REGISTERED NUMBER: 07393551 (England and Wales)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 March 2025

for

C L Jones (Holding) Company Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

Mr A Jones

Mrs C Jones

Mr M R Jones

SECRETARY:

Mr M R Jones

REGISTERED OFFICE:

Parc Caseg

High Street

Bethesda

Bangor

Gwynedd

LL57 3BX

REGISTERED NUMBER:

07393551 (England and Wales)

SENIOR STATUTORY AUDITOR:

Susan Harris MA ACA

AUDITORS:

Champion Accountants LLP

Chartered Accountants, Statutory Auditor

2nd Floor Refuge House

33-37 Watergate Row

Chester

CH1 2LE

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

This review is written to present a balanced and comprehensive review of the development and performance of our business group and its position at the year end. Our review is consistent with the size and nature of our business and it includes an assessment of the risks and uncertainties that we face.

REVIEW OF BUSINESS

With regard to the parent company, which operates as a holding company for the trading subsidiaries, in the year under review there were no major changes to the way it operated. Going forward, the company may be partially exposed to the inflationary pressure in the economy with regard to rising interest rates on variable rate borrowings, but overall the directors, who carry out regular reviews of potential risks, do not currently believe this to be a significant issue.

With regard to C L Jones Ltd., 2024/25 was another complex trading year, with interest rates remaining at an increased level and cost of living inflation hitting developers and private customers leading to a subdued market. The directors were expecting to see a post general election bounce in the economy which did not happen with additional pressure piled on following the autumn statement. Looking at the current year (25/6) we find a market activity cooling after the implementation of the Autumn statement changes in National Insurance etc and a lot of negative sentiment from the Autumn 25 statement to come, it is our belief that this is leading to uncertainty and individuals and businesses are almost pausing to see what comes next. The directors remain hopeful the Government can lead the economy back to growth.

Despite this backdrop, the company was able to fully implement its growth & improvement strategy and was able to continue to develop its branches. As a result of this, the directors are pleased to report that despite these factors the business performed well, with this being reflected in the Key Performance Indicators shown below.

It should also be noted that the company's continued membership of buying groups and constant review of overhead costs by the directors have all contributed to the results in the year ending 31 March 2025, and the aim of course is to expand our operational capability, provide excellent opportunities for growth, increase our brand recognition, and create additional skilled employment within our local community.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks & challenges facing the company are as under.

FINANCE RISKS

The Company finances its activities through a combination of director's loans, bank loans, hire purchase contracts and cash deposits. Overdrafts are used to satisfy short-term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.

Currently, the Company does not trade outside the United Kingdom and is not exposed to any significant foreign currency risk.

The main risks associated with the Company's financial assets and liabilities are set out below, together with the policies adopted by the board for their management.

INTEREST RATE & CREDIT RISK

Interest Rate Risk

The Company pays fixed rates of interest on most of its borrowings. As a result of using fixed rate loans, the board currently takes the view that the current level of loan debt does not necessitate any hedging action to reduce the risk but this policy is kept under review.

Credit Risk

The board's objective is to actively manage the risk of financial loss due to bad debts. Standard payment terms call for regular monthly payments in full within 30 days of the month end. The credit worthiness of new customers is assessed before a contract is entered into with them. The Company actively manages the collection of payments to ensure that they are received promptly and in accordance with agreed terms, thereby ensuring that the Company's exposure to bad debts is minimised.

MARKET AND INFORMATION TECHNOLOGY RISKS

Market Risk

The greater part of our business depends on the general health of the economy, and in particular, the house building and repair, maintenance and improvement market. Consequently, demand for our products fluctuates with the prevailing market conditions. In order to minimise this risk, the company conducts rolling reviews and risk analysis procedures to assist in the assessing of stock demand and customer credit levels.

The lack of growth in the economy seem likely to play a part, the directors are ready to react to any improvement or headwinds that come our way and feel the business is in a strong position and able to react.

Information Technology

Our information technology systems are an integral part of the company's operations. In order to ensure continuity and reliability, the company maintains the systems, ensures that there are adequate and appropriate backup and storage, and has put in place a disaster recovery plan, with this being regularly revisited to ensure its continued suitability and reliability.

FINANCIAL KEY PERFORMANCE INDICATORS

Key financial performance indicators were:-

Turnover excluding any inter-group trading, increased by £1,659,293 (7.8%) to £23,107,028 (2024 decreased by £242,729 (1.2%) to £21,447,735).

Gross margin decreased from 30.5% to 28.37%

Earnings before finance costs, tax, depreciation and amortisation decreased from £2,701,793 to £2,266,184

.

ON BEHALF OF THE BOARD:

Mr M R Jones - Director

9 October 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a builders' merchant, together with a company to oversee the rental of commercial units on one of the sites.

DIVIDENDS

A total interim distribution of £240,000 was declared and paid on the 31 March 2025 (2024: £240,000).

The directors recommended that no final dividend be paid in the year.

FUTURE DEVELOPMENTS

The long-term outlook for the Company remains robust with strong ongoing demand for its products & services. The Company will continue to focus on its core activities whilst continuing its membership of the H&B Buying Group LLP.

The company will do all it can to retain its strong, independent, family orientated values, towards its staff and its customers, and will continue to strengthen and broaden the core business and help drive and further develop the building trades and services sector in the North Wales region.

DIRECTORS

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

Mr A Jones

Mrs C Jones

Mr M R Jones

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen to set out in the strategic report some information required by medium sized companies to be contained in the report of the directors. It has done so in respect of the business review and principal risks and uncertainties.

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 of the persons who were directors at the time when this Report of the Directors was approved have confirmed that so far as they were aware, the undersigned director has taken all the steps that he ought to have taken as the operational director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr M R Jones - Director

9 October 2025

Opinion

We have audited the financial statements of C L Jones (Holding) Company 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 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 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:

The responsibility for the prevention and detection of irregularities, including fraud, lies with the directors and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or

The responsibility for the prevention and detection of irregularities, including fraud, lies with the directors and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audit.

Audit procedures

We determine significant applicable laws and regulations through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial statements.

Our approach is to consider the legal and regulatory frameworks directly applicable to the financial statements reporting framework ((FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK; the nature of the industry; the business performance and the key drivers for management remuneration; the control environment and the procedures in place to address identified risks, including management override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. We communicate identified laws and regulations throughout our team and remain alert to any indications of non-compliance throughout the audit.

Our procedures are designed to provide reasonable assurance that the financial statements are free from material misstatement or error and include: enquiries of management and of staff in key compliance functions; review of minutes of meetings of those charged with governance; review and testing of manual journals and significant transactions outside the normal course of business; review of financial statement disclosures and testing to supporting documentation; performance of analytical procedures.

We are not responsible for preventing non-compliance and due to the inherent limitations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with 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.

Susan Harris MA ACA (Senior Statutory Auditor)

for and on behalf of Champion Accountants LLP

Chartered Accountants, Statutory Auditor

2nd Floor Refuge House

33-37 Watergate Row

Chester

CH1 2LE

29 October 2025

TURNOVER

3

23,107,028

21,447,735

Cost of sales

16,550,607

14,906,649

GROSS PROFIT

6,556,421

6,541,086

Distribution costs

1,480,246

1,307,151

Administrative expenses

3,807,014

3,415,695

5,287,260

4,722,846

1,269,161

1,818,240

Other operating income

133,098

140,559

OPERATING PROFIT

5

1,402,259

1,958,799

Interest receivable and similar income

106,762

84,493

1,509,021

2,043,292

Interest payable and similar expenses

7

119,037

167,104

PROFIT BEFORE TAXATION

1,389,984

1,876,188

Tax on profit

8

387,877

523,684

PROFIT FOR THE FINANCIAL YEAR

1,002,107

1,352,504

Profit attributable to:

Owners of the parent

1,002,107

1,352,504

PROFIT FOR THE YEAR

1,002,107

1,352,504

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,002,107

1,352,504

Total comprehensive income attributable to:

Owners of the parent

1,002,107

1,352,504

FIXED ASSETS

Intangible assets

11

241,667

-

Tangible assets

12

5,432,055

5,175,871

Investments

13

50,000

50,000

5,723,722

5,225,871

CURRENT ASSETS

Stocks

14

3,659,731

3,407,113

Debtors

15

3,140,009

3,046,731

Cash at bank and in hand

3,528,427

4,208,694

10,328,167

10,662,538

CREDITORS

Amounts falling due within one year

16

4,653,168

4,914,545

NET CURRENT ASSETS

5,674,999

5,747,993

TOTAL ASSETS LESS CURRENT LIABILITIES

11,398,721

10,973,864

CREDITORS

Amounts falling due after more than one year

17

(1,103,347

)

(1,445,107

)

PROVISIONS FOR LIABILITIES

21

(202,075

)

(197,565

)

NET ASSETS

10,093,299

9,331,192

CAPITAL AND RESERVES

Called up share capital

22

200

200

Retained earnings

23

10,093,099

9,330,992

SHAREHOLDERS' FUNDS

10,093,299

9,331,192

The financial statements were approved by the Board of Directors and authorised for issue on 9 October 2025 and were signed on its behalf by:

Mr M R Jones - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

4,442,949

4,147,647

Investments

13

50,300

50,300

4,493,249

4,197,947

CURRENT ASSETS

Debtors

15

10,000

10,000

Cash at bank

2,850,850

2,714,612

2,860,850

2,724,612

CREDITORS

Amounts falling due within one year

16

414,048

1,013,005

NET CURRENT ASSETS

2,446,802

1,711,607

TOTAL ASSETS LESS CURRENT LIABILITIES

6,940,051

5,909,554

CREDITORS

Amounts falling due after more than one year

17

1,029,809

1,276,709

NET ASSETS

5,910,242

4,632,845

CAPITAL AND RESERVES

Called up share capital

22

200

200

Retained earnings

23

5,910,042

4,632,645

SHAREHOLDERS' FUNDS

5,910,242

4,632,845

Company's profit for the financial year

1,517,397

800,328

The financial statements were approved by the Board of Directors and authorised for issue on 9 October 2025 and were signed on its behalf by:

Mr M R Jones - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

200

8,218,488

8,218,688

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

1,352,504

1,352,504

Balance at 31 March 2024

200

9,330,992

9,331,192

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

1,002,107

1,002,107

Balance at 31 March 2025

200

10,093,099

10,093,299

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

200

4,072,317

4,072,517

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

800,328

800,328

Balance at 31 March 2024

200

4,632,645

4,632,845

Changes in equity

Dividends

-

(240,000

)

(240,000

)

Total comprehensive income

-

1,517,397

1,517,397

Balance at 31 March 2025

200

5,910,042

5,910,242

Cash flows from operating activities

Cash generated from operations

1

1,955,373

2,764,346

Interest paid

(112,161

)

(155,561

)

Interest element of hire purchase payments paid

(6,876

)

(11,543

)

Tax paid

(789,763

)

(383,988

)

Net cash from operating activities

1,046,573

2,213,254

Cash flows from investing activities

Purchase of intangible fixed assets

(250,000

)

-

Purchase of tangible fixed assets

(780,184

)

(371,845

)

Sale of tangible fixed assets

47,601

10,250

Interest received

106,762

84,493

Net cash from investing activities

(875,821

)

(277,102

)

Cash flows from financing activities

Loan & HP repayments in year

(246,902

)

(733,469

)

Capital repayments in year

(123,155

)

(142,900

)

Amount introduced by directors

(140,000

)

140,000

Amount withdrawn by directors

(136,986

)

(100,000

)

Equity dividends paid

(240,000

)

(240,000

)

Net cash from financing activities

(887,043

)

(1,076,369

)

(Decrease)/increase in cash and cash equivalents

(716,291

)

859,783

Cash and cash equivalents at beginning of year

2

4,208,694

3,348,911

Cash and cash equivalents at end of year

2

3,492,403

4,208,694

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

31.3.25

31.3.24

£

£

Profit before taxation

1,389,984

1,876,188

Depreciation charges

492,903

481,559

Profit on disposal of fixed assets

(8,169

)

(10,250

)

Finance costs

119,037

167,104

Finance income

(106,762

)

(84,493

)

1,886,993

2,430,108

Increase in stocks

(252,618

)

(406,018

)

Increase in trade and other debtors

(89,537

)

(84,363

)

Increase in trade and other creditors

410,535

824,619

Cash generated from operations

1,955,373

2,764,346

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 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

3,528,427

4,208,694

Bank overdrafts

(36,024

)

-

3,492,403

4,208,694

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

4,208,694

3,348,911

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

4,208,694

(680,267

)

3,528,427

Bank overdrafts

-

(36,024

)

(36,024

)

4,208,694

(716,291

)

3,492,403

Debt

Finance leases

(290,545

)

123,155

(167,390

)

Debts falling due within 1 year

(240,577

)

-

(240,577

)

Debts falling due after 1 year

(1,276,709

)

246,900

(1,029,809

)

(1,807,831

)

370,055

(1,437,776

)

Total

2,400,863

(346,236

)

2,054,627

1.	STATUTORY INFORMATION

C L Jones (Holding) Company 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and 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 preparation of the financial statements in compliance with the above mentioned regulations requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.

As mentioned in one of the following notes, and 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 present the results of the Company and its subsidiaries (i.e. the Group) as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of the business combinations using the purchase method. On the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated income statement and retained earnings from the date of which control is obtained. They are unconsolidated from the date that control ceases.

In accordance with the transitional exemption available under Financial Reporting Standard 102 (FRS102), the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS102, beginning 1 April 2015.

Going concern

At the time of approving the financial statements, the directors have reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the 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

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

Stock valuation

Stocks are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made

Turnover

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

Sales of goods

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

- The company has transferred the significant risks and rewards of ownership to the buyer.

- The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.

- The amount of revenue can be measured reliably.

- It is probable that the company will receive the consideration due under the transaction; and

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

Tool hire

Rental income on assets hired under hire contracts is recognised on a straight-line basis over the period of the hire.

Operating leases: the group companies as lessee

Rentals paid under operating leases are charged to the income statement on a straight-line basis over the lease term.

Operating leases: the Group as lessee

Rentals received under operating leases are credited to the profit & loss on a straight-line basis over the lease term.

Goodwill

Amortisation is provided at the following annual rates in order to allocate the cost of the assets over their estimated useful lives.

- Goodwill - 20% straight line