year

15

15,969,295

23,161,981

NET CURRENT LIABILITIES

(8,423,614

)

(9,143,327

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(766,419

)

(374,947

)

CREDITORS

Amounts falling due after more than one year

16

-

(134,386

)

PROVISIONS FOR LIABILITIES

19

(609,825

)

(608,760

)

ACCRUALS AND DEFERRED INCOME

20

(230,263

)

-

NET LIABILITIES

(1,606,507

)

(1,118,093

)

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

(1,606,607

)

(1,118,193

)

SHAREHOLDERS' FUNDS

(1,606,507

)

(1,118,093

)

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2025 and were signed on its behalf by:

T F Lewis - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

18,935,775

18,935,775

18,935,775

18,935,775

CURRENT ASSETS

Debtors

14

820,286

-

Cash at bank

1,543,581

29,796

2,363,867

29,796

CREDITORS

Amounts falling due within one year

15

13,590,068

12,307,256

NET CURRENT LIABILITIES

(11,226,201

)

(12,277,460

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,709,574

6,658,315

CREDITORS

Amounts falling due after more than one year

16

-

134,386

NET ASSETS

7,709,574

6,523,929

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

7,709,474

6,523,829

SHAREHOLDERS' FUNDS

7,709,574

6,523,929

Company's profit for the financial year

1,185,645

6,484,059

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 30 October 2025 and were signed on its behalf by:

T F Lewis - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2023

100

(11,621

)

(11,521

)

Changes in equity

Total comprehensive income

-

(1,106,572

)

(1,106,572

)

Balance at 31 January 2024

100

(1,118,193

)

(1,118,093

)

Changes in equity

Total comprehensive income

-

(488,414

)

(488,414

)

Balance at 31 January 2025

100

(1,606,607

)

(1,606,507

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2023

100

39,770

39,870

Changes in equity

Total comprehensive income

-

6,484,059

6,484,059

Balance at 31 January 2024

100

6,523,829

6,523,929

Changes in equity

Total comprehensive income

-

1,185,645

1,185,645

Balance at 31 January 2025

100

7,709,474

7,709,574

Cash flows from operating activities

Cash generated from operations

1

3,800,355

5,573,657

Interest paid

165,917

(165,917

)

Tax paid

(452,825

)

(294,643

)

Net cash from operating activities

3,513,447

5,113,097

Cash flows from investing activities

Purchase of intangible fixed assets

-

(200,000

)

Purchase of tangible fixed assets

(91,711

)

(148,719

)

Sale of tangible fixed assets

141,332

398,617

Interest received

17,232

17,442

Net cash from investing activities

66,853

67,340

Cash flows from financing activities

Loan note repayments

(1,968,607

)

(4,787,309

)

Amount introduced by directors

10,000

30,000

Amount withdrawn by directors

(860,286

)

-

Net cash from financing activities

(2,818,893

)

(4,757,309

)

Increase in cash and cash equivalents

761,407

423,128

Cash and cash equivalents at beginning of year

2

1,724,121

1,300,993

Cash and cash equivalents at end of year

2

2,485,528

1,724,121

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

223,482

(655,271

)

Depreciation charges

53,682

95,455

Loss/(profit) on disposal of fixed assets

16,687

(54,558

)

Dilapidation provision

-

146,472

Amortisation charges

991,196

2,407,265

Finance costs

(165,917

)

165,917

Finance income

(17,232

)

(17,442

)

1,101,898

2,087,838

Decrease in stocks

30,588

217,044

Decrease/(increase) in trade and other debtors

8,252,903

(1,664,553

)

(Decrease)/increase in trade and other creditors

(5,585,034

)

4,933,328

Cash generated from operations

3,800,355

5,573,657

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

2,485,528

1,724,121

Year ended 31 January 2024

31.1.24

1.2.23

£

£

Cash and cash equivalents

1,724,121

1,300,993

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.2.24

Cash flow

At 31.1.25

£

£

£

Net cash

Cash at bank and in hand

1,724,121

761,407

2,485,528

1,724,121

761,407

2,485,528

Debt

Debts falling due within 1 year

(1,834,321

)

1,834,221

(100

)

Debts falling due after 1 year

(134,386

)

134,386

-

(1,968,707

)

1,968,607

(100

)

Total

(244,586

)

2,730,014

2,485,428

1.	GOING CONCERN

The consolidated financial statements have been prepared on a going concern basis, which the directors consider appropriate based on the continued profitability and positive cash flow forecasts of the Group's trading subsidiaries.

While the Group's consolidated reserves are negative due to goodwill amortisation, the directors have assessed the financial performance and projected cash flows of each trading subsidiary. Based on this assessment, the directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future, and they do not foresee any material uncertainties that may cast significant doubt on the Group’s ability to continue as a going concern.

Accordingly, the directors are comfortable in preparing the financial statements on a going concern basis, consistent with the requirements of FRS 102.

2.	STATUTORY INFORMATION

E G Lewis Group Industrial Services Ltd 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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated financial statements include the company and its subsidiary undertakings and have been prepared using the acquisition method of accounting. These are the first financial statements consolidated of E G Lewis Group Industrial Services Limited.

All material companies, which are more than 50% controlled, either directly or indirectly, are fully consolidated. Control is presumed to exist where more than half of a subsidiary's voting rights are controlled by the parent company, or where the parent company has the right to remove or appoint a majority of a subsidiary's board of directors or has entered into an agreement with the other shareholders or partners of a subsidiary. Where Minority interest exists, it is shown under the appropriate heading in the consolidated balance sheet and profit and loss account.

The results of subsidiaries acquired or disposed of during the period are included in the consolidated financial statements from the effective date of acquisition up to the effective date of disposal, as appropriate.The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are based on consistent accounting policies or where appropriate accounting policies for subsidiaries have been changed to ensure consistency with the policies adopted by the Group.

Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be appropriate and reasonable in the circumstances.

a) Critical judgements in applying the company's accounting policies

The directors do not consider there to be any critical accounting judgements to the financial statements.

b) Key accounting estimates and assumptions

i) Long term contracts

Where the Group enters into long term contracts, revenue is recognised on the percentage of completion basis. Under the percentage of completion method, the Group makes an estimate of the percentage to complete for a project and recognises the proportion of revenue and profit accordingly. In forecasting the profitability of contracts, management makes best estimates of the impact of customer disputes and claims brought by contractors. Any expected losses on long term contracts are recognised immediately and are written off to the Statement of comprehensive income.

Turnover

Turnover from the sale of goods is recognised in the profit and loss account when significant risks and rewards of ownership have been transferred to the buyer. Turnover from the projects or contracts is recognised as income in proportion to the stage of completion of the transaction at the balance sheet date. The stage of completion is assessed depending on the specific circumstances of each case. No turnover is recognised if there are significant uncertainties regarding recovery of the consideration due to associated costs, or there is the possibility of return of the goods. Turnover represents the sale of goods/revenue from contracts, excluding tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Improvements to property

-

15% on cost and equal instalments over the lease period

Plant and Machinery

-

25% reducing balance, 25% on cost and 15% reducing balance

Fixtures and fittings

-

20% on cost and 15% reducing balance

Motor vehicles

-

25% reducing balance and 25% on cost

Computer equipment

-

33% straight line and 33% on cost

Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition of the item.

A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the income statement.

Impairment of fixed assets

The Group performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing inventories to their present location and condition.

Work-in-progress represents the cost of services rendered and materials used on projects that have not yet reached completion. For accounting purposes, WIP is recognised as part of the company's assets until the project is invoiced or otherwise recognised as revenue.

The revenue associated with each construction project is recognised based on the percentage of completion method, whereby the revenue and costs are recognised in proportion to the work performed as at the reporting date.

Revenue from construction contracts is recognised based on the stage of completion. This is determined as the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. Revenue recognised on WIP is limited to the amount that is reasonably certain to be recoverable.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately as an expense in the income statement. The amount recognised is the expected excess of costs over revenue, measured at the reporting date.

WIP is reviewed at each reporting date to ensure it remains recoverable. Any impairment loss is recognised if the carrying amount exceeds its net realisable value.

Taxation

Taxation for the year 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 year end and that are expected to apply to the reversal of the timing difference.

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

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.