REGISTERED NUMBER: 13926264 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 31 March 2025

for

LON Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditor

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

DIRECTOR:

L M O'Neil

REGISTERED OFFICE:

Unit 2b Vantage Business Park

Bloxham Road

Banbury

Oxfordshire

OX16 9UX

REGISTERED NUMBER:

13926264 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ashley Painter ACA FCCA MAAT

AUDITOR:

Blencowes Chartered Accountants

& Statutory Auditors

15 High Street

Brackley

Northamptonshire

NN13 7DH

The director presents his strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

The directors are pleased to introduce the group's annual report for the year ended 31st March 2025. The profit for the year after taxation and the results for the year are shown on page 10. The directors consider the results and position at the year end to be satisfactory. For the trading subsidiary turnover decreased by 0.3%% over the previous year however the companies gross profit percentage decreased by 2.4% from 16.9% in the previous year to 17.2%. As a result of increased material costs as seen across the industry, however the gross profit performance is still considered to be excellent given the difficult trading environment.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are as follows :

UNFORESEEN CONTRACT RISKS AND LOSSES

Operating on tight profit margins, the construction industry is prone to the impact of unforeseen events and the losses that can ensue on individual projects or more widely in the case of risks such as weather and supply chain pressure.

A key approach to countering this risk is through a business model that results in numerous individual contracts resulting in spreading the contract risk.

CASH FLOW AND LIQUIDITY RISK

Cash flow is the risk that inflows and outflows of cash equivalents will not be sufficient to finance day to day operations of the company.

The critical policy to counter act this risk has been to retain a significant level of historic profits rather than releasing this cash in the form of dividends.

In addition the company manages cashflow by careful negotiations of terms with customers and suppliers to maintain available funds to meet the liabilities as they fall due.

CREDIT RISK

Credit risk is the risk that one party to finance instrument will cause a financial loss for the other party by failing to discharge an obligation.

Company policies are aimed at minimizing losses and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

INFLATION RISK

Contract financial performance is subject to unforeseen supply chain price increases. To identify these risks, the company continuously monitors forward supply chain prices through dialogue with suppliers and subcontractors. Where risks are not mitigated through cost reimbursable forms of contract or fixed with the supply chain at the start of a contract, allowances and price increase mechanisms are factored into contract agreements.

GOING CONCERN

The Board has undertaken a comprehensive review of the Group forecasts for 2025 and 2026. As part of this review, the directors consider the potential impact of reasonable downside scenarios on the Group's base case forecast.

Based on the expected trading patterns, a strong balance sheet, the strong turnover levels and the pipeline of opportunities the outlook for 2025 and beyond remains positive.

As the time of approving the financial statements, the directors consider that the Group has adequate resources to remain in operation for the foreseeable future and have no reason to believe that a material uncertainty exists that may cast significant doubt about the Group's abilities to continue as a going concern.

Accordingly, the financial statements have been prepared on a going concern basis of accounting.

ON BEHALF OF THE BOARD:

L M O'Neil - Director

8 December 2025

The director presents his 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 parent company of the Lon Holdings group of companies and the group trades as heating and plumbing engineers.

DIVIDENDS

No interim dividend was paid during the year. The director recommends a final dividend of £5 per share.

The total distribution of dividends for the year ended 31 March 2025 will be £ 500 .

DIRECTOR

L M O'Neil held office during the whole of the period from 1 April 2024 to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

No political donations were made during the year

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditor is unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditor is aware of that information.

AUDITOR

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

ON BEHALF OF THE BOARD:

L M O'Neil - Director

8 December 2025

Opinion

We have audited the financial statements of LON Holdings Limited (the 'parent') and it's subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Cash Flow Statement and Consolidated Notes to the 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 its 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the Strategic Report and the Report of the Director 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is responsible for assessing the group'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 director either intends to liquidate the group or to cease operations, or has 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.

Irregularities, including fraud, are instances of non-compliance with law and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the group and its industry, we identified that the principal risks of non-compliance with laws and regulations to the UK tax legislation are, pension legislation, employment regulations, health and safety regulations, anti-bribery, corruption and fraud and money laundering,. We considered the extent to which non-compliance might have a material effect on the financial statements.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

We evaluated the directors and management incentives and opportunities for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgments and assumptions in significant accounting estimates, in particular the valuation of investments and significant one-off or unusual transactions.

Our audit procedures were designed to respond to these identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures include but were not limited to the following

- Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations:

- Communicating the identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit and

- Considering the risk of acts by the group which were contrary to applicable laws and regulations, including fraud.

- Inspecting correspondence if any with relevant licensing or regulatory authorities

- Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation

- Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

- Obtaining an understanding of the Company's policies and procedures relating to:

(a) Detecting and responding to the risks of fraud and

(b) Internal controls established to mitigate risks related to fraud.

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

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all 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 Auditor.

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 Auditor 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.

Ashley Painter ACA FCCA MAAT (Senior Statutory Auditor)

for and on behalf of Blencowes Chartered Accountants

& Statutory Auditors

15 High Street

Brackley

Northamptonshire

NN13 7DH

8 December 2025

TURNOVER

19,542,141

19,601,381

Cost of sales

16,211,430

15,758,804

GROSS PROFIT

3,330,711

3,842,577

Administrative expenses

2,263,716

2,276,296

1,066,995

1,566,281

Other operating income

(12,854

)

13,977

OPERATING PROFIT

5

1,054,141

1,580,258

Interest receivable and similar income

24,205

14,583

1,078,346

1,594,841

Interest payable and similar expenses

7

18,023

16,480

PROFIT BEFORE TAXATION

1,060,323

1,578,361

Tax on profit

8

276,756

445,685

PROFIT FOR THE FINANCIAL YEAR

783,567

1,132,676

Profit attributable to:

Owners of the parent

587,675

849,507

Non-controlling interests

195,892

283,169

783,567

1,132,676

PROFIT FOR THE YEAR

783,567

1,132,676

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

783,567

1,132,676

Total comprehensive income attributable to:

Owners of the parent

587,675

849,507

Non-controlling interests

195,892

283,169

783,567

1,132,676

ASSETS

FIXED ASSETS

Intangible assets

12

(65,915

)

(74,155

)

Tangible assets

13

675,871

531,125

Investments

14

-

-

609,956

456,970

CURRENT ASSETS

Stocks

15

453,299

214,575

Debtors

16

4,197,605

3,420,323

Cash at bank and in hand

1,623,968

1,709,697

6,274,872

5,344,595

6,884,828

5,801,565

CAPITAL, RESERVES AND LIABILITIES

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

2,019,991

1,432,816

2,020,091

1,432,916

NON-CONTROLLING INTERESTS

868,271

754,046

TOTAL EQUITY

2,888,362

2,186,962

PROVISIONS FOR LIABILITIES

19

163,316

117,194

CREDITORS

Amounts falling due within one year

20

3,252,254

2,709,011

Amounts falling due after more than one year

21

580,896

788,398

3,833,150

3,497,409

6,884,828

5,801,565

The financial statements were approved by the director and authorised for issue on 8 December 2025 and were signed by:

L M O'Neil - Director

ASSETS

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

1,793,925

1,793,925

1,793,925

1,793,925

CURRENT ASSETS

Cash at bank

183,981

187,720

1,977,906

1,981,645

CAPITAL, RESERVES AND LIABILITIES

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

1,268,457

1,036,121

SHAREHOLDERS' FUNDS

1,268,557

1,036,221

CREDITORS

Amounts falling due within one year

20

220,000

207,700

Amounts falling due after more than one year

21

489,349

737,724

709,349

945,424

1,977,906

1,981,645

Company's profit for the financial year

232,837

234,323

The financial statements were approved by the director and authorised for issue on 8 December 2025 and were signed by:

L M O'Neil - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 April 2023

100

589,309

589,409

552,543

1,141,952

Changes in equity

Dividends

-

(6,000

)

(6,000

)

(81,666

)

(87,666

)

Total comprehensive income

-

849,507

849,507

283,169

1,132,676

Balance at 31 March 2024

100

1,432,816

1,432,916

754,046

2,186,962

Changes in equity

Dividends

-

(500

)

(500

)

(81,666

)

(82,166

)

Total comprehensive income

-

587,675

587,675

195,892

783,567

Balance at 31 March 2025

100

2,019,991

2,020,091

868,272

2,888,363

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100

807,798

807,898

Changes in equity

Dividends

-

(6,000

)

(6,000

)

Total comprehensive income

-

234,323

234,323

Balance at 31 March 2024

100

1,036,121

1,036,221

Changes in equity

Dividends

-

(500

)

(500

)

Total comprehensive income

-

232,837

232,837

Balance at 31 March 2025

100

1,268,458

1,268,558

Cash flows from operating activities

Cash generated from operations

1

693,371

545,304

Interest paid

(290

)

-

Interest element of hire purchase payments paid

(17,733

)

(16,480

)

Tax paid

(553,756

)

(162,554

)

Net cash from operating activities

121,592

366,270

Cash flows from investing activities

Purchase of tangible fixed assets

(291,508

)

(131,348

)

Sale of tangible fixed assets

27,917

52,264

Interest received

24,205

14,583

Net cash from investing activities

(239,386

)

(64,501

)

Cash flows from financing activities

New HP in year

179,272

65,722

Capital repayments in year

(62,490

)

(63,840

)

Amount introduced by directors

1,363

150

Amount withdrawn by directors

(3,913

)

-

Equity dividends paid

(500

)

(6,000

)

Dividends paid to minority interests

(81,666

)

(81,665

)

Net cash from financing activities

32,066

(85,633

)

(Decrease)/increase in cash and cash equivalents

(85,728

)

216,136

Cash and cash equivalents at beginning of year

2

1,709,697

1,493,561

Cash and cash equivalents at end of year

2

1,623,968

1,709,697

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

31.3.25

31.3.24

£

£

Profit before taxation

1,060,323

1,578,361

Depreciation charges

97,754

95,380

Loss/(profit) on disposal of fixed assets

12,854

(13,977

)

Finance costs

18,023

16,480

Finance income

(24,205

)

(14,583

)

1,164,749

1,661,661

Increase in stocks

(238,724

)

(85,825

)

(Increase)/decrease in trade and other debtors

(774,735

)

167,965

Increase/(decrease) in trade and other creditors

542,081

(1,198,497

)

Cash generated from operations

693,371

545,304

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

1,623,968

1,709,697

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,709,697

1,493,561

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

1,709,697

(85,729

)

1,623,968

1,709,697

(85,729

)

1,623,968

Debt

Finance leases

(97,619

)

(116,782

)

(214,401

)

(97,619

)

(116,782

)

(214,401

)

Total

1,612,078

(202,511

)

1,409,567

**	CURRENT YEAR - MOVEMENT IN CASH AND CASH EQUIVALENTS

AS CALCULATED IN CONSOLIDATED CASH FLOW STATEMENT

DOES NOT AGREE TO MOVEMENT PER BALANCE SHEET

COMPARE MOVEMENT ON CONSOLIDATED CASH FLOW STATEMENT

=

(85,728

)

TO

MOVEMENT PER BALANCE SHEET

CASH AND CASH EQUIVALENTS

=

(85,729

)

1.	STATUTORY INFORMATION

LON 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 presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements include the accounts of the company and its subsidiary. All significant intercompany balances and transactions have been eliminated on consolidation.

Significant judgements and estimates

In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Judgements and key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts are detailed below

Revenue recognition in respect of contracts

The Company used the percentage of completion method to recognise revenue for fixed price contracts. The method requires the directors to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract. Variations to estimates could result in the over or under recognition of revenue

Recoverability of receivables

The Company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability, the directors consider factors such as the aging of the receivables, past experience of recoverability and the credit profile of the customers.

Determining residual values and useful economic lives of plant and equipment.

The Company depreciates tangible assets over their useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumption to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the Group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Revenue recognition

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

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measure. Revenue is measure as the fair value of the consideration received, excluding discounts, rebates and value added tax

The following conditions must apply before revenue is recognised:

Contract revenue recognition

Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that the contract costs incurred for work performed to date.

Variations in contract work, claims and incentive payments are included to the extent that the amount can be measure reliable and its receipt is considered probable.

Where the outcome of the contact cannot be estimated reliably, contract revenue is recognised to the extent of the contract costs incurred where it is probable, they will be recovered. Contact costs are recognised as an expense immediately.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contact when all of the following conditions are satisfied.

- The amount of revenue can be measure reliable

- It is probable that the Company will receive the consideration due under the contract

- The stage of completion of the contract at the end of the reporting period can be measures reliably and:

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

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 ten years.

Tangible fixed assets

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

Improvements to property

-

4% on cost

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling prices less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.