The financial statements of the company for the financial period ended 31 December 2024 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006.

Turnover comprises the invoice value of goods and services supplied by the company, exclusive of trade discounts and value added tax.

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

- the amount of turnover can be measured reliably;

- it is probably that the company will receive the consideration due for the service provided;

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

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

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

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial period and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

The goodwill of £705,500 recognised on the acquisition of the business of React Ireland Limited represents the excess of the consideration transferred over the fair value of the identifiable net assets acquired. The goodwill is attributable to a number of factors including:

- the assembled and skilled workforce of the acquired business;

- the existing backlog of customer orders;

- the established reputation and relationships that React Ireland Limited had built with suppliers and customers; and

- expected future profitability and cash flows from the ongoing operations.

Goodwill is being amortised on a straight-line basis over its estimated useful economic life of 10 years, which reflects the period over which these benefits are expected to arise.

The company is part of a global cash pooling banking facility. The continued availability of this facility provided by Polygon Group AB is critical to the company’s ability to continue trading. If this facility were to be withdrawn or not renewed, there is a risk that the company would be unable to meet its obligations as they fall due.