REGISTERED NUMBER: 14616596 (England and Wales)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 March 2025

for

Beech Group Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditor

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

C D Jellicoe

M Kerwin

G Vaughan

R M Tan

REGISTERED OFFICE:

The Foundry Business Centre

Marcus Street

Birkenhead

Wirral

CH41 1EU

REGISTERED NUMBER:

14616596 (England and Wales)

INDEPENDENT AUDITOR:

DJH Audit Limited

Pacific Chambers

11-13 Victoria Street

Liverpool

L25QQ

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

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development of the business during the period and its position as at 31 March 2025. Our review is consistent with that of a business of similar size and complexity and is written in the context of the risks and uncertainties the group faces.

The principal activity of the group is industrial demolition and other related services.

The group recorded a profit before tax of £3,969,744 but it is noted that this includes a £2.4M impairment loss disclosed separately on the face of the profit and loss account. The directors are pleased with the continued expansion of sales in a challenging market.. The group will continue to focus on its range of services in the forthcoming year to drive continued growth.

PRINCIPAL RISKS AND UNCERTAINTIES

Due to John Beech Limited being the only trading within the group, the performance of the entity is considered the principal risk for the parent company. The principal risks existing in respect of operations of the group is the potential loss of customers and legal claims for any health and safety breaches due to the nature of the work performed. The risk of the loss of revenue as a result of a loss of customers is addressed through maintaining strong customer relationships and ensuring pricing remains competitive in the market. Health and safety risks are addressed through regular training courses for our staff and a focus on ensuring health and safety guidelines are followed at all times.

KEY PERFORMANCE INDICATORS

Below are the key financial performance indicators used by the director when considering the performance of the group for the period. Given the nature of the business, non-financial performance indicators offer minimal value when assessing the performance of the group for the year, as such these are not considered.

Year ended31.3.2 5

Period Ended 31.3.24

Group turnover

£14,251,248

£18,648,698

Gross profit margin

56.8%

52.4%

Profit before tax

£3,969,744

£6,309,300

EBITDA (excl exceptional item in prior year and exluding impairment in current year)

£6,777,892

£8,864,931

Cash position

£1,576,259

£2,469,227

Current ratio

2.01

1.51

ON BEHALF OF THE BOARD:

G Vaughan - Director

1 December 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £1,179,875 (2024:£48,375)

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 April 2024 to the date of this report.

C D Jellicoe

M Kerwin

G Vaughan

Other changes in directors holding office are as follows:

R M Tan - appointed 1 June 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the group and the parent company financial statements in accordance with United Kingdom generally accepted accounting practice (United Kingdom Accounting Standards, comprising FRS 102 ‘The financial reporting standard applicable in the UK and Republic of Ireland’, and applicable law).

Under company law, 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 group and parent company and of the profit or loss of the group for that period. In preparing the financial statements, the directors are required to:

-

select suitable accounting policies and then apply them consistently;

-

state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-

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 parent company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the parent 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 parent 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 auditor is unaware, and each director 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 auditor, DJH Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G Vaughan - Director

1 December 2025

Opinion

I have audited the financial statements of Beech Group Holdings 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 Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 my 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

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

Conclusions relating to going concern

In auditing the financial statements, I 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 I have performed, I 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.

My 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 my Report of the Auditor thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

In my 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 I am 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, I have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion:

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

-	I have not received all the information and explanations I require for my 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.

Auditor's responsibilities for the audit of the financial statements

My 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 Auditor that includes my 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 my procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws 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 parent company and group and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the parent company and group, which were contrary to applicable laws and regulations including fraud, and 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 management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principle risks were related to inflated revenue and profit.

Audit procedures performed included:

-

review of the financial statement disclosures to underlying supporting documentation;

-

review of any correspondence with legal advisors, and enquiries of management and those charged with governance around actual and potential litigation and claims;

-

enquiries with group's staff to identify any instances with non-compliance with laws and regulations;

-

enquiries of management and review of monthly management accounts and reports in so far as they related to the financial statements;

-

testing of journals and evaluating, whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud, and evaluating the business rationale of significant transactions outside the normal course of business;

-

undertaking detailed substantive testing of material items and a sample of other items;

-

consideration of the reasonableness of the figures and analytical review, including comparison with previous years and expected trends; and

-

review of the compliance with and effectiveness of internal controls.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of my 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 my Report of the Auditor.

Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in a Report of the Auditor and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed.

Timothy Cherry FCCA (Senior Statutory Auditor)

for and on behalf of DJH Audit Limited

Pacific Chambers

11-13 Victoria Street

Liverpool

L25QQ

1 December 2025

TURNOVER

3

14,251,248

18,648,698

Cost of sales

6,151,699

8,884,684

GROSS PROFIT

8,099,549

9,764,014

Administrative expenses

1,794,957

1,343,671

6,304,592

8,420,343

Other operating income

100,052

86,796

OPERATING PROFIT

5

6,404,644

8,507,139

Profit/loss on sale of operatn

6

-

(1,432,900

)

Exceptional impairment loss

6

(2,400,000

)

-

4,004,644

7,074,239

Interest receivable and similar income

282

-

4,004,926

7,074,239

Interest payable and similar expenses

7

35,182

764,939

PROFIT BEFORE TAXATION

3,969,744

6,309,300

Tax on profit

8

1,704,010

1,680,261

PROFIT FOR THE FINANCIAL YEAR

2,265,734

4,629,039

Profit attributable to:

Owners of the parent

2,265,734

4,629,039

PROFIT FOR THE YEAR

2,265,734

4,629,039

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,265,734

4,629,039

Total comprehensive income attributable to:

Owners of the parent

2,265,734

4,629,039

FIXED ASSETS

Intangible assets

11

1,474,648

1,953,504

Tangible assets

12

1,107,524

988,716

Investments

13

-

-

2,582,172

2,942,220

CURRENT ASSETS

Stocks

14

12,000

6,000

Debtors

15

4,920,502

3,023,349

Cash at bank

1,576,259

2,469,227

6,508,761

5,498,576

CREDITORS

Amounts falling due within one year

16

3,235,986

3,639,001

NET CURRENT ASSETS

3,272,775

1,859,575

TOTAL ASSETS LESS CURRENT LIABILITIES

5,854,947

4,801,795

CREDITORS

Amounts falling due after more than one year

17

(58,000

)

(68,012

)

PROVISIONS FOR LIABILITIES

21

(130,324

)

(153,019

)

NET ASSETS

5,666,623

4,580,764

CAPITAL AND RESERVES

Called up share capital

22

100

100

Retained earnings

23

5,666,523

4,580,664

SHAREHOLDERS' FUNDS

5,666,623

4,580,764

The financial statements were approved by the Board of Directors and authorised for issue on 1 December 2025 and were signed on its behalf by:

G Vaughan - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

3,002,011

3,002,011

3,002,011

3,002,011

CURRENT ASSETS

Debtors

15

100

193,277

CREDITORS

Amounts falling due within one year

16

3,002,011

3,195,188

NET CURRENT LIABILITIES

(3,001,911

)

(3,001,911

)

TOTAL ASSETS LESS CURRENT LIABILITIES

100

100

CAPITAL AND RESERVES

Called up share capital

22

100

100

SHAREHOLDERS' FUNDS

100

100

Company's profit for the financial year

1,179,875

48,375

The financial statements were approved by the Board of Directors and authorised for issue on 1 December 2025 and were signed on its behalf by:

G Vaughan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Dividends

-

(48,375

)

(48,375

)

Total comprehensive income

-

4,629,039

4,629,039

Balance at 31 March 2024

100

4,580,664

4,580,764

Changes in equity

Dividends

-

(1,179,875

)

(1,179,875

)

Total comprehensive income

-

2,265,734

2,265,734

Balance at 31 March 2025

100

5,666,523

5,666,623

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Dividends

-

(48,375

)

(48,375

)

Total comprehensive income

-

48,375

48,375

Balance at 31 March 2024

100

-

100

Changes in equity

Dividends

-

(1,179,875

)

(1,179,875

)

Total comprehensive income

-

1,179,875

1,179,875

Balance at 31 March 2025

100

-

100

Cash flows from operating activities

Cash generated from operations

1

4,982,580

6,863,376

Interest paid

(758

)

(749,371

)

Interest element of hire purchase payments paid

(34,424

)

(15,568

)

Tax paid

(1,683,388

)

(257,494

)

Net cash from operating activities

3,264,010

5,840,943

Cash flows from investing activities

Purchase of tangible fixed assets

(358,240

)

(58,014

)

Purchase of controlling interest

(2,400,000

)

(2,564,154

)

Sale of tangible fixed assets

54,988

41,333

Interest received

282

-

Net cash from investing activities

(2,702,970

)

(2,580,835

)

Cash flows from financing activities

New loans in the period

-

3,120,108

Loan repayments in the period

(250,000

)

(3,897,378

)

Early repayment fees

-

(23,499

)

Capital repayments in the period

(24,133

)

(56,902

)

Amount introduced by directors

-

115,165

Equity dividends paid

(1,179,875

)

(48,375

)

Net cash from financing activities

(1,454,008

)

(790,881

)

(Decrease)/increase in cash and cash equivalents

(892,968

)

2,469,227

Cash and cash equivalents at beginning of year

2

2,469,227

-

Cash and cash equivalents at end of year

2

1,576,259

2,469,227

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

Period

25.1.23

Year Ended

to

31.3.25

31.3.24

£

£

Profit before taxation

3,969,744

6,309,300

Depreciation charges

156,206

140,750

Loss/(profit) on disposal of fixed assets

28,237

(2,598

)

Amortisation charge

217,042

217,042

Unwinding of deferred consideration

-

80,142

Early loan repayment fees

-

23,499

Loan arrangement fees

-

106,035

Impairment losses

2,400,000

-

Finance costs

35,182

764,939

Finance income

(282

)

-

6,806,129

7,639,109

Increase in stocks

(6,000

)

(2,000

)

(Increase)/decrease in trade and other debtors

(1,624,901

)

529,402

Decrease in trade and other creditors

(192,648

)

(1,303,135

)

Cash generated from operations

4,982,580

6,863,376

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,576,259

2,469,227

Period ended 31 March 2024

31.3.24

25.1.23

£

£

Cash and cash equivalents

2,469,227

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank

2,469,227

(892,968

)

1,576,259

2,469,227

(892,968

)

1,576,259

Debt

Finance leases

(106,133

)

24,133

(82,000

)

(106,133

)

24,133

(82,000

)

Total

2,363,094

(868,835

)

1,494,259

1.	STATUTORY INFORMATION

Beech Group Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirement of paragraph 33.7.

Basis of consolidation

The consolidated group financial statement consist of the financial statements of the parent company, Beech Group Holdings Limited, together with its subsidiary undertakings, HASAW Limited and John Beech Limited.

Adjustments have been made to the financial statements of the subsidiary undertakings to bring the accounting policies used and accounting periods in line with those used by the parent company.

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

Subsidiaries are consolidated in the group's financial statements from the date control commences until the date that control ceases.

Going concern

The financial statements have been prepared on a going concern basis. In determining the appropriate basis of preparation for the financial statements, the directors are required to consider whether the group can continue in operational existence for the foreseeable future.

After the review of the budget and predictions for a period of at least 12 months from the date of approval of these financial statements, and having considered the uncertainties prevalent when making predictions of future events, the directors are of the opinion that the group has adequate resources to continue in operational existence for the foreseeable future.

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

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements and estimates are deemed to be those which have had the most significant effects on those amounts recognised within the financial statements:

Accrued income

On average, projects take 2 weeks to complete from the date the work has commenced until sign off of the project. As a result of this, this gives rise to a period around the period end where work will have been completed and the risks and rewards are deemed to have transferred, but as the work is not fully completed, the works have not been invoiced to the customer. In determining the level of accrued income generated at the period end, management have assessed that revenue will accrue at a consistent rate over the average 2 week period of the project. This assumption has then been used to calculate the accrued income generated at the period end.

Useful life of goodwill

Amortisation rates in respect of the intangible assets held by the group are intended to reflect management's expectation of the useful economic life of those assets based on both historical experience as well as other external information.

Any impairment is based on managements estimate of the degree to which the asset is impaired by reference to internal and external factors such as expected value of future cash flows attributing to the asset.

Depreciation

Depreciation rates in respect of the fixed assets held by the group are intended to reflect management's expectation of the useful economic life of those assets based on both historical experience as well as other external information.

Discounting of financial instruments

Where the group enters into non-basic financial instrument, the directors estimate the effective interest rate attributable to the financing arrangement. This is done with consideration of internal and external data, including interest rates incurred on similar financing arrangements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales relates taxes. The fair value of consideration takes into account trade discount, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of goods), the amount of turnover can measured reliably, it is probably that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and material, as a proportion of total costs. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Goodwill

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.

Goodwill is amortised over its expected useful life. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the Statement of Comprehensive Income.

Goodwill in the financial statements consists of:

Origination

Amort. policy

Cost c/f

Amort c/f

Acquisition of John Beech Limited

10 years SL

2,170,546

434,084

Acquisition of HASAW Limited

5 years SL

2,138,186

Note 1 *

2,403,732

434,084

* Note 1 - an impairment review has been carried out and the investment in HASAW Limited is considered impaired and written down accordingly in the financial statements.

Intangible assets

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